Marketing and market research

The purpose of market research is to support marketing decision making.

The strategic planning processes of the company, marketing planning in general and the design of marketing strategies for products and brands, in particular, require analyzing variables of different kinds, situations and behaviors both in the general environment of the company as well as specific or internal, as well as many other aspects related to the marketing mix.

Marketing can be analyzed as a function of the company, or in a broader sense, as a function of organizations (profit and non-profit).

The main activities or sub-functions of marketing in the company are visualized in the following diagram:

Fig. 1: Market Research as a marketing sub-function 1

The function of MARKETING consists essentially of:

"The analysis, planning, execution and control of actions and programs intended to carry out exchanges, in order to achieve the objectives pursued and consumer satisfaction".2

From the current perspective, companies must act oriented towards consumers, based on the unsatisfied or partially unsatisfied desires that the consumer feels and perceives.

Contemporary marketing develops products to satisfy it. Or what is equivalent, the products can be conceived as a package of satisfiers. That is, as a set of symbolic attributes, psychological benefits, that capture the consumer's desire, and the consumer can, perceiving and imaginary, represent in advance -before buying and consuming it- the realization of satisfaction. Current marketing designs its brand and communication strategies on the basis of consumer psychology, it is a conceptual marketing, a symbolic marketing. In effect, marketing, to configure its commercial proposals, does not only handle physical and tangible properties and attributes (= products), but, mainly, psychological benefits and symbolic representations (= brand images).

Consumer relationships with the product are not direct and immediate, but indirect and mediate. The link between the former and the latter is mediated by the brand images.

Pierre Martineau, creator of the brand image concept and one of the founders of motivational research, points out that the housewife does not buy products but brand images.

“All real differences in quality, price, packaging or service have almost completely disappeared. Bread, milk, meat, clothes, refrigerators, air transport, banks, etc., are practically impossible to differentiate from the material point of view… the difference does not exist but the spirit of the housewife ».3

In this same sense, another pioneer of Motivation Research -Henri Joannis- expresses himself:

"What counts in the purchasing and selection mechanism is not what the products are objectively, but the idea that consumers form of them."

Schematically, we can see the relationships between subject, discourse and referent, in the following figure:

Figure 2: Mediated relationships between the consumer and the product

(Own elaboration)

To be able to contact the marketing discourse with the consumer, the company has to detect needs and desires in the market, develop concepts and products to satisfy them and maintain this activity in a lasting way, through strategic Marketing and operational Marketing.

The first -Strategic Marketing- refers to which markets or segments the company will target, with which products, how it will position itself in the minds of consumers, to guide the company towards the most attractive economic opportunities. These activities cover the medium and long term.

While the second - Operational Marketing - points to the most visible activities of marketing as a function: companies must formulate pricing, product, communication and distribution tactics that allow them to survive in the markets where they operate.

The most visible activities of operational marketing are advertising and sales promotion. They are short-term actions.

Marketing collects and analyzes information. After that, he makes his recommendations to the management of the company, which proceeds to develop a strategic planning process, which sets objectives and allocates resources. Marketing plans are then prepared and operational marketing takes action. Finally, the results are evaluated and the process is restarted. 5

As we can see, information is needed to improve the chances of making the best decision and market research provides a scientific methodology to produce systematic, objective and decision-oriented information.

Among the most common decisions made by Marketing Directors and Managers, we can highlight the following:

a) Opportunities:

• What product should we offer? How should we formulate the product? At what price should we sell it? To which consumer group are we going to offer it? How are we going to get it to consumers? How are we going to convince consumers that Should you buy our product instead of the competitor's product?

b) Evaluation:

• Can we increase the sale of our products? Can we sell our products at a higher price? Can we sell to a different group of consumers? Should we change the way we get products to consumers? Should we change the way we offer the products?

c) Troubleshooting:

• How can we increase the profit we get from a product? How can we change the negative trend that sales have? How can we improve customer satisfaction with our products and services?

Each decision area requires a choice between various alternatives, and information is needed to assess their respective consequences.

Let's take as an example one of the possible decision areas and the informational objectives necessary to evaluate the possible alternatives:

How can we increase the profit we get from a product?

