SLIM-SM-June 14-38423522

Declaration: ‘I confirm that in forwarding this assignment for marking, I understood and have

applied the CIM policies relating to word count, plagiarism, and collusion for all

tasks. This assignment is the result of my own independent work except where

otherwise stated. Other sources are acknowledged in the body of the text, a

bibliography has been appended and Harvard referencing has been used. I have

not shared my work with other candidates. I further confirm that I have submitted

an electronic copy of this assignment to CIM in accordance with the regulations.’

Word Count : Task Two 1626

Task Three 2721

Stakeholder Marketing – (2014 June)

Option One: How New Media Can Help Build Business-to-Customer (B2C) Relationships.

CIM Membership No: 38423522

Stakeholder Marketing CIM Membership Number: 38423522

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CONTENT

Task One

1.1 Key Customer Groups of Dialog ………………………………………………………………………………………………….…… 4

1.2 The Organization’s Current Relationship with the three Customers ……………………………………………… 4-6

1.3 Organization’s Current Marketing Communication Mix………………………………………………………………… 6-7

1.4 Dialog’s Main Competitor and Current Marketing Communications Mix …………………………………………. 7

Task Two

2.1 Two Relationship Marketing Concepts/Models to Assess Dialog’s Current Relationship……………11-13

2.1.1 Pareto Theory

2.1.2 Loyalty Ladder

2.2 Two Relationship Marketing Concepts/Model Used to Maintain or Develop ………………………….… 13-14

2.2.1 Customer Lifetime Value (CLV)

2.2.2 Superior Service through Seven-Step Process

2.3 New Media Available to Dialog and Enhance Communications ……………………………………………………… 15

Task Three

3.1 Evaluation of Dialog’s Current Marketing Communications Mix ………………………………………………. 19-21

3.2 Recommends New Media to Develop Dialog’s Current Relationship ………………………………………... 22-24

3.3 Evaluation of Recommendations and Implementation …………………………………………………………….. 25-27

3.3.1 Secondary Research

3.3.2 Questionnaire Design

Appendix 01………………………………………………………………………………………………………………………………. 28-30


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TASK ONE | Audit

1.2 Key Customer Groups of Dialog

Key customers are the most important and most profitable customers for an organization. Dialog can identify their key customer groups as in appendix 01; A1.4 and the segmentation were based on their revenue, market position and customer base. 1.2.1 Dialog Key Customer Groups and Their Level of Impact and Influence

Key Customer Group Level of Impact and Influence 01. Dialog voice and SMS

services* Dialog voice and SMS services using customer segment is the most significant and profitable

customer segment and according to the Dialog Annual Report 2012, the total revenue gained from this customer segment was Rs.49.80Bn and it is 83.4% of total revenue.

Dialog voice and SMS services are the market leader (refer appendix 01; A1.6, Mobile subscribers and land line) with 41% of market share.

With the revolution of modern mobile technology, the market is still growing at a higher rate and according to Dialog Annual Report 2012, there are about 455,000 new connection registrations in the year 2011.

Most of executive and premium level customers are using Dialog voice and SMS services and it has added more value to the Dialog Brand.

02. Dialog Broadband Internet Service*

Dialog Broadband internet service using customer group is the second most significant and profitable customer segment and according to the Dialog Annual Report 2012, the total revenue gained from Broadband Internet segment was Rs.5.04Bn and it is 8.44% of total revenue.

This customer segment related products and services are the market challenger with 25.4% market share. (refer appendix 01; A1.6, Internet/Wi-Fi)

Internet and Wi-Fi market has the potential of growing and according to TRCSL report 2013, there are only 2.7Millions Sri Lankans have Internet/Wi-Fi at their home and the market growth rate is 16%.

03. Dialog Satellite TV* Dialog Satellite TV using customer category is the third most significant and profitable customer group and according to the Dialog Annual Report 2012, the total revenue gained from this customer segment was Rs.2.99Bn and it is 5% of total company revenue.

Dialog Satellite TV is the market leader of Satellite/Cable TV market with 78% of market share. (refer appendix 01; A1.6, Satellite/Cable TV)

Satellite/Cable TV market has a significant market growth and according to the TRCSL Report 2013, it has 8% of growth rate.

04. Dialog Software and Devices Solutions*

According to Dialog Annual Report 2012, they have earned Rs.1.02Bn from Dialog Software and Devices Solution customer segment and it was 1.71% from the total revenue.

05. Other Dialog Products and Services*

According to Dialog Annual Report 2012, they have earned Rs.0.86Bn from all other Dialog products and services and it was 1.44% from the total revenue.

*Refer Appendix 01; A1.4 for options and services/products under each customer group.

1.3 The Organization’s Current Relationship with the three Customers with the most Influence and

Impact. Annekie Brink and Adele Berndt (2009) defined Relationship Marketing as ‘The objectives of relationship marketing are to identify and establish, maintain and enhance, and, when necessary, terminate relationships with customers and other stakeholders at a profit, so that the objective of all parties involved are met. This is done by mutual exchange and fulfillment of promises’.


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1.3.1 Current relationship with ‘Dialog voice and SMS services’ customer group.

i. Various types of cooperate mobile packages : Dialog offers many types of mobile packages to reach each part of the society. Dialog offers per second/per minute special cooperate/business packages, Dialog BlackBerry packages, Special Roaming packages and Dialog Kids package (specially designed with special features for Kids) and Dialog Blaster Packages, etc. By these packages, Dialog tries to fulfill most of customer requirements as customers wish and be more flexible.

ii. Dialog Lord of the Reload Competition : Each time Dialog customer pays their mobile bill or recharges their mobile account; customer will be eligible of winning monthly Rs.1Million cash prices and daily instant cash prices. Through this competition, Dialog can exceed customer expectations and it’ll create more Dialog brand loyal customers and good word of mouth Dialog branding.

iii. Dialog Star Point System : Each payment made by Dialog mobile voice and SMS service using customers will receive points which can either transfer to cash or buy goods at many stores such as supermarkets, Textile showrooms, Dialog Centers, Restaurants, etc. This system is beyond customer expectations and satisfied customers communicate good word of mouth too.

iv. Birthday Wishes and Gifts : Dialog will send specially made cakes, birthday cards and special gift for their most premium and executive level customers. Dialog will gift Star Points for all other customers for their birthdays. Through this, Dialog has indicated that each and every customer was valuable for Dialog family and it will develop the brand loyalty on customer’s mind and also it’s beyond the customer expectations.

v. Introducing latest trends before other players: By improving facilities and adapting to the latest technology continuously and providing latest technology to customers, customers will always be with dialog to experience the latest technology.

vi. Dialog 24x7 Customer Care Call Center : Dialog hotline and online chat customer care services will improve the responsiveness of Dialog and it’ll improve the customer satisfaction. Through customer care call centers, Dialog can listen to their customers and can make effective communication with them and improve the quality of the services.

vii. Special Occasional Discounts : Dialog provides special occasional discounts such as free roaming minutes during December season, etc. and it exceeds customer expectations.

viii. Enhance Credit Limit : By enhancing credit limit, customer feels that the organization has a faith on you and it exceed the customer expectations.

