Segmenting and Targeting Markets

Verizon market segment operates within the traditional family life cycle. With many of its advertisements often including the "traditional family" (a husband,wife,often two or three kids) which can apply to the middle age married with kids category or even the older married couple with children who are independent from their parents because Verizon family deal is better deal financially for most families in these economic times. Also while not directly advertising it, Verizon is very appealing to young single people because they are up to date technology wise as evidenced by their continuing success with their Droid models. Another reason Verizon is successful with the young single people segment is that their low monthly cost is something that fits perfectly into their general financially statuses. Although Verizon successfully advertises too these segments of the family life cycle it seems to ignore the newest and one of the largest segments of the family life cycle, the homosexual segment. Verizon has yet to include a same sex couple in any of their advertisements and would be wise to do so.

Developing and Managing Products

 

Verizon develops its new products through brain storming and using the ideas or current products of competitors, such as AT&Ts iphone. Although Verizon's Droid models are "new" products they are not peoples usual definition of a new product. Verizon's Droid models represent a new product in the sense that it is an improvement over previous models of the product. A cellphone was the initial product and the Droid is simply a new and improved version. While new products that are improvements over older ones can be only slightly different, Verizon's Droid is drastically different in its features as well as capabilities while maintaining the basic and main assets of the previous product such as be able to call anyone. All products also go through the product life cycle. The four stages of the life cycle are Introduction(when a product is widely introduced to the market), the Growth stage(where the sales for the product should increase dramatically), then  the product enters the maturity stage(where the sales still increase but at a much slower pace) and the final stage is the Decline stage(where a large drop in sales occur). Verizon's Droid model's are in the maturity stage for the most part but advances in technology can either keep the product between the growth and matuirty stages or in can even force it into immediate decline.

Customer Relationship Management

Customer Relationship Management is something all businesses must use effectively to run a successful business. Verizon however continually fails when it comes to this aspect. Verizon's relationship status with their customers is often ruined in large part because of their horrendous customer service. However, Verizon does use the data they obtain from their customers to their advantage and that is how they run their business successfully. Verizon uses the data it obtains to build a profile of its customers to effectively cross sell. Consumers who buy Verizon's droid models are often knowledgeable when it comes to the latest technology. They are also will to spend a large amount of money on the newest technology. This profile allows Verizon to cross sell products such as the newest televisions, newest home phone technology and newest Internet technologies. Also, since Verizon offers their droid models at a much cheaper price if the customer agrees to a two year contract, Verizon will have that customers brand loyalty for at least the life of that contract and it also gives them time to collect data and build the relationship beyond those two years.

Integrated Marketing Communications

 

Verizon uses many things to communicate its messages to its target market and uses all four concepts of a promotional mix. One of Verizon's major ways of communicating to its market is through sponsorships. Verizon uses its sponsorships to communicate its message through them in a positive and very public way. They evaluate how much exposure the sponsorship will give them and how much positive emotions it will cause to be associated with the Verizon brand. Verizon also uses social networks to send out its message, using sites such as facebook.com/Verizon and myspace.com/Verizon. Also, the message Verizon tries to send through its advertisements is that people who have Verizon have many friends and are the typical happy family as evidenced by there commercials that include hundreds of people following the "Verizon Guy". In Verizon's most recent commercial, a advertisement for their newest droid model the Verizon Fascinate, Verizon shows the phone with many different attention provoking colors in the background, while also playing exciting and attention grabbing music. In a way Verizon communicates its message that the Fascinate is a great "sexy" phone without saying a single thing in its advertisement.

http://www.youtube.com/watch?v=WJGL3-0idic

Product Concepts

Verizon wireless has many products but its main products are their cellular phones and the monthly bill, warranty, customer service and all the features and convenience that their phones like their droid model comes with. Speaking of Warranties, Verizon offers free warranty for a year and if you would like to continue it, it will cost you upward of five dollars a month and research shows that after a year or so there are more problems with Verizon phones, which could be a form of planned obsolescence. Verizon has also extended their product line to include an internet system, home phones, a type of television brand, among many others which has separated them from some of their prime competition in the phone industry such as AT&T and T-Mobile. Verizon's brand is often identified not only by its name but by its colors, in that the word "Verizon" is always black but the "z" is always red, resembling its red check mark above the word. Verizon has many product line as well, but their most successful is their cellphone product line which they have added hundreds of new phones since its inception due to the accelrated rate at which technology evolves.

Sales Promotion and Personal Selling

Verizon uses many different sales promotions. Verizon uses premiums, loyalty programs, training programs, rebates, and various online promotions. A premium Verizon has recently started is a buy one get one free promotion on their newest droid model, the Fascinate. The promotion is over at the end of the month and by
putting a clock on how long the premium will last, Verizon has created a need and urgency for customers to buy their product. Verizons upper office also provides training for the "middle man".  When the newest droid came out, Verizon trained all its store employees and its technical support staff on how to use the phone and fix any potenial problems customers have. This is a sales promotion because people will buy the product if the the sales person doing the personal selling can show them the features of the phone and explain them intelligently. Verizon also uses several online promotions such as their online only discount on their droid models. When buying the phone in stores, you get a  hundred dollar rebate, which from personal experience takes very long to arrive. However if you buy the phone online you get the hundred dollars off the top and
dont have to wait for anything. Lastly, Verizon also rewards its current and loyal customers by allowing them to upgrade their droid phones once every year.

Advertising and Public Relations

Verizon implements institutional advertising, product advertising, and comparative advertising along with many others. Institutional advertising is a type of advertisement that makes the company look better while also promoting a product but only to a certain extent. Verizon does this in there commercials where they often call it the Verizon family showing a typical family all using Verizon phones, this commercial makes Verizon look like a family friendly company.  Product advertising is when a company only promotes a product and its benefits and capabilities. Verizon does this with their recent Droid commercials in which there are no people in the commercial it is only the Droid model they are selling as well as a demonstration of its capabilities. Lastly, comparative advertising is an advertisement that shows the differences between two similar products. In many Verizon advertisements, they often display two maps comparing their coverage with that of their competitors.
Public relations is the way companies get a feel for the attitude people have toward them as well as how a company tries to influence these attitudes. Verizon did this through press releases when they release new Droid models. They used a press release to get the word out about the newest Droid while saving a lot of money doing it.