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The Connected Home - A smart marketing quest

Von Richthofen, Manfred and Eriksson, Daniel (2009)
Department of Business Administration
Abstract
Problem discussion:
The Connected Home is today within reach and possible for the consumer to obtain. All components are available. On the other hand there is only a fragment of the Swedish consumers that as of today have embraced it. The broad public has so far reacted to the offers with a mix of incomprehension and disinterest. Conducted surveys point out a number of problems ranging from problems in breaking down the concept of the Connected Home into comprehensive steps, to the inability to communicate the benefits to the customer. Hence the benefits cannot be communicated, the willingness to pay is minimal. Another problem with the Connected Home today is to identify the target groups that will find the offers most beneficial. As the... (More)
Problem discussion:
The Connected Home is today within reach and possible for the consumer to obtain. All components are available. On the other hand there is only a fragment of the Swedish consumers that as of today have embraced it. The broad public has so far reacted to the offers with a mix of incomprehension and disinterest. Conducted surveys point out a number of problems ranging from problems in breaking down the concept of the Connected Home into comprehensive steps, to the inability to communicate the benefits to the customer. Hence the benefits cannot be communicated, the willingness to pay is minimal. Another problem with the Connected Home today is to identify the target groups that will find the offers most beneficial. As the most interested early adopters build their own Connected Home, the mission is to market the concept to those who today do not know that they can benefit. Purpose:
The master thesis has three purposes: 1) Create an understanding for the concept of the Connected Home.
2) Construct a general marketing model that will generate marketing guidelines and target groups for the Connected Home.
3) Apply the marketing model on Telia Smart. Methodology:
Due to the pre-requisites of this master thesis the authors have taken a form of advising role for TeliaSonera. When having these pre-requisites an action research method has been used. The action research approach has led to parallel phases of theoretical and empirical information gathering. Parallel to the information gathering an analysis has been carried out. This has been done to grasp the dynamics of the telecommunication environment and create a foundation for the marketing model. In the second part of the master thesis, when generating the marketing model: theories were combined with related empirics. This gave the authors a solid analysis of a suitable marketing model. Information search has been conducted from Internet, articles at Lund University’s database ELIN, telecommunication literature and articles, industry magazines and surveys from different research institutes. Conclusion: Accesses “to” and “within” the Connected Home are in place, together creating a powerful infrastructure for the Connected Home. The devices within the Connected Home are as well in place and are constantly growing in number and improving their capabilities. The right accesses together with the growing number of devices create vast possibilities for existing and new services for the Connected Home. Actors within the Connected Home together create a value network, which increases in value as more and more actors enter. The value network also creates the dynamic character of the Connected Home demanding new marketing strategies. Since the Connected Home is a dynamic environment, high-tech marketing strategies combined with cohort segment strategies of the 21st century, together creates a suitable marketing model for the Connected Home. Marketing theories together with empirical findings have concluded that the Connected Home concept is in the Chasm, creating further pre-requisites for the marketing model. The marketing model is divided into three stages. The first stage emphasizes the importance of having the right internal pre-requisites for handling high-tech marketing. Vertical and horizontal alliances and partnerships could be established to adjust to the dynamic character of the Connected Home environment. Integration of R&D and marketing together with structured market knowledge gathering ought to be considered. The second stage highlights the importance of understanding the potential Connected Home customer and their purchase process. We have introduced three plausible target groups: The up-to-date man, the persuading teenager and the simplicity-searching woman. Lastly a high-tech marketing mix ought to be used to reach out to the identified customers. Combined out of five steps: 1) Customize marketing strategy towa (Less)
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author
Von Richthofen, Manfred and Eriksson, Daniel
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Connected Home, Telecommunication Industry, Value Network, High-Tech Marketing, Cohort Marketing, Marketing Model, Management of enterprises, Företagsledning, management
language
Swedish
id
2171704
date added to LUP
2009-05-20 00:00:00
date last changed
2012-04-02 17:36:18
@misc{2171704,
  abstract     = {Problem discussion:
The Connected Home is today within reach and possible for the consumer to obtain. All components are available. On the other hand there is only a fragment of the Swedish consumers that as of today have embraced it. The broad public has so far reacted to the offers with a mix of incomprehension and disinterest. Conducted surveys point out a number of problems ranging from problems in breaking down the concept of the Connected Home into comprehensive steps, to the inability to communicate the benefits to the customer. Hence the benefits cannot be communicated, the willingness to pay is minimal. Another problem with the Connected Home today is to identify the target groups that will find the offers most beneficial. As the most interested early adopters build their own Connected Home, the mission is to market the concept to those who today do not know that they can benefit. Purpose:
The master thesis has three purposes: 1) Create an understanding for the concept of the Connected Home.
2) Construct a general marketing model that will generate marketing guidelines and target groups for the Connected Home.
3) Apply the marketing model on Telia Smart. Methodology:
Due to the pre-requisites of this master thesis the authors have taken a form of advising role for TeliaSonera. When having these pre-requisites an action research method has been used. The action research approach has led to parallel phases of theoretical and empirical information gathering. Parallel to the information gathering an analysis has been carried out. This has been done to grasp the dynamics of the telecommunication environment and create a foundation for the marketing model. In the second part of the master thesis, when generating the marketing model: theories were combined with related empirics. This gave the authors a solid analysis of a suitable marketing model. Information search has been conducted from Internet, articles at Lund University’s database ELIN, telecommunication literature and articles, industry magazines and surveys from different research institutes. Conclusion: Accesses “to” and “within” the Connected Home are in place, together creating a powerful infrastructure for the Connected Home. The devices within the Connected Home are as well in place and are constantly growing in number and improving their capabilities. The right accesses together with the growing number of devices create vast possibilities for existing and new services for the Connected Home. Actors within the Connected Home together create a value network, which increases in value as more and more actors enter. The value network also creates the dynamic character of the Connected Home demanding new marketing strategies. Since the Connected Home is a dynamic environment, high-tech marketing strategies combined with cohort segment strategies of the 21st century, together creates a suitable marketing model for the Connected Home. Marketing theories together with empirical findings have concluded that the Connected Home concept is in the Chasm, creating further pre-requisites for the marketing model. The marketing model is divided into three stages. The first stage emphasizes the importance of having the right internal pre-requisites for handling high-tech marketing. Vertical and horizontal alliances and partnerships could be established to adjust to the dynamic character of the Connected Home environment. Integration of R&D and marketing together with structured market knowledge gathering ought to be considered. The second stage highlights the importance of understanding the potential Connected Home customer and their purchase process. We have introduced three plausible target groups: The up-to-date man, the persuading teenager and the simplicity-searching woman. Lastly a high-tech marketing mix ought to be used to reach out to the identified customers. Combined out of five steps: 1) Customize marketing strategy towa},
  author       = {Von Richthofen, Manfred and Eriksson, Daniel},
  keyword      = {Connected Home,Telecommunication Industry,Value Network,High-Tech Marketing,Cohort Marketing,Marketing Model,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {The Connected Home - A smart marketing quest},
  year         = {2009},
}