1.3.2 Current relationship with ‘Dialog Broadband Internet Service’ customer group.

i. Various types of Internet Packages : Time based and downloadable capacity based broadband internet packages have been provided by Dialog and Dialog uses same customer relationship development methods as described in 1.2.1 – i.

ii. Dialog Star Point System : If the broadband internet user has mobile voice and SMS connection, he/she will eligible of having star points on each transaction and by this point system, Dialog uses same customer relationship development methods as described in 1.2.1 – iii.

iii. Introduce latest technology before other players: Dialog has invested billions on these technological improvements and uses same customer relationship development methods as described in 1.2.1 – v.

iv. Dialog 24x7 Customer Care Call Center : Special unit was established for this customer group and same customer relationship development methods are using as described in 1.2.1 – vi.

v. Special Occasional Discounts : Dialog will offer extra time/GB for seasonal and special occasions and same customer relationship development methods are using as described in 1.2.1 – vii.

1.2.3 Current relationship with ‘Dialog Satellite TV’ customer group.


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i. Various types of TV Packages : There are various types of TV channel packages and customer selectable channels. Dialog and Dialog uses same customer relationship development methods as described in 1.2.1 – i.

ii. Dialog Star Point System : If the Satellite TV user has mobile voice and SMS connection, he/she will eligible of having star points on each transaction and by this point system, Dialog uses same customer relationship development methods as described in 1.2.1 – iii.

iii. Introduce latest technology before other players: Dialog has invested billions on these technological improvements and uses same customer relationship development methods as described in 1.2.1 – v.

iv. Dialog 24x7 Customer Care Call Center : Special unit was established for this customer group and same customer relationship development methods are using as described in 1.2.1 – vi.

1.4 Organization’s Current Marketing Communication Mix, Including New Media, Targeted at the

Three Key Customers with the most Influence and Impact. According to http://www.themarketingguywhodrivessales.com/, Marketing Communication Mix is defined as, ‘The specific mix of advertising, personal selling, sales promotion, public relations, and direct marketing a company uses to pursue its advertising and marketing objectives.’ 1.4.1 Advertising According to http://www.themarketingguywhodrivessales.com/, advertising has defined as ‘Any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor’ Dialog advertising campaign can be categorized as Above the Line (ATL), Below the Line (BTL) and Through the Line (TTL) as follows.

How? Why? ATL – Above the Line (Targeting the mass market)

Television advertising

Radio advertising

Newspapers

To reach the most of 11.54 million its existing customers and potential customers. Since Dialog has about 48% of Sri Lankans as their customers, ATL is one of the best ways of target all the customers. Out of 11.54 million customers, 7.7 mobile and 2.1 landline users (total of 9.8 million customers) represent the most important customer group (Dialog voice and SMS services*) and it is one of the most effective way of communicate with them. Both Dialog Broadband Internet Service* and Dialog Satellite TV* using customer group has nearly 1million customers and ATL is a good way of communicating with them as well.

BTL – Below the Line (Targeting specially selected market)

Hoardings

Boards

X-Stands and Pennants

Leaflets Posters

Dialog is targeting their most premium customers from all main three key customer groups, by using X-stands, pennants and boards to advertise at special events and special venues. Dialog also advertises on hoardings, boards and posters at public places to communicate and they distribute leaflets with special offers.

TTL – Through the Line (Communication done by using New media)

E-mail

Facebook

Twitter

Website advertisements YouTube

Dialog has categorized its key customers into subcategories by geographic and demographic segmentations. Dialog communicates with those groups via Facebook, Twitter, Emails and relevant internet advertisements. New media advertising was relatively cheap and Dialog can reach more customers effectively than ATL and BTL advertising.

*Refer Appendix 01; A1.4 for options and services/products under each customer group.

1.4.2 Direct Marketing According to Drayton Bird (2007), ‘any advertising activity which, creates and exploits a direct relationship between you and your prospect or customer as an individual’. Dialog is using direct marketing more often to communicate with its main three key customer categories. Dialog is currently using telephone calls, SMS and MMS messages, postal mails and new

http://www.themarketingguywhodrivessales.com/

http://www.themarketingguywhodrivessales.com/


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media such as e-mail, twitter updates to communicate with its customers in Dialog voice and SMS services and Dialog Broadband Internet Service and those are the key two categories of Dialog. Dialog frequently use postal mails and new media such as e-mails and twitter to communicate with the third most important customer group but phone calls and SMS are very rare. (Uses only if customer is using Dialog mobile/fixed telephone or broadband solutions only) 1.4.3 Sales Promotions According to David, Botten and McCoil (2010), ‘Sales Promotions is another communication tool that marketers use. It is often described as a short term tactical marketing tool that gives customers additional reasons or incentives to purchase.’ Sales promotion is the one of the main way of communicating Dialog with its customers. As explained in 1.2.1 – ii, vii and 1.2.2 – v, Dialog Lord of the Reload raffle draw and discounts such as 100 minutes Dialog to Dialog free calls, Free IDD minutes, extra GB for internet packages, free TV channels for specific time period were the sales promotions done by Dialog. Dialog is using new media such as facebook and www.dialog.lk to host online sales promotions. Dialog mainly target ‘Dialog voice and SMS services’ and ‘Dialog Broadband Internet Service’ customers groups. 1.4.4 Public Relations According to David, Botten and McCoil (2010), ‘Public Relations is the planned and sustained effort to establish and maintain the goodwill and mutual understanding between an organizations and its publics’. Dialog is currently doing sponsorships and other activities such as community development activities, media conferences and etc. by using new media and targeting mainly the three key customer groups and it would enhance the Dialog brand image, awareness, reputation and recognition. 1.5 Dialog’s Main Competitor and Its Current Marketing Communications Mix, with Specific

