SMS Advertising - A New Media Mix Tool

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Case Details:

Case Code : MKTG043
Case Length : 9 Pages
Period : 2000 - 2002
Pub Date : 2003
Teaching Note : Not Available
Organization : Varied
Industry : Cellular Telephony
Countries :

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note

The basic concept of cellular phones originated in 1947 in the US, when researchers at Bell Laboratories got the idea of cellular communications from the mobile car phone technology used by the police department of the country. However, it took over three decades for the first cellular communication system to evolve.

The public trials of the first cellular system began in Chicago during the late 1970s and the first commercial cellular telephone system was launched in Tokyo. Cellular telephone services were introduced in the US in the early 1980s, and became popular within a short span of time.

By the late 1980s, cellular services were operational in many developed countries across the world. Over the years, there was an improvement in both the number and quality of services offered on account of dynamic technological advancements. There were mainly two types of cellular services offered by operators - post-paid and pre-paid.

Post paid cellular services, also called billing card services, required the customers to pay for the cellular services utilized by them at the end of a specific period (generally every month). These services also included fixed rental charges for the services provided. Pre-paid cellular services required the customers to pay in advance for the services they would be using.

These cards were available in different denominations, and the customer could choose one, keeping in mind his/her call requirements and budget. When customers exhausted the call time they were entitled to, the services were withdrawn. To attract and retain their customers, cellular companies offered a host of other services like voice mailing, chatting, Internet browsing, roaming services, call wait/hold/divert options and games. Customers could also download ring tones and logos, and receive information (horoscopes, game scores, traffic updates and weather news among others). Subscribers usually had to pay for all the above services depending on the service provider's tariff plans.

Many of the services were priced on the higher side. SMS, however, was a service that was generally priced low, and in a few cases, offered free of charge as well. Simply put, SMS is a single, short message, upto 160 characters (word, numerals, alpha-numeric, or images) that can be sent from one cell phone to another...

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