The Marketing Strategy of Tencent and Marketing Mix (4Ps)
With a focus on the 4Ps (Product, Price, Place, and Promotion), The Marketing Strategy of Tencent analyzes the brand on these factors. Product innovation, pricing strategy, promotion planning, and other marketing tactics are available when it comes to analyzing the brand’s marketing mix and strategy. Thanks to these business strategies based on Tencent’s marketing mix, the brand can succeed in the competitive marketplace.
This helps the company/brand set its position in its market. The purpose behind it is to achieve the company’s business objectives and goals. Let’s first look at its marketing mix to understand Tencent’s product, pricing, place, and promotional strategies.
About Tencent
An investment firm with its headquarters in China called Tencent has several subsidiaries that all deal in goods and services related to the Internet. Tencent, with a market cap of $434.26 billion as of April 2023, is the most valuable company in Asia. It was founded in 1988 in the Cayman Islands. Ma Huateng, Chen Yidan, Daniel, Zeng Liqing, and Zhang Zhidong are the founders of this Asian giant company.
Product Strategy of Tencent
Following are some explanations of the product mix and strategy of Tencent:
One of the top Chinese companies, Tencent has a significant presence in the technology and financial sectors. A number of sub-businesses under the Tencent umbrella brand include multiplayer game development, social networking QZone app, music app, film production, antivirus software, payments system, e-commerce, AI (Artificial Intelligence), web browser, and mainstream media web portals. More than 700 million people use the Tencent music app on a daily basis, and all other sub-businesses have similar or greater traction.
Pricing Strategy of Tencent
The pricing plan in Tencent’s marketing plan is as follows:
Every product’s cost is influenced by the investments made to expand it and the customer base, as is the case with any multinational. Due to its involvement in numerous internet-related businesses, Tencent is fiercely facing competition in every business sector it is operating. A predatory pricing strategy with a competitive advantage is required. A subscription-based pricing model is used to maintain the price for services offered. Users can extend the duration of their use of the services by paying a one-time token fee.
Place & Distribution Strategy of Tencent
The Tencent marketing mix’s distribution strategy is as follows:
All of Tencent’s products and services are web-based, so the majority of them can only be availed through its website or mobile app. Products are delivered to a customer’s home after placing the order online. They also run an online store where they offer a wide range of items. In addition, Tencent also develops video games. Every time a new edition of these games is launched, you can buy it online again. That’s why Tencent is a heavy player in different sectors, especially developing video games. So significant that it even gave birth to WeBank, which is China’s first online bank.
Promotional Strategy of Tencent
Tencent’s promotional tactics are as follows:
Tencent uses PR (Public Relations) for the majority of its promotions. Tencent advertises the discounts it provides on various applications directly through those applications. E-commerce, social networking sites, online games, software, mainstream media, and other products are among the diverse product portfolio in its marketing mix. Every subsidiary is given complete freedom to use its own advertising/promotion strategy. Similar to Riot Games, it chooses how to market its video games. The social networking site has a unique audience that it reaches on its own. In reality, other businesses seeking to advertise have come to Tencent’s doorstep. Tencent is a marketing powerhouse thanks to its continued online influence.
Here are the final 3Ps to complete Tencent’s 7Ps marketing strategy since this is a brand that focuses on providing services.
People
More than 108,436 (as of 2022) people work for Tencent in all of its dissections. Each business has its own hiring procedures, and each requires technologically advanced individuals. The majority of Tencent’s employees are Chinese, and the reason behind it is that it is a Chinese company.
Process
Tencent follows a relatively straightforward process because all its services are online, and digital strategies can be completed quickly. Each subsidiary of Tencent chooses its own procedure, and each subsidiary keeps the money it makes. The top individuals of its management are responsible for financial forecasting, and the board decides how to use reserves. The board then communicates this information to those who follow.
Physical Evidence
The numerous awards and financial reports demonstrating Tencent’s size and ability to compete with some of the largest businesses in the world serve as tangible proof. While most of the services are experiential, some are real, like online orders for video game CDs and additional services. This ends Tencent’s marketing mix and strategy.
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