References to the Use or Lack of Use of New Media. By considering the whole telecommunication industry, Dialog is the market leader and Mobitel is the market challenger (refer appendix 01, A1.6). But when considering key customer segment wise, ‘Dialog voice and SMS services’ and ‘Dialog Satellite TV’ customer segments are at the market leader’s seat and ‘Dialog Broadband Internet Service’ customer segment is at the market challenger’s seat. Sri Lanka Telecom (SLT) is the market leader of the internet and broadband customer segment. (Refer appendix 01, A1.6) But according to the overall performances, Dialog is the market leader and Mobitel is the market challenger. Mobitel is also using new media up to some level to communicate with their customers but relative to Dialog, Mobitel’s communication mix with new media is at a step behind for ‘Dialog voice and SMS services’ and ‘Dialog Satellite TV’ customer segments. Mobitel is also using all ATL, BTL and TTL advertising types, direct marketing, sales promotions and public relations elements to have an effective communication with their customers. Mobitel is using new media such as facebook, mobile, e-mail, YouTube, twitter and Mobitel webpage http://www.mobitel.lk to communicate with their customers but mostly they use mobile, facebook, email and twitter to communicate with customers. Sri Lanka Telecom is also using all ATL, BTL and TTL advertising types as Dialog, sales promotions and public relations as their communication mix and mainly using facebook, e-mail, twitter, YouTube and their web site http://www.slt.lk/, new media to create better relationship with customers. But relative to the Dialog ATL and TTL advertising on ‘Dialog Broadband Internet Service’ customer segment, SLT is at a step behind.

http://www.dialog.lk/

http://www.mobitel.lk/

http://www.slt.lk/


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References :

Books

Philip Kotler and Kevin Lane Keller, 2005. Marketing Management 12e. Edition. PHI.

Neil Botten, 2008. CIM Coursebook Stakeholder Marketing (Official CIM Coursebook). Edition. Taylor &

Francis.

Annekie Brink, 2009. Relationship Marketing & Customer Relationship Management. 0 Edition. Juta

Academic

Bird, D, 2007. Commonsense Direct and Digital Marketing. 5th ed. London and Philadelphia : Kogan

Page.

Websites

The Marketing guy who drives sales. 2013. The Marketing Communications or Promotional Mix.

[ONLINE] Available at: http://www.themarketingguywhodrivessales.com/crashcourse/promix.htm.

[Accessed 01 May 14].

Dialog . 2014. Dialog . [ONLINE] Available at: http://www.dialog.lk/. [Accessed 21 April 2014].

Reports and Journals

Prelis, M, (2013). Dialog Axiata Annual Report 2012. In Annual general meeting. Taj Samudra Sri Lanka,

2013-05-26. Colombo: Emagewise publishers. 4-110.

Gunasinghe, K, 2013. TRCSL Report. Telecommunications Regulatory Commission of Sri Lanka, 16, 2-24.

Bibliography :

Philip; Armstron, Gary Kotler, 2010. Principles of Marketing. 13th International Edition Edition. Pearson.

Michael J. Baker, 1995. Marketing: Theory and Practice (Macmillan Series in Marketing Management).

3rd Edition. Palgrave Macmillan

, 1998. Rethinking Marketing: Towards Critical Marketing Accountings. 1 Edition. SAGE Publications Ltd.

Mobitel - HOME. 2014. Mobitel - HOME. [ONLINE] Available at:http://www.mobitel.lk/. [Accessed 08

May 2014].

SLT.LK | Sri Lanka Telecom. 2014. SLT.LK | Welcome to Sri Lanka Telecom. [ONLINE] Available

at: http://www.slt.lk/. [Accessed 08 May 2014].

Mackwood, T, 2014. Telecommunication industry in Sri Lanka. Marketing Digest, 14, 22-24.

Telecommunications Regulatory Commission of Sri Lanka. 2014.Telecommunications Regulatory

Commission of Sri Lanka. [ONLINE] Available at: http://www.trc.gov.lk/. [Accessed 16 April 2014].

http://www.themarketingguywhodrivessales.com/crashcourse/promix.htm



http://www.slt.lk/

http://www.trc.gov.lk/


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Date : 2014 – April – 14

Author : Marketing Assistant

The Audience : Marketing Team

The Purpose : Produce a discussion paper focusing on Dialog’s current relationship with

customers and considering how new media are currently used and could

potentially be used to communicate with customers.

Executive Summary : In this discussion paper, there are Pareto theory model and Loyalty Ladder

marketing model used to access the current relationship with the Dialog’s main

three customer groups with the most influence and impact. Also Customer

Lifetime Value (CLV) and Superior Service through Seven-Step Process marketing

models have used to explain how Dialog can improve their relationship with

three key customers with most influence and impact. There are four new media

which available to Dialog and enhance communications with the three key

customers with the most influence and impact.


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TASK TWO | Discussion Paper

2.1 Two Relationship Marketing Concepts/Models to Assess Dialog’s Current Relationship with the

Three Key Customers with the Most Influence and Impact.

Dialog’s current relationship with its main three customer groups (refer 1.2) can assess by using Pareto

theory and Loyalty Ladder marketing models.

2.1.1 Pareto Theory

According to http://www.investopedia.com , Pareto theory (80/20 rule) has defined as ‘for many phenomena, 20% of invested input is responsible for 80% of the results obtained. Put another way, 80% of consequences stem from 20% of the causes.’

When this model applying to marketing, it means that, 20% of customers will deliver 80% of organizational profits and 80% of customers will deliver 20% of organizational profits.

Dialog has identified their most profitable customer segments from each group and paid special attention for them.

Pareto theory can apply to the Dialog key customer group ‘Dialog voice and SMS services’ and there are about 2 million (refer appendix 01, A1.6) of customers who are profitable about Rs.39.84Bn (refer 1.1.1-01) and all other 7.8 million customers are profitable about Rs.9.96Bn.

