MARKETING PRINCIPLES

Marketing Principles

Vodafone

Elements of Marketing Process

Philip Kotler in his book defines Marketing Process to be a five- step model where the first four stages in the model explains how companies understand and comprehend their customers, build value for them and create strong relationships with their customers. In the last stage, they reap the reward of the value created for the customer in the form of increased sales and profits (Kotler & Armstrong, 2008, p.5).

Targeting Customer Wants- Vodafone giving new products and services built upon modern technological advances facilitating those customer needs and wants that he is aware of and also making him aware of those needs and wants that are there but the customer does not know of it, through Vodafone's services.

Consumer-driven Marketing Strategy - instead of the brand telling the customer what to do it is now the customer whose decision and preferences would be given value this is the new consumer driven marketing strategy of Vodafone (PTI, 2009, n.d.).

Creating Value- Vodafone keeps on launching new and value added services to, not only, capture potential customers but also to retain the existing customers.

Maintaining Satisfaction- Vodafone continually searches out ways to add value to all its services and the packages provided to its customers thus maintaining a good relationship with them.

Profits for Vodafone- all of the above activities then create value for the customers and sales and profit for the company

Benefits and Cost of Marketing Orientation for Vodafone

Benefits

When Vodafone offers more consumer centric and value added services it leads to increased sales and profits for the company. To become consumer centric understanding of market needs and wants is required and this will align Vodafone's strategy towards the goal set by the company. Resultantly this understanding will lead to better marketing of services aligning the products with customers need. So this understanding and better marketing will lead to long term profitability for Vodafone itself.

Costs

Frequent changes to keep up with the new customer preferences may lead to abandoning a product or service which in turn may lead to wastage of money and time. Also, weighty investment is also required for market research to find out customers needs and wants. There is still no guarantee that the research will precisely forecast the consumer demands for the future.

History of Vodafone

1984-Incorporated as Racal Strategic Radio Limited

1988 - fractional listing on London Stock Exchange

1991- Listing on LSE after demerging from Racal

1999- Merger with AirTouch Communications and 45% holding at Verizon Wireless

2000- Acquiring of Mannesmann AG

2006- Vodafone Japan Disposal and Acquiring of Telsim Turkey

2007- Acquisition of Vodafone Essar

2009- Vodacom became a subsidiary and Vodafone Australia merged with Hutchinson 3G Australia

2010- Sale of interest in China Mobile

2011- Sale of interest in SFR

2012- Payment of $10 Billion dividend by Verizon Wireless (Annual Report, 2012, p. 162)

Vodafone's Status before Growth

Vodafone was established in 1984 and was a joint venture between Racal Strategic Radio, Hambros Technology and ...