The power of marketing is that it can put a positive spin on almost anything. If consumers buy into the idea, or the value, of a product or service, then the marketing plan is working. Sometimes, companies use marketing to keep attention focused on a particular aspect, which allows the businesses to plod quietly along until they are ready to generate hype.
Bundling is one such marketing attempt. This technique is present from websites like http://www.direct.tv to your favorite fast food meals. It often combines products or services to get consumers a better rate on the things they are using. In many cases, bundling simplifies bill paying because it can combine three different payments into one, most notably your cell phone bill, your cable bill, and your Internet bill.
The marketing ideas that show people the value of bundling also help capture new business. Adding cell phone to a bundle may make the cost more attractive, thereby gaining new customers who weren’t really planning on having a cell phone.
While the marketing keeps consumers focused on the benefits they get with bundling, telecommunications companies also benefit. First, they often gain new customers through the deal. Even when consumers decide not to use the bundling service, companies gain by having different telecommunication options.
Take Comcast, for example. The company reported that it has lost some of its cable business to Internet TV. With streaming video and businesses like Netflix, it’s fairly easy for a person to drop the cable portion of the bundle. But, they still need to have Internet access. Many people who drop cable will stay with their current Internet provider, even after they lose the discount for the Internet portion of the bill.
There’s nothing wrong with implementing programs or offering services that will improve a business structure, and telecom companies understand this. It just means that in this situation, more than the consumer is winning.