3G Marketing: Communities and Strategic Partnerships

344 Pages·2004·2.05 MB·English

by  Tomi T. Ahonen

3G Marketing
3G Marketing: Communities and Strategic Partnerships Tomi T. Ahonen, Timo Kasper and
Sara Melkko
© 2004 John Wiley & Sons, Ltd ISBN: 0-470-85100-7
Reviews of 3G Marketing:
“3G Marketing is packed with useful and practical techniques and examples
of how mobile operators can use modern targeted marketing to achieving
success in the competitive marketplace.”
Steven S K Chan
Director, Internet Services and Product Development
MobileOne, Singapore
“The authors have accurately described the issues involved in the introduction
of radically new services into untested markets, and provide a wealth of
practical tools and methods to help achieve market success.”
Claus Nehmzov
International Development Director
Shazam Entertainment, UK
“In this book the authors offer an insightful look into how modern wireless
carriers are capitalising on their customer data and developing targeted
marketing propositions.”
Jan-Anders Dalenstam
Sr Vice President, Business Development
Ericsson Wireless Communications, USA
“The authors combine a solid marketing foundation with the latest mobile
telecoms phenomena such as reachability and communities to create a
handbook for achieving customer satisfaction in the connected age.”
Alan Moore
CEO
Small Medium Large Xtralarge (SMLXL), UK
“This book is the first to explain how telecoms billing, tariffing, and revenue
assurance all relate to profitability as operators rush to deploy advanced
and complex services.”
David Leshem
Executive Vice President Marketing
Compwise, Israel
3G Marketing
Communities and Strategic Partnerships
Tomi T Ahonen
Independent Consultant, UK
Timo Kasper
Observer Finland, Finland
Sara Melkko
Independent Expert, Germany
Copyright © 2004 John Wiley & Sons Ltd, The Atrium, Southern Gate,
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Library of Congress Cataloging in Publication Data
Ahonen, Tomi T.
3G marketing:communities and strategic partnerships/Tomi T. Ahonen, Timo Kasper,
Sara Melkko.
p. cm.
Includes bibliographical references and index.
ISBN 0-470-85100-7 (cloth:alk. paper)
1. Cellular telephone services industry. 2. Cellular telephone equipment industry.
3. Cellular telephones—Marketing. I. Title: Three G marketing. II. Kasper, Timo.
III. Melkko, Sara. IV. Title.
HE9713.A356 2004
384.5′3′0688—dc22 2004011077
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
ISBN 0-470-85100-7
Typeset in 10/12pt Times by Integra Software Services Pvt. Ltd, Pondicherry, India.
Printed and bound in Great Britain by TJ International Ltd, Padstow, Cornwall.
This book is printed on acid-free paper responsibly manufactured from sustainable forestry in
which at least two trees are planted for each one used for paper production.
Contents
About the Authors xvii
Foreword xix
Acknowledgements xxi
1 Introduction 1
1.1 A look back 2
1.1.1 Enter I-Mode 5
1.1.2 The flap about WAP being a failure 6
1.1.3 Growth rate 7
1.2 What have we learned? 8
1.2.1 Telecoms operators and 3G marketing 9
1.3 Lets touch upon definitions of 3G 10
1.3.1 So what is 4G 12
1.3.2 W-LAN or Wi-Fi is definitely not 4G 12
1.3.3 4G will arrive ten years from now 13
1.4 To sum up 13
2 Market Intelligence 15
2.1 What is market intelligence 16
2.1.1 Evolution of market intelligence 16
2.1.2 Information, analysis, knowledge and intelligence 16
2.1.3 Knowledge or Intelligence 17
viii Contents
2.2 Systematic market intelligence 17
2.2.1 Market intelligence and business intelligence 18
2.2.2 Legal and regulatory intelligence 18
2.2.3 Customer intelligence 19
2.2.4 Competitor intelligence 20
2.2.5 Technical environment intelligence 21
2.2.6 Telecoms is not used to rapid innovation 22
2.2.7 The computer industry thrives on rapid innovation 23
2.3 ‘Environment scanning’ intelligence 25
2.3.1 Resource market intelligence 26
2.3.2 Reference market studies 27
2.3.3 Partnership intelligence/networking 27
2.4 Towards a higher intelligence 29
3 Segmentation 31
3.1 What is segmentation? 32
3.1.1 Test of current telecoms segmentation 33
3.1.1.1 Segmentation by size 34
3.1.1.2 Segmentation by technology 34
3.1.1.3 Segmentation by billing 34
3.2 Segmentation criteria 35
3.2.1 Segmentation from the academics 35
3.2.2 Segmentation by geographical pattern 36
3.2.3 Segment by demographics 36
3.2.4 Industry type 36
3.2.5 Segmentation by using various distribution
channels 38
3.2.6 Personal data 38
3.2.7 Segmentation by psychological patterns 38
3.3 ERP, CRM and segmentation 38
3.3.1 From hard to soft facts 39
