Abstract
In this assignment, I intend to one (1) Discuss obsolesces of home phones in terms of its repositioned target market demographic using U.S. Census Data. Two (2), determine the types of research needed to reposition the home phone. Three (3), I will discuss the method(s) I would use to increase adoption rates. Four (4), I will determine if a new service component will provide new interest for the home phone. Fifth (5), finally, I will anticipate the most likely distribution problems that I may encounter and how I would address them.
Obsolesces of Home Phones, Part II
Home phones are quickly becoming a thing of the past, at least according to a recent study done by the Centers for Disease Control (CDC). Nearly 18 percent of American homes use cellular phones as their primary, home phone, forgoing traditional landline versions.
Discuss obsolesces of home phones in terms of its repositioned target market demographic using U.S. Census Data
The targeted market demographics for home phones were 29 years old and younger; and for households that were 65 years old and older. The number of households with cell phones increased from 36 percent to 71 percent between 1998 and 2005, according to new data released by the U.S. Census Bureau. This corresponded with a decrease in households with telephone landlines, particularly households headed by young adults. One way to help promote the use of land line home phones could be to reverse the trend of the government giving and paying for cell phone for the poor. Give them a cheaper and more central land line phone. This way you could also work for you twofold. One (1), the tax payers will save money for the much cheaper land lines verses cellphones. Two (2), it will be much easier for the government to monitor the individuals with the land lines because they would not be as mobile and might not be tempted to do illegal acts.
Determine the types of research needed to reposition the home phone.
Repositioning can be accomplished by physically changing the product, its price, its distribution, its promotion, or by aiming it at a different target market. I would employ a five-step process for target market selection: one (1), identifying the appropriate targeting strategy. The targeting strategy used is affected by target market characteristics, product attributes, and the organization’s objectives and resources. Two (2), determining which segmentation variables to use. Segmentation variables are characteristics of individuals, groups, or organizations that are used to divide a market into segments. Three (3), developing market segment profiles. Market segment profiles describe the similarities among potential customers within a segment and explain the differences among people and organizations in different market segments. Four (4), evaluating relevant market segments. Potential sales for a segment can be measured along several dimensions, including product, geographic area, time, and level of competition. Five (5), selecting specific target markets. Marketers first decide whether there are enough differences in customers’ needs to warrant the use of market segmentation.
Discuss the method(s) I would use to increase adoption rates. Adoption rates are huge in any business. No matter what you are selling, if people don’t buy, it is worthless. Unfortunately, there is no secret sauce. You must focus on the basics. .
1) Consider your audience-Seems pretty clear cut, doesn’t it? Many times, companies move on the whim of a designer, CEO or a programmer, rather than actually listening to their buyers. Many companies that are very successful, like Starbucks, have idea labs where they allow customers to submit their ideas and thoughts. Then, they actually read and respond to some of the ideas! Listen to what the customers want.
2) Cheaper is not always better-While most people want a good deal, they also want something that will last. Value is important. Access what value the home phone brings to the consumer and use that to my advantage.
3) Develop my brand-What is my brand? What am I offering and why should people buy my stuff? I know plenty of teenagers who buy strictly based on a logo. How can I convince people they need to buy my product?
Determine if a new service component will provide new interest for the home phone.
A good new service component would be for the small home/work offices. Small office phones are capable of far more than simply handling calls. When your small office phones are connected to a telephony system on an Internet Protocol (IP) network, your small business can access the same tools as a large enterprise. And yet, many small office phones and IP-based phone systems are built to meet the needs and budgets of small businesses.
Advanced small office phones on IP networks help you offer better customer service, enable employees to work from anywhere, and improve collaboration. Here are just a few of the benefits small office phones can provide their business:
•Improved customer contact. With customer contact center technology combined with advanced small office phones, they can offer customers a variety of ways to contact them: phone, fax, email, or "click-to-chat."
•Enhanced mobility. Advanced small office phones, especially wireless IP phones, provide access to your data and phone network from the sales floor, warehouse, conference room, or anywhere there's a broadband Internet connection.
•Improved collaboration. Adding advanced small office phones and communications systems to your IP network gives you the tools necessary to conduct phone, video, and web conferencing through a single, easy-to-use interface.
•Reduced costs and improved productivity. IP phone systems help save you money on phone charges. A combined voice and data network simplifies installation and management, further reducing costs. Unified messaging reduces time spent managing messages. And voice and web conferencing enhances productivity while reducing travel costs.
Anticipate the most likely distribution problems that I may encounter and how I would address them.
Distribution (also known as the place variable in the marketing mix, or the 4 Ps) involves getting the product from the manufacturer to the ultimate consumer. Distribution is often a much underestimated factor in marketing. Many marketers fall for the trap that if you make a better product, consumers will buy it. The problem is that retailers may not be willing to devote shelf-space to new products. Retailers would often rather use that shelf-space for existing products have that proven records of selling. One way to counter this is to offer them incentives for trying your product, maybe give them higher margins for the number of units that they sell.
Many of the cost savings associated with having an efficient system of intermediaries result from specialization. Manufacturers specialize in what they do well—manufacturing products—while others specialize in handling various phases of the distribution path. Some specialize in retailing—usually selling a large assortment of goods in small quantities to a large number of end customers. Wholesalers, in turn, specialize in moving and goods from numerous manufacturers to a large number of retailers. So in turn I would need to find the right distributors for the use and sell of my phone systems.
References
Historical Census of Housing Tables - Telephones. (n.d.). Census Bureau Homepage. Retrieved February 28, 2013, from http://www.census.gov/hhes/www/housing

Lamb, C. W., & Hair, J. F. (2013). Developing and Managing Products. MKTG6 (Student ed., pp. 179-192). Mason, Ohio: South-Western.

Distribution: Channels and Logistics. (n.d.). Consumer Behavior: The Psychology of Marketing. Retrieved March 1, 2013, from http://www.consumerpsychologist.com/intro_Distribution.html

Small Office Phones: The Benefits - Cisco Systems . (n.d.). Cisco Systems, Inc. Retrieved February 27, 2013, from http://www.cisco.com/cisco/web/solutions/small_business/resource_center/articles/work_from_anywhere/small_office_phones_the_benefits/index.html