Dialog has already been paying extra attention to their most important 2million customers and their current relationship with them (as described in 1.2.1) is different from the regular customer. Dialog is following the same relationship strategy as in 1.2.1-(iv) but when it comes to those 2million, they do not send regular Birthday Wishes, they send cakes, give discount for current bill and enhance the credit limit as a gift for a birthday and current relationship strategy as described in 1.2.1-(vi) is different from regular customers and Dialog has assign special call center team (company managers as well) for these special 20million customers to produce the best service. Also they get special occasional discounts and special credit limit enhancements which are different from 1.2.1-(vii) and 1.2.1-(viii)

20% Customers 80%

Profit

http://www.investopedia.com/


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Pareto theory can apply to ‘Dialog Broadband Internet Service’ customer group and there are about 137,000 customers (refer appendix 01, A1.6) who are profitable about Rs.4.032Bn (refer 1.1.1-02) and all other 548,000 customers are profitable about Rs.1.008Bn.

As described in previous, most important customer segment, (Dialog voice and SMS services) most important 137,000 customers of ‘Dialog Broadband Internet’ segment have already been got special care like previous segment and current relationship strategy as describe in 1.2.2-(iv) is different from regular customer and there is a special call center team and tech team to fix their technical problems within maximum of 2hours.

Pareto theory can apply to ‘Dialog Satellite TV’ customer group and there are about 52,800 customers (refer appendix 01, A1.6) who are profitable about Rs.2.392Bn (refer 1.1.1-03) and all other 211,200 customers are profitable about Rs.0.598Bn.

Dialog have paying extra attention for this most profitable 52,800 customers and they are doing it as a same way as other most two important groups.

To maintain a special, healthy relationship with large number of (total 2,189,800) customers were hard thing to do and it has cost too much. But if dialog can maintain this current relationship effectively, it definitely would be a positive impact for a company and Dialog brand.

2.1.2 Loyalty Ladder

According to David, Botten and McCoil (2010), The Ladder of Loyalty (Loyalty Ladder) has defined as

follows.

Partner Will work with us, for mutual benefit

Advocate Refers other people to our business

Supporter A client who like us, or even loves us

Client A repeat purchaser, but has no emotional attachment

Customer Someone who has purchased

Prospect Someone who is interested in purchasing

Telecommunication industry is always facing technical difficulties and faults. Therefore it is difficult to

provide the best service regularly and as a result of it, most of Dialog customers (including three key

customer groups) are at client and supporter stage at the loyalty ladder. But there are few customers at

the partner and advocate level. Customers those who are new to Dialog are at the prospect and

customer level at the loyalty ladder.

There are about 10,749,000 customers representing all three key customer groups and there are

thousands of technical complaints daily come from each customer segment and Dialog is always

apologizing for customer difficulties and fix them within 24 hours. Once they fixed the issue they call


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back to customers and ask for a feedback. This would make a positive impression on customers mind

and satisfy the customers and increase their loyalty to the brand.

As explained in 1.2 current relationships with each key customer groups, those steps have helped Dialog

to increase the loyalty of their customers towards Dialog brand.

Above mentioned Dialog activities and customer services would help to increase the customer loyalty

and it helps to convert prospect to customer, customer to client, client to supporter, supporter to

advocate and advocate to partner.

2.2 Two Relationship Marketing Concepts/Models That Could Be Used to Maintain or Develop Dialog’s

Current Relationship with the Three Key Customers with the most Influence and Impact.

2.2.1 Customer Lifetime Value (CLV)

According to Kotler and Keller (2007), ‘Customer lifetime value (CLV) describes the net present value of

the stream of profits expected over the customer’s lifetime purchases.’

CLV for a customer is, according to Gupta et al. (2004),

𝐶𝐿𝑉 = 𝑃𝑡 − 𝐶𝑡 𝑟𝑡 1 + 𝑖 𝑡

𝑇

𝑡

− 𝐴𝐶

Pt – Price paid by a consumer at time t

Ct – Direct cost of servicing the customer at time t

i – Discount rate or cost of capital for the firm

rt – Probability of customer repeat buying or being alive at time t

AC – Acquisition Cost

T – Time horizon for estimating CLV

According to above equation Dialog can calculate CLV of each 10.75 million individual customers of

three key customer groups by using necessary software and categorize them in to groups according to

their values and pay special attention for highest profitable three key groups because these groups of

customers will profitable in long term and therefore the relationship with them must survive long term.

There should be customers whose CLV is greater than the CLV of customers categorized under the

Pareto theory in most profitable 20%, in 2.1.1 and it would be a fault of Pareto theory and CLV concept

would help to identify most profitable customers in all the time.

It’s impossible to analyze each and every customers but Dialog can analyze the customers who have the

highest CLV from three key customer groups and get their general information such as their buying


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pattern, their career, their religious views and etc. to provide what they expect from Dialog and satisfy

them beyond their expectations.

Dialog has to take necessary steps to convert these customers in to advocate and partner level in loyalty

ladder, as discussed in 2.1.2

Dialog can use social media to build up a better personal communication between them and Dialog.

2.2.2 Superior Service through Seven-Step Process

According to David, Botten and McCoil (2010), the seven steps have defined as follows.

1st Step Learn all you can about your customers.

2nd Step Take time to listen to your customers.

3rd Step Try to be accurate in identifying the needs of your customers.

4th Step Remember that, in the relationship marketing process as in business the customer is always right.

5th Step Provide your customers with the best support service.

6th Step Try to give your customers more than they usually expect.

7th Step Ask for regular feedback and occasional referrals.

Dialog can apply above model to their main three key customer groups and it would help them to build

better relationship with their customers.

This relationship approach is different from other approaches in 2.2.1, 2.1.1 and 2.1.2. These 7 Steps are

practical and it can use daily with customers and since Dialog is mostly a service providing organization;

it would highly effective as well.

Dialog can train their marketing team at Dialog outlets and arcades, call center staff and all other staff

members (even security person) about how to work according to above seven steps.

Dialog marketing and sales staff and call center staff must be aware of technology, latest trends and

general technical terms which Dialog use and be prepare to support any customer. (From all three key

customer groups)

By adopting this seven step process Dialog can satisfy their customers when they step in to Dialog

arcades and outlets or the first 30second at call center calling.

