The Role of Value Creation of Digital Media in British Telecom

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Proposal Topic: The role of value creation of digital media in British Telecom

Introduction

This research considers the role of value creation of digital media in British Telecom. In particular this research gives a detail on how British telecom serves to be the largest broadband and phone service provider in Britain and how value creation helped British telecom to have such a massive reach.

Background

The telecommunication system in Britain known as Post office telecommunication was a monopoly until 1982. Mobile and internet services didn’t exist then, broadcast services of radio and television was a duopoly and controlled by BBC and Independent broadcasting authority. General Post office in 1912 took over National Telephone Company which served Britain from 1881 till 1911, under the telephone transfer act 1911. The then largest private telecom network of Britain “the British rail telecommunication” created by British Rail connected every major city in the Britain through and 17,000 route kilometres of Fibre optic and copper cables(global service BT:about us 2014).

The Post office telecommunication evolved into British Telecom and was privatised in 1984. British telecom became an innovative and dynamic company competing in the converged markets of computing, IT and communications. BT’s strategy is to gain the hold of broadband-based consumer services, become the ‘Brand for Business’ for UK SMEs, become the seller of choice and the best network provider. And all this whilst being a responsible and sustainable business leader. BT contributes around £3bn annually to the UK Exchequer (BTPL the group: History 2014)

BT has a nationwide reach in a non-discriminatory way; BT fibre network can be used by any communications provider (CP), BT’s competitors, to sell services to their customers. British Telecom spent £2.5bn to roll out fibre-optic cable required for superfast broadband. This paved the way to reach a superfast speed up to 80 mbps to two-third of U.K premises (BTPL the group: History 2014)

.Rationale

British telecom is the largest broadband and phone service provider in the U.K. Despite of the severe competition, BT has managed to stay on the top and deliver a high standard of services. A number of rivals in the market provide a very close encounter in terms of market hold and customer reliability, which makes it difficult to retain the same customer insight and values(BTPL the group: History 2014). There is a lot of activities and research involved to study the value creation process and how to retain the customer loyalty. The research involves a study of value creation among the people of the U.K and their interest towards the purchase of the particular service. This research will provide an insight of the various strategies and services available to a customer through the BT digital platform which influences people to choose BT. A decision making process involving customer needs and opportunities available for the service provider to gain hold of the market will be focused. The research however experiences some constrains, like Time, money and resources that might affect the hallmark of the research. Within the given constrains, the purposiveness, parsimony and objectivity of the research will b achieved.

Scope

The research creates an understanding of the ways adopted by BT to reach and offer people the services on a digital platform. The study will focus on the value creation and interest of the customer for goods and services available. The researcher will analyse the implementation of digital marketing strategies and tools by various Telecom service providers. The research also studies about the consumer behaviour process and digital media.

The students of University of south Wales, Newport will be interviewed to analyse the value creation of the BT and what are the factors responsible for choosing BT services over other competitors. This research will help gather the information which could be useful to implement in telecom industry in developing countries like Pakistan, where the telecom infrastructure is struggling.

Aim

To explore the consumer decision making process to purchase BT services over virgin media, sky telecom. The study also aims to gather data to implement in telecom sector with unstable infrastructure.

Objectives

  1. Critically evaluation of consumer decision making process to purchase BT services over virgin media, sky telecom etc
  2. Digital marketing and its impact on brands progression
  3. To assume current market scenario and review the current primary research in the University of South Wales, Newport with respect to current Digital marketing strategies and Consumer Behaviour

Literature Review

The proposal literature review will be gathered using academic journals, articles and digital marketing textbooks and online journals. This will be complete out to organization policies, procedures and strategies literature for dissertation. On the role of digital marketing, Consumer Behaviour and Digital Media literature review is in huge amount but in the present there is very less amount literature review and publication available on telecom sector of UK Industry.

Digital Marketing Strategies

Digital marketing is the marketing of products or services using digital channels to reach consumers. The main objective is to promote brands through different forms of digital media. Digital marketing extends beyond internet marketing to include channels that do not require the use of the internet. It includes mobile phones (both SMS and MMS), social media marketing, display advertising, search engine marketing, and any other form of digital media. Many of the experts suggest that ‘digital’ is not just another form of marketing; it requires a new approach to marketing and totally new approach to customer insight and behaviour (Planning and managing a digital strategy. 2012).

Digital marketing is composed of an extensive selection of service, product and brand marketing tactics that mainly use the Internet as a core promotional medium, in addition to mobile and traditional TV and radio.

Digital marketing is also known as Internet marketing, but their actual processes differ, as digital marketing is considered more targeted, measurable and interactive.

Cultural Impacts

A great deal of research has been done to focus on the influence of culture on digital marketing strategies on an international scope. The research discusses the importance of language, hard-versus soft-selling, standardization versus localization and how images are perceived when developing websites for markets outside the home country. Okazai states that the communication strategies of multinational firms have changed significantly with the advent of the Internet (Okazaki, 2004, p.56). The author argues that the Internet brings cultures together and firms must decide how culturally adapted their online presence should be. Okazaki‟s objective was to examine cultural factors communicated on both domestic and international websites to see the extent Japanese multinational corporations (MNC‟s) adapt their online communications to suit foreign markets.

