Marketing Mix of Verizon Communications and 7Ps (Updated 2024)

The Marketing mix of Verizon Communications analyses the 7Ps of Verizon Communications, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Verizon Communications. Verizon Communications is one of the companies on which the U.S. depends for communications and the Internet. The 6th brand in terms of Brand equity, Verizon has many things going for it. It has a significant chunk of the American telecommunications and broadband market and the branding and backup to cover it up for several years.

About Verizon Communications

• Type: Telecommunications conglomerate
• Industry: Telecommunications
• Founded: April 7, 2000
• Founder: Bell Atlantic, GTE, and Vodafone
• Headquarters: United States
• Area served: United States, Puerto Rico, and the U.S. Virgin Islands
• Key people: Hans Vestberg (Chairman) and Lowell McAdam (CEO)
• Number of employees: 163,000

Verizon Communications Product Strategy

There are several lines of businesses in which Verizon is present. It uses four strategic business units to separate the various business entities, each related to the telecommunications market.

The new Product Mix of Verizon Communications in 2024 is as follows (Source).

1. Wireless Services: This is a core component of Verizon’s offerings, including mobile connectivity services through its extensive 4G LTE and 5G networks. Services encompass voice and data plans, messaging services, and mobile internet access for smartphones, tablets, and other mobile devices.
2. Wireline Services: Verizon provides broadband internet services, including high-speed Internet via fiber-optic (FiOS) and traditional copper lines. FiOS, known for its high-speed Internet, T.V., and digital voice services, is a significant part of this category.
3. Business Solutions: Catering to businesses of all sizes, Verizon offers wireless and wireline Internet and voice services, cloud and data center services, cybersecurity solutions, and enterprise mobility management. These services are designed to support businesses’ digital transformation and operational efficiency.
4. Media and Content: Verizon delivers digital media and content services through its subsidiaries and partnerships. This includes offerings from Verizon Media (formerly known as Oath), which operates media brands and platforms that engage consumers with digital content, advertising solutions, and consumer services.
5. IoT (Internet of Things) Services: Verizon has expanded its presence in the IoT sector, offering solutions that connect and manage devices across various industries, including automotive, healthcare, retail, intelligent communities, and energy. These services leverage Verizon’s wireless and wireline networks for data analysis, remote monitoring, and management capabilities.
6. Entertainment and Streaming Services: Verizon has partnerships with various content providers to offer streaming services and content bundles, including music, video, and gaming services, to its subscribers. These partnerships often provide Verizon customers with exclusive deals or bundled services.
7. Hardware: Besides services, Verizon sells a wide range of hardware directly to consumers and businesses, including smartphones, tablets, mobile hotspots, smartwatches, and accessories. These are available through Verizon’s retail stores and online platforms.

Verizon Communication Place Strategy

Verizon has 98% of the U.S. wireless market as of 2016 and says a lot about its penetration levels. Similarly, in regions where it is using Verizon Fios, it does not have a cable network but operates only data services through Verizon Fios. Fios is also penetrative and is already present in 7.1 million homes in the U.S. However, outside the U.S., Verizon has no presence.

Here’s Verizon Communications’ place strategy.

1. Nationwide Retail Presence: Verizon operates a vast network of retail stores across the United States, offering customers direct access to its products and services, including smartphones, accessories, and personal consultations for service plans. This extensive physical presence enhances customer service and brand visibility.
2. Online Sales and Service Platform: Verizon has a robust online platform that allows customers to purchase devices, sign up for plans, and access customer service. This digital channel caters to the growing demand for online shopping and provides a convenient option for customers to manage their accounts.
3. Authorized Dealers and Third-Party Retailers: In addition to its retail locations, Verizon products and services are available through authorized dealers and third-party retailers, such as Best Buy and Walmart. This strategy expands Verizon’s market reach and provides more purchase points for consumers.
4. Global Services for Business Customers: Verizon offers a global service footprint for its business and enterprise customers, with solutions tailored to multinational corporations. This includes cloud services, security solutions, and professional communications networks, supporting the global operations of its clients.
5. Strategic Partnerships and Collaborations: Verizon forms strategic partnerships and collaborations with other companies to bundle services, such as streaming subscriptions or exclusive content offers, enhancing the value of its offerings and extending its reach into new customer segments. These partnerships help Verizon stay competitive and relevant in a rapidly evolving market.

Verizon Communications Pricing Strategy

Verizon Communications provides a mix of pricing models for all its products and entertainment services. While Verizon Wireless is competitive and affordable, Verizon FiOS is premium and expensive. But naturally, the value provided in wireless and Fios is different.

