Channel competition for the future of 3G in China (my opinion)

There are indications that 3G is bound to become the only way to upgrade China's mobile communication industry. In order to preserve and increase the value of the industry's state-owned assets, 3G licenses will also be issued to existing fixed network operators, to become a full-telecom service operator. In the name of the investor, the country intends to build 3 to 3 in the near future ~ Four world-class telecom operation giants, which means more intense market competition in the 3G era is coming.

Channel competition is particularly important in the fierce market competition. Although some experience has been gained from operating PHS for existing fixed network operators, their channel scale and efficiency are still different from those of mobile operators, facing the arrival of the 3G era, its channel system still has some major defects, such as over-concentration coverage, single channel means, and existing channels cannot better reflect the value of customer service, more market user information cannot be obtained.

On the other hand, 3G will promote further differentiation of mobile communication services. Therefore, the existing over-crowded channels are not suitable for or may even limit the circulation of 3G products and the development of 3G services. At the same time, some innovative marketing methods and channels in other industries will be introduced into 3G businesses, thus forming a three-dimensional, around-the-clock channel network with stronger penetration.

Self-owned business hall Transformation

In addition to sales, channel functions should also include visual information dissemination, on-site customer service, and market information collection. For users, these functions are valuable. For the channel itself, only sales can bring direct benefits. Therefore, on the premise of interest-oriented, agency cooperation channels are not willing to pay extra costs for non-profit functions. At this time, the telecom operator's own business hall, in a sense, it has played a role in demonstrating and leading the entire channel system.

China's existing major operators all have their own business hall systems. In addition to sales, these business halls also undertake certain customer service functions, there is still room for improvement in visual information dissemination and market information collection.

For example, the current business hall is transformed into VMD (visual Marketing Planning and visualmerchandisingdisplay. There are many types of 3G businesses and the composition is complex. 3G users are usually high-end users. Therefore, operators need to make a lot of marketing efforts to build a brand. Business design and cost attraction are only necessary for users to visit the store, while VMD is the key to facilitating this operation. The so-called VMD requires product placement or business display to improve the brand image and attract customers to continue to visit. However, VMD is not only a gorgeous window display and decoration, but also a systematic presentation and logical product planning, so that the product image can penetrate into the consumer consciousness. VMD is a consistent continuation of the channel, promotion system, and differentiated Marketing Strategy system. It can improve the image of business halls and products and create a pleasant atmosphere in the store, at the same time, it is difficult for competitors to imitate the difference, and ultimately improve sales efficiency.

This channel type is more suitable for existing fixed network operators to choose when carrying out 3G services, and partially applies to existing mobile operators.

The channel type has the following advantages: it facilitates the downward implementation of the overall marketing strategy, increases the corporate/business brand image, and facilitates the service, management, and retention of end users; facilitate timely promotion of new businesses.

The shortcomings and Countermeasures of this channel type are as follows.

● Large investment in channel construction and high management costs. Countermeasures: first, only a few flagship stores of 3G brands should be built, and "quality should not be quantity" should be set up to set a high quality benchmark for other channels and future channel construction. After sufficient funds are available, expand the scale.

● The number is small and the coverage is limited. At present, mobile operators own business offices with a sales ratio of less than 20%. The countermeasures are to create self-owned business halls for investment in key areas and supplement them through other channels in normal areas.

● The market is slow and the price system is not flexible. The countermeasures are to make up for the uniqueness of product/business design.

Agency System Transformation

Agency system channels account for the largest proportion of the current sales system, which is large in number and vary greatly in form, scale, and closeness, but their channel ownership is not within the operator, the relationship between agents and operators is a sales agency. Therefore, the relationship of interests determines the cooperation between the two parties. To reflect the marketing strategy system of operators in this type of channel, it is necessary to convert the strategic appeal into measurable benefits and fix them by contract or contract.

According to my personal Survey, at present, more than 90% of the agent's sales revenue comes from terminal sales. Therefore, they do not hesitate to "make profits and drink money" in the telecom agency business, just to promote their terminal sales business. This will inevitably disrupt the price system and damage the interests of telecom operators. As there are many 3G terminal applications, high prices, and fast elimination, it is possible to stimulate agents to sell subsidies. If the management system is not rigorous, once the percentage of commission for the telecom agent service increases, the agent will encourage users to switch to the network, throw the card and other malicious behaviors to further harm the interests of telecom operators.

