VERIZON COMMUNICATION

Verizon Communications



Verizon Communications

Verizon Communications (NYSE: VZ) is a U.S. telecommunication company and provider of fixed-line, wireless, television, and data services. Through a joint venture with Vodafone, it also operates Verizon Wireless, the largest wireless carrier in the United States, which represents 97% (89 million) of their customer base as of 3Q09.

Pricing Strategy

Pricing your product or service is one of the most important business decisions you will make. You must offer your products for a price your target market is willing to pay - and one that produces a profit for your company - or you won't be in business for long. There are many approaches to pricing, some scientific, some not. Here is one framework for making pricing decisions that takes into account your costs, the effects of competition and the customer's perception of value.

Verizon Communications normally follows the price skimming pricing strategy in which it charge the Charge a high price because you have a substantial competitive advantage. However, the advantage is not sustainable. The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply. Manufacturers of digital watches used a skimming approach in the 1970s. Verizon has just introduced Droid which is priced at $199.99.

Distribution Strategy

For product-focused companies, establishing the most appropriate distribution strategies is a major key to success, defined as maximizing sales and profits. Distribution strategies are concerned with the channels a firm may employ to make its goods and services available to customers. Channels are organized structures of buyers and sellers that bridge the gap of time and space between the manufacturer and the customer.

Verizon markets through a strategic marketing plan which is a coordinated program of television, print, radio, outdoor signage, Internet and point-of-sale media promotions. Its sales and distribution channels include a blend of direct, indirect and wholesale distribution channels. For the indirect distribution, the company uses the help of some other retailing companies and uses them as an intermediary to distribute its products. The company also uses the direct distribution channels and provides the good to the final retailers or consumers by itself without using any help from the intermediaries. For direct distribution the company also uses the internet channels in order to distribute its products.

Promotional Strategy

A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. Verizon Communication uses different promotional tools for its products. It uses the advertising tool, and advertises its products through the newspaper, internet, emailing, and telemarketing. Verizon Communication also promotes its products through the public relations through developing positive relationships with the organisation media public.

The company also uses sales promotional activities in order to increase its sales. For this purpose Verizon Communication uses different tools like it distributes the different samples and brochures through its sales team. Recently, for its promotional strategies Verizon is offering free movies. The company also uses the direct mailing strategy for promoting its ...