OverviewComcast inter service providers; AT, and telephone companies;

OverviewComcast Corporation (NASDAQ: CMCSA) is a global media and technology company with two primary businesses, Comcast Cable and NBCUniversal. Comcast Cable is one of the nation’s largest video, high-speed internet, and phone providers to residential customers under the XFINITY brand, and also provides these services to businesses. It also provides wireless and security and automation services to residential customers under the XFINITY brand. NBCUniversal operates news, entertainment and sports cable networks, the NBC and Telemundo broadcast networks, television production operations, television station groups, Universal Pictures and Universal Parks and Resorts.The Company which its headquarter is based in Philadelphia, USA. Comcast primary competitors in the telecommunications industry in United States are Time Warner, Cablevision, direct broadcast satellite providers; DIRECTV, DISH Network, inter service providers; AT, and telephone companies; AT, CenturyLink, Frontier and Verizon. They all offer bundled home television, phone and internet package as services to their residential and commercial customers.Comcast has 159,000 employees that care deeply about the customers. As at the end of 2016, Comcast’s designated market areas (DMA) in which the company offers cable services that have over 250,000 customer relationships included the top 25 U.S. states. Comcast offers services directly to residential and business customers through customer service call centers, customer service centers, the website, door-to-door selling, telemarketing, retail outlets, and advertising via direct mail, television and internet. (Comcast Corporation, 2017).Primary Target MarketsThe primary target market of a company is the main audience/customers that are most likely to purchase the company’s products/services now (Preiss, 2017). The company’s main revenue is generated from the primary target market because they account for the highest volume of sales.Comcast Cable is one of the leading provider of video, high-speed Internet and phone services to residential and commercial customers under the XFINITY brand in the United States.  Comcast Cable through its advertising sale division, Comcast Spotlight primarily targets the residential customers which comprise American families with low, middle, and high income, singles and young adults are also targeted. The reason for primary target market is because of the variety collection of services provided.Since the adoption of the internet essential program, passionately spearheaded by David Cohen, Comcast has connected 750,000 families to the low-cost broadband internet service at a rate $9.95 per month, benefitting three million low-income Americans (Comcast Report, 2016).Comcast added 858,000 customers, a 29% improvement over 2015. Comcast’s high-speed Internet with an introductory rate of $29.99 a month has over 22 million customers across United States. Comcast marketing strengths cover a range of services in television programming, telephone services, internet services, and movies. Comcast has over 21 million video subscribers with annual report that shows strong customer base (Comcast Report, 2016). Comcast revenues from high-speed Internet grew mainly due to an increase in its residential high-speed Internet service customers. The company’s high-speed Internet customer base is increasing as more American families are showing interest to accessing high-speed Internet. As of December 31, 2016, there were approximately 15.8 million of t Comcast’s hotspots (Comcast Report, 2016).Basically, about 161,000 new video customers were added in 2016, showing a positive increase for the first time in a decade. Comcast currently offers a bundled package (Preferred XF Double Play) and (HD-Preferred XF Triple Play) with an introductory rate of $89.99 a month. The Preferred XF Double Play bundled package gives the customer TV channels and internet, while the HD-Preferred XF Triple Play package includes the internet, TV-channel and phone. The price listed on the website is a starting price, and it might varies depending on the area (Comcast Plan, 2017). Comcast offer home security and automation services as a component of the bundled service packages. Subscription rates and related charges vary depending on the services and equipment customers receive. Customers are typically billed in advance on a monthly basis.Secondary Target MarketsThe secondary target market are audiences that are likely to purchase the company’s products/services in the future or influences the primary target customers to purchase more. The secondary market may include future primary customers, customers buying at a high rate within a small segment (Preiss, 2017). The secondary target market for Comcast may include the Commercial customers, the retired-age customers.Comcast at the Global Media & Communications Conference held on December 7, 2015, expressed its desire to expand its products/services to the Commercial customers that involve both the small and medium businesses. Comcast has already captured over 10% of the small-size businesses, but hope that its market penetration for the medium-businesses will exceed 10%. Comcast is confident to the expand the commercial customers base because Comcast reliability in its Ethernet network services and its strong marketing team that will help to further penetrate the commercial services market.The Comcast Ethernet services do not only help organizations to survive recent challenges in digital