On the other hand, the killer of 3G services is a large-volume data service, which has a wide variety of business types, fast changes, complex structures and functions, and is hard to be understood by users, therefore, user requirements include some extended product value (that is, service value ). To this end, the 3G business requires the transformation of the management system from a sales-oriented channel to a business model that focuses equally on sales and services, and even maturity in 3G business (about 4 ~ 6 years later), it is transformed into a quasi-Alliance model that focuses on services and is supplemented by sales.

In addition, although there are many agents currently, the store is too concentrated (such as a communication street or an electronic Street) and there are deficiencies in the coverage of the region and customer service convenience. operators need to plan the channel layout, by selecting a new agent, prompting the old agent to re-select the site, and other means to make adjustments.

This channel type is more suitable for existing mobile operators. Because these channels are already too crowded, I personally think it is not suitable for existing fixed network operators.

The channel type has the following advantages: low channel investment, low management cost, large distribution, and facilitating the full business development; flexible market response and user expansion.

The shortcomings and Countermeasures of this channel type are as follows.

● There may be conflicts with the marketing strategy system, such as the price system, business strategy, and brand image system. The countermeasures are to improve the channel management system and reflect strategic demands.

● It does not help end users in service, management, and retention. The countermeasures are to improve the channel management system and promote the transformation of agents.

● Stability, lack of differences, and easy to imitate. The countermeasures are to make up for the uniqueness of product/business design.

● High requirements on the information platform. The countermeasures should be replaced by manual operations such as fax, phone number, and email before establishing the agent operation information platform.

Value-added partner Channel

The agent system only cooperates with operators in the downstream of the business. The difference is that the cooperation between value-added partners and telecom operators is closer, not only in the sales and user service fields, it also includes business design, content provision, network operation, and market operation.

The earliest Mobile Communication Service provided non-differentiated services for industrial users and public users. Later, it began to work with other industries to develop new businesses to meet user needs. However, whether China Mobile's cooperation with McDonald's in the dynamic zone business or China Unicom's cooperation with China Construction Bank at brew, it is still a combination of brand and business design, there is no new channel that can make it a mobile operator (in turn, the dynamic zone can be regarded as a channel of McDonald's; brew can be regarded as a channel of China Construction Bank ). In the future 3G era, various industries will actually converge. Enterprises in the radio, TV, media, finance, power supply and other industries can provide the same solutions for users. This is competition, but it is cooperation. In the future, the value of mobile communication operators lies in the use of resources and advantages in other industries to cooperate and retain existing users in the industry (mobile phone penetration rate is getting higher and higher, it can be considered that existing mobile phone users are an existing user market in the 3G era.) they are integrated from both ends to the middle to provide a desktop telecommunications service for the whole society. With the help of the information system, users can handle banking services at telecom operators or at banks.

This channel type is not only a channel, but also a strategic resource. It is suitable for all 3G carriers. Obviously, this is beyond the scope of channel management, so it is more difficult and closely related to the time maturity.

The channel type has the following advantages: it reflects strategic demands, high value-added, large marketing differences, and is not easily imitated by competitors. Channel coverage is more mature.

The shortcomings and Countermeasures of this channel type are as follows.

● The cooperation system is complex and the management cost is high. Countermeasures: Make a detailed market research and demonstration prior to business promotion, and establish a sound business management system and a system of understanding between the two parties.

● If the cooperation fails, the withdrawal cost is high. Countermeasures: Before business promotion, make necessary exit plans.

● The product business circulating on the channel is limited, usually limited to the cooperative business. Response: encourage value-added partners to provide complete solutions for users.

● Extremely high requirements on the information platform. Countermeasures: exercise caution when developing a value-added partner's information platform.

Direct marketing channel

Direct marketing is a marketing system that is used to generate user interaction and reach transactions anywhere. In layman's terms, consumers can order and buy goods or services by phone, email, TV, Internet, or other media after they contact products or services through non-personnel media. Direct Marketing includes database marketing, one-to-one marketing, personalized marketing, and relationship marketing. in common, direct marketing uses multiple channels for non-Storefront sales for individual communication.

Currently, all telecom operators have mature customer service hotline systems, such as No. 10000, one of China Telecom's four major channels. As a channel, the customer service hotline not only facilitates users, but also effectively supplements the existing channel system.

