Product Pricing of Fixed Network Operators Based on the Transition Period
I. Pricing Concept of Fixed Network Telecom Products
Fixed network telecom operators who want to obtain the business goal of maximizing profits in the fierce market competition must learn to win the competition by using the price leverage,
and must also establish a "customer-centered, proactive response to competition" under the prerequisite of "customer-centered, proactive response to competition"
and take into consideration various internal and external factors affecting the pricing of fixed-line telecom products. Pricing of internal and external factors
premise to establish a "customer-centric, proactive response to competition"
strategic pricing concepts, change the monopoly conditions of the kind of "enterprise-based
body, product-centered The pricing strategy of telecommunication products should not only be scientific and reasonable
but also reflect foresight, taking into full consideration the possible reactions of competitors and the needs and preferences of customers
.
Traditional pricing methods mainly include cost-oriented pricing method and competition-oriented
oriented pricing method, while customer-centered pricing method is a scientific and reasonable modern pricing strategy after comprehensive consideration of cost and
competition and other factors.
Second, customer-centric pricing strategy
Customer-centric pricing method is the main
pricing strategy method to be studied and implemented by fixed-line operators in the present and future. Based on the Transitional Value Acquired by Customers
We know that the Transitional Value Acquired by a customer for using a telecommunication product is equal to the difference between the benefit that the customer
acquires from using the telecommunication product and the cost that the customer
pays for purchasing and using the telecommunication product. The formula for the value of transference tells us that using price leverage to drive
market expansion doesn't just mean that you can only drive
market share gains by lowering prices. On the contrary, the use of price leverage also means that in the case of keeping the price
the same or slightly higher on the basis of the original price, by increasing the
customer value of the way to increase the enterprise's revenues, and at the same time, should try to avoid
for the volume of calls that have already taken place to give a direct price concessions to prevent the stock of revenue
decrease. Therefore, when formulating pricing strategies, telecommunication companies should take customers as the center
and customer segmentation as the basis, and enhance customer value by meeting the differentiated needs of target customer groups
in order to achieve the goal of maximizing the profit of the company.
Through the study of domestic and foreign telecom operators' product pricing strategies, it is found that the
customer-centered pricing methods can generally be divided into the following pricing types, namely
customer satisfaction pricing, customer relationship pricing, customer impression pricing, and group
combined bundle pricing.
The rapid development of economic globalization and information economy, the game of 3G license issuance and the competition from domestic and foreign telecom operators
have caused China's traditional telecom carriers to sound the strategic horn of transformation and adjust their marketing strategies to adapt to the increasingly fierce competition and
changing market demand.
And from the fierce competition of the major operators in the process we are not difficult to find, different forms of price war is a lot of companies are accustomed to the marketing hand
Segment. And telecom operators have been lamenting the A R P U value of the reduction and increase in volume does not increase the dilemma of helplessness, in the final analysis and the development of pricing strategy is not
scientific related. Therefore, a reasonable and acceptable price is one of the key factors that determine whether a businessman can win in the business war, research
The pricing concept of telecommunication products, pricing strategy for the fixed-line operators in the current transition period is particularly important.
1. Customer Satisfaction Pricing Method
Customer Satisfaction Pricing Method
The Customer Satisfaction Pricing Method (CSPM) is a method that proposes to utilize S L A for pricing mainly for those high-value large customers. This method is based on in-depth market
segmentation, by providing high-value customers with a high standard of differential
differentiated services to the corresponding product pricing strategy. The purpose of this pricing strategy
is to reduce or eliminate the risk
concerns of customers using the corresponding telecom operator's products, and to enhance their sense of security.
The key when utilizing the customer satisfaction pricing method for business promotion is to target
the customer's core business, and offer guarantees in terms of network quality, system stability, the degree of security of the system
degree of troubleshooting and the corresponding time of the service, etc. If the failure to
be able to fulfill the service commitment causes losses to the customer, the operating company has to give the customer a guarantee based on the service
commitment. p>
Promise to give the customer part or all of the economic compensation.
2. Customer Relationship Pricing Method
The customer relationship pricing method requires telecom operators to do a good job of in-depth market
market segmentation and customer segmentation based on the customer
the length of the history of the use of telecommunication products, the actual time of the network, the use of the relevant products
how much the amount of time, the payment of the bill in a timely manner, and other factors to divide the customer into new and new customers. The customers are categorized into new customers, medium-term customers, long-term customers, high-quality customers, low-quality customers, and loyal customers, etc.
