Marketing Audit of At&t Wireless

Marketing Audit of AT&T Wireless

Kim

Marketing Management 551

Mr. Hullam

May 19, 2004

Marketing Audit of AT&T Wireless

The data services and youth market represent substantial growth potential. Data services have been a huge success in foreign wireless markets. AT&T Wireless must find innovative ways to entice users to take advantage of these services, so that they can tap into this new market as well. The revenue obtained from data services can help offset the slow industry wide growth. This will enable AT&T Wireless to extract more money from their customers on a monthly basis. The lucrative youth market is more inclined to try text messaging, downloadable ringtones and the wireless web. Increase promotions geared toward the teenage market since they influence their parents purchasing decisions. Teenagers want to be fashionable and stay connected to their friends in ways other than and in addition to voice communication while having entertaining games all on their mobile phones. Exploit their youthfulness and research and modify products to adjust with what they value as they enter the young adult market.

There has been a sharp decline in customer satisfaction over the years. Customer complaints are on the rise especially since the difficulties began with the introduction of LNP (local number portability). In order to decrease churn and improve customer satisfaction AT&T Wireless's brand image must be rebuilt. Emphasize the benefits of the new GSM system on the web, in print and in television ads. Network quality is good but it can be strengthened by partnerships and licenses. This in turn will boost customer satisfaction ratings. Prepaid services are an option for the young market since they do not have enough credit history to acquire a contract. Continue to offer services for customers who fit this profile.

Competition is fierce with six major players in the wireless industry. Verizon Wireless is the largest wireless competitor but Nextel is a major threat. They have had a

significant growth as a result of the popularity of their walkie-talkie phones. Nextel also features free incoming calls and Cingular has begun roll-over minutes. If the acquisition

by Cingular is approved, roll-over minutes should be offered on select higher priced plans. Getting customers to see the benefits thereby increasing the use of data services will set AT&T apart from the competition.

Establishing a global market will give customers the perception that their wireless phone can connect them to anyone from anywhere. This is a massive claim that would make AT&T Wireless a notable competitor. To ensure exceptional network quality reliability tests have to be done frequently to correct any dead zones in the early stages. Continue to lease and partner with global companies to expand the footprint. Create new data services that are of significant value to consumers. Conduct market research and study international trends to see what customers want and to anticipate future demand.

The strategies needed to achieve these objectives are to build partnerships and acquire licenses to help strengthen the coverage area. Continue to push mMode services to familiarize customers with how data services can enhance the quality of their life. Advertisements can be shown displaying people staying connected to the world through voice and data services through the use of their small sleek cell phone. In addition to offering text messages for an extra monthly fee, bundle it in the set price of the plan for new customers. This will make it look more attractive to the consumer. Continue

conducting market research and observing other wireless industries around the globe to ascertain what data technologies consumers will find value in.

Retail stores are an indispensable resource. It allows customers to directly interact and learn how to use the extra features on their phone. This hands on experience is

invaluable and therefore more retail stores should be established. For those customers that order online and cannot get the benefit of a one on one demonstration, offer a limited time only free trial of some of the data services. This will allow the customer to test features with minimal or no risk. Continue to tap into the youth data services market through established reality shows that allow them to become more familiar with text and picture messaging.

Although nationwide calling plans are very attractive to most consumers, local plans should still be offered. AT&T Wireless should run a trial of rollover minutes in a random sample of customers who are on local plans to see if they are more inclined to stay with them if this feature were offered on a regular basis. Pre-paid phones are an excellent way to attract the younger demographic who do not qualify for contract based service. Promotions can be offered at retail stores where sales have slipped in order to lure customers back to AT&T Wireless. Records should be kept of which promotions worked well in hopes of emulating that idea in the future and/or improving on or abandoning a promotion that was less profitable.

Benchmarking is a critical element to develop further success. Review the types of advertisement, customer satisfaction results and promotional techniques to uncover how international carriers shifted their users from voice to the more profitable data

services. Accurately forecast the costs of updating systems and allow ample time to test and correct the system prior to completion. Brand image deteriorated with the

implementation of LNP. Allocate funds to run advertisements assuring customers that GSM service is reliable. Conduct independent survey's to determine if customer opinions of AT&T Wireless are or are not improving.

I recommend that AT&T Wireless heavily promote mMode which allows customers to customize their phone with data services to their liking. Rates can be priced slightly high since mMode is tailored to individual preferences. Continue to seek licenses and partnerships in order to expand and improve network strength. Focus on regaining customer loyalty and rebuilding brand image by running advertisements assuring customers that GSM can handle all of their voice and data needs. Exploit the lucrative youth market since they are more inclined to use Wi-Fi and other data services. Study the international