SAN FRANCISCO UNIVERSITY

Principles of
Marketing Final
Project
TV Cable
Sharon Marn
Ren Arteaga
Francisco Cepeda
Juan Ignacio Lpez

Final Project for Principles of Marketing base don TVCable as a company that
offers internet services

B. MARKETING OVERVIEW
Mission and Vision
Mission: to generate extraordinary service experiences on entertainment,
communication and information, with committed human resources and effective
processes that overcome the value expectancy of our customers.
Vision: The largest Ecuadorian private group on telecommunications and
entertainment providing excellent service with quality, novelty and responsiveness.

The companys primary goal

Satisfaction

The satisfaction level is measured every week through surveys made by personnel
of the call center, also when people has recent buy the service.

Customer Relationship Management

It is important to retain the customers and to retain them satisfied, TVCable

provides a 24H customer service and support line, and also they do surveys to
measure customer satisfaction and to receive claims.

Sales volume and customer satisfaction

Sales increment is one of the most primary goals. To reach this, is necessary large
investments in capital as in human resources, advertising, promotion. It is
important in this kind of businesses where competition is really hard, that the
promotion and advertising is well directed. Also they need to have well trained
personnel to provide excellent assistance to customers, and try to minimize
customer claims that can turn in contracts cancelling.

Marketing Management Philosophies

Product orientation:
TVCables main goal of product orientation is to provide the best internet quality
service, this includes the internets speed. Given that every time more people
needs internet access they work so their service can reach more different places of
the city and Ecuador. Providing reliable service with edge technology.
Sales Orientation:
They make their selling strategies by sending salespersons to visit different
segments and potential buyer. These salespersons go visit houses, offices to make
a personal selling, they have all the information the customer may need, so the
selling can be really comfortable for the customer. There are also several offices
where people can come and get information or buy their services.
Corporate Philosophy:
Their social responsibility are based on contributing to the countrys development
by providing excellence internet service, building a culture based on the customer,
and the development and qualifying of their personnel.
C) STRATEGIC PLANNING FOR COMPETITIVE ADVANTAGE
A strategic planning is the managerial process of creating and maintaining a fit
between the organizations objectives and resources and involving market
opportunities.
The company has a strategic plan, which is approved by the Board of Directors,
and it includes the marketing strategy to get the revenues forecasted and the
resources needed to reach it. It is really important to consider the transition face
the group faced when its ownership was translated to a public area because of the
taxation debts its previous owners had.

What is TVCables Strategic planning?

Their strategic Planning is maintaining their image positioning. They have
had the same colors and logo since the begging of the enterprise. In their
promotion they project themselves to their clients as a brand with a good
service and a good product.

Competitive advantages
SWOT Analysis
Strengths: The Strengths of the company is the name that they have, it was
a very important brand in the late years of Ecuadors Internet Boom. It
presented itself as a new option of high quality and used their image of
Cable TV provider as their main push, so is a brand positioned in the
market.
Weaknesses: Their principal weakness is that the brand needs a renovation
for impacting the consumers. The clients identify the brand, but the brand
doesnt show a growth in the products for the buyers, specially because of
the new competition of other kinds of internet providers such as
PANCHONET, Claro and even the use of internet in mobile devices
Opportunities: Selling new ways of marketing on the Internet, like Social
Networks, Google publicity, web posting, amongst others.
Threats: CNT as the cheapest Internet service in the market, which is
property of the State. Also, there are approximately 360 other enterprises
offering Internet service.
Niche competitive advantage
In this case Interactive doesnt seek a target and effectively serve a small segment
of the market. They have multi targets, because they have different products with a
lot of prices differences that are for different targets, and they specialize their
marketing for each target
3

Marketing Mix:
Product Strategy: They offer different kinds of Internet connection, such as:
wirelesss connection, dial up, satellite, optical fiber and wimax. They also provide
services such as virtual marketing, and advertising into social networks.
Place (Distribution): TVCable has their offices in the main cities of the Ecuador.
1. - Quito
2. - Ibarra
3. - Guayaquil
4. - Cuenca
5. - Ambato
6.-Loja
7. Machala
For the Internet service distribution, clients must contact the enterprise and they
will send technicians to install the product.
Promotion Strategies: the promotion that they have is not aggressive; it only
works for remembering the brand to the costumers. They promote their products in
radios, social events, sponsoring big events, via Internet and social networks. For
example their promote their brand in concerts, in social parties and events in
Plaza de las Amricas, Condado Shopping and CCI
Pricing Strategies: They have a lot of variety of prices depending in their product;
they offer Internet service from approximately $19,90 to the most expensive which
is optical fiber, that costs approximately $235 per month.