These customers have different consumption preferences. For customers with different consumption preferences, pricing is done separately or comprehensively by means of voice service
volume bonus, new telecom product sales or bonus, physical incentives, and volume discounts
. The customer relationship pricing method is an important method to prevent competition, improve customer loyalty
sincerity, save the volume surge, and realize the coordinated development of the enterprise, and this
method requires that the enterprise must be able to do a good job of in-depth and systematic customer segmentation, and to find the key factors of various types of customers to buy the product
.
China Telecom Corporation, Hebei Branch, Sun Jianyu
Currently, fixed-line carriers are adopting
a "universal" tariff promotion program, and from the actual effect
of this program, there are more users who consume rationally, so the short-term, purely
promotional program is not a good idea. This kind of short-term, purely
capitalizing on tariff concessions is not very effective in terms of volume marketing
.
At present, fixed-line operators have not paid much attention to the "customer relationship
pricing method" in many of their local branches, and are still in the habit of adopting the "universal" tariff promotion program.
From the actual effect, because of rational consumption of more users, so this short-term,
simply use the tariff concessions of the volume of calls marketing activities is not obvious.
3. Customer Impression Pricing Method
The essence of the customer impression pricing method is that through the reasonable design of a certain telecommunication
products, price composition, charging time unit, charging level, etc., so that the customer
perceived price is lower than the actual price or lower than competitors' prices. Customer-printed
perceived prices include two categories.
(1) the extent to which customers perceive price comparisons between higher and lower prices for different
prices for the same telecommunications product offered by different carriers. Because most telecommunication products
are priced on a time basis, and different carriers may use different time units for pricing the same telecommunication product
, the customer's impression of the price will
generally be somewhat different from the actual price.
(2) The extent to which customers perceive a comparison of higher and lower prices resulting from different
similar pricing schemes for the same telecom product offered by the same telecom operator.
For example, the "business package" of 88 yuan per month for 828
minutes of local calls proposed by S Municipal Company for a certain business is a good use of the impression pricing strategy
The impression price of this package after deducting the monthly fee is that the price of each minute of the call
is 0.09 yuan, but 70 percent of the monthly fee is for the call. 0.09 yuan, but about 70 percent of users actually consume less than 828
minutes per month, with the actual consumer price averaging about $0.18 per minute. However, most
customers using the package have a satisfaction rate of more than 95%, which serves the
purpose of preserving the surge and enhancing customer loyalty through impression pricing strategies very well.
4. Combined Bundle Pricing Method
Combined Bundle Pricing Method is a pricing method commonly used by carriers at present,
This method is mainly based on the systematic research, analysis and study of various factors affecting the use of telecommunication services, and formulates a product package to meet the different needs of different
consumers. Combination pricing program. For different customer
groups, bundled pricing method using voice volume gift, new products preferential sales gift, real
things reward, quantity discounts, fee waivers and other measures to obtain the stability of the stock and increase
quantity of the enhancement of the final realization of the market to develop the purpose of the maximization of corporate profits.
The combination of bundled pricing method is based on the combination of various factors have
complementary effect or synergistic effect. The main combination pricing methods currently used by telecom companies are product-service combination, time combination, customer combination, relationship combination, and bundled pricing strategy of telecom
products and non-telecom product combinations.
(1) Product business combination pricing method. It mainly utilizes the method of product bundling
style, according to the different needs and sensitivities of the customer base of fixed telecommunication
phone, broadband, SmarTone, color bell and other basic services or value-added services are combined and bundled up
a pricing strategy. This bundling method is conducive to customers' selection of products that match their own differentiated needs, and enables them to maximize
the value of concessions and increase customer satisfaction.
(2) time combination pricing method. It combines daytime and nighttime, weekdays and holidays, peaks and valleys of network traffic and lows
and other factors in accordance with the demand characteristics of different customers to formulate different packages, so that idle time packages are combined with normal packages
and customers are encouraged to use the corresponding services during idle time, thus effectively improving the utilization rate of
network resources and increasing the enterprise revenue. When utilizing this method for pricing
, fixed-line operators can adopt different pricing standards to attract customers to use by adopting customers' corresponding
volume of call volume gift, preferential sale or gift of new telecommunication products, in-kind incentives, and volume
discounts.
(3) Customer portfolio pricing method. It combines customers with close family and work
relationships, and for the volume of calls between these customers to give
service volume gifts, new telecom products or gifts, physical rewards, quantity discounts
discounts and so on. For example, a city through the implementation of "Fa m ily&F r ie n d" combination program,
every family and related friends into the target customer groups, families and their friends
friends collectively to join the network or collectively use the company's certain products using the appropriate tariffs
package standards, and give after-sales service standards, and give special attention to after-sales service. This pricing
strategy can, on the one hand, better form a stable customer communication group and increase
enterprise revenue, and on the other hand, it can expand
enterprise's recognition through the "crowd effect", enhance customer stickiness, and attract customers who do not use the company's products and those who are using other networks
. This will attract customers who are not using our products and those who are using our website to become our customers, which will be conducive to the expansion of our
market share.