In the 3G era, the most important direct marketing channel is the Internet. 3G users emphasize the differences between the individuality and uniqueness of telecom requirements, which means that the user-selected business combination varies widely. At the same time, different businesses have different requirements for mobile terminal configuration. Therefore, an ideal mode is that the operator receives support from the terminal manufacturer to provide "Mass Customization" for business grouping and terminal configuration in the same location ", that is to say, there is a joint "Dell model" in the mobile communication and mobile phone manufacturing industries ". The Internet well supports this sales goal, and many data businesses in 3G depend on the Internet. Therefore, the two have a good target group identity.

This type of channel is suitable for all 3G carriers to choose as a supplement to their channel system. Internet channels have a great impact on the existing channel system, so they are more suitable for new 3G businesses with innovative consciousness.

The channel type has the following advantages: low channel investment, low channel management cost, high user group pertinence, integration of sales and service, and tracking of marketing process, which has a strong learning effect; it is suitable for the promotion and sales of value-added services.

The shortcomings and Countermeasures of this channel type are as follows.

● Mobile terminal logistics cannot be provided. Countermeasures: Combined with terminal manufacturers to design terminal distribution, ultimately through their own business halls, manufacturer channels,CommunityThe manager and Agent complete the delivery of mobile phone terminals.

● Due to the influence of users' consumption habits, direct marketing channels cannot become mainstream channels (except for the Dell model ). The countermeasures are to make a supplementary Channel plan.

● Difficult coordination between different types of channels, which has a great impact on the real proxy. If the two channels are expected to complement each other to produce synergies, foreign experts may advise that the real agency in the user's location should be given a subsidy, regardless of whether the real Agent contributes to the users of direct marketing.

● High requirements on information systems. Countermeasures: Pay attention to the accumulation of user data, and gradually build and improve the business intelligence system.

Interpersonal Network Communication Channel

Interpersonal Network communication channels are one of the forms of direct sales. In the past, China Unicom's mobile business, China Telecom and China Netcom's ADSL business all adopted the personnel direct sales model. However, this mode does not help enterprises and business image improvement, nor help users retain it. This approach is inevitable for telecom enterprises that want to grow into world-class telecom operators through 3G services. The Interpersonal Network Communication Channel we are talking about here is a sales channel based on the social relations of users in combination with business and fee design.

Due to the complexity of data services, early 3G promotion must begin with the voice service. Voice is the most basic requirement for users to choose communication products. We know that the voice communication service has a very strong network effect. The value of a communication network is the number of people who use it. Therefore, the design of communication services/fees can combine the characteristics of interpersonal relationships, which is bound to promote the amplification of this network effect. For example, a fee is designed. For new incoming users recommended by Internet users, both parties can enjoy special charges (or be transferred to other double-room communication services, or one of them enjoys special charges). Unlike the previous single-layer direct selling feature, this direct selling method is multi-level and can be transferred, similar to the direct selling method of Amway. In this way, the social interpersonal networks of groups are mapped into the telecom network. The higher the coupling between the two types of networks, the greater the user's stickiness to the telecom network, new users are more willing to access the network. An excellent Interpersonal Network Communication Business/fee design scheme can greatly stimulate the communication volume of online users.

As this type of channel has a great impact on the existing channel system (especially the agent channel), it is more suitable for existing fixed network operators to promote 3G services from scratch.

The channel type has the following advantages: low channel investment, low management cost, Path Dependence of user groups, difficulty in imitating the followers, the most extensive coverage, and easy to retain.

The shortcomings and Countermeasures of this channel type are as follows.

● Channel functions are limited and customer service cannot be provided. Countermeasures: Increase the construction of self-owned business halls and other channels, and introduce users to the business halls through interpersonal network communication to complete necessary customer services. If the service capability of the business office is limited, community managers should be considered to provide on-site services such as online registration and mobile phone selection.

● This channel cannot provide mobile terminal logistics. Countermeasures: for general businesses, we advocate carrying machines into the network and building separate mobile terminal sales channels; for unique businesses, we must strictly customize terminal sales management in our own business halls (or through community managers) complete the delivery of the mobile terminal.

● In interpersonal network communication, the formation of the first batch of users is critical. Countermeasures: To hold large-scale events and use some preferential measures and restrictions to select the first batch of users as "seed users", making it worth showing off as "seed users.

● There is no precedent in the domestic and foreign communication industry, which is highly risky. Countermeasures: make plans to supplement or replace channels.