These alternatives are:

1. sell more of that product sell it at a higher price lower the cost of supplying that product

The informational objectives for each decision alternative are:

a) Sell more:

• Total size of the market we sell in. Our current market share. Availability of our product in the market. (Retail distribution levels) Consumer awareness of our product Attitude towards our product

b) Sell at a higher price:

• Competitor's price in comparison with ours Consumer perception and valuation of our product in comparison with the valuation of our competitor's products Effect of a price increase on the propensity to buy our product, and therefore, on sales volume. Effect of price increase on the availability of our product in the market / retail distribution.

c) Lower costs:

• Will consumers appreciate the new features or formulas of the product? What effect will that perception have on the valuation of our product? 6

To obtain the information necessary to satisfy these research objectives, the sources of information (internal or external to the company) and the type of data (primary or secondary) must be specified.

The data are called secondary when the chronological (dates), quantitative (figures) or qualitative (opinions) references are collected, processed and analyzed by a person or institution other than the researcher himself, who makes use of them. Although time and money are saved in the collection and processing, it may be that the periodicity of the data, the spatial scope of the same, or the level of disaggregation, do not coincide with the needs of the researcher.

These data can be produced by the company itself (sales volumes, billing amounts, stock quantities, accounting balances, etc.), that is, they are from an internal source; or the data may come from external sources, such as population census data (INDEC, pe), newspapers, yearbooks, guides, business reports, (Veraz, Dun & Brandstreet, pe), bank reports, customs records, audit (AC Nielsen, Ibope, pe).

On the other hand, the data are primary when their source comes from the primary unit of information, that is, from the respondent himself. 7

Said data are not available from any source, but rather, due to the characteristics of the data sought -which satisfy the singular informational objectives- it is necessary to specifically survey them. To be able to identify the kind of facts, which contains the data sought and which allow the achievement of the informational objectives, which makes it possible to help make a decision on a marketing problem, market research professionals are required.

Figure 3: Market Research in the process of solving marketing problems (Own elaboration)

Market researchers may belong to the company's own Marketing Research department, or agencies or consultants specialized in market research are used, when they do not have the appropriate expertise internally and therefore require:

1. «… Who provide special knowledge and skills», «… who provide intensive assistance on a temporary basis», «… who give an impartial point of view», or «… who give the management arguments that justify predetermined decisions». 8

The main sources used by market researchers are:

• Consumers, buyers, and users Retailers and wholesalers Employees of companies.

And also, they can resort to:

• Opinion leaders of the arts, sciences and sports Political, business, union, professional and banking representatives Opinion shapers of the radio, graphic and television press.

In order to obtain the data, it is necessary to have primary data collection methods, which are four, namely: the survey, the interview, the observation, and the experiment.

In the commercial practice of companies, a very large mass of data and information is generated and consumed.

Information is the core of an organization, as it is the essential input for the decision-making process.

MARKET RESEARCH IN THE MARKETING INFORMATION SYSTEM (SIM)

The Information Systems Marketing (SIM) are large databases that collect all sorts of useful information variables of any type of environment.

A SIM is:

"A set of people, teams, and procedures designed to collect, classify, analyze, assess and distribute on time the information demanded by marketing managers." 9

With the growing storage capacities, the high processing speeds available to computer equipment, and the integration of computing with communication (IT = Information Technologies), large companies can have a Data Warehouse, that is, a «centralized data warehouse, which requires software that allows us to better understand the client's profile (Data Mining = Data Mining), and be able to respond to their needs. This is the system on which the Marketing One to One strategy, or Relationship Marketing, is based. 10

The Data Warehouse has the following characteristics:

• It is a kind of focal point that stores in a single place all the useful information from production systems and external sources. It is a data warehouse with a computer architecture of databases for decision-making It is an information structure with four kinds of data organized according to a historical axis and a synthetic axis: aggregated and strongly aggregated data, detailed data and historical data.

The following figure illustrates the structure of the Data Warehouse.

Figure 4: Structure of the Data Warehouse 11

The approaches to analyzing consumer behavior in semi-massive markets suggest that the search for competitiveness and the maintenance of market leadership is based on a customer loyalty strategy with greater lifetime value. That is, the one that provides the most profitability throughout its useful life as a customer.

Therefore, the key is to maintain relationships with these clients over time. Finding out about these profitable customer segments requires researching the potential customer market and researching the marketing database.

Figure 4: Discover customer knowledge (Own elaboration)

And in order to achieve these objectives, it is necessary to combine market research and Data Mining, that is, to move towards market intelligence (Business Intelligent).

