Discussion
Understanding the various phases of a product or service lifecycle is critical when addressing a market. If your product is in decline and the competitor's product is in growth, your strategy for the product or service will be different. This exercise will enable students to demonstrate an understanding of both their product/service life cycle stage and a competitor's product. It is designed to help students explore product mix strategies in the various phases of a product or service life cycle. This tool is critical when addressing a market penetration, market saturation or product/service decline.
Assignment Evaluate the potential growth rate. Look for information on similar products/services to determine a 3 year growth rate (Compound Annual Growth Rate-CAGR). The service I am using is AT&T. I am going to launch/refresh one of their cell-phone packages which is unlimited data and 4 lines for $180 a month. AT&T's competition is Spring and Verizon. Complete in 300 words. Please cite one peer-reviewed resource. I have attached some info on AT&T
Why the product or service needs to be introduced or refreshed (target audience).
According to the website www.at&t.com, AT&T is one of the world's largest cell phone providers with over 121.8 million subscribers. They provide reliable worldwide coverage for users to stay connected for personal or business reasons. To keep their current subscribers happy, and to attract new business, AT&T's products and services have to change as fast as the market for them, and the technology around them does. If they fail to keep up with, or attempt to get ahead, of the wireless communications industry, they risk falling behind and becoming irrelevant. In an effort to continue to draw in new customers and keep their current subscribers from leaving, AT&T is offering an updated, or refreshed version, of the wireless device charges.
Definition of product or service.
With Sprint and Verizon offering incentives, such as lower plan fees and unlimited talk, text and data, to existing and new customers, AT&T must work to keep up with these changes or risk losing business. To continue keeping up with the competition AT&T is introducing a new service package for their wireless subscribers.
To look out for the long term success of the company AT&T will be launching a new service incentive to all customers. This new service provides any new or current user with unlimited talk, text or data on their mobile devices such as smartphones and tablets. The program works using a base price for the first phone and then depending the number and type of devices added to the program the fees are added from there. The most common package being sold is the 4 lines on one account for $180.00 per month. However, other pricing is available since the billing model can be customized to fit the consumer.
Description of product or service--marketing message.
AT&T marketing message is similar to their company's mission statement, which is "to connect people with their world, everywhere they live and work, and do it better than anyone else." This mission statement along with the company's advertising motto, or marketing message, of "Mobilizing Your World" is the way that AT&T is branding their product and services name throughout the wireless industry. With the release of this new service package of unlimited talk, text and data, AT&T continues to reinforce both their brand name and there motto of "Mobilizing Your World."