3.3.2 Users broken down — segmenting situations 40
3.4 From theory to practice: building a segmentation model 41
3.4.1 Characteristics of a useful segmentation model 41
3.4.2 Segmentation by user behaviour 41
3.4.3 How many segments? 43
3.4.4 Comparison with the car industry 46
3.4.5 Beyond a segment of one 47
3.4.6 From business to individual 48
3.4.7 Self-organizing maps 48
3.4.8 From alphas to omegas 49
3.5 Developing the segmentation model 51
3.6 To sum up segmentation 54
Contents ix
4 Service Development and Management 55
4.1 Product development — the Five Ms 56
4.1.1 Power of personalization 57
4.1.2 Money brings content 58
4.1.3 Talking machines 59
4.2 Service management (product management) 61
4.2.1 Knowing the market 62
4.2.2 New service ideas 62
4.2.3 Brainstorming 63
4.2.4 From idea to opportunity 64
4.2.5 Let there be light 64
4.2.6 It is your own sales who knows your customer best 65
4.2.7 Caught in the middle of the triangle 66
4.3 The launch 67
4.3.1 Tariffing, cost and profit 67
4.4 Killing a service 68
4.5 To finish with service creation 68
5 Partnership Management 71
5.1 What is partnering? 72
5.1.1 Flavours of partnering 73
5.1.2 Who are the prospective partners? 74
5.2 Operators are new to this game 75
5.2.1 Culture shock 76
5.3 Revenue sharing 78
5.3.1 What kind of revenue (and/or cost) sharing options? 79
5.3.2 What level of revenue sharing 80
5.4 Main factors influencing split in revenue share 81
5.4.1 Exclusivity 82
5.4.2 Value chain 82
5.2.3 On-screen location 83
5.2.4 Brand strength 83
5.2.5 Location information 84
5.2.6 Charging/billing information 84
5.3 Rules of thumb 84
5.4 Contract management 86
5.4.1 Keys to success 87
5.4.2 Partnering for profit 88
5.5 Parting with partnering 89
6 Terminals 91
6.1 How our gadgets evolve 92
6.1.1 Convergence 93
x Contents
6.2 The Swiss knife or all-in-one device 95
6.3 Custom-use devices 96
6.3.1 The PDA 97
6.3.2 Digital camera 99
6.3.3 Gaming devices 101
6.3.4 The credit card 102
6.3.5 GPS devices 103
6.3.6 3G modems 103
6.3.7 Custom devices 103
6.4 Automobiles 104
6.4.1 Servicing and maintaining the car 104
6.4.2 Navigation 105
6.4.3 Car security and anti-theft 105
6.4.4 Multitasking and the car 106
6.4.5 Games in the car 106
6.5 More devices that seem like science fiction 106
6.6 Handset subsidies 108
6.6.1 Device needs 109
6.6.2 Connectivity 109
6.6.3 Synchronization 110
6.7 Handing off on handsets 110
7 Distribution 113
7.1 Sales channels 114
7.1.1 Operator’s own stores 114
7.1.2 Independent stores 115
7.1.3 Departments and sales desks of other stores 116
7.1.4 IT integrators 116
7.1.5 The Internet as a sales channel 117
7.1.6 The mobile portal as a sales channel 118
7.1.7 MVNOs 118
7.2 Managing channel conflicts 118
7.3 Selling new mobile services 119
7.3.1 Bundling an m-component 119
7.3.2 Soul of the store sales rep 120
7.4 Information flow 121
7.5 Warehousing, shipping, inventory 122
7.6 Distribution as an end 123
8 Portals 125
8.1 Defining portals 126
8.2 3G portal categorization 126
8.2.1 Different types of mobile portal 126
8.2.2 Categorization 127
Contents xi
8.3 The 3D rule for mobile portals 127
8.3.1 What is murfing 128
8.4 Personalization 129
8.4.1 Authentication (‘intelligent’ portal) 129
8.4.2 Timing (‘instant’ portal) 130
8.4.3 Positioning (portal ‘to go’) 130
8.4.4 Pull versus push (portal ‘on demand’) 130
8.5 Open content policy – a decisive battle over 3G’s success 131
8.5.1 The more services, the more money for everybody 131
8.5.2 Price strategies: skimming versus penetration 132
8.6 Revenues and advertising 133
8.7 Collect customer data (registration) 133
8.7.1 Advertising 134
8.7.2 Buy your ad on the top of search engines 135
8.7.3 Cross selling (own products) 136
8.7.4 Customer loyalty programmes/clubs 136
8.7.5 m-Commerce (partner marketing) 136
8.7.6 Multi-access portal 136
8.8 Closing the portal 137
9 Promotion 139
9.1 Is the classic marketing mix all mixed up in 3G? 140
9.1.1 The AIDA rule 140
9.2 Crossing the 3G chasm 141
9.3 Public relations and press relations 143
9.4 Advertising mobile services 144
9.5 Publicity 147
9.6 Sponsorship and product placement 148
9.6.1 Viral marketing and communities 149
9.7 Conclusion 149
10 Branding 151
10.1 What is a brand? 152
10.2 Why brand? 152
10.2.1 Brands aid in decision 153
10.2.2 Brands and teenagers 154
10.2.3 Brands and price 154
10.2.4 Brand and loyalty 155
10.3 Needs to be comprehensive 155
10.3.1 Brands in mobile telecoms 156
10.4 How to build a brand 157
10.4.1 Where do I begin? 157
10.4.2 Employee buy-in 158
10.4.3 Damaging the brand 158