To get closer to the essential characteristics of the Market Research concept, we quote below different definitions of authors and institutions:

"It is the systematic design, collection, analysis and presentation of information and discoveries relevant to a specific marketing situation facing the company." (Phillip Kotler, 1994: 112)

Market research, as explained in the first part of the article, is a marketing sub-function and its mission is to provide information about the consumer, the competitive context, identify market opportunities, monitor the implementation of marketing programs, evaluate the performance of the marketing mix.

The American Marketing Association defines:

«Market research specifies the information required to face these problems; indicates the method for collecting information; directs and implements the information gathering process, analyzes the results, and informs us about the findings and their implications. (Peter D. Bennett, 1988: 117)

The Chamber of Market Research Companies, Argentine Republic, characterizes the IM:

1. «Any research study that is carried out in order to collect and scientifically analyze data from different public markets. This includes all types of surveys, especially samples, referring to the opinion of all types of physical or legal entities, consumers, users, companies, administrations, etc.; or destined to the measurement of markets, media, etc. through surveys among merchants, consumers or qualified informants. "To any study or investigation based solely on statistical, economic, econometric and psychosocial techniques" (CEIM, 1980: Article 5)

These definitions, although they are important due to the relevance and prestige of the authors, or institutions, we believe that they describe various complementary dimensions of the IM concept: steps in research design, value and function of information, fields of application of market research, collection methods used, type of unit interviewed, etc.

Summarizing the various dimensions mentioned in essence, they refer to the fact that MI has four main characteristics:

1. It is a SYSTEMATIC, METHODIC knowledge, OBJECTIVELY obtained, that supplies or provides INFORMATION, and for DECISION MAKING.

We share the approach of Kinnear and Taylor, who state:

"Market research is a systematic and objective approach to the development and provision of information for the decision-making process by marketing management" (T. Kinnear and J. Taylor, 1993: 6)

The aforementioned four essential characteristics of the IM concept can be developed as follows:

i) It is a systematic knowledge because the research project must be a plan of interconnected steps and organized into a coherent whole, in the methodological process of research design.

The research project, although it must respond to the specific and conjunctural problem, must be articulated within the broader framework of the strategic planning of the company, where the research objectives (specific problem) are systematically linked with the strategic goals (horizon problematic).

ii) Objectivity is an attribute that market research acquires when it is neutral, without any type of pre-existing commitment except with the search for the truth, without any type of bias, with respect for the consumer, the facts, the data And the information. The application of the scientific method by another researcher must tend towards a coincidence of results and conclusions, within certain margins of variability.

iii) Information is the product resulting from IM and is the essential input for the marketing decision-making process. Both are aspects that interpenetrate in the unity of action.

Before moving on to the next section of the article, we want to share with you the main conclusions of the first assembly on Market Techniques Research, held by the American Marketing Association, in Colorado, USA, on June 24 and 27, 1990.

1st. There has been a fundamental change in approaches to commercial research:

• The commercial research manuals have been limited to exposing data collection and analysis techniques. The techniques are and will be, in the future, only instruments, not ends. The key to research is in the successful planning of business problems.

2º The interest of the studies has evolved from descriptive planning to predictive planning.

• Market researchers can predict behavior if they are able to successfully apply the appropriate analytical instruments. New computer technologies allow information processing and simulation, aspects that benefit the predictive power of commercial research. There are adequate quantitative methods to make predictions: Conjoint Analysis, Multiple Regression Analysis, Structural Equation Model, etc.

3rd Tends to use comprehensive techniques.

• The application of individual techniques provides partial information. Commercial research experts propose that the same analysis be complemented with other techniques to have different perspectives on the study. Marketing problems are complex, multidimensional and multivariate. They are neither fully qualitative nor fully quantitative. Methodologically they can be approached through qualitative or quantitative study, but the qualitative is given to some extent; and the quantitative to a certain extent constitutes a quality. Marketing problems are specific so that they coexist in the unity of the unique facts of the market, the quantitative and qualitative aspects.

4th Great importance is attached to the characteristics of the data used.

• The validity of some results depends on the goodness of the data. Analysts must bear in mind that perhaps the conclusions they reach could be different with other data, even if the ones they have used are correct. In addition, each statistical technique needs a special type of data. In other words, when a study is carried out, the way in which the information is collected determines the technique to be applied and vice versa.Although a computer admits numbers and provides results, they may be meaningless if the data are not adequate to be treated with the technique that has been applied.

5º The choice of the data analysis technique must be done with extreme care.

