Marketing challenges at ET Phone Home Inc

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.

Applying the Data to Address the Apparent Challenges

On the basis of the Digitron marketing survey, ETPH will have to focus its marketing efforts in the following specific directions: First, it is essential to create a campaign that will increase the potential interest among those who have no current perceived need for cellular phone service. Second, that effort should emphasize the many situations and circumstances where the need for mobile phone capabilities are most useful. Third, future marketing campaigns should emphasize the convenient design and portability of the product and the fact that subscribing to cellular phone service provides only increasing flexibility and convenience for the user and does not in any way necessarily decrease the user's ability to choose not to respond to incoming calls.

Marketing Strategy