Beneficial Marketing Goals for AT&T
When a customer sees the ever famous AT&T logo, the first thing that comes to mind are wireless devices such as the Apple iPhone or the Samsung Android. While offering a wide variety of cell phones and family plans to users nationwide, AT&T has expanded their marketing target over the past few years.
Recently they have introduced Digital TV with U-verse, home phone service, internet service, and competitive bundling pricing for all of these offered products. While keeping in mind the differences of certain age groups, the American’s want to save money and they want for updated technology in family homes AT&T provided its consumers with an easy access platform online. (www.att.com)
Also, AT&T has planned objectives to produce special offers and attract a range of new and old customers based on specific demographics. This marketing strategy must be executed efficiently and effectively to generate a positive income for future progress.
These cellular devices and plans are amazing assets to kids, parents, students, and seniors who like to stay in contact with one another. These targets vary based on age, location, gender, education, and profession which helps to promote AT&T’s mission statement. AT&T’s employee mission statement is as follows:
“Our mission is to exploit technical innovations for the benefit of AT&T and its customers by implementing next-generation technologies and network advancements in AT&T's services and operations.” (www.corp.att.com)
CEO, Randall L. Stephenson, projects that over 80% of the people in the United States will possess a cellular device. With an ever-changing economy advancing in technology this statement provides basis for what is to be expected.
Competing cellular providers also pose both threats and opportunities for AT&T. Companies such as Verizon, T-Mobile, and Sprint have evaluated their marketing plan and continue to utilize environmental scanning. This means that all 3 of these competing companies are well aware of AT&T’s offers with bundling services and plan to act on these happenings. Some advantages that AT&T has over its competitors are that they offer a wide range of plans for any family or individual, offer to buy-out your contract from another provider for switching, and payment plans on the latest devices so that current and new users have the latest technology in their hands.
With every advantage there is an equal or opposite disadvantage. Verizon offers their consumers with the pay-as-you-go plan, where you pay for your usage up front to avoid a surprising phone bill each month. This helps a majority of U.S. citizens who are living on a fixed income. Sprint has recently advertised the “Cut your bill in half,” campaign which offers new consumers the option to literally save over half on their monthly bill by switching from competitors.
This was a tremendous boost in sales for Sprint in recent months after targeting Americans who want to save money. Then, T-Mobile produced the payment plan option for upgrading to new devices for current customers and purchasing a new devices for new consumers. This new development from all three competitors could produce a huge marketing threat to AT&T. (http://fortune.com/fortune500/att-inc-11/)
While AT&T strives to succeed and provide the best service for its consumers, they must also focus on current performance within the company. Currently posted on Forbes Magazine’s website, AT&T was ranked #11 out of 100 as a Fortune 500 company. This was a definite success for AT&T because within the last year earnings more than doubled. (http://fortune.com/fortune500/att-inc-11/)
The article mentioned there was an 18.7% increase in data revenue from consumers who utilize the internet on their mobile devices. This increase in moral and sales is the benefit of a proper marketing strategy. AT&T advertised effectively their new plans and how simple it is to upgrade to the latest phone without breaking the bank. They are providing a competitive edge for its competitors by purchasing a consumer’s contract to switch.
To better compete AT&T utilizes the marketing mix for its products. For example, a group of marketers meet to provide a solution to better offer Pricing, Placement, Promotion, and Products to their consumers. Promoting your products is the key to gain the interest of a potential consumer. AT&T has effectively promoted their products to all individuals regardless of differentials. A popular example would be promoting the Apple iPod online for younger, tech-savvy individuals and commercials in between popular shows for the at-home parents or seniors. In addition to promoting your products efficiently, you must also know how to properly price your products.
This not only gives your service the competitive edge against competitors, but it also appeals to all individuals looking to get “more bang for their buck.” AT&T has strived in giving current and new consumers the best rates popular in an over-saturated cellular market. The best pricing that AT&T has offered is to not only have your contract bought out from your existing provider, but to also give the option of purchasing the latest device on a payment plan.
Devices such as the Apple iPhone 6+ have low payment plans starting around $25.00 per month. This particular pricing is appealing to a business professional who needs the latest technology to keep up with clients or a busy school student searching for the structure of an atom for class on Google.
Apple iPhone 6 Plus
When looking at future goals for AT&T there will always be potential threats and opportunities for the company as a whole. One major threat that AT&T may have is signal and broadband usage. This means that with more and more consumers utilizing the internet on their phones, AT&T will have to expand their bandwidth or possibly buy out a lower income cellular company to expand their signal. With more towers placed nationwide comes more consumers to enjoy AT&T’s cellular products. Also, in order for AT&T to grow financially and exponentially, the company needs to keep a competitive edge on pricing for their products.
This means having a strong marketing strategy and the continuance of environmental scanning. Consumers are more likely to buy and use your product when they know the money spent was of value to them. Presenting value to consumers through offers include Valentine phone discounts in February and Christmas discounts on multiple upgrades in December. This provides a basis for consumers who want to have a new, updated phone and the need to save money on cellular monthly bills.
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With every company there are strengths and weaknesses that must be solved within the company. AT&T has strengths in competitive pricing, payment plans, and special offers for current and new consumers. These strong points for AT&T must be continued to strive in the cellular marketing world. Also, AT&T must make sure the promotional expertise is on point as to attract every customer to at least set foot in a local store to inquire what they have to offer. Some weaknesses that must be addressed for AT&T include focusing more on data plans.
Roughly about 80% of Americans have data plans with their cellular provider due to the increasing popularity of the internet for younger and older consumers. Possibly finding a better solution to provide data to its consumers without “digging” deeper in their pockets might actually boost sales even more and increase demand for AT&T phones and family plans.