In possibly the largest economic slump in many of our lifetimes, most, if not all of us are spending less and trying to save more. While there are many aspects of our lives that expenditures can be cut at will, one that cannot be cut easily, thanks to their multi-year contract, are cell phone bills. A recent survey by CTIA- the Wireless Association found that 285 million Americans are mobile subscribers, which translates to about 91% of Americans. The same survey found that revenues in 2009 totaled nearly 150 billion dollars, with an average monthly bill of $48.16. (Association, 2009) All those numbers have spiked the interest of the folks at Wal-Mart, who recently unveiled their own brand of mobile phone service, Straight Talk. However unlike most of the competition Wal-Mart is offering a simple two plan, no contract service that is sure to draw customers looking to save money and remove the long-term contracts from around their necks. Straight Talk has one plan for $30 a month that comes with 1000 minutes, 1000 text messages and 30 megabytes of data, and the other plan for $45 a month comes with unlimited minutes, text messages, and data. Wal-Mart is seeking a customer base that is one looking for an inexpensive and reliable phone service, and two wishes to remove the restrictiveness of the typical long-term contracts. Wal-Mart has used the marketing matrix to successfully launch their new phone service. The marketing matrix (often referred to as the four P’s) is outlined below.
Product Strategies- the heart of the marketing mix, the starting point, is the product offering and product strategy. It is hard to design a place strategy, decide on a promotion campaign, or set a price without first knowing the product to be marketed. The product includes not only the physical unit but also its package, warranty, after-sale service, brand name, company image,