This process would also help to level up the current customer loyalty into the next stages of the loyalty

ladder and as described in 2.1.2 and this process can be use by Dialog to develop their customer

relationships.


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2.3 New Media Available to Dialog and How Each Could Enhance Communications with Three Key

Customer Groups.

Since Dialog represents telecommunications industry, mobile, facebook, YouTube and e-mail are the

most effective new media available for Dialog to communicate with its customers.

Mobile Facebook YouTube e-mail

Dialog voice and SMS services

Dialog can easily

use SMS/MMS and

phone calls to

communicate with

customers about

relevant segment

details.

Dialog can have a separate facebook page additional to their ‘Dialog’ page and Dialog can give their followers something to share (Dialog offers/games, instant reload gifts or their charity works) and it is a perfect way to communicate. Also Dialog can communicate about their packages.

YouTube channel

should have videos

on latest trends and

their technology

developments.

Dialog can send

monthly e-bill to

their customers

and inform

customers about

other Dialog

segments. Dialog Broadband Internet Service

Dialog can have separate facebook page and activities. Additional to that Dialog can inform about their new packages.

YouTube channel should have videos on Broadband trends and solutions for common customer problems.

Dialog Satellite TV

Dialog can have separate facebook page and activities. Additional to that they should inform about TV channels which can select and special programs as well.

YouTube channel should have videos on most popular program information about all channels they provide.


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Summary : This discussion paper has consists of three parts and each part it mainly concerned

about Dialog’s main three customer groups and how Dialog has improved its current

relationships with those key customers what are the models they can use to develop

relationship with customers. Also this discussion paper consists of brief explanation

about available new media to the organization.

References :

Books


Francis.



Websites

Investopedia. 2014. Pareto Principle. [ONLINE] Available

at:http://www.investopedia.com/terms/p/paretoprinciple.asp. [Accessed 15 May 14].


Reports



Bibliography :


Martin Christopher, 2002. Relationship Marketing (Chartered Institute of Marketing). 2nd Edition.

Routledge.

John Wilmshurst MA; FCAM; FCIM, 1995. Fundamentals and Practice of Marketing, Third Edition:

Published in association with the Chartered Institute of Marketing (The Marketing Series). 3 Edition.

Butterworth-Heinemann.


May 2014].

. 2014. . [ONLINE] Available at: https://www.facebook.com/dialog.lk. [Accessed 12 May 2014].

. 2014. . [ONLINE] Available at: https://www.facebook.com/Mobitel. [Accessed 12 May 2014].

http://www.investopedia.com/terms/p/paretoprinciple.asp



https://www.facebook.com/dialog.lk

https://www.facebook.com/Mobitel


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Title : Dialog’s current marketing communications mix and the potential for greater

use of new media to improve current relationship with customer with the most

influence and impact.

To : Marketing Manager of Dialog Axiata PLC

From : Marketing Assistant

Date : 2014 – 05 – 01

Terms of references : This report has been consisting of three structures and under each sector,

Dialog’s key customer segment ‘Dialog voice and SMS services’ has been used

for evaluation process.

Executive Summary : Dialog’s current advertising, sales promotions, direct marketing and public

relations, marketing communication mix elements has been evaluated about

the ability to develop current relationship with ‘Dialog voice and SMS services’

customer segment and there Dialog find out that the ability of using new media

and report recommends how Dialog can use new media and to develop

customer relationships. Furthermore the report discuss about how to measure

the effectiveness of those recommendations.


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TASK THREE | Report

3.1 Evaluation of Dialog’s Current Marketing Communications Mix in Terms of Its Ability to Develop Its

Current Relationship with the Customer with the Most Influence and the Impact.

Dialog’s most influence and impact customer group is ‘Dialog voice and SMS services’ group. (Refer

appendix 01, A1.4) As described in 1.3 advertising, direct marketing, sales promotions and public

relations are the Dialog’s main marketing communications mix elements used to communicate with

their main customer group.

3.1.1 Advertising

‘Dialog voice and SMS services’ customer key segment has about 9.8 million customers and the best way

of communicate with all of them is ATL advertising as described in 1.3.1

The special customer segment as discussed in 2.1.1 Pareto theory, most of them are high class, premium

customers and BTL (refer 2.1.1) advertising methods are using mostly to communicate with those

customers.

The TTL (refer 2.1.1) advertising method is using by Dialog, to communicate with customers of age 16-34

and it has been effective up to some point as well.

Above mentioned methods make positive impact for Dialog because Dialog can communicate its large

number of customers.

But there are some negative impacts as well such as, Dialog has to spend lot more money for ATL

advertising and relative to ATL, BTL and TTL advertising cost is cheap. Once ATL commercial is casted,

whether the target audience received the message or not, Dialog has to pay huge amount of money and

also it is a one way communication method which only provide information to the customers. To

minimize this effect, Dialog has to cast more than one commercial regularly but it costs too much.

Most of Dialog BTL and TTL advertisements are not targeting the customer group which discussed at

2.2.1 and most of advertisements are about getting a new customer, not for something about a current

customer. This is a disadvantage for Dialog and they are losing perfect opportunities to communicate

and build better relationships with those most profitable customers.

3.1.2 Direct Marketing

As mentioned in 1.3.2, Dialog is currently using SMS, MMS, voice calls, postal mails and new media to

communicate and build relationship with this key customer segment.

The whole 9.8 million customers of ‘Dialog voice and SMS services’ segment, are mobile users and it is

one of the best advantages which Dialog has. Hence most of the communication under direct marketing

is done by using SMS messages it is the cheapest way of communicating and building relationships. Also

this method is a two way communication method and Dialog would be able to receive individual

customers’ feedback and it helped to develop customer relationships.


20

For Dialog post paid customers, Dialog post monthly printed bill and e-mail e-bill and with the bill, they

introduce their new products and communicate with customers. This is also an advantage because

Dialog can assure that the customer will go through their message and also it is cheaper way of

communicating with customers.

Dialog rarely use MMS and voice calls to communicate with customers and it would be an effective and

the cheapest way of communicating with customers, if they use it once for a while but, if they use it as a

regular method of communicating, it might annoy the customer. Also Dialog sometimes sends wrong

SMS messages to a wrong customer and sometimes send messages regularly (sending messages daily)

and when continuously it happens, it causes customer dissatisfaction as well. This kind of mistakes and

errors are possible with 9.8 million customer base but it is a disadvantage for Dialog and once Dialog

overcomes this negative impacts, their relationship with customers will develop.