environment, but it makes the organization to succeed. Ethernet provides a secure, reliable, high-performance backbone that helps companies manage data growth, drive application performance, and securely access cloud and data center resources (Comcast Business, 2017).Comcast Business offers an Ethernet services with an introductory rate of $69.95 a month, with a promotional price of $34.95 a month for 24-months when combined with 2 phone lines. Comcast Business experienced a huge growth in 2016 with nearly a $6 billion revenue run-rate, and the company had strong purchase across all three of the segments it serves: small, medium, and large enterprises with multiple locations. The large enterprise business services are designed for Fortune 1000 companies and other large enterprises with multiple locations both within and outside of Comcast cable distribution footprint. These multiple locations are serviced through agreements with other cable companies to use their networks to provide coverage outside of Comcast’s service areas. The services for the business customers include an interactive tool that allows customers to store, share, and collaborate on files online, hosted voice services that use cloud network servers, a business directory listing, and additional capacity for multiple phone lines. In addition to the Ethernet network services, Comcast provides cellular backhaul services to mobile network operators to help manage network bandwidth.Comcast business services primarily compete with a variety of phone companies, including incumbent local exchange carriers (“ILECs”) and competitive local exchange carriers (“CLECs”). These competitors either operate their own network infrastructure or rely on reselling all or part of another carrier’s network. Comcast also competes with satellite operators that offer video services to businesses.The Business services revenue increased respectively for 2016 and 2015 with 16.1% and 20.0%. The increase in 2016 was attributed to increased number of small business customers, and continued growth in Ethernet network and advanced voice services for the medium-sized business customers. The increase in 2015 was attributed to increased number of small business customers receiving rate adjustment for the high-speed Internet and voice services. The small business customers generated over 70% of total business services revenue consecutively from year 2014 to 2016.  The overall increase in the number of business customers was primarily recognized as the result Comcast’s efforts to gain market share from competitors by offering competitive services and pricing. Nevertheless, Comcast stated in its 2016 annual report that the rate of growth in the number of the small business customers is slow as the business matures (Comcast Report, 2016). In addition, Comcast can target the retired-age as potential customers.Target GroupSetting of a target market by a company must ensure that the target group is large enough to maintain profitability. If the market potential is too small to generate profit, the target market may either be too narrow or the company has less good products/services in the market.The basic essential customers’ needs that the Comcast bundled-package that comprises the cable, internet and phone currently meet are customer’s entertainment and communication.Virtually, every diverse group of people and culture in United States relies on the TV and internet as the primary sources for information and entertainment. The bundled-package offers accessibility to various TV-channel, Internet and Phone at a very competitive value and promotional prices. Comcast’s market strategies which differentiate the company from the market competitor are its ability to show basic TV-channels with the choice of selective movie channels, 24-hour availability of superior customer service, and its services have good reception.With 24% market share (Statista, 2017), Comcast is apparently a top player in the telecommunication industry. The most suitable approach to Comcast’s growth strategy would be to continue to expand its market base to diverse group of people and cultures in the United States by improving current products into the growing market. To the broaden the target group, Comcast would make every customer interaction a positive experience, offer new customers discounted bundled-package services for the first year of a two-year contract term, retain existing customers with customer referral awards though a customer referral program, offer discount to return customers unpaid bills, and provide online paperless transaction and billing statements to customers.Comcast’s marketing strategy in reaching the diverse target group is to use the multiple customer service call centers, customer service centers, the website, door-to-door selling, telemarketing, retail outlets, and advertising via direct mail, television and internet. In general, the marketing strategy would consider families with children or without children, living in the Urban and Suburban areas either within or outside the designated market areas (DMA), and with ranges of household income in the United States.Market PositionComcast is a valued company with a very positive position the cable and telecommunication industry. Comcast has a broad portfolio of products and services with a tremendous opportunity for growth and expansion either through acquisitions or entering into developing markets. In 2015, The estimated annual revenue for cable and pay TV providers in the United States generated $27.39 billion for cable