• The same data can be analyzed with different statistical instruments. The conclusions that can be reached are very different.

6th Commercial research must be integrated into the planning processes of the company.

• The increasing complexity of the environment, increasingly globalized, as well as the development of companies in increasingly competitive markets and the need to make decisions quickly are main causes that force the integration of market research into planning processes in companies. (I. Grande Esteban and E. Abascal Fernández, 1994: 77-80) Market research must not only be aligned with operational marketing, but also with strategic marketing. More and more tactical decisions are intimately linked to strategic decisions. The launch of a new product contributes to the strategic business, and the institutional image is an increasingly growing factor in the commercialization of brands.

THE MARKETING MANAGEMENT AND THE MARKET RESEARCH BRIEF

Briefing in English means: give instructions, orders, briefing. It is composed of the verb «to brief» (to inform), and by the radical «ing», which expresses action.

The briefing is a technical term used in both marketing and advertising and refers to the generally written information that a company transmits to the experts so that they can carry out in the best possible way all the operations aimed at investigating, promoting, or advertise a product, depending on whether it is a research, promotional, or advertising brief.

In general, it is observed that in the market research bibliography the importance of the documents in the relationship between marketing management or product management and the research agency does not appear sufficiently highlighted. We note that in the latest editions of prestigious authors and important publishers, neither the point or the term Research Brief appears in the subject index nor in the general index, nor in the key terms and concepts, nor in the glossaries of terms. If, obviously, they address the process, the project or the proposal, and the research designs, but not in relation to the problems of marketing management or marketing strategy (management of the current portfolio of products and brands, or in the development of new products).The problems of technical communication between the Marketing and Research areas do not arise.

Among the authors that we have been able to reveal, they do not explicitly include the main components for the preparation of a research brief and the most frequent problems in communicating the marketing issues to be investigated; they find each other:

• Willam G. Zikmund (1998) Ronald M. Weiers (1991) David A. Aaker and Georg S. Day (1995)

Among the authors who do address this problem under the heading 'Request for investigation' and 'Conflict between management and researcher', is:

• Carl McDaniel and Roger Gate (1999: 74-76)

And under the heading 'Formats to request an investigation' and 'The management-investigation relationship', a slightly more extensive presentation is made, in:

• Thomas C. Kinnear and James R. Taylor (1993: 94-100)

However, the author's experience as an IM consultant has highlighted the main importance of the Market Research Brief, in the final quality of the service provided. The Brief is a fundamental tool in the customer-supplier communication process. At the same time that it fulfills the mission of the client's letter of requirements, it acts as a counterpart to the research proposal, and as a contract for the services to be provided by the provider.

Much of the 'noise' produced in the customer-supplier communication process is due to deficiencies in an ambiguous or incomplete Brief, and consequently in an ambiguous and incomplete proposal.

In general terms, Senior Researchers, professionals with long experience in IM and in various designs and markets, are perfectly aware of these shortcomings, and the difficulties and conflicts that they generate; For this reason, they adopt a Research Brief format, a tool that allows them to technically frame their relationship with clients.

Ultimately, a brief and your research proposal is nothing more than the celebration and acceptance of a framing of the agency-client relationship. That is, the coordinates and parameters are established (space, time, deadlines, money, roles, scope, objectives, etc.) that will regulate the interactions between both protagonists during the term of said business contract.

The same occurs with consulting firms and market research agencies, and the research departments of product and service companies, both national and international, each one adopts a methodology to survey the requirements (brief) and also have a return format (debriefing).

Therefore, because we believe that it is a conceptual deficit of the texts on the specialty is that the author has developed a model of a "standard brief" of market research, (Fig. 4: The Brief phase 4: Guidelines for the writing of the Brief) so that it is useful for any marketing manager or product manager to formulate their market research requirements.

In the practice of market research consulting for both internal and external clients, that is, as a Department within the company or as a provider outside of it, the need to have a standardized and practical document, not only makes communication more efficient Marketing -Research, but it makes the cost-benefit relation of the value of the information obtained more profitable.

Market research, as a consulting activity, provides information that helps to make decisions; by itself it does not make decisions or define what decisions need to be made; These are management functions.

The market research report is not a substitute for decision making.

The one who knows your product and your market best is the product manager himself.

What the market researcher knows are methodologies for posing research problems and statistical data collection and analysis techniques, and has experience in interpreting them to formulate recommendations, based on knowledge of theories of consumer behavior and functioning of the markets.

