Promotional Effects in Markieting Use of ICT

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Promotion in marketing management in ICT industry


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1.0 Introduction

Often promotion and marketing is similar and promotion is the fourth element of

marketing mix and often used in marketing. Before go into the concept of

promotion, it necessary to understand what is marketing?

The objective of all business enterprises is to satisfy the needs and wants of the

society. Marketing is, therefore, a basic function of all business firms. When a

salesperson sells mobile phones, a Government asks people to take their

children for getting polio drops, each is marketing something to the targets.

Since early 1990s there has been a change in the thinking of businessman from

product orientation to consumer orientation. Modern business concerns more

emphasis on selling satisfaction and not merely on selling products. The

activities have to be coordinated so as to develop the marketing mix, which

provides maximum satisfaction to the customers.

That is why marketing research and product planning occupy an important role in

marketing. The other important functions of marketing include; buying and

selling, standardization, packing, transportation, promotion and promotion of

product or services. Thus, the scope of marketing is very wide and no more

restricted to merely selling of products.

Promotion is an essential element in the marketing mix. It's a tool used by

businesses organizations. Both large and small organization use this tool to

introduce, persuade and remind customers about their products and services

been offered. Without business promotion, companies would be stagnant and

lack substantial growth.Marketing and promotion have been used in conjunction with one another to

attract targeted customers and increase sales for a business. To be successful in

business, we need to understand the basics of promotion and how it plays a vital

role in marketing.


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Promotion uses diverse incentive tools, mostly short term, designed to stimulate

quicker or greater purchase of particular products or services by consumers or

trade. It provides the more information about the product and services to all

customers. Thus Promotion is the advancement of a product or service and idea

through publicity or advertising.

2.0 Competitive Marketing strategy in Telecommunication Industry in Nepal

Telecommunications is the life blood of the 21st century. The only reason that the

world is able to progress at the current pace is because of the advancements in

telecommunication. Therefore, essential that the telecommunication sector is

allowed to develop and expand as much as possible, and this is only possible if

there is healthy competition, fair resource sharing arrangements, and

encouraging environment in the telecommunications industry.

Telecom services in the country have reached 50%. With fierce competition

among telecom companies, telecom penetration has touched 46.05 percent as of

last fiscal year 2011. The two major telecom service provider; Nepal Telecom

(NT) and Nepal Cell (Ncell), which are neck to neck competitor in the GSM

segment. According to latest statistics of Nepal Telecommunications Authority

(NTA), total telecom subscriber base has increased to 13.16 million. GSM

Telecom industry, one of the competitive business sectors in the globe. In Nepal,

GSM service provider are emerging with new promotional product and marketing

strategy to become a number one service provider.

Brand Logo


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3.0 Role of Promotion and advertising in Marketing

Promotion is closely related to advertising and serves the purpose of giving

business target market information about a brand, product of company.

Promotion related to advertising aiming to achieve a certain goal. These goalscan be long-term promotions or short-term. Promotion can play a vital role to

increase a product or services awareness to the consumer.

GSM Telecom industry, one of the competitive business sectors in the globe. In

Nepal, GSM service provider are emerging with new promotional product and

struggling to compete with state owned telecom industry NTC (Nepal

Telecommunication Corporation) and first private GSM service provider, Ncell

(Nepal Cell).

3.1 Launching a Product

Product launches are one of the most common uses for promotions and

advertisements. Now a days telecommunication industry is booming market. The

Multinational telecommunication industries are becoming global across the

continent. Like Air-tel India, now providing its service in Africa. TeliaSonera a

Swedish-Finnish company launches its service in Nepal. A company was

introduced with basic services like Voice call & SMS service at the launching

phase limited to Capital city, Kathmandu. Later or sooner able provide its service

to remote area of the country. Step by step, introduced services like BlackBerry,

3G, Ncell Connect-browsing internet through a data card, EDGE/GPRS, call

waiting, call forwarding, conference call, Voice Mail, Missed calls Notification.