air time (Statista, 2017).Comcast holds approximately 24% TV market share in the United States with 2017 second quarter revenue of $21.17 billion from $19.27 billion in similar period in year 2016. The earnings per share (EPS) for the 2017 second quarter increased to 52 cents per share from 41 cents in similar period in year 2016. Comcast added 114,000 customer relationships during this quarter as compared to about 116,000 added this time in year 2016. Although, the residential video customers reduced this year, and the company added 175,000 high-speed internet customers, lower than the 220,000 added in year 2016, but Comcast cable communications revenue increased by 5.5 percent 2017 second quarter period with increased in rate adjustments and high-speed internet customers (Balakrishnan, 2017).With an increase to 64 percent from 47 percent in 2014 in overall U.S. household subscribers of video on-demand service from providers like Netflix, Amazon Prime, or Hulu, Netflix’s earnings in 2017 second quarter reflected the increase, with the company adding 5.2 million total memberships, in contrast to the Wall Street’s estimates of 3.23 million during a historically weak quarter.Comcast’s Class A shares increased with about 17 percent over the same period in previous year as of closing of business activities on Wednesday, July 26, 2017, better than AT, whose shares declined more than 10 percent despite posting better-than-expected second-quarter earnings (Balakrishnan, 2017).NBCUniversal investments in Hulu and Snap have pushed the Comcast into newer content areas. Comcast also announced in May a collaboration with Charter Communications on wireless with the objective to protect the emerging cellphone businesses from huge, national providers such as Verizon, AT, Sprint and T-Mobile (Brian Fung, 2017). At a moment, a merger between AT and Time Warner has been proposed, while Verizon acquired Yahoo. Companies like Facebook and Apple are also said to be disputing over original content.Comcast recently launched the new xFi experience for in-home broadband during the 2017 second quarter, with Comcast’s culture of innovation and continued focus on developing unique products and services for the customers.Comcast’s CEO, Brian Robert, during the 2017 second quarter conference call stated that Comcast will only admire an acquisition that favors a more targeted and modest approach to competition, and he thinks “Comcast is a really special company at present and he does not want to do anything to change that, and he is excited about the opportunities ahead for Comcast NBCUniversal” (Balakrishnan, 2017).ConclusionThe focus of this paper presents the market segmentation that effectively positioned Comcast as one of the top providers of Internet, TV and Voice bundled package in the cable and telecommunication market. The bundled package provides effective resolutions to customers’ needs for entertainment and communication at a very competitive rate, alongside a 24-hour superior customer service.Even as the cable and telecommunication industry are emerging, Comcast is one of the industry’s top competitors alongside AT, DISH Network, Direct TV, Verizon, Sprint and T-Mobile. Comcast is still able to capture 24% of the TV market share in United States with increased 2017 second quarter revenue of $21.17 billion and earnings per share (EPS) of 52 cents per share. To stimulate sales and expand the existing the market share, Comcast will strategically implement marketing approach to attract new customers both from the residential and commercial services with the bundled package, which provides more value at a competitive rate. This marketing approach will utilize marketing tool that includes outdoor, service centers, retail stores, internet, traditional advertisement, and Social Media. The marketing strategy would target families with children or without children, living in the Urban and Suburban areas either within or outside the designated market areas (DMA), and with ranges of household income in the United States.ReferencesBalakrishnan, A. (2017, July 27). Comcast Earnings: 52 cents EPS, vs 48 cents Expected. (CNBC News) Retrieved December 8, 2017, from https://www.cnbc.com/2017/07/27/comcast-earnings-q2-2017.htmlBrian Fung. (2017, May 9). America’s two biggest cable companies just struck a deal. Here’s how it will affect you. Retrieved November 10, 2017, from https://www.washingtonpost.com/news/the-switch/wp/2017/05/09/what-charters-deal-with-comcast-really-means/?utm_term=.3ffca9ec9bdbComcast. (2017). Comcast Company Overview. Retrieved December 6, 2017, from http://corporate.comcast.com/news-information/company-overview#accordion-0Comcast Business. (2017, December 7). Comcast Business Internet. 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Retrieved December 6, 2017, from https://bizfluent.com/facts-5551909-primary-vs-secondary-target-market.htmlStatista. (2017). The Statistics Portal. Retrieved December 8, 2017, from https://www.statista.com/statistics/251691/comcasts-pay-tv-market-share/Stock Analysis on Net. (2017). Comcast Revenues as Reported. (Stock Analysis on Net) Retrieved December 8, 2017, from https://www.stock-analysis-on.net/NASDAQ/Company/Comcast-Corp/Analysis/RevenuesTrefis Team, Contributor. (2016, August 22). Where Do Comcast And Dish Stand In The Pay TV Market. (Trefis Team) Retrieved December 8, 2017, from https://www.forbes.com/sites/greatspeculations/2016/08/22/where-do-comcast-and-dish-stand-in-the-pay-tv-market/#70063ea9a213


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