Hence, it can be said that Verizon uses Value-based pricing. The product’s pricing differs based on the value it provides to the customer. With this pricing and distribution strategy used, it can also offer value-added services (VAS) accordingly.

Verizon Communications employs a multifaceted pricing strategy designed to cater to a broad spectrum of consumers and businesses, leveraging its market position as a leader in the telecommunications industry. This competitive and adaptive approach ensures that Verizon retains its existing customer base and attracts new users by offering value in various forms. Here’s an overview of Verizon’s pricing strategy, crafted with a marketing lens.

1. Value-Based Pricing: Verizon focuses on value-based pricing, where the price of its services and products is determined by the perceived value to the consumer rather than solely on the cost-of-service delivery. This strategy allows Verizon to command premium pricing for its high-speed, reliable network services, especially in the 5G domain, where it leads in coverage and technology.
2. Tiered Service Offerings: Recognizing the diverse needs of its customer base, Verizon offers tiered service plans with varying levels of data, speed, and features. This stratification caters to different customer segments, from budget-conscious individuals to data-heavy users, ensuring each customer finds a plan matching their usage patterns and value expectations.
3. Promotional Pricing and Incentives: Verizon regularly employs promotional pricing strategies, including limited-time offers, discounts for new customers, and loyalty rewards for existing customers. These incentives are strategically deployed to encourage sign-ups, upgrades, and retention, making Verizon’s premium services more accessible to a broader audience.
4. Bundle and Package Deals: To enhance the attractiveness of its offerings, Verizon bundles products and services, such as combining wireless service with internet and entertainment packages. These bundles provide customers with a comprehensive solution at a perceived value, encouraging uptake and long-term commitment.
5. Dynamic Pricing Models for Business Solutions: For enterprise and business clients, Verizon adopts a dynamic pricing model that reflects the complexity and scalability of the services offered. This includes customized solutions for wireless, broadband, and cloud services, where pricing is often negotiated based on the business’s specific needs and volume commitments, ensuring competitive positioning in the B2B sector.

Verizon Communications Promotion Strategy

Verizon is known as an intelligent marketer, and its success with various promotions has put it in the lead.

One of the longest-running marketing strategies and a super-hit Verizon promotion is “Can you hear me now,” where a person goes across the country to check whether he can be heard on the phone. A voiceover says that Verizon can reach across the country, but they still keep checking. The same marketing campaign was continued for a decade with various creatives added to introduce many different services.

https://youtu.be/k4Mdbdehdw4

Verizon has recently been taken on by competitors AT&T and Sprint. However, its marketing strategy is already implemented and has a significant market coverage. So, shaking Verizon at this point is a long-time job for any of the other telecom operators.

Some Recent Video ads and Print ads for Verizon Communications are:

https://youtu.be/qi5ixR66Cls

Verizon Communications People Strategy

In the service marketing mix context, “People” refers to all human actors who play a part in the service delivery and thus influence the buyer’s perceptions: brand loyalty, the firm’s personnel, the customer, and other customers in the service environment. For Verizon Communications, the “People” aspect is critical to their service marketing mix, embodying the brand and shaping customer experiences. Here’s how Verizon Communications excels in this dimension.

1. Skilled and Knowledgeable Workforce: Verizon invests in recruiting, training, and retaining a highly skilled workforce. Employees, from retail staff to customer service representatives and technical support teams, are well-trained to provide knowledgeable and efficient service, ensuring that customer interactions are positive and informative. This focus on expertise helps Verizon maintain its reputation for quality service and customer satisfaction.
2. Customer-centric Culture: At Verizon, there’s a strong emphasis on creating a customer-centric culture. This means that every employee, regardless of their role, is encouraged to think from the customer’s perspective, aiming to enhance the customer experience at every touchpoint. By prioritizing customer needs and feedback, Verizon fosters a service environment that is responsive and adaptive to customer demands.
3. Empowering Employees for Better Customer Service: Verizon empowers its employees with the tools, authority, and responsibility to make decisions that benefit the customer. This empowerment is crucial for resolving issues quickly and efficiently, leading to higher customer satisfaction and loyalty. It also motivates employees, who feel valued and capable of impacting the customer experience.
4. Diversity and Inclusion: Verizon strongly emphasizes diversity and inclusion within its workforce. By fostering a diverse and inclusive work environment, Verizon ensures a wide range of perspectives and ideas, which enhances creativity and innovation in service delivery. This diversity also enables Verizon to serve its diverse customer base better, as employees can relate to and understand the unique needs of different customer segments.
5. Continuous Training and Development: Recognizing the rapid pace of technological and market changes, Verizon invests in constant employee training and development programs. These programs are designed to keep the workforce up-to-date with the latest technologies, service standards, and customer service practices. Ongoing education ensures that Verizon’s team can continue to provide exceptional service in a competitive telecommunications landscape.