Most of the services were introduced for the first time in the Nepalese

Telecommunication market, which has re-defined Ncell as the most innovative,

modern, accessible and popular brand in Nepal with more than 10 millionsubscribers within the country. The goal is to make a company's target market

aware of new products and services being offered. Sometimes, a product launch

with promotion can be combined with a promotion meant to increase sales.


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Launching wimax service

3.2 Provide Product Information

The companies also use promotions to provide information. Marketers may run

press releases to appraise their product/service. As here Ncell uses a lot of

advertising by going to rural part of Nepal. It has been used banners, displays

and pamphlets to describe the benefits of the new mobile service. Like SMS to e-

mail, e-mail to SMS, Mobile Internet (GPRS/EGDE), Multimedia Messaging

Services (MMS), Personalized Ring Back Tones (PRBT) and different types of

Value added Services, Ncell has always planned and adopted new technologies

and services available in the international market and provided them among its

subscribers High-tech industry often use videos and demonstrations to show

people how to use their products. Promotions can inform people during all stages

of the buying process, including their initial search. Small business owners also


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use promotions to inform consumers about price, product features and outlets

that sell their products.

Launch of New service, wimax in public area


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3.3 To Increase the Sales

Promotions related to sales increases generally offer consumers something they

perceive to be of value in exchange for the purchase of a related product. For

example, Airtel offers a promotion, on recharge of 40K Ushls in bulk offers 5

minutes talk time bonus. Ncell offers New Year promotion like Ncell SIM card

NRS 99 only. This creates an increase of sales due to people buying more air

time than they normally would at once. Promotions aiming to increase sales

typically run for a limited time and are often annual or semi-annual events that

are heavily advertised.

3.4 Establish Brand Equity

Brand equity deals with the consumer's knowledge of a product and the

association of a certain product with a particular company or brand name or what

service company offer. When it comes to promotions with the goal of achieving

positive brand equity, it is common to see advertisements placed that emphasize

the relationship of the product to the company. These advertisements may not be

the typical kind that encourages consumers to buy, because their main purpose

is to associate the product or service with the brand. New companies particularly

have to advertise to apprise consumers who they are and what service they offer.

This is true with local or even national companies, as brand awareness can be

measured by market, regionally or nationally. It can take many months or even


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years for companies to build brand awareness levels that match established

competitors.

Brand Identity is all about creating distinct image in customers mind. Ncell too

have tries to create distinct image on customers mind. The slogan of Ncell Ncell

Nepal kai Lagi (Ncell is for Nepal),is one of its steps towards creating unique

identity in present cut- throat competitive telecom market. The slogan itself has

tried to build unique identity by eliciting personal attachment to Nepalese

customers. Likewise, Ncell has developed its brand identity through brand

symbol in the shape of a hi-tech stone in rich purple color. Whenever we talk

about Ncell the purple colors comes to our mind that is unique identity created by

Ncell.

3.5 Taking a Positioning in the Market

Market positioning is the manipulation of a brand or family of brands to create a

positive perception in the eyes of the customers or consumers. If a product is

well positioned, it will have strong sales, and it may become the go-to brand for

people who need that particular product. Poor positioning, on the other hand, can

lead to bad sales and a dubious reputation. A number of things are involved in

market positioning, with entire firms specializing in this activity and working with

clients to position their products effectively.

When a product is released, the company needs to think beyond what the

product is for when it comes to positioning. It also thinks about the kinds of

people it wants to buy the product. For example, Ncell is always focus on

innovation, raise the standards of the telecommunication services and make the

mobile market more competitive for the benefit of customers. Ncell is committed

to for developing countrys economy and infrastructure, building best-in-class

networks and bringing people in the remotest areas of Nepal within the reach ofcommunication. Ncell has continued expanding coverage, enhancing quality and

bringing new, efficient and easy-to-use services to the people of Nepal. Ncell is

working towards connecting everyone in Nepal through Ncell network, providing

high quality, modern and cost effective services and creating value for customers


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and partners. Currently Ncell products include prepaid and postpaid GSM mobile

services and internet service, blackberry solutions. With the quality service

provider, Ncell is able to be positioned in No. service provider in the private

sector industry.

