BT Telephone Case 1. What are the issues that evolve as a result of privatization? * Introduction of domestic competition – refocusing of activities * Reforms prepared BT for 3 main challenges: * Regulatory barriers to international competition expected to breakdown * Companies internationalized, they might prefer to deal with single worldwide telecommunications service companies. Tailored less neatly to specifically defined geographic areas * Increased international competition and growing costs of technology = increased concentration of the market 2. What are some of the marketing implications of the technical advances? * Telephone service company can use telephone services best to its advantages * Makes selling easier, bound less by face-to-face interactions * Consolidation of information/profiling customers 3. How were they segmented before the reorganization? * Geographical structure, 31 regions consolidated to 5 regions * 3 customer centered divisions: * Business Communications * Personal Communications * Special Businesses (including mobile and operator services) 4. How are they now segmenting the market? * Based on the amount of lines that were assigned to each company * National, regional accounts, medium sized, small, very small * Medium: 6-15 lines, VSB: 1 line, National: 15+ lines 5. What benefit is TAM to the customers? Telephone Account Management * Rather than on site visits, keep in contact with smaller customers via telephone * Update knowledge of customer needs and situations * Check whether any problems needed solving * Give advise on products and services and take new orders * Plan specific date for the next phone call * Build TRUST 6. What benefit is TAM to BT? * Created advantage over competitors because