Cellc South Africa - Marketing Essay

Words: 15640
Pages: 63

Question One:

Cell C segmented its market profile according to the different needs and preferences and appropriate market offerings.
Definition of Target Marketing and its Importance in telecommunications
This focuses on selling a product or service to a current market. However a strategic market embraces the potential market for the product or service. (Kotler and Keller; 2009: 86). An organization that markets directly to their end users to sell their products and services are benefitting from the concept “direct marketing”. Therefore there is an interactive communication with the end user, thus the most effective direct marketing takes place when there is a clear connection to reach its target market. (Berry and
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 Psychographic- this system divides customers in to cultural groups, value groups, social sets, motivator sets, or other interesting categories.

“Cell C is experiencing a coming of age, informed by a deeper understanding of the SA market and the factors that influence the consumer choice”, says executive head: marketing Simon Camerer, in an article Value for Money.

Satisfying the customer and meeting the needs and wants are keys to success. In the early days of telecommunications in South African the market was made two packages: Contract/ postpaid and prepaid.

Postpaid: The first option was generally expensive and appealed to the elite market. The contact extended to 24 months at a time. This meant that the customer was locked in an expensive contract. This posed as problem for service and network providers, therefore Cell C developed an optimizer-type programme, that works out for the customer which contract would best suit his/her needs and pocket. See Appendix 1 for detailed description of the various contracts that are available with its benefits they offer. Now the consumer has the option to choose from a one month contract to twenty four months.

Prepaid: Introduced by MTN the second mobile provider to be successful in this package. Enabled accessibility to cellular telephony to the population at large, with no need for credit ratings and having direct control over how much is spent on making calls. This package is said to have