3.1.3 Sales Promotions

As described in 1.3.3, Dialog is currently doing lots of sales promotional activities such as Dialog Lord of

the Reload competition (refer 1.2.1-ii) and special occasional discounts (refer 1.2.1-vii) and addition to

that Dialog has conducting street promotions and online promotions up to some level.

Current sales promotion methods would make some customers extremely happy (Lord of the Reload

price winners) and they would climb the top level at the loyalty ladder (refer 2.1.2) and recommend

Dialog and promote the brand as well. These are the advantages which Dialog gain through this

communication mix element.

There are disadvantageous such as Dialog has to spend lots of money for prices and advertising about

the event (refer Lord of the Reload event 1.2.1-ii) but only few customers may be less than 0.1 million

out of 9.8 million would satisfy and the event might not even indirectly impact on many other

customers.

Dialog competitor (third player at the industry) Etisalat (refer appendix 01, A1.6) is currently doing more

online sales promotions relative to Dialog and it would be a disadvantage for Dialog.

If Dialog can introduce new sales promotions which can overcome above disadvantageous, it would be

helpful to develop customer relationships.

3.1.4 Public Relations

As described in 1.3.4, currently Dialog is sponsoring events like Sri Lankan movie award ceremony. Also

Dialog is the main sponsor of the Sri Lanka Cricket and sometimes Dialog sponsors Sri Lanka Rugby 7’s

international sports event as well. Also Dialog has done community development projects such as

teaching English for a school children at rural areas and rebuild hospitals. Dialog is also exercise press

conferences and press releases as well.

These activities would help to develop a positive image about the organization, in the mindset of

stakeholders. Also they will enhance the brand image, awareness, recognition and reputation of the

Dialog brand and it will directly effect to the ‘Dialog voice and SMS services’ customer segment as well.


21

Relevant to Dialog, Mobitel and Airtel is currently doing more community development projects and it

would be a disadvantage for Dialog.

These sponsorships, other community development projects and other conferences would cost too

much and some programs might not get public attention as expected and it is also a disadvantage for

Dialog.

Dialog has to identify best public relation programs and execute them and it would enhance the

customer’s attitude towards Dialog brand and it would help to develop the customer relationships.

If Dialog could be able to minimize above negative impacts, disadvantages and use current opportunities

such as communicate using new media and identify new media available for each current

communication mix segment (if possible), Dialog could easily develop more effective relationship with

their key customer category ‘Dialog voice and SMS services’.


22

3.2 Recommends How New Media Could Be Used to Further Develop Dialog’s Current Relationship

with the Customer with the Most Influence and Impact and Differentiate Dialog from Main

Competitor Mobitel.

Dialog key customer group ‘Dialog voice and SMS services’ is mobile using, 9.8 million (Refer appendix

01, A1.4) customer segment and Dialog could use as mentioned in 2.3 mobile, facebook, YouTube, e-

mail and also digital screens, twitter, blogs, www.dialog.lk and etc. to develop their current relationship

with this customer segment.

By using new media, Dialog would be able to have a two way communication, which Dialog provide

information to customer and customer could get information on their requirements and give feedback

on it.

3.2.1 How social media can be used by Dialog

Dialog can use social networks such as facebook, twitter, MySpace and Google+ to enhance the current

relationship with the key customer segment. Through these media Dialog could be able to have a two

way communication easily.

Dialog can use their facebook page and twitter page as an advertising media such as publishing

infographics (According to the http://whatis.techtarget.com/ ‘an infographic (information graphic) is a

representation of information in a graphic format designed to make the data easily understandable at a

glance.’), small videos and posts about their current services and make customer happy and let them

like it, comment it and share it and then the advertisement would be more effective.

Also Dialog can use facebook to promote their sales promotions and as discussed in 3.1.3 sometimes

Dialog has to learn from the competitor, Etisalat as well.

Dialog can use facebook and twitter to inform customer about their latest public relation activities as

well.

Dialog also can use social video and photo sharing networks like YouTube and Flickr to enhance the

current customer relationships.

Dialog can create a short video about their products, features, Dialog community development projects,

and Effectiveness of Dialog upload it to the YouTube and it helps to customers to have better

understanding about Dialog.

Dialog can always analyze how Mobitel is doing communication using above social media and their

customer relationship approach using social media and social video networks.

3.2.2 How mobile can be used by Dialog

Dialog can use mobile as a direct marketing tool. Dialog has to overcome disadvantages mentioned in

3.1.2.

When Dialog is calling to a customer, Dialog can directly call him/her by name and currently Dialog does

not do it and if Dialog does it, it would help to build better relationship with customers.


http://whatis.techtarget.com/


23

Dialog has already introduced a new mobile based applications which enables customers to check their

star points (refer 1.2.1-iii, star points) and use points for transactions and receive occasional offers (refer

1.2.1-vii) Dialog also has another app to assist customers online.

Dialog can develop a better app which includes all above facilities and overcome current technical

issues. Dialog has to introduce mobile apps for windows and apple operating system users as well and

then Dialog can enhance their communications with customers.

Mobitel currently using their M app to communicate with their customers about their offers but they do

not have point system and online customer assistance through app like Dialog and because of that, their

app is not popular among customers.

3.2.3 How blogs and www.dialog.lk can be used

Since blogs have been created mostly by customers and they can publish anything they want on blogs

and most of blogs have created for blaming purposes, blogs might bring a negative impact for the brand

and the development of customer relationships. Therefore Dialog has to check regularly about these

types of blogs and learn from them and Dialog can solve those issues and publish them on blog site as

well as their web site. It would help to improve customer relationships.

Also Dialog can introduce more user friendly and user attractive interface to their web site and include

all necessary data about this customer group because when customer log in to the website it must

satisfy the customer most of the time. (Some data are confidential)

Dialog can differentiate their web page from Mobitel by letting customers to select their preferred

language (Sinhala, English and Tamil) and operate it and it also helps to develop customer relations.

