Product Reassessment of Home Phone Service
We would like to consider such previously popular product as Home Phone service. As it is known, this product was very popular and the number of home phone users was quite great. Most people could not imagine their daily life without using of such connection’s instrument as a home phone. However, we can see a lot of technology changes, which occur practically every day. In fact, obsolescence of many products can be considered as inevitable society’s payment for technology progress. That is why, most people have refused from the using of home phones and they are using the new connection means. According to the Federal Communications Commission’s data, the number of home phone users is decreasing since 2006.
According the data provided in table 1, the number of home phone users has dropped from 172.2 in January 2006 to 143.5 in December 2011. The fall of home phone users was 16.67 %. There are a lot of reasons of such great fall, but the most important reason is technological progress. “The move comes as research reveals that half of young people never use their home phones. One in three say they have given up using the traditional handsets, while the figure rises to around half – 48per cent – of those aged 18-34” (Poulter, n.d.).
Obviously, demand for home phones is falling and its increasing requires a development of proper marketing strategy. As it is known, marketing strategy is the process of planning and realization different marketing acts, which are made for achievement company’s goals. Marketing strategy is the important part of general company’s strategy, which is determining the main directions of company’s activity on the market against consumers and competitors. Marketing strategy depends on current company’s state on the market, estimation potential perspectives of market’s changes, future actions of competitors, company’s goals, and existing limitations on the market. However, it would be reasonable to give a clearer definition of marketing strategy. One of the best marketing strategy’s definitions is the following. “A marketing strategy is a process or model to allow a company or organization to focus limited resources on the best opportunities to increase sales and thereby achieve a sustainable competitive advantage” (Easy Marketing Strategies, n.d.).
The development of marketing strategy is the difficult process, which consists of several stages. So, the development of marketing strategy include such stages as: researching the market’s state, estimation the current state, analysis of competitors and estimation of company’s competitiveness, determination the goals of marketing strategy, market’s segmentation and select the target segments, analysis the strategic alternatives and select the marketing strategy, development the positioning, previous economic estimation of selected strategy, and determination of control’s instruments. All these stages should be performed in the process of repositioning of home phone service. Also, it would be reasonable to provide the marketing research, which would include the provided in table 2 stages.
Despite the falling demand on home phones, marketers are able to use such methods, which would help to increase it. One of these methods is a wide advertisement, especially among people, which are working from home. Such kind of working is becoming more popular, since people are able to earn money using computers and the Internet. That is why, people who work from home can be considered as a target market for home phone services. Also, it would be reasonable to find new possible markets for this product. In fact, these new markets can include people of developing countries, since home phones may still be popular among people with quite low-income level.
In addition, it should be noted that new services or some new properties of home phones may create a new demand for these products. That is why, producers of home phones should provide new technologies in the process of home phone production. Probably, they will find some changes, which can be revolutionary and create the additional demand for home phones. Only, innovations and advances in science and technology can be a permanent source of increasing demand for home phones.
However, there can be a lot of difficulties in the process of home phones promotion and stimulation demand for them. Most difficulties are related to technology changes and obsolescence of home phones, since “just as technology largely did away with the cassette player, VCR and analogue “big box” TVs, so landline telephones are set to become museum pieces” (Poulter, n.d.). That is why, there is only one way to increase the using of home phones and demand for them providing the newest technologies in the product and the process of its production.
To conclude, a home phone is a great product, which was very popular for many years. However, due to the technological progress and the newest products, which have become the integral part of our daily life, home phones are becoming less popular and demand for them is falling. That is why, only great marketing strategy as well as providing the newest advances in science and technology can create possibilities for increasing demand for home phones.