A Study on the Marketing Strategy of Telecommunication Service Industry in Korea.

Seong Hyun Lee(Major in Marketing Graduate School of Business Administration Hanyang University)

The recent internal/external environment surrounding our telecommunication service industry can be defined as opened market, fierce competition and globalization, all of which may be attributable to the conclusion of Uruguay Trade Negotiations, diversified and individualized customers, high-fidelity demands.

Meanwhile, our local telecommunication service industry enjoyed a monopolistic status of public corporation under full governmental sponsorship for a long time. However, as the supply began to exceed the demand, the supplier's market has turned into the buyer's one, necessitating the development of a marketing concept in this industry. That is, a marketing strategy is required to create customer's needs and satisfy them in a systematic, organizational way. Under such circumstances, this study was aimed at addressing the marketing problems of our telecommunication service industry and developing a proper marketing strategy which can adapt our telecommunication service industry to the change of internal/external environments. The problems related to marketing strategies for our telecommunication service industry can be addressed as follows;

First, any proper strategies are not established for market-segmentation by each service commodity, selection of target markets development of new service commodities, sub-strategies for lifecycle of service commodities.

Second, autonomous price-settings are not feasible due to governmental regulations, and therefore, such tactics as price-setting based on cost, differentiation of prices depending on distances, diversification of discount rates, etc., are limited; thus, various-priced service commodities cannot be developed.

Third, systematic advertisement/promotion of personal sales are not being performed.

Fourth, no other sources of service tan the telephone offices have been arranged; users can only face the bureaucratic, arrogant officials in the telecommunication services.

The reform measures against the above problems can be put forwards as follows;

First, in order to continue to create customer's need more aggressively such approaches as development of diverse new service commodities, market segmentation by commodity, establishment of target markets, periodic market survey for customer's needs and wants etc., should be reflected in a comprehensive package strategy.

Second, the service prices should be determined based on the principle of market economy and in an autonomous way. And such strategies should be allowed as cost-offsetting, diversified discount system, price differentiation etc.

Third, in order to secure stable customers under ever-fierce competition more systematic advertisement/market promotion/personal sales strategies should be programmed; for effective personal sales such systems as AM(Account Manager) and TM(Telemarketing) should be actively operated, and more specialized P.R activities should be conducted in cooperation with professional advertising agencies.

Fourth, mini service booths should be established in busy areas (department stores, large buildings and apartment complexes) as well as in existing telephone offices to not only offer more services ties to customers but effect P.R activities for new service commodities and imagebuilding also. To this end, the customer services should be operated using the system of "One Call, One Stop Service".

It is regrettable that this study has not featured individualistic marketing strategies for diverse telecommunication services but covered an overall strategies for our telecommunication service industry as a whole, However, it is conceived that this study may be useful in developing our telecommunication services in that it addresses various problems besetting our marketing strategies for telecommunication services and therby suggests reformed strategies based on "4P's".