Branding

Rowley (2004) cites Kotler et al (2002) and De Chernatony and McDonald (1992) to define the brand as a name, term or symbol used to identify and differentiate a good or service from its competitors, and add perceived value for the consumer. According to Rowley, the brand is dependent on consumer perception, perception is dependent on how value is added, and added value must be long-lasting and recurring (Rowley 2004, p. 132).

Social Media

Social Media is a topic that has generated much interest. Kaplan and Haenlein (2009) argue that social Media represents a revolutionary new trend that should be of interest to companies operating in an online space - or any space, for that matter. The lack of academic research available on the topic is highlighted when Kaplan and Haenlein (2009) note that while many practitioners attempt to use social media; they do not understand it . Kaplan and Haenlein‟s (2009) study on social media describes what the phenomenon actually is, classifies social media, and briefly identifies the risks/opportunities for companies. The importance of being on social media sites is undeniable; according to Forrester Research in 2008 75% of web users used social media in some form (Kaplan and Haenlein, 2009, p.59), but there should be a strategy behind social media or it can become a waste of resources.

Consumer choice

According to Solomon et al cited in (Mackay 1997) a fundamental notion of consumer behaviour is that they often buy products not for what they do, but for what they mean. The product plays very important role in a consumer buying process. A customer will choose the brand that has an image or personality consistent with his/her underline ideas.

The relationship between a customer and a product varies considerably depending on possible meaning that a product perceives. Such relationship may be categories as mentioned below.

  1. Self concept attachment- the product shows his/her personality
  2. Nostalgic attachment- product represent past relation
  3. Interdependence- product is part of daily use
  4. Love- strong emotional attachment with product

Digital Media

Digital media consists of audio, video, TV, Radio, Mobile, Internet, social media etc. In a number of ways digital media is somewhat similar to analogue media that has been serving from decades. Digital media provides a number of digital platforms for the marketing of various services and products. Digital media can be divided into three main categories.

Video (including lectures, instructional video, original content)

Audio (including podcasts and audio with visuals, e.g., narrated PowerPoint)

Animations and simulations (e.g., flash content)

Audio and video is a part of digital media which has a rich history, especially in education field. The fact that digital media is capable of decreasing computing cost and has higher bandwidth and global reach, have enhanced its used in educational purposes.

Methodology

After reviewing the available literature the primary data will be collected to understand how consumer purchasing process of digital media is affected. The method used for data the collection was in-depth interview with the students of University of South Wales, Newport.

The purpose to adopt qualitative research approach for this research is to gather insights and fair opinion, qualitative research is exactly that method to collect the related information (Brayman & Bell, 2011)

The preferred choice for the qualitative data collection is an in-depth one to one interview, in order to get best results with cost effectiveness. One to one interview is a fast, reliable and flexible approach for primary data collection. One of the major advantages if this approach is that data sampling is done batter rather than other qualitative tools (Brayman & Bell, 2011).

Research paradigm

The approach of creating a phenomenological view of the world, according to which the world is constructed socially and the researcher is a part of it and science is value driven. The main aim in this paradigm is to formulate and focus on the meaning and to understand the phenomena (saunders, et al, 2009).

Sampling

The type of sampling that would be adopted by the researcher will be purposive sampling. In this sampling method the researcher picks the participant whom he thinks can contribute to the analysis. Sampling size would be 20 people.

Ethical Consideration and Issues

Wells [1994] in (Saunders et al 2009] focuses that more of the ethical interviews are asked when conducting the research in consideration of the real world situations

In this case of the research the interviews asked are purely in relation to the telecom sector considering the current market situations, with this we completely make assure that no information is leaked to student’s community at any point of time and true findings of the researches will be shared by the participants if they asked to add more we would assure that no data is leaked and all the information is stored in the password protected system or computer, and all the data will be destroyed after the complete submission and research acceptance. As recommended by (Saunders et al, (2003, P, 129), the researcher will follow all the code of ethics of The University. Research will be under control of code of ethics.

Global service BT. (2014) about us [Online] available at: http://www.globalservices.bt.com/uk/en/location/uk [Accessed: 16th October 2014]

Btpl the group british telecome (2014) history of BT [Online] available at: http://www.btplc.com/Thegroup/BTsHistory/History_of_BT.pdf [Accessed: 16th October 2014]

Planning and managing a digital strategy (2012) assets file [Online] Available at: https://www.redant.com/_assets/files/Digital-Strategy-Whitepaper.pdf [Accessed: 17th October 2014]

Okazaki, S. (2004). Does Culture Matter? Identifying Cross-national Dimensions in Japanese Multinational Product-based Websites. Electronic Markets, 14(1), 58. http://dx.doi.org/10.1080/1019678042000175306

Rowley, J. (2004). “Online Branding”. Emerald Group Publishing Limited, the U.K., p. 132.

Kaplan, A. M., & Haenlein, M. (2009a). Consumer use and business potential of virtual worlds: The case of Second Life. The International Journal on Media Management 11(3).

Mackay, H (ed.) (1997) Consumption and Everyday Life London: Sage

Brayman, Alan; Bell, Emma 2011, business research methodology London [Accessed 17th October 2014]

Mark Saunders, Philip Lewis and Adrian Thornhill 2009. Research methods for business students. 5th edition. Essex, UK; Pearson education limited

Dr. Sue Greener & Ventus Publishing ApS 2008. Business Research Methods 1st edition. Available at www.bookboon.com (accessed 18th October 2014)

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