(4) Relationship portfolio pricing method. It is to utilize the relationship of telecommunication enterprises from group companies to
provincial companies, local branches and local banks, securities, taxation and other units as big
customers each other and the business relationship with the government, schools, hospitals, development zones, etc.
To develop a business combination pricing scheme that is bundled with each other. This pricing strategy allows for corresponding channel expansion through
horizontal and vertical combinations, which in turn achieves the goals of enhancing
customer loyalty, retaining high-quality customers, and developing the market.
(5) The combination of telecom and non-telecom products pricing method. It is a kind of
telecommunication products and non-telecommunication products combination of pricing and marketing methods, this strategy
is a valuable attempt of the operator's cross-industry bundled sales, has a good market
market prospects and development potential. For example, a provincial operator collaborates with a computer vendor to bundle computers with the operator's corresponding products, differentiates pricing based on deep
degree market segmentation, and attracts different customers to use the company's products through corresponding preferential
policies and tariff packages. A company
launched the "eat McDonald's package, free Internet time", is a successful case of bundled pricing of telecom products
and non-telecom products.
At the same time, different pricing strategies are directly related to the economic development of different regions, consumer
consumption habits, regional population distribution, and competitors' strategies to deal with challenges
. Therefore, enterprises in the price strategy development
to fully take into account their own strengths and weaknesses, rivals' coping strategies and other factors, pay attention to
consumers' differentiated demand characteristics, rather than just ask consumers to pay attention to, so that
could be formulated with different regions, different consumer groups to match the price strategy.
Three, the pricing strategy is feasible to determine the principles
Judging whether the price strategy formulated by the enterprise is scientific and reasonable, practicable,
Enterprises can be assessed through the following principles.
1. Whether the price strategy formulated by the enterprise is based on market environment analysis, customer
depth segmentation and field market research.
2. Whether the price set by the enterprise can meet the differentiated needs and preferences of customers
good, whether it is easy for customers to understand and accept.
3. Whether the price set by the enterprise reflects the real value valued by the customer
value, whether the customer can get the maximum value of the transfer.
4. Whether the pricing strategy and the prices set encourage on-net customers to use more of the company's
new and old products and to be loyal to the company, and whether it attracts off-net customers to use
the company's products.
5. Whether the pricing strategy and the prices set can alleviate customers' doubts about using or purchasing the company's
products, and whether they can enhance customers' trust and loyalty to the company.
Telecommunications operators can assess whether their pricing strategy is scientific and reasonable by judging whether their pricing strategy is in line with the above principles, and if it is not in line with the above principles, then the price makers and decision makers of the company should re-evaluate and revise the pricing scheme adopted.
Fourth, Conclusion
In the actual study and formulation of pricing strategies, fixed-line operators should carefully evaluate
the competitors' pricing strategies and comprehensively consider the use of customer-centered
pricing methodology and cost-oriented, competition-oriented pricing methodology, emphasize customer price
value, market price-based to determine the cost of. Adopt proactive competitive
strategies. At the same time, enterprises using price leverage to compete must also comply with
national regulations and policies, win-win competition, to avoid falling into a worthless price war.
In short, the scientific and reasonable pricing strategy determines the fixed-line network in the transition period of
Operators market development degree of difficulty and product market share,
will ultimately affect the maximization of business interests in the realization of the business objectives. Pricing strategy is
a science, but also an art, is a dynamic game of the process, the enterprise needs
to be in the dynamic changes in the environment of continuous improvement and innovation.
Fixed network operators want to get in the fierce
market competition to maximize profits
the business objectives, must learn to use the price
leveraged to win the competition, but also must be in the
full consideration of pricing of internal, external
various factors under the premise of setting up a kind of
"customer-centric, customer-centered, customer-oriented, customer-oriented, customer-centered, customer-centered, customer-centered, customer-centered, customer-centered, customer-centered, customer-centered, customer-centered, and customer-centered. "customer-centric, proactive response to
competition" strategic pricing concept, change the monopoly
under the conditions of the pricing of the "enterprise-based
body, product-centered" idea,
strive to compete in the target market,
This is the first time in the world that the company has established a pricing strategy for its products.
Strive to obtain the largest
profit share in the target market competition.