3.2.4 How e-mail can be used by Dialog

Dialog also can use e-mail as a direct marketing communication tool and additional to their current use

of e-mail (refer 3.2.1), Dialog can collect email addresses of all e-mail using customers (both pre paid and

post paid customers) and create a database. Dialog also can use Pareto theory (refer 2.1.1) and

Customer Lifetime Value (refer 2.2.1) relationship marketing models and categorize the customers in

‘Dialog voice and SMS services’ segment and send relevant mails. This would help to enhance Dialog’s

current relationship with the key customer segment.

Mobitel is currently using email for communication but they send mail for billing purposes only.

3.2.5 How digital screens can be used by Dialog

Dialog can advertise on Digital screens at common places, train TVs, bus TVs, and film halls but they

have to identify the target audience (cannot reach most of Dialog premium level customers in ‘Dialog

voice and SMS services’ segment). These types of communication methods can be used by Dialog to

enhance its current relationship with customers.



24

Mobitel has already advertising on these types of media commonly but Dialog rarely advertise and it

would be an opportunity as well.

Above mentioned recommendations would help to overcome most of issues discussed in 3.1 and they

would help to differentiate them from Mobitel. New media communication is cost effective and also two

way communication and it helps to develop relationship with ‘Dialog voice and SMS services’ customer

segment.


25

3.3 Evaluation of How Dialog Could Measure the Effectiveness of Above Recommendations, Should

They Be Implemented.

Dialog can carry out a secondary research and design a Questionnaire to measure the effectiveness of

above 3.2 recommendations for their ‘Dialog voice and SMS services’ customer segment.

3.3.1 Secondary Research

According to Crouch, Housden [2003], secondary research has defined as ‘Data that has already been

published by someone else, at some other time period, usually for some other reason than the present

researcher has in mind. The researcher is therefore a secondary user of already existing data which can

be obtained and worked on at a desk.’

Secondary research divides into two parts as internal secondary research and external secondary

research and Dialog can collect both internal and external secondary data about ‘Dialog voice and SMS

services’ segment.

Dialog can analyze their ‘Dialog voice and SMS services’ key customer segment by, increment of

customer repeat purchases, increment of sales and increment of income at given period of time which

promote more by using above recommended new media. Dialog also can ask for customer reviews that

how they get to know about the services/packages at the moment them purchasing the

services/packages. Dialog also can find out about the current customer recommendations about this

segment to other potential and existing customers by reviewing blogs and social media comments and

also at the moment when they buying it.

Dialog can collect customer feedback on ‘Dialog voice and SMS services’ customer segment about these

new media communication, from feedback boxes at the Dialog arcades and outlets, call centers and

other marketing persons.

Website analysis on ‘Dialog voice and SMS services’ key customer segment would provide ample data

about the effectiveness of the recommendations. Facebook has its own unique feature that it enables

page administrators to analyze the people who like the page and Dialog can use it to analyze their

customers. Also Dialog can analyze their facebook posts (refer 3.2.1 for recommended types of posts) by

number of likes, comments and shares. Like on a post represents that the person who like the

service/package is prefer to buy it or might already bought it. Comment on a post represents that the

person who comment is using the service/package, and also Dialog can review those customer’s

compliment or complain about specific service/package. Number of facebook represents the total

satisfied customers and they share it means they recommend it for their friends and they represent the

top level of the loyalty ladder (refer 2.1.2) as well. This method would be really helpful to measure the

effectiveness of new media and there should not be any other old way of two-way communicating with

such effectiveness. Dialog can also use this method to measure the effectiveness of twitter, MySpace

and Google+ likes/follows, comments and shares as well.

Dialog also can monitor the number of views of their videos about ‘Dialog voice and SMS services’

customer segment (refer 3.2.1) and compare it with the number of likes, comments and shares and it

will provide necessary data and as explained for facebook, YouTube viewers can apply the same

categorization.


26

For ‘Dialog voice and SMS services’ customer segment, Dialog can analyze their website by using

number of users logged in per day and their most referring section, and also their feedback on

recommended changes. Also Dialog can use journal reports, newspaper articles and government

statistics to collect relevant data.

All of above mentioned research findings represent how ‘Dialog voice and SMS services’ customers feel

about new media and Dialog can measure the success of the 3.2 recommendations.

3.3.2 Questionnaire Design

According to Matthew Housden [2010], ‘Questionnaire is a structured data collection mechanism

involving a range of question formats and completed orally or in print’.

Dialog can prepare a questionnaire for ‘Dialog voice and SMS services’ customer segment with questions

relevant to measure the effectiveness of the recommendations in 3.2.

Dialog can collect questionnaire data from the customers who come to the Dialog arcades and outlets

island wide.

Since most of the new media users are young and middle age people, Dialog can mainly target them and

collect their feedback.

Dialog can measure the effectiveness of 3.2 recommended new media by using above mentioned

methods and also can collect customer compliments, complaints and recommendations and it will help

to further develop the new media discussed at 3.2.


27

Findings : This report will help Dialog to identify the current opportunities and their

current disadvantages when using communication mix strategies. Also it highly

recommends Dialog to use new media and develop current using of new media

to develop better relationship with its key customer group, ‘Dialog voice and

SMS services’. Also this report provides easy ways to measure the effectiveness

of recommendations.

Conclusion : If Dialog could be able to correct their negative impacts and minimize the

discussed disadvantages by adopting recommendations to their current

marketing communications mix, they would be able to develop better

relationship with their customers than current relationship state. But to do it,

Dialog has to be careful with new media handling because customer will always

notice the small mistake Dialog make than all of the positive things done so far.

Recommendations : Adopt recommendations discussed at 3.2 to the current marketing mix and

carry out a marketing research as discussed at 3.3 once for a while. It would

help to have a better customer relationship.


28

References :

Books


Francis.

Matthew Housden, 2010. CIM Coursebook Market Information and Research, Second Edition. 2 Edition.


Reports



Bibliography :




Routledge.

Michael J. Baker, 1995. Marketing: Theory and Practice (Macmillan Series in Marketing Management).

3rd Edition. Palgrave Macmillan

John Wilmshurst MA; FCAM; FCIM, 1995. Fundamentals and Practice of Marketing, Third Edition:

Published in association with the Chartered Institute of Marketing (The Marketing Series). 3 Edition.


, 1998. Rethinking Marketing: Towards Critical Marketing Accountings. 1 Edition. SAGE Publications Ltd.

