The telecommunications market reflects the current human habits and the society, which has formed based on them. Nowadays fast technological development, constant change and rivalry demand knowledge, flexibility and excellence in execution. The transition from product to service-oriented marketing has opened up new possibilities and formed new perspectives among experts, whose recommendation is to focus on people and on strategies, which comprise of more than just the basic theory of exchange. In this diploma thesis we analyse Telemach d. o. o., a company which is currently active on the market in these circumstances. If the company wishes to continously grow in a saturated market environment with low levels of differentiation, it needs to comply with the principles of marketing strategy; and also consider all of the elements of the service marketing mix. As per the results of our analysis, the company is successful in planning and taking into account all of the seven elements of service marketing mix, including the vital element of being homogeneous in their strategy and operations. The most improvement is needed in their processes and their marketing mix, for which we offered our proposals in order for them to better their performance on the market and their relationship to existing or potential users and other stakeholders.
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