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Verizon Wireless Marketing - Case Study Example

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Summary to case study on topic "Verizon Wireless Marketing"
Verizon is the second largest US telecommunications services provider (after AT&T). The company's wireline business provides local telephone, long-distance, and Internet access services to residential and small to mid-sized businesses in 28 states and Washington, DC…
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Verizon Wireless Marketing
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Download file "Verizon Wireless Marketing" to see previous pages... Verizon Business provides communications and information technology (IT) services to global business and government clients.
Headquartered in Basking Ridge, N.J., Verizon Wireless has the largest number of retail customers in the industry and is the most profitable wireless company in the U.S.
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The company is a joint venture of Verizon Communications (NYSE:VZ) and Vodafone (NYSE and LSE: VOD). (Verizon Wireless, 2008)
Since wireless is the way of the future, the wireless divisions of these companies is the most hotly contested, and the focus of this "Battle of the Brands." It is important to note that despite Verizon Wireless bearing solely Verizon's name, it is not owned by just them, it is a 55%-45% joint venture between Verizon and Vodafone Group (NYSE: VOD). It is also important to note that AT&T Mobility is the service formerly known as Cingular, which was acquired by AT&T in 2006 when it bought BellSouth for $86B.
Verizon Wireless lives up to its tagline as "America's Most Reliable Wireless Network". By doing so, it is the only major wireless company that offers a test-drive pledge that pays calls if a customer isn't satisfied and switches to another carrier. This marketing strategy is believed to have been backed upon by a broad marketing research. Verizon Wireless have focused on strengthening its customer loyalty, making it their edge from their competitors. It is believed to have the highest customer loyalty in the industry based on lowest-in-industry churn. -- footnote
Compared to AT&T which is their serious challenger in wireless network, Verizon Wireless' products are almost the same with its competitor. Thus, the need to identify an area where they can perform better. Based on marketing research conducted, in order to increase customers of an industry, you need to increase a customer's trust in your products. Launching the Verizon Wireless Test Driver's Manual is a very strategic tactic that has been very effective for the company. It definitely achieved their objective to increase their trial rate. When a product if of high quality performance, a very vital percent, if not 100%, will lead to purchase rate and will then lead to re-purchase rate of customers until customer loyalty is established. By reading the mind of their consumers, Verizon Wireless knew exactly that their products are of high quality standards, leaving a little, if not zero, room for shifting to competition. None of this will be achieved if no marketing research has been intricately done to its market.
Competitive intelligence plays a vital role in analyzing competition of AT&T and Verizon Wireless. To analyze each of the company's stregths and weaknesses is important in order to come up with strategies to counter each other's marketing points. In detail, the present market of AT&T is composed of 71 million users againt 65 million users of Verizon Wireless. Looking first at Verizon Wireless, its strategy is simple. It focuses on the strength of its network as its main selling point. From the company's "Can you hear me now" ads, to the current "It's the network" ads, the point the company conveys is that if you have Verizon, you are covered by the biggest and most reliable network. AT&T's most memorable recent ads may be Martin Scorsese "We won't interrupt your phone calls, please don't interrupt our movies" ads that play at the cinema, but the company also runs television ads that focus on "more bars in more ...Download file "Verizon Wireless Marketing" to see next pagesRead More
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