Price and Place/Distribution for AT & T
Distribution Strategies
AT&T would primarily utilize the “zero-level channel” which is also called a direct marketing channel consists of a manufacturer selling directly to the final customers. AT&T retail stores are the only beneficiaries of the product who can offer U-verse internet service and homes services. The measure is cost effective, enabling AT&T to successfully reach our Bottom Line. Also, customers will benefit from the level of distribution to ensure the highest quality of products while eliminating the middle man. The products will directly be delivered to the AT&T retail stores to offer the bundles a reasonable price of $19.99 for each featured service included in the bundle package; or $29.99 if ordered separately.
Distribution Channels
The distribution channels of AT & T are exclusive in nature. This is because the company has an established base of retailers and franchisers and it struggles to make strong relationships with them (Trivedi, 1998). The retail stores of AT & T are more than twenty three hundred in number and aim to offer exceptional products and services by AT & T to the customers. The supply chain of the company is established and strong in nature.
Static and Dynamic Pricing
The pricing of AT & T is dynamic mostly because the price of packages and products offered by the company are market competitive. Pricing objectives change as the environment in which the company is operating changes. Technological innovation in the telecommunication industry is constant and every time a new technology emerges, AT & T has to adapt to it so as to offer an exceptional level of quality products and services to its new and existing customers. The pricing strategies would change as the demands of the telecom industry and consumer expectations undergo change.
Pricing Tactics
There are several competitors of AT & T and each one of them has been trying to entice the consumers to use their offerings by lowering prices. In order to ensure that AT & T enjoys a major customer base, it would be employing the strategy of bundle pricing. This means that by following the strategy of bundle pricing, the company AT & T would be offering a package or set of products and services rather than offering items separately. The benefit will go to the company as well as the customers (Hanson, Martin, 1990). The price of the bundle would be less as compared to the products being purchased separately. The company’s cost of production, transportation and marketing would also lower down.
Positioning
AT&T is a very well respected company and it has a very positive position the telecommunication industry. AT&T is the largest communications holdings company by revenue; it has a very broad portfolio of products and services; it has tremendous opportunities for growth and expansion whether it’s through acquisitions or entering into emerging markets. AT&T’s partnership with Apple and the IPhone has also provided a strong footing within the telecommunications industry. For the most part, AT&T’s broad list of products and services do meet the consumers’ needs but we think the need for competitive value at very competitive prices could be improved or updated. The technique of sales promotion would be used to fulfill this objective (Drumheller, 2011)
References
Drumheller, R (2011). AT&T Company Profile: Financials. Retrieved From http://www.faulkner.com/products/faccts/default.htm
Hanson, W., & Martin, R. K. (1990). Optimal bundle pricing. Management Science, 36(2), 155- 174.
Trivedi, M. (1998). Distribution channels: An extension of exclusive retailership. Management science, 44(7), 896-909.