3.6 Corporate Image

Corporate image is how the public perceives a company and what they believe a

company stands for. Many times, a promotional advertisement related to

corporate image aims to help with damage control or crisis management. The

advertisement will help them save their corporate image. This form of promotion

is closely related to public relations.

The concept Corporate Image should draw the companys attention to the way inwhich it is perceived in the market. The market contains the company itself. Of

course, the companies are chiefly interested in what image their most important

audience has of them. No matter how much or how well the company seeks to

influence this, its image on the market usually never corresponds with the ideal

as the managers wants it to be and as the employees perceive it. Therefore, the

following concept might be useful. As mentioned, it can be difficult to group the

various perceptions.

The top priority of Ncell has always been to maintain and upgrade on corporate

responsibility, service excellence and customer trust. We strive to be the trusted

and be the first choice of customers. Our goal is to provide high quality and

secure services at affordable rates that offer good value for money. We also want

to be part of our customers success.


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In the customer point of view Ncell proved that the company is not only for

telecom business but also stands with good corporate image. Ncell is being

providing aid in education sector in Nepal through his corporate Social

responsibility (CSR) project.

With the huge success of the Prepaid Calling Card (PCC or Easy Call) Service,

Nepal Telecom has launched an Intelligent Network (IN) Service, Advanced Free

Phone Service (AFS), targeting to provide quality value added service for large

corporate offices, commercial organizations and social communities which need

good communications with their users, customers and supporters.

This service is very appropriate for the Hotels, airlines, travel agencies, etc that

would want to gain a competitive advantage by giving their clients a flexible,

faster and economical way of making reservations. Banks wishing to offer special

customer service facility only to major customers can give the clients the AFS

service access facility using the incoming call password. A media company

wishing to receive news from the field staff would be greatly assisted with AFS

facility to the reporters so that they can call in and file their reports. All companies

wishing to enhance their dealer, customer, supplier relationship requires the AFS

service.

Ncells purple corporate color is very well-known in Nepalese Corporate sector

where as Nepal telecom has a conch with blue back ground. In Hindu mythology

conch shell is a sacred emblem which represents the giver of fame, longevity and

prosperity. The purple color is energizing and inspiring, it reflects the creativity,

passion and reliability with which Ncell will continue to serve its customers. This

can be taken as one of the excellent example of company trying to create brand

identity through its corporate color in Nepal.


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4.0 Summary of Project Assignment

These persuasive communications are commonly called "Promotion". In the

context of marketing promotion refers to the applied communication used by

marketers to exchange persuasive messages and information between the firm

and its various prospective customers and general public. All marketing activity

needs to be tailored to reflect a business target audience. It also needs to be

able to show return on investment. For a non-profit making organization ensuring

its promotional activities give value for money is critical.

Through aggressive marketing promotion and innovative service, Ncell is now

aiming to become the No. 1 player in GSM mobile telephony in Nepal. Nepals

first private GSM operator, Ncell is reducing the gap between it and the market

leader Nepal Telecom. We will be a market leader by early next year, said Tero

Kivisaari, the CEO of the Eurasia Region that looks after the Nepal (in 2011).

Which is true now, it is the No. 1 GSM service provider in Nepal.

Witnessing the growing market potential in data service like in other parts of the

world, Ncell had launched the 3G service in mid-September and Ncell Connect,

one of the fastest data services in Nepal.

At a time when foreign companies are thinking twice to come to Nepal,

TeliaSonera is increasing its investment in Nepal. Upendra Mahato, a local

partner of Ncell, said investment by TeliaSonera in the telecom sector in Nepal

clearly shows Nepal is safe for foreign investment. TeliaSonera is a good

example of this, he said.


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5.0 References____________________________________________________

Marketing Corporate Image; James R. Gregory

Advertising, Promotion & other aspect of Integrated MarketingCommunication, 8e; Terence A. Shimp

Marketing Management;13e, Phil Kotler & Kevin Keller http://thehimalayantimes.com/

http://teliasonera.com/

http://www.ntc.net.np/

Basic Concept of marketing (Journal), Dr. Subhanjali chopra

Promotional Effects in Markieting Use of ICT

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