Global And Iridium Telephone Companies
                    Questions and Answer
Questions and Answers

 

Q 1. Chapter 1 develops the theme of “ connectedness”. What example of connectedness do you see in the Globalstar case?

A 1. Globalstar is seeking to provide domestic service in developing countries, not international traffic. The strategic plan of Globalstar is to target people who live in the semi modern world. Especially, Mexico, Canada, Brazil, India, Turkey and Russia are key markets.

Today’s companies are selecting their customers more carefully and building more lasting and direct relationship with targeted customers. The technology boom has created exciting new ways to learn about and track customer, create products and services tailored to meet customer need, distribute products more efficiently and effectively, and communicate with customers in large group or one-to-one.

Q 2. What customer needs and wants lead to the demand for satellite telephone service?

A 2. According to Iridium Company investigation, 65 % households on the world do not have telephones. Cellular service has not penetrated many developing countries. Generally, private companies, which work universal trade, need satellite telephone. They have to contract with other companies in the world. Especially oil companies, energy companies want to sell their production using telephone technology. In Turkey, media companies and government of military services use the satellite telephone service.

Q 3. How have changes in the marketing environment affected demand for telephone service?

A 3. The process of globalization on the word contributes to getting closer among people living at different parts of the word. Telephone service depends on government in a country (Especially, east Europe and Asia countries) that do not have modern technology system that can reach distance places using its technology. For instance, almost all of majority people living in Turkey have complained about the telephone service of the Government. Although private telephone services help to lessen the burden of telephone service of government, to reach without question to distant places in the world-using phone is satisfactory for companies that work in international markets.

          At the beginning of 2000 years, Motorola whose company has USA patent started to sell iridium telephones in Turkey. A media boss accepted its sponsor in Turkey. Unfortunately, Economic condition in Turkey led to decrease in buying Iridium telephones. Today, Motorola and Sponsored TV company to have dispute to be settled in court. International Court Low of Trade has inquired each position of Company.

Q 4. What marketing mistakes did Iridium make? Why do you think it made these mistakes?

A 4. Iridium’s backers believed that there was a large potential market for its telephone service. APL (Advertising Agency Ammirati Puris Lintas) worked with Iridium to design the marketing strategy. APL `s research shows us that people are worried about being out of touch when they traveled to far away places. Also, They were worried about neglecting their families. Unfortunately Iridium already had the product would soothe these executives fears and play to their desire for status.

        The first error for Iridium was to forget three different concept underlying marketing is that of human needs. (Needs, want, demand). Maybe Iridium would have helped the companies. But to sell the Iridium only companies was not possible to gain a good profit.

Second important point for unsuccessful was infrastructure in country for telephone system is not possible or convenient. They did not do enough research and feasibility works. They did not consider the economic situations of subclass country.

Q 5. Outline Globarstar`s marketing process, including its segmentation, targeting, positioning, and marketing mix decision. Do you believe that it will be more successful than Iridium? Why or why not?

A 5. Unlike Iridium, Globarstar`s managers have been working as cooperative with in developing countries on the world. Globalstar has designed its production and giving them the ability to get full coverage at the cheapest price. This situation shows us that Iridium Company has strategic plans to target customer.

           Secondly, Iridium telephone has accessories that allow use in cars or on ship. In addition to vocal communication, Globalstar offers roaming positioning facsimile, and data transmission services. This is a customer satisfaction. To use Globalstar is convenient for the customer.(Size, serviceable, Data transmission, price,  etc..).