Channel and Pricing Strategies 1

Devin Walker, Ariane Boone, Donald Hanigosky, TarNeisha Mukoko Channel and Pricing Strategies Paper MKT/571-Marketing Dr. Kurt Dietrich University Of Phoenix October 25, 2010

AT&T has established their self within the industry of technology creating pathways to innovate technology and becoming a leader as a global carrier of technical advances of wireless communications. AT&T has focused more on international marketing that would help them to market products within foreign markets hoping to increase its revenue opportunities. and business profits.Channel and Pricing Strategies 2 Introduction AT&T global expansion into the Chinese market includes. and successfully launching a new product in this global environment. AT&T’s market factors for becoming a innovative leader included some marketing trends within wireless communications and growing their business operations within China and Singapore to increase market size. understanding the infrastructure. Organizations that operate Multinational can conference in all employees across the nation at half of the cost. AT&T strategy is to look at long term profitability and identify what is needed to maintain a competitive advantage. China’s economy has seen an increase in the recent years in living standards as well as spendable income. makeup of the Chinese government. AT&T’s market sustainability is strengthened by its willingness to establish and retain worthy business operations for an extended length of time with global markets. ` . sustainability. AT&T’s Market Justification Since 2005.

S. The operating system used on the iPhone 4 is used exclusively on the phone in the US as the standards are not yet approved for use internationally. and Canada to help establish more internal country coverage who actually employ the services of AT&T. growth rate. Ireland. Until such time. apple. "Phone call as you have never seen before"(www. Channels and Pricing Strategies The iPhone 4 with features as the iOS 4(operating system) is immeasurable to date to other cell phones in the same category.com) commercial strategy certainly spurred on the market growth domestically and internationally. Partnering with China and other countries helped AT&T create a diverse engine for market and internal growth (Global Networking. AT&T has working partnerships with Germany.Channel and Pricing Strategies 3 Although. the company of AT&T chose to expand its market size. and business profitability the company spent 10 billion dollars to build and upgrade the infrastructure to improve domestic sales along with supporting the AT&T’s personnel staff outside of the U. 2005). Apple has agreed to allow competitors to have access to the operating system at a more appropriate time. While . Apple continues to dominate the market offering a very well desire product in the iPhone 4 with Face Time feature. AT&T moved forward to improve their global market with hopes of increasing market size and advance with rapid trends of wireless communications AT&T improved global services to build strong alliances within the industry.

Customers' curiosity for new and innovative products is very high on the list of desires to stay in the mix of interesting gadgets. There is three elements that make up the government for the People’s Republic of China they are 1) the Communist Party of China. Apple took the idea of video conferencing via the cell phone using Face Time to a new level of use domestically and internationally. and 3) the People’s Liberation Army (PLA). the one that needs the most attention for a new company the Chinese market is the National People’s Congress (NPC). Developing strong governmental relations will help develop effective partnerships as well as providing customer and investment protection. 2) the state entities. This is the primary mechanism for running the business development by the state. These types of governmental relations are critical in getting the company established in this . Of the three. Apple is growing a strong foundation in both markets. Government Political & Governing Bodies In preparing the organization’s global expansion into the China market. Collaboration with the local government agencies is needed.the operating system will be offered to other competitors. Channel and Pricing Strategies 4 Face Time application met the desire for people to communicate instantly and in real time as business has always this function in the business world exclusively. understanding the infrastructure and makeup of the Chinese government is critical to successfully launching a new product in this global environment. as the development of China as a major player in the global market.

In addition to these economic issues. China’s economy has seen an increase in the recent years in living standards as well as spendable income. the majority of the economic growth is in the private sector because of the low human standards within the country.complicated but growing market. who fail to develop a strong long-term relationship with the governmental agencies will not be successful. Even with the growing population in China. . To complicate this exchange rate issue there is no mechanism that can properly measure these rates. Companies. The continued development of the Chinese economy is to the success of companies being able to successfully enter this market. Targeting the private sector as well as developing a generic product target with the right price point focused on the growing population can provide the needed sales volume needed to make the launch a success. Channel and Pricing Strategies 5 Economics The Chinese economy is not as developed as those in many of the other developing countries. Understanding these economic conditions and apply that knowledge to the product marketing plan can assist the organization in getting establishes. along with a “swap center” rate and the black market rate. China has a unique foreign mechanism that involves an official exchange rate.

the trend will continue. Not only does AT&T Connect save costs and increase employee productivity. globalize customers and suppliers. and well aligned business (Enterprise. Social and Demographic . Marketing this program in China will prove lucrative. rising expenses. and accelerated timeframe. Therefore. AT&T Connect solves today's business challenges that arise from geographically distributed and highly mobile employee.Technology and Innovation Bundling corporate telecommunications packages with wireless options and targeting individuals seeking the newest technology allow AT&T to enter the China market. it enables a more innovative. In terms of trends. China has a high concentration of new technology. 2010). agile. thus AT&T made an executive decision to penetrate the market by introducing video teleconferencing using Channel and Pricing Strategies 6 the iPhone as a tool. China in the past used television stations for promoting and propagandizing development within the country. “as an extension of the crackdowns in 2009 on privately-funded online video websites in China." Video conferencing is of concern to officials as has been controlling television stations in the past. By offering the application Face Time as a video conferencing tool via the iPhone increases profits for all players involved. looking at the technology trends will provide necessary material during the decision making process to expand. According to the China Tech news.

AT&T strategy is to look at long term profitability and identify what is needed to maintain a competitive advantage. Chinese business contacts are mostly referrals which are needed to improve business operations. In China. This is done by reaching economies of scale that is accomplished not by rushing in. The more they know about them. political views. Cultural Diversity in China adds value because China’s culture is centered on relationships. along with images. . 2010). Conclusion AT&T will build long-lasting relationships in China to remain Competitive. as compared to the United States where Economics is the number one factor. AT&T should focus on brand building. AT&T customers work and live in virtually every country and territory in the world. the closer they have become. the businessmen share personal life including family. brand Channel and Pricing Strategies 7 personality. augment. hobbies. and deliver its offerings (AT&T.A value network is a system of partnerships and alliances that a firm creates to source. AT&T serves millions of enterprise and multinational business corporation spreading out across six continents. colors and tone of voice to the Chinese market. and aspirations. This will be the same approach that AT&T will adopt in the United States. China is increasingly growing with global Business to Business companies with strong opportunities for growth. but thinking strategically about the best way to enter the Chinese market. Interpersonal relationships come first in China.

att.Channel and Pricing Strategies 8 References: AT&T Market (AT&T.business.com/gen/pressroom?pid=18640&cdvn=news&newsarticleid=31274&mapcode=enterprise http://www.pdf. (Enterprise. Retrieved Oct.pdf. 2010 http://www.att. 23.att.corp. Retrieved Oct. 2010 . 2010) http://www.com/content/productbrochures/PBConnectManufacturing.com/globalnetworking/docs/att_goes_global.com/globalnetworking/docs/att_goes_global. 23.corp.att.pdf AT&T Enterprise. 2010) http://www.

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