Verizon Communications Process Strategy

The “Process” component of the service marketing mix refers to the methods and procedures a company uses to deliver its services to customers. It encompasses the entire customer journey, from initial engagement through the delivery of the service and post-service support. For Verizon Communications, these processes’ efficiency, reliability, and customer-friendliness are crucial for maintaining its market position and ensuring customer satisfaction. Here’s an overview of how Verizon Communications meets our customers’ expectations in this area.

1. Streamlined Service Activation and Setup: Verizon has streamlined its service activation and setup processes to ensure customers can quickly start using their services. This includes a simplified online ordering process for personal and business services, quick and efficient installation services for its FiOS Internet and T.V., and immediate activation for wireless services. The aim is to minimize customer hassle and wait times, enhancing their overall experience.
2. Customer Service and Support: Verizon offers multiple channels for customer service and support, including phone, online chat, and social media platforms, ensuring that customers can quickly get help in the way that is most convenient for them. The company invests in training its customer service representatives to handle inquiries efficiently and effectively, reducing resolution times and improving customer satisfaction.
3. Self-Service Options: Recognizing the importance of convenience for its customers, Verizon provides robust self-service options through its website and mobile app. Customers can manage their accounts, pay bills, troubleshoot issues, and upgrade services without interacting directly with a service representative. These digital tools are designed to be user-friendly, providing a seamless experience for tech-savvy customers who prefer self-service.
4. Billing and Payment Processes: Verizon has made its billing and payment processes as transparent and straightforward as possible. Customers receive detailed bills that itemize charges, and they can choose from multiple payment methods, including online payments, automatic payments, and in-person payments at Verizon stores or authorized retailers. This flexibility and clarity help to prevent billing disputes and enhance customer trust.
5. Feedback and Continuous Improvement: Verizon highly values customer feedback as part of its process. The company actively solicits feedback through surveys and other channels, using this information to refine and improve its service delivery processes continually. This commitment to continuous improvement helps Verizon stay responsive to customer needs and preferences, ensuring its processes evolve in line with expectations.
6. Technology Integration: Verizon leverages the latest technologies to enhance its service processes, from advanced network management tools that ensure the reliability and speed of its services to A.I. and machine learning in customer service applications to predict and resolve issues more quickly. This technology integration improves service delivery and offers Verizon cutting-edge services and features.

Verizon Communications Physical Evidence Strategy

The “Physical Evidence” component in the service marketing mix pertains to the environment in which the service is delivered and any tangible elements that facilitate the service or help consumers evaluate the service before purchase. Physical evidence is crucial in shaping perceptions of quality and trustworthiness to target customers for a telecommunications company like Verizon Communications. Here’s how Verizon Communications excels in providing physical evidence to its customers.

1. Branded Retail Stores: Verizon’s branded retail stores are a primary form of physical evidence. These stores are designed to offer a welcoming and informative environment where customers can explore products and services firsthand. These stores’ layout, design, and technology demonstrations reflect Verizon’s brand values of innovation, reliability, and customer focus.
2. Service Vehicles: Verizon’s service vehicles, visible in communities where they provide services, are branded and serve as mobile billboards that reinforce the company’s presence and reliability. When technicians visit homes or businesses for installation or repair services, these vehicles prove Verizon’s commitment to service and accessibility.
3. Professional Uniforms: Employees, especially those in customer-facing roles and technicians who visit customers’ premises, wear uniforms bearing the Verizon logo. These professional uniforms make employees easily identifiable and enhance the perception of professionalism and trust.
4. Marketing and Promotional Materials: From brochures and billboards to online ads and email campaigns, the visual identity of Verizon is consistently presented across all marketing and promotional materials. This consistency helps build and reinforce brand recognition and trust as physical proof of the company’s extensive reach and marketing efforts.
5. Website and Mobile App: The design and functionality of Verizon’s website and mobile app are critical elements of physical evidence in the digital realm. They offer a user-friendly interface, comprehensive information on products and services, account management features, and customer support. The professionalism and ease of use of these digital platforms reflect the quality and reliability of Verizon’s services.
6. Customer Documentation and Billing Statements: The clarity, quality, and design of billing statements and other documentation are crucial. Verizon ensures that these documents are easy to understand and navigate, reinforcing the company’s commitment to transparency and customer service.
7. Technology and Equipment: The physical appearance and reliability of the technology and equipment provided to customers, such as routers, modems, and mobile devices, are direct physical evidence of Verizon’s service quality. The modernity and performance of this equipment reflect Verizon’s commitment to providing high-quality, cutting-edge technology solutions.

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