E) CONSUMER BEHAVIOR
Consumer Decision Making:
1. Recognition: It is easy for potential customer to recognize the brand
because, cable TV, internet service and telephone service, are all under one
commercial name, Grupo TVCable. So all the advertising make it easy for
the customers to remember the brand name when they want one or all of
their services.
2. Information search: Potential customers can find detailed information of
their services by the companys web site, contacting them by telephone or
by any of their salespersons.
3. Evaluation of alternatives: The alternatives persons can have are all the
internet service competition. Satnet has a great advantage because their
network is placed in almost every sector of the city.

Consumer Buying Decision:

Culture:

Ecuadorian

culture

is

improving

really

fast

when

its

about

telecommunications, people are more used to the internet and the demand for this
service is increasing fast.
Social class: Social class is an important factor in Ecuador when hiring a service.
People with higher incomes cares more about the speed and the customer service,
so Satnet is aware of this and makes their advertising of speed where the higher
income segment is located.
Perception: Due to the time in the market, Grupo TVCable, has a better
perception in the public. Also their service is known for speed and reliability.
Motivation:

Social

pressure,

advanced

technology,

habits

changing,

communication needs, are some of the motivations for people to hire internet
services.

G) PRICING STRATEGIES
Grupo TVCable establishes its pricing strategy depending on the service they
provide, in this case is internet.
Internet Service:
Since the competition is a huge determinant of the Internet service provider;
Fastboy, the state internet service provider, has the market leader price which no
companie can compete with it because it has the lowest prices, it is very difficult to
maximize the profit with these prices. Satnet has to keep up with the price of the
private competition because of this use a Status Quo pricing strategy.

J)RETAILING
Retailing Mix
Product: what we can say about TV Cable is that its line of product is width but not
depth. Width refers to the assortment of products offered; depth refers to the
number of different brands offered within each assortment.
Place: As we mentioned it at the beginning, TVCable has its offices at the main
cities of the country, so it has a national recognition.
Promotion: what the company applies in advertisement is especially related with
the stages in the product life cycle. For example when the company introduces a
new product in the market is when it applies the most in advertisement resources,
and then the company only applies advertisement like a remainder promotion for
the customer.
Price: it depends on the product the customer needs. The company offers Internet
service from $20 ; to the most expensive which $250 per month. But compared
with competition TVCable occupies a good place in prices scale, focusing in the
kind of product and services it provides to the customer.

Presentation: the company has maintained over the years the same image to
keep in touch with the customer.
Personnel: it is important for the company to offer a good customer service to
increase sales and create loyalty brand.
L) CONCLUSIONS AND RECOMENDATIONS
- TVCable knows that the best thing that they can do in contrast of their
competition is to give a fast response to the clients needs and develop right
products through promotional packages at the right price. On the other hand the
quality service is crucial in the business, so while a competitor takes 5 days in
install the Internet service TVCable tries to deliver it between installation can take 2
and 4 days. The innovation capacity, quality service and fast attention make the
difference.
- The market is so competitive and is characterized by aggressive sales based in
prices. Without a doubt the client will select a company that provides more capacity
and speed connection with a lower price. So the company needs sellers motivated
and well trained to retain the current customers and gain others from the other
companies.
- TVCable needs a good sales force to sell more services and retain the current
clients.
- The Company needs to invest more in Marketing and publicity, because the
perception that consumers has of TVCable is that they dont upgrade their
technology and also are a pretty inefficient brand because of all the legal problems
it has been through.
- TVCable is a company with a lot of potential, because the products it sells match
with the worlds needs of nowadays. But the publicity is not very updated, and they
do not show their products and their benefits to all the potential buyers. They are
loosing a lot of money because these clients go to the competition which
sometimes manages to sell them the highest price products which means a loss for

TVCable. The company needs to identify its competitive advantage and show
caste it, the competitive advantage is experience in quality of product and
customer service
- They need to increase and keep its market share. The company is one of the
biggest in the market but more clients are arising every single day and also the
competition grows as well. The company needs to keep track of every one of the
markets variations to adjust the proposals it offers in all marketing aspects to the
public.

Note: Most of all the companys politics, prices, promotion, vision and mission can
be seen at its web page: http://www.grupotvcable.com.ec/grupo/internet