Therefore, the best role for the product manager is to translate the set of marketing symptom insights into identifying a problem to investigate, and to produce a list of the main questions to be answered. Raise the problem, indicate the informational objectives that you wish to obtain, set the scope of the study, provide all the information available for the background of the study and make yourself available to the researcher for the pertinent extensions or clarifications.

It is then up to the researcher, the research agency or the internal client's research department team (marketing area) to transform these information needs into a study design and a questionnaire that produce objective information from the consumer.

In Figures 1, 2 and 3 we outline the flowchart that goes from the definition of the problem, the feasibility analysis of the study and the actions to be taken with the results (Action standard = action patterns).

Figure 4 provides a guideline for writing a research brief. Obviously, the reader can adapt it to the most frequent problems of your company, its products and markets where it operates.

Fig. 1: The Brief phase 1: HOW TO DEFINE THE PROBLEM

Fig. 2: The Brief phase 2: FEASIBILITY ANALYSIS

Fig. 3: The Brief phase 3: WHAT TO DO WITH THE RESULTS

MARKET RESEARCH BRIEF I

Author: Lic. Rubén José Rodríguez

1. ANALYSIS OF THE SITUATION

1.1. Definition of the market / sub-market. Segments that compose them.

1.2. Definition of the product segment under evaluation.

1.3. Attributes of the generic product.

1.4. Scope of use / Mode of use or application.

1.5. Competing major companies and brands. Market share.

1.6. Distribution channels.

2- CONSUMER BEHAVIOR

2.1. Consumer segments. Socio-demographic and psychographic profile.

2.2. Roles: user-buyer-recommender.

2.3. Shopping habits. Purchase profile. Purchase decision criteria.

2.4. Changes in the consumer's lifestyle.

3. PRODUCT / SERVICE MARKETING STRATEGY

3.1. Marketing objectives: Where do we want to be? We want to: Increase knowledge. Increase participation. Increase usage. How much, in what percentage?

3.2. Desires and needs that the product promises to satisfy (basic benefit for the consumer, rational and psychological benefit)

3.3. Most promising attributes of the product (basic benefit of the product).

3.4. Innovations introduced by the product / service.

3.5. Target group of the product. Who do we want to reach?

3.6. What proposition makes it different or unique compared to the competition ?: Competitive advantage.

3.7. How do the objectives of the product / brand contribute to the marketing plan and the strategic planning of the company, and to the corporate image?

MARKET RESEARCH BRIEF II

4. MARKET INVESTIGATION REQUIREMENTS

4.1. Statement of the marketing problem for which information is needed for decision-making (new product, relaunch, repositioning, brand diversification).

4.2. Statement of the research problem to be elucidated.

4.3. Specific information objectives that you want to find out. Motivational, cognitive, attitudinal or behavioral dimensions and variables to be investigated.

4.4. Types of studies demanded: exploratory, descriptive, quasi-experimental or experimental and monitoring. Qualitative, quantitative, and qualitative-quantitative. Longitudinal or transversal.

4.5. Types of research design to apply: concept-test, name-test, logo-isotype test, packaging-test, product-test (monadic, dyadic, 'blind'), advertising pre / post-test, panel, tracking, etc.

4.6.Target Group investigated: required segmentation of the target group (age, gender, NES, brand connoisseurs, testers, loyalists, abandoners).

4.7. Geographical scope and universe that the study must represent.

MARKET RESEARCH BRIEF III

4.8. Classification variables (according to individual or collective unit of analysis): age, sex, NES, high / low consumers, buyer / non-buyer of the brand, number of company employees, billing level.

4.9. Type of sampling required. Sample size. Sampling errors. Composition of the groups. Distribution of the interviews.

4.10. Action Standard: Actions to be taken with the results.

4.11. Supervisions and controls to be carried out.

4.12. Tentative date of receipt of the research proposal. Estimated start date of the investigation. Probable date of presentation of the first results. Planned date of the product launch or advertising campaign.

4.13. Study quote and payment terms.

4.14. Annexes of information necessary to plan the proposal. (Summaries of secondary data on the market or research carried out on the product, materials to be evaluated).

4.15. Background of the agency in the type of market and product to be studied.

4.16. Curriculum Vitae of the Project and Customer Services Director.

We also consider that it is a lack of the specific technical literature that does not develop the subject of evaluation and quality control of market research providers, given that the managerial function consists of planning, executing and controlling the programs of marketing, one of which is the business research program.