Etisalat Sri Lanka. 2014. Etisalat Sri Lanka. [ONLINE] Available at:http://www.etisalat.lk/. [Accessed 20

May 2014].

. 2014. . [ONLINE] Available at: https://www.facebook.com/dialog.lk. [Accessed 12 May 2014].


The Marketing guy who drives sales. 2013. The Marketing Communications or Promotional Mix.

[ONLINE] Available at: http://www.themarketingguywhodrivessales.com/crashcourse/promix.htm.

[Accessed 01 May 14].

Online journals, books and reports . 2014. Online journals, books and reports . [ONLINE] Available

at: http://www.cim.co.uk/Resources/OnlineJournals.aspx. [Accessed 16 April 2014].

http://www.etisalat.lk/

https://www.facebook.com/dialog.lk


http://www.themarketingguywhodrivessales.com/crashcourse/promix.htm

http://www.cim.co.uk/Resources/OnlineJournals.aspx


29

Appendix 01

Company Background

A1.1 Background of Dialog Axiata PLC

Dialog operates Sri Lanka’s largest and fastest growing mobile telecommunications network and it has

been at the Sri Lankan mobile industry since 1994. The company holds the distinction of being the first

service provider in South Asia to launch 3G and HSPA+ services, and most recently Mobile 4G services

based on FD-LTE technology. Dialog also provides an International Roaming Services of more than 200

countries, and operates a wide portfolio of international telecommunication services, including but not

limited to retail and wholesale international voice and data services. According to the Dialog annual

report, they have 11.54 million customers.

A1.2 Ownership and Profit

Dialog Axiata has 22,194 total shareholders and the top five shareholders of Dialog and their ownership

percentage as at 31st December 2012

Rank Name of the Shareholder % of Ownership

01 Axiata Investments (Labuan) Limited

83.3

02 HSBC-BBH Genesis Smaller Companies

2.3

03 Employees Provident Fund, Sri Lanka

2.2

04 Dialog Axiata Employees ESOS Trust

1.9

05 Sri Lanka Insurance Corporation Ltd-Life Fund

0.9

Dialog is one of the largest listed companies on

the Colombo Stock Exchange in terms of market

capitalization and is Sri Lanka’s largest Foreign

Direct Investor (FDI) with investments

cumulating to over USD 1.41Bn. By the end of

the financial year 2012, Dialog has reached

growth of 23% in group earnings and recorded

net profit after tax of Rs.59.71 Bn. Source: Dialog Annual Report 2012

A1.3 Vision and Mission

Vision is to be the undisputed leader in the provision of multi-sensory connectivity resulting always, in

the empowerment and enrichment of Sri Lankan lives and enterprises.

Mission is to lead in the provision of technology enabled connectivity touching multiple human sensors

and faculties, through committed adherence to customer-driven, responsive and flexible business

processes, and through the delivery of quality service and leading edge technology unparalleled by any

other, spurred by an empowered set of dedicated individuals who are driven by an irrepressible desire

to work as one towards a common goal in the truest sense of the team spirit.

0

20000

40000

60000

2012

2011

EBITDA - Earning before interest, taxation, depreciation and amortization

NPAT - Net Profit after tax

FCF - Free Cash Flows

Source: Annual Report 2012

Figure 1


30

A1.4 Dialog Products and Services with Key Customer Groups

A1.5 Awards Won by the Dialog

ISO 9001, Telecommunications Service Provider of the Year for the second year in succession, SLIM-

Nielsen People’s Choice Awards, Internet Services Provider of the Year in its inaugural year of award, Sri

Lanka’s top 3 most valuable brands as rated by Brand Finance, National Quality Award, the Sri Lanka

Business Excellence Award, and 3 successive GSM World Awards.

A1.6 Dialog Customer Base Analysis with Competitors

Dialog Mobitel Hutch Airtel Etisalat SLT* Lanka Bell

Mobile Subscribers 7.7M 4.7M 1.7M 1.6M 3.1M - - % of the Market Share 41% 25% 9% 8.5% 16.5% - -

Land Lines 2.1M - - - - 1.9M 1.2M % of the Market Share 40.4% - - - - 36.4% 23.2%

Satellite/Cable TV 264,000 24,000M - - - 50,850 - % of the Market Share 78% 6.9% - - - 15.1% -

Internet/Wi-Fi 685,000 470,000 80,000 110,000 85,000 1,020,000 245,000 % of the Market Share 25.4% 17.4% 3% 4.1% 3.1% 37.9% 9.1%

Source: TRCSL Report 2013 and Dialog Annual Report 2012 *SLT - Sri Lanka Telecom M – Million

A1.7 Dialog (Network) Island Wide Coverage

•Corporate mobile plans

•Pre-Paid services

•Post-Paid services

•Dialog BlackBerry

•Dialog fixed telephone solutions

•Dialog SMS Solutions

•Dialog Roaming

(01.) Dialog voice and SMS services

•Dialog 4G internet plans

•Dialog mobile data plans

•Dialog Wi-Fi

•Dialog Internet (3G)

(02.) Dialog Broadband Internet Services

•Monthly plan users

•Daily plan users

•Channel selectors through Dialog mobile

(03.) Dialog Satellite TV

•Touch corporate fuel card

•Dialog Surveillance Solutions

•Dialog M-touch Bus card

•Dialog Phones

(04.) Dialog Software and Devices Solutions

•Dialog management solutions

•Mobile point-of-sale (mPOS)

•Dialog money transfer servises ( Dialog Easy Cash)

(05.) Other Dialog Products and Services

Source: Annual Report 2012 and http://www.dialog.lk/

Mobile coverage of Dialog 3G Coverage of Dialog

Source: http://www.dialog.lk/




31

References :





Bibliography :


Francis.


Routledge.

SLT.LK | Sri Lanka Telecom. 2014. SLT.LK | Welcome to Sri Lanka Telecom. [ONLINE] Available

at: http://www.slt.lk/. [Accessed 08 May 2014].


May 2014].

Telecommunications Regulatory Commission of Sri Lanka. 2014.Telecommunications Regulatory

Commission of Sri Lanka. [ONLINE] Available at: http://www.trc.gov.lk/. [Accessed 08 April 2014].


http://www.slt.lk/


http://www.trc.gov.lk/

Documents

SLIM-SM-June 14-38423522