Product Reassessment - Research Paper Example

? Product Reassessment Introduction Advancement in internet technology coupled with increased rural to urban migration have led to the decline of dial-up internet. The emergence of many service providers such as Verizon and Comcast have provided competitive substitutes to the dial-up internet and thus providing consumer shift in the market. A recommendation for dial-up service providers to cope with the increased competition and social shifts among consumers is to adopt product repositioning (Morley & Charles, 2012). There is the need for dial-up service providers to maintain unique innovations not found with other broadband or mobile providers’ currently offering Internet services. This paper focuses on providing a plan to reposition dial-up internet services to a new target market. This could in essence mean a new use for dial-up internet service. Repositioning and Target market For dial-up internet service providers such as NetZero and America Online to regain their internet market share, there is a need for such providers to conduct product repositioning. This will require that these providers change the identity of their product in relation to that of their competitors. Dial-up service providers need to identify new loopholes in their market and promote their product based on a new criterion (Morley & Charles, 2012). Broadband internet providers have taken a large chunk of the market share and appear to make the dial-up internet outdated. Broadband internet providers offer higher internet speeds to its customers and at a higher cost than that of dial-up internet providers. Despite the apparent takeover by broadband internet, many areas remain without internet connection. This gets attributed to factors such as location, population, profitability, and cost of setting up infrastructure by internet service providers (Morley & Charles, 2012). Dial-up internet connection requires no infrastructure to set up other than a telephone network (Morley & Charles, 2012). Dial-up remains relevant due to widespread telephone availability. It is for this reason that dial up is common in rural and remote areas due to telephone accessibility and low population density. Dial up is also an alternative for basic internet users in urban areas who get priced out by broadband connections. According to Pew Research center (2012), 81 % of American adults have access to the internet. Sixty six percent of those who have access to the internet from home use broadband connection. According, to the research center, 95% of teens have internet access (Joannna & Lee, 2012). The Pew research center indicates that only 3% of Americans with home internet access use dial-up services. Among the 3% who still use the dial-up internet, price got given as the main reason for not switching to broadband connection (Joannna & Lee, 2012). The US census bureau indicates that dial-up internet service use is high in states such as Maine, Alaska, Arkansas, Mississippi, Vermont and West Virginia with over 5% of households in these states using the dial-up internet. With these current demographics on the dial-up internet accessibility, effort should get geared at increasing the current 3% of the dial-up internet users in the market (Joannna & Lee, 2012). Research needed to reposition dial-up internet services Dial-up service providers need to reposition dial-up services to maintain unique innovations not found with other broadband or mobile providers currently offering Internet services. When a brand gets to provide consumers with perceptions of self-expansion, they are more likely to be loyal. Major dial-up providers still holding onto the dial-up business model should be looking for opportunities to expand services, such as including free or reduced home line telephone services as a means of incentivizing purchase. By expanding into home phone service, dial-up marketers can regain some ground on lost revenues that occurred as a product of competition and changing social and professional lifestyles. Dial-up marketers could utilize social media as a means of creating a new buzz over dial-up services. Sites such as Facebook and Twitter have considerable following from many diverse demographics in the United States. Dial-up providers can develop websites offering statistical data about the efficiency of dial-up services compared to previous dial-up models from a decade ago, illustrating how speed has been improved. By using social media as a promotional outlet, consumers not willing to incur the higher price tag for faster Internet service could, theoretically, be lured to explore dial-up opportunities. Dial-up providers could utilize guerilla marketing teams in urban areas with promotional merchandise and information about the integrity and reliability of dial-up services, with short-term discounting certificates being provided in consumers’ lifestyle or workplace environments. Guerilla marketing is often effective as it engages consumers at their social level, creating excitement if the campaign is relevant to consumer needs. It does appear, however, that it would be necessary to discount dial-up in order to gain more interest in a variety of potential target markets. Methods to increase adoption rates To drive adoption rates for dial-up internet services, there will be a need to create a marketing plan and evaluating feedback from the consumers (Ferrell & Pride, 2011). For the dial-up service to have an increase in its rate of adoption, these two factors need to get conducted. The marketing plan would require for the dial-up internet service providers to combine factors such as; advertisements, conducting PR events such as press release, posters, mailings, brochures, and posters. Advertisements can get carried out in publications such as newspapers, television and radio, and the social media or internet (Ferrell & Pride, 2011). These advertisements would focus on creating hype surrounding the revolutionized dial-up services and attracting potential customers. The use of brochures and posters can also become adopted to highlight the new features about the product. Appropriate and adequate use of advertisements can go a long way to sensitize the public on the product. The use of press events where a high profile individual such as a sports figure or celebrity endorses the service can also prove beneficial. Dial-up service providers need to obtain feedback from the public on their new services. They should incorporate a feedback survey that will allow their customers to provide their opinion on the revolutionized dial-up internet service and its functionality (Ferrell & Pride, 2011). Feedback will allow the service providers to rectify problems and improve or modify their services. Feedback from customers will also help the providers to tailor their services on customer specifications and popularity. New service component embedded into dial-up internet The incorporation of a new service component into the dial-up internet service can help generate interest among potential customers. Considering its affordability and availability, the incorporation of a new service such as free or reduced home line telephone services will create a buzz about the product. Current and potential dial-up internet users will get interested in finding out about the new service and its advantage over broadband connections. Potential distribution problems An efficient distribution channel is vital for market coverage and additional revenue sources (Ferrell & Pride, 2011). Distribution problems may arise from channel partners giving priority to competitive products. There may also be poor service delivery to customers. Careful management of channel partners and providing appropriate market support are relevant in overcoming distribution problems. Potential problems for dial-up internet service distribution include; channel partners giving priority to broadband providers, lack of knowledge on the new dial-up internet services, and poor customer service. To overcome these problems, management of the distribution channel needs to get conducted. The dial-up internet providers need to employ a distribution manager that will oversee and determine the appropriate distribution partners for the product. The distribution manager will also conduct training, monitoring, and evaluation of distribution partners to ensure they meet the set goals (Ferrell & Pride, 2011). There should also be provision of support to distribution partners to ensure they have adequate knowledge on the product. Support can take the form of training ad provision of guidelines that enhance product knowledge. There is also need to communicate customer service standards to distribution partners. This will ensure that customers receive high standard services that will attract them to the product. Reference Deborah Morley, C. S. (2012). Understanding Computers:Today and Tomorrow. New York: Cengage Learning. Joanna Brenner, L. R. (2012, May 24). Pew Internet: Broadband. Retrieved March 2, 2013, from Pew Internet: http://pewinternet.org/Commentary/2012/May/Pew-Internet- Broadband.aspx William M. Pride, O. C. (2011). Marketing. New York: Cengage Learning. Read More