Therefore, we want to provide an evaluation guide for IM providers, this is an attempt to operationalize quality in IM services, it goes without saying that other possible indicators can be chosen to evaluate quality.

After reading the article, the reader will be able to adopt and design, according to their professional criteria, the documents and tools for requesting and evaluating IM services.

Fig. 5: Market Research supplier evaluation worksheet.

THE RESEARCH BRIEF: ANALYSIS OF A CASE

The case under analysis was developed by a student in the last year of the Master's Degree in Market Research, Media and Opinion, University of Business and Social Sciences, for the Quantitative Research subject, whom we thank for her collaboration. In order to keep in reserve the original data raised in the practical work of the matter, the proper names of brands and companies have been modified.

MARKET RESEARCH BRIEF

Situation analysis Product / service: TeCoTel long distance service. TeCoTel is a company that provides basic telephone long distance calling service. Belonging to the TechCo holding, the company emerged in 1997 dedicated to data transmission services for companies.In November 2000, when the total deregulation of the national and international long distance system was implemented, it merged with TexMex and began to offer telephone services for national and international long distance calls for residential and business customers.

The TechCo holding, a group with 100 companies, has offices in 27 countries and covers the steel, construction, oil, gas and telecommunications sectors, among others. TexMex is the leading Telecommunications company in Mexico, with more than 11 million landlines and 7 million cell phones. Provides Internet, video and data transmission services. During 1999 it achieved a turnover of ten million dollars.

TeCoTel is expected to make investments of 400 million dollars until 2005. It has its own network of 1,800 km. In addition to long distance services for residential and business and value-added services such as lines 0800/0810/0600/0610 / 0900 and special services for companies. Although in a short time it managed to attract a significant number of customers, the percentage is much lower than that of its main competitors and it is still very little known among long distance service users.

TeCoTel seeks to position itself as a leading telecommunications company achieving greater recognition among consumers as an efficient, low-cost and transparent management company, thus distancing itself from the image of other telephone companies.

Consumers:

The target of clients to which it is directed is men and women between the ages of 18 and 60 ABC1, C2, C3, D1, users of the basic telephone service, both residential and business.

Long distance telephone service is perceived as necessary to be able to communicate with family, friends and for business, but it is expensive, a fact that makes it difficult to use it frequently.

Consumers consider that the competition between companies was beneficial in reducing costs, but that they can still go lower.

Consumers have a halo of suspicion regarding the costs of long distance services based on the high prices that the service maintained during the duopoly period.

The appearance of TeCoTel is well received by users when talking about a new company, formed with national capitals. But it is also affected by the negative image that telephone companies have among consumers.

Competition:

TeleFon: the telephone company with the largest market share. Of European capital, it is one of the two companies that monopolized part of the telephone market during the first ten years of privatization. It is a leader in the top of mind. It is positioned as a company with great technological development, which is ahead of consumer needs: "we work with you in mind." From the formation of a multimedia group, it achieved a greater presence in the mass media.

TeCom: is the company that monopolized the northern part of the country during the first stage of privatization. Formed with Italian, French and American origin capitals, it emphasizes the attributes of modernity. The unity among the group companies allows it to provide integrated services that provide cost benefits to the consumer.

MoviCel: it is the leading cell phone company and this led it to achieve great insertion among users of the basic telephony long distance call service. It has an "expensive" company image, aimed at the sectors of the population with a higher economic level, an image that has persisted since its appearance on the market, when the cost of cell phones was very high and only intended for ABC1 users. However, for long distance services, he designed simple plans that are easily understood by users in order to expand the number of potential customers. Its association with Coaxal, a leading North American company, provides support in terms of its management and quality of service.

Celular del Interior: it is positioned as a technologically advanced company. It is one of the providers of cell phone service and its trajectory in the telephone market began with providing cell phones in the interior of the country. It seeks to expand its market share from its consolidation as a smart option in both cellular and long distance service.

It manifests the transparency of its billing by offering flat rates.

Telephon & Telephon: It is a leading company in the world in telephone service. Its presence in the local market was linked to the development of services exclusively for companies, but from the deregulation of the telephone market, it seeks to increase its participation by offering its services for residential clients. It has the image of a serious and reliable company.

