The Promotional Strategies of Smart and Globe

Starting from telegraphic and telephonic systems in the19th Century, the field of telephonic communication has now Expanded to make use of advanced technologies like GSM, CDMA and WLL to the great 3G Technology in mobile phones. Day by day, both the Public Players and the Private Players are Putting in their resources and efforts to improve the Telecommunication technology so as to give the maximum to Their customers. In business, it is important to use various and innovative promotional strategies to expand the demand of your product and to earn more consumers.

It is one of the main things a business or a company must do to keep on working. There are 3 different ways to promote a product: to show information to consumers as well as others; to increase the demand; and change the product. Any use of those three is called the promotional strategy. Considering that competition in the business field is continuously growing, implementing efficient strategies through promoting products are indeed significant for all operators in any industry. Background of the Study

Over the years since cellphones were widely used, various networking companies have succeeded in promoting their products to their subscribers. But up to this moment, only two networking companies have truly taken the top-spot of the networks – Smart and Globe Telecom – two of the most widely used networks today. The two networking companies have been using different strategies to promote their products, such as SIM cards for cellphones and Wireless Internet connectors for computers or laptops.

SMART Telecommunications, being the largest mobile operator in the Philippines, is also the Internet service subsidiary of the Philippine Long Distance Telephone Company (PLDT) for over 45 million cellular subscribers (Smart Comm. 2010). Smart Communications, Inc. is the Philippines’ leading wireless services provider with 34. 2 million subscribers on its GSM network (Smart Comm. , 2008). Of its total subscriber base, 20. 9 million subscribers are served under the brands Smart Buddy, Smart Gold and Smart Infinity and another 13. 3 million subscribers are served through its subsidiary, Pilipino Telephone Corp. , under the brand Talk ‘N Text.

SMART has built a reputation for innovation, having introduced world-first wireless data services, including mobile commerce services such as Smart Money, Smart Load and Smart Padala. SMART also offers a 3G service, Smart 3G. These actually help SMART attain a very versatile service for its subscribers. (www. smart. com. ph) On the other hand, Globe Telecom provides mobile, fixed line, and broadband Internet services. It is the second largest mobile operator in the Philippines, with 27 million customers second only to SMART and PLDT. It also provides various services like SIM networks and Wireless Internet connectors. The most effective way to attract and retain the value- conscious Philippine mobile customer was to spur action through time-limited marketing promotions” (Globe Telecom, 2009) Globe Telecom will start to offer 3G mobile services during Q2 2006. The operator will provide its next-generation services free of charge as part of a promotional campaign in select cities. As mobile growth continues at a steady pace in the Philippines – there were 36mn subscribers at the end of 2005, representing penetration of about 43% – we expect 3G services to be a key source of growth in the industry.

With BMI forecasting mobile penetration rates to exceed 70% in 2009, there will be little room for further subscriber growth. Globe Telecom also recognized that the most effective way to attract and retain the value-conscious Philippine mobile customer was to spur action through time-limited marketing promotions. (www. telecomsinsight. com) They attained more production through time valuing and speed production, because they believe that being quick brings in more services! In such an environment, success comes to the fast, nimble and intelligent—de? ed by the ability to target market opportunities with tactical campaigns, monitor their effectiveness and ? ne tune them in short order. That’s exactly how Globe Telecom—the number two provider in the Philippines, with 27 million customers—is approaching the competitive challenge. Globe speci? cally recognized that the most effective way to attract and retain the value-conscious Philippine mobile customer was to spur action through time-limited marketing promotions—for example, reload HSDPA service with PHP30 and also get 24 hours unlimited SMS product.

Call it opportunistic marketing in the extreme. (http://www-05. ibm. om/innovations) The main objective of this research is to assess the different promotional strategies of SMART and Globe Telecom Networks in the Philippines. The reasons that pushed the researchers to write about this topic is because one of the most widely used technologies today involve the use of networking, and the main providers of such networking use different promotional strategies to beat the competition. The researchers will provide adequate information about the processes and procedures of the networking companies and also the different perceptions of the respondents the researchers are going to interview.

Objectives of the Study The research entitled “The Promotional Strategies of Smart and Globe as Perceived by the Selected Mass Comm Students of New Era University” has the following objectives: 1. What are the promotional strategies of Smart and Globe? 2. What benefits do respondents enjoy out of these promotional strategies? 3. How does Smart and Globe execute these promotional strategies? 4. What problems are experienced by the respondents on these promotional strategies? 5. What solutions are rewarded to help respondents when it comes to the problems on promotional strategies?

Scope and Limitations The research titled “The Promotional Strategies of Smart and Globe as Perceived by the Selected Mass Comm Students of New Era University” includes the information of the respondents’ perceptions according to the survey that will be given, and also the information from the references used. The research will only limit its survey to 50 selected First Year Mass Comm Students of New Era University. Also, The Researchers did not include any other network companies besides Smart Comm. and Globe Telecomm.

Significance of the Study The research entitled “The Promotional Strategies of Smart and Globe As Perceived by the Selected Mass Comm Students of New Era University” will be beneficial to the following: The students, or the teenagers, who are usually the most extensive users or subscribers of the said networks. Based on how they are the one that is easy to convince on the promos of Text or Call promos of the network companies. The general readers, who will get to know the promotional techniques of Globe and Smart.

Especially on the marketing management of the telecom company to find out how they can improve more their innovative strategy on promoting or making promos on telecommunication industry. The network company of Smart and Globe Telecom, who will understand and observe in this study the convenience of the text/call promos they promote to their subscribers and on their preparedness on how they approach to the competition. Definition of Terms The definition of these terms will help the readers to better understand this research paper. a. Promotion – is one of the four elements of marketing mix (product, price, promotion, and place). . Cellphones – is a device that can make and receive telephone calls over a radio link whilst moving around a wide geographic area. c. Strategy – a word of military origin that refers to a plan of action designed to achieve a particular goal. d. Innovative – is the creation of better or more effective products, processes, services, technologies, or ideas that are accepted by markets,governments, and society. e. Network – A directory of people maintained for their advancement f. Consumers – someone who trades money for goods as an individual. g. Subscriber – a person who subscribes to a publication or a service h.

SIM card – a small, removable card smaller than a credit card which stores mobile phone data such as contact names and numbers, SMSs and security information i. Company – An entity that manufactures or sells products (also known as goods), or provides services as a commercial venture; a corporation j. Fixed Line – A fixed telephone communications cable. k. Operator – A telecommunications facilitator whose job is to establish temporary network connections. l. Subsidiary – A company owned by the parent company or holding company.