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Tel-Sound

1. Identify and briefly describe the size, structure and nature of the consumer
segment of telecommunications and converged media market in the Republic of
Ireland

In order to describe the size, structure and nature of the consumer segment, we need to
understand the term telecommunications. Telecommunications refers to ‘the technology of
sending signals, images and messages over long distances by radio, telephone, television,
satellite etc.’ (Hornby, 2010).
At present, the telecommunications and converged media in the Republic of Ireland covers
more than 70% of the population. The consumers are structured in two main categories:
Businesses and Individuals. Individuals are structured as it follows: young users (aged
between 18-25-30, use of internet, phones and internet on their phones more, with less
interest on television or landline/broadband), grown-up users (aged between 30-50, use of
television and phones more than the internet on their phones with less interest on landline)
and elderly users (aged 55+, use television and landline more, very rare usage of internet or
mobile phones).

2. Choose one of the macro-environment for the target market in segment 1 above
and outline the significant trends to expect within the specific environment in the
next decade 2017-2027

The political environment consists of ‘laws, government agencies and pressure group that
influence and limit various organisations and individuals in a given society’ (Kotler et al.
2005). Over the next decade (2017-2027) significant trends can be expected from the above-
mentioned environment, such as:
 5G network connection – as a part of the customer’s life, the government will have to
‘acknowledge the internet as a basic human right’ (Frue, 2016)
 ‘No Country Barriers’ initiative – Tel-Sound is planning on removing the country
barriers in terms of television, landline, radio and roaming – which will be
permanently removed in the following decade between Republic of Ireland and
Northern Ireland, giving consumers access to the same price-packages, prices and
advantages

3. Provide a brief demographic and psychographic description of the younger (18-


25 years old) sub-segment of the consumer market

Knowing the structure of the consumer segment, we can analyse one of the sub-segment: the
younger users (aged 18-25).
From a demographic point of view, this sub-segment is obviously aged 18-25, male and
female, who have recently moved out from their parents’ house or who already leave
alone/with a partner, attending or finishing college with a minimum pay per hour.
From a psychographic point of view, the sub-segment is interested in mostly interested in
having or finding a job, is developing opinions about business, economics, and themselves,
and has activities that are related with social events, entertainment or vacation with a low
interest on building a family.
Referring to their values and lifestyles, at the beginning of the decade, the consumers are
‘experiencers: young, enthusiastic, impulse buyers’ and strives: ‘fun-loving, trendy, seek
approval of others, money define success’ , moving towards the maker (‘enough energy and
skill to carry out their project themselves’) and thinker styles (‘well-educated, seek out
information in decision making process’) (Anon., n.d.)

4. Suggest the marketing research process Tel-Sound should carry out in order to
find out more about consumer behaviour purchasing patterns of young
consumers over the next five years.

For the purpose of finding out more about the purchasing patterns of the young consumers
over the next five years, the company should implement a quantitative marketing research.
The company will carry out surveys over a period of five years to understand how, why the
young users purchase and how often, why they remain with the same company and why they
moved to another company. The company will focus on the interests of the consumers, what
they want from a telecom company, what are their expectations in terms of a new company.

5. Outline what you believe the main product offering should be for Tel-Sound in
relation to the youth segment.
Tel-Sound should focus their efforts and attention in giving the youth segment unlimited data
with a large coverage over the Republic of Ireland and at a high speed by introducing the 5G
network connection
The young users are connected over the internet and social medias. They need to talk, text,
send images and share their stories with their acquaintances.
As unlimited data in already practiced in the Republic of Ireland, the company has to focus
on having a good coverage over the entire Republic for their new 5G network connection.
The unlimited data package will come at a higher price (€40) and the promise that the
customers have coverage all over the country and the newest, fastest technology.
One major factor in the telecommunication industry is the evolution of technology. Soon, all
the major telecommunication networks in the Republic will upgrade their network in order to
work faster and to gain more users. As the users will ask for more data, they will raise their
prices. Tel-Sound will have an advantage in this situation. Though their price are high, users
will be willing to pay to get unlimited data.

6. Suggest how Tel-Sound should position and promote its product offering to the
younger segment of the market using a combination of traditional and online
media

When it comes to positioning, Tel-Sound should focus on the benefits of their products. The
main attributes they have to use when positioning are:
 new company: Tel-Sound need to emphasise the fact that they are new to the market
and that they understand what the customers need and want because they were the
customers not a long time ago.
 full coverage: the company works on spreading their network all over the Republic of
Ireland and Northern Ireland
 5G network connection: one of the company’s most important strategies is to have a
full coverage over the country for all its customers as the youth segment will be using
the internet connection in the following years more than they did before
As they want to make the people aware of their product, the company should use a
competitive advertising in order to distance themselves from the competition. As they bring a
new technology and their package price for the internet connection is high, they need to show
the customers that their network is worth spending the money on.
References
Anon., n.d. MBA Skool. [Online]
Available at: http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/11515-
values-and-lifestyles-vals-research.html
[Accessed 2 November 2017].

Frue, K., 2016. PESTLE Analysis. [Online]


Available at: http://pestleanalysis.com/pestle-analysis-of-the-telecommunication-industry/
[Accessed 2 November 2017].

Hornby, A. S., 2010. Oxford Advanced Learner's Dictionary. 8th ed. Oxford: Oxford University Press.

Philip Kotler, V. W. J. S. G. A., 2005. Principles of Marketing. 4th European Edition ed. Harlow:
Pearson Education Limited.