Distribution:

TeCoTel offers its services throughout the country, both to residential users and businesses. Its central offices are located in the City of Buenos Aires and it has branches in the country's main shopping centers: Capital Federal and GBA, Mar del Plata, Bahía Blanca, La Plata, Córdoba, Rosario, Mendoza and Neuquén. Those areas are precisely those with the greatest competition, since all companies aim to attract the largest number of customers in those areas.

MARKETING STRATEGY

Marketing Objectives:

TeCoTel will try to increase its market share by an additional 120% by next year. Being a new company, it seeks to take advantage of its advantages and position itself as the most convenient alternative in terms of long distance communications.

One year after the firm began operating in the market, it has managed to capture 8% of the market.

From the marketing actions you want to increase your presence by 10% more. TeCoTel is gradually seeking to establish itself in the fight for leadership in the communications market.

Marketing actions will tend to:

• Increase awareness of the company by 40% Position among the top four mentions of the top of mind in leading telephony companies Increase market share to 18% by next year.

Product / Service:

TeCoTel presents its own fiber optic laying network that allows it to provide a higher quality of service and reduce its costs. This puts it at an advantage over other companies that must rent the TeleFon network to be able to offer services in all regions of the country.

Among the attributes that the firm presents as positive are:

• Transparency in management, which the client perceives through clarity in billing and discount plans Wide coverage throughout the national territory Low cost The support that belongs to the TechCo group gives.

The image of the TeleFon companies in the public presents as positive the technological progress and the service based on the difference with the type of service provided by the State. Negative characteristics include high costs and lack of clarity / transparency and quality of customer service.

TeleFon and TeCom are fundamentally affected by these characteristics because they are the companies that each maintained a monopoly on telephone service in their region. During that ten-year period, the public's perception was of arbitrary and abusive companies, originating from foreign capital, which deprived the country of the possibility of exploiting the service, taking the profits to their countries of origin. While users acknowledge that telephone service is much better than in the pre-privatization era, disagreement is still prevalent.

MoviCel also maintains a company image with high cost services, in addition to renting the basic telephony network, its rates are limited in the decrease. Its strategy to attract clients is to provide comprehensive service packages between basic telephony and cellular telephony.

Celular del Interior and TelePhon & TelePhon are the companies that appear with a more modern and innovative image. The first seeks to combine technology and price, while the second is backed by its international recognition and technological development. It would be with these two companies, with which TeCoTel should dispute the fourth place among long distance companies, and then continue its path towards the dispute for leadership in the field.

Undoubtedly, the possibility of having its own network with wide coverage, low cost and national origin are attributes that will allow it to attract a greater number of clients. To achieve a greater presence in the public, it will be used to improve the communication strategy and the opening of new branches in the main cities of the interior of the country.

Positioning:

TeCoTel is positioned as a new and transparent company, which is revolutionizing the current communications market due to its low cost, its quality of service and its technological development. The premise to be highlighted will be that "talking more at a lower cost does not imply a lower quality of care and service."

All competing companies were already formed when the telephone market was deregulated, and the public already has an idea of ​​all of them.

TeCoTel, on the other hand, is a new company that invites knowledge and change in the telephone market. Budget / Timing The total budget available to achieve the proposed marketing objectives for next year will be approximately one and a half million dollars. This budget will go to:

• Gradual opening of new branches in the main cities of the country. During the first period, the opening of some provincial capitals such as Paraná, Santa Fe and Ushuaia is estimated. The first branches will be opened in a period of five to six months Launch of a prepaid card for long distance calls, promoted especially for the holiday period Intensive advertising campaign in all national media and in the main media outlets in the interior, especially those belonging to to the most economically developed areas of the country Promotions and sponsorships at events in the Federal Capital and Greater Buenos Aires and in Córdoba, Rosario, Mar del Plata, La Plata, Bahía Blanca, Mendoza and Neuquén Market research plan (pre- advertising test and post-test, study of brand image, study of consumption habits,product-test, market test, etc.)

It is estimated to increase the presence of the brand through advertising campaigns and promotions that help to promote awareness by consumers.

In the interior of the country, the opening of branches is essential to show a physical presence, decentralization and that the company is where the public needs it.

It is important that the consumer perceives that if he has a concern or problem to raise, the company will be there to listen to him and solve the problems. This would also facilitate commentary in local media and business magazines.

The advertising campaign aims to spread the long distance service for residential and companies, but also additional services for companies such as 0800/0810/0600, data transmission, among others. The campaign will be more intense in the main tourist spots in the interior during the holidays, and will have greater diffusion during the rest of the year in the Federal Capital and GBA. The campaign will intensify with promotions on festive dates that imply a greater need for communication such as Easter, Friend's Day, Father's Day, Mother's Day, Christmas and New Years.

