Estimating demand and marketing challenges for E.T. Phone Home cellular service

MARKETING CHALLENGES -- E.T. PHONE HOME, INC.

Estimating Anticipated Demand and Potential Challenges

If E.T. Phone Home, Inc. (ETPH) is granted an FCC cellular radio license, organizational managers face considerable challenges. According to the detailed profile of potential users furnished by Digitron, nearly two-thirds of respondents indicated that they were "not interested at all" in mobile phone services even at a "reasonable price." Only approximately one-fifth of respondents indicated that they were "somewhat interested." Approximately nine percent of respondents indicated that they were "not too interested" and the smallest group of respondents (eight percent) indicated that they were "very interested: in mobile phone services.

Analyzing Anticipated Demand Factors and Potential Challenges

The overwhelming majority of respondents (more than ninety-two percent) indicated that the reason for their lack of interest in cellular phone service was simply that they had "no need" for it. Almost one-third of respondents indicated the belief that a cellular phone would be a "nuisance" to carry around. Interestingly, more respondents indicated that their reservations have to do with being "tied to a phone" than indicated that their reservations related to cost. The least common reason given (by approximately five percent of respondents) for the lack of interest in cell phone service was a concern with privacy.

More specifically, the most important consideration articulated by those respondents who expressed greater potential interest in cellular phone service was the capability to place telephone calls from their vehicles as conveniently as from a traditional telephone. Those respondents who had previously had the opportunity to use cellular phones or other similar communications systems (i.e. two-way radios and pagers) in connection with their employment responded more positively than those respondents who had not. Finally, the perceived "prestige" associated with cellular phone service was not reported as a major consideration.

Marketing Strategy

Based on the marketing research, the first ETPH marketing campaign should feature users in depictions of situations in which the target audience can envision an obvious need for mobile telephone service. That would include emergency roadside service calls and settings such as airports or entertainment venues where demand for pay telephones typically exceeds supply. The secondary focus of marketing messaging should emphasize the convenient design and small size of the product in situations clearly depicting its unobtrusiveness. Finally, the marketing campaign should depict users in situations clearly demonstrating that cellular telephones only increase the opportunity of users to make calls or to receive calls as they choose and should demonstrate that mobile phone users still retain the same autonomous choice to limit incoming calls or to ignore them or allow them to be answered remotely as they currently enjoy with traditional telephone services.