It is recommended to carry out a semi-annual tracking to verify the fulfillment of the marketing objectives of the company in order to make the necessary adjustments to achieve the proposed goals.

COMMUNICATION STRATEGY:

Target Group: The target group for the communication campaign will be men and women between the ages of 18 and 60, from sectors ABC1, C2, C3, D1 and who are regular users of the telephone service. Mainly those users who have family, friends or businesses in other cities and countries and with whom they make frequent calls, or who do not do so as often as they would like due to the costs of long distance telephone service, will be targeted. Proposal / Reason Why: Proposal: TeCoTel shortens the gap.

Reason Why:

TeCoTel is a new company, with wide coverage, quality of service and low cost. Creative proposal: "Get closer to yours, get closer to TeCoTel".

Communication Objectives:

• Convey confidence in TeCoTel's services, highlighting that it is a new company that offers a different Telecommunications service, which strengthens the links between family, friends, clients or suppliers, without increasing telephone costs. company throughout the country, making evident the attributes of a new, transparent company, with technological development, broad coverage, low cost and formed with national capital.

Communications plan:

To achieve the communication objectives, a broad advertising campaign will be used in the main national and interior media.

• The campaign will be intensified in the media with the largest circulation in Córdoba, Rosario, Bahía Blanca, Mar del Plata, La Plata, Neuquén and Mendoza. Television, radio and graphic campaigns will be used. Also in the main Internet sites and street advertising on highways, avenues, airports and bus and railway terminal stations.The opening of branches in the interior of the country will allow the publication of articles in the local media, making the public participate in the activities Promotions will be carried out in the main tourist centers of the country during the holidays and the rest of the year the campaign will focus on the Federal Capital, GBA and the rest of the country through the national media and posters. The sponsorship of events of national impact will also be promoted.Dissemination in the holiday period of the new prepaid card for long distance calls in the main tourist centers.

The hiring of multimedia advertising packages is recommended to lower costs, maximizing the presence of the brand in all the group's media.

It would also be helpful to establish a rewards program for customers who have opted for TeCoTel services, as a way to solidify their choice and encourage word of mouth.

It would be convenient to implement a comprehensive internal communication plan so that employees are familiar with the advertising campaigns and the company's objectives.

The proposed communication plan will be developed during 2003 and the budget available to carry it out is one million dollars.

INVESTIGATION REQUIREMENTS:

It is requested to carry out a test of the advertising campaign prior to its launch (first stage) and to subsequently evaluate the fulfillment of the established objectives.

Investigation objectives:

• Evaluate the communicational idea as a creative object and as a marketing instrument. Evaluate the effects of meaning generated by the slogan: "Get closer to yours, get closer to TeCoTel." Inquire the degree of recall of the sequence of the television commercial. Analyze the level of impact of the advertising piece (sketch of graphic and store board for TV) Determine the degree of understanding of the textual and iconic messages Determine the degree of credibility assigned to the messages Evaluate the degree of association of the messages with the TeCoTel brand. Investigate the image of the user that the communication transmits Investigate the degree of willingness to purchase the: TeCoTel long distance service.

Scope of the study:

• Metropolitan Area of ​​Buenos Aires (AMBA), main cities of the Province of Buenos Aires, and the interior of the country.

Type of study required:

• Qualitative and quantitative study

Type of research design to apply:

• Advertising Pre-Test (first stage).

Target group to investigate:

• Men and women from 18 to 60 years old ABC1, C2, C3, D1, users of the basic telephone service, both residential and business.

Type of sample:

• Qualitative study: reasoned sample of interviews / 'focus groups' for the component segments of the target group. Quantitative study: probabilistic sample in order to estimate parameters in the population.

Materials to evaluate:

• Qualitative study: Graphic sketch, slogan (mounted on cardboard), and store board of the TV commercial will be evaluated. Quantitative study: Graphic sketch, slogan and animatic video of the TV commercial will be evaluated. Background: It is requested to send background information on the products, markets and customers served.

Curriculum Vitae: It is requested to attach with the proposal the CVs of the Director of Projects and Client Services. Estimated dates: The launch of TeCoTel's long distance service is expected towards the end of the first half of this year.

Bibliographic references

Verbatim citations and Reference citations Adaptation of:

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