The P4L Marketing Imperative
August 2000 saw the official launch of the Telecom B2B e-commerce site www.phones4less.co.uk.
The site is based on the marketing theory that proves all products to have a market maturity curve, where price decreases as 1st Innovators; 2nd Early Adopters, 3rd Early Majority, 4th Late Majority and finally the Laggards buy said product. Examples of products that have dropped in price as the product has matured include fax machines and mobile phones. Fax machines were typically upwards of £3,000 in the early 1980's and are now available for less than £100. Mobile phones were upwards of £2,000 in 1985 and are now available for less than £10.
The UK private telephone systems market was liberalised in the 1980's but it is proven in research that the UK is currently in the "early majority" phase of market maturity. This is corroborated by the fact that BT still enjoys a significant market share of the UK hardware market.
Perceived technical complexity and an abundance of jargon have kept telephone systems as a product boasting little downward price movement. Phones4Less will simply accelerate customer understanding using www.phones4less.co.uk as a source of knowledge reference and a low cost sales channel.
The intention of the site, through helpful on-line simplification, is to bring savings to companies who are enhancing or replacing their telephone systems by reducing prices as more business customers have greater understanding of what they need. Now that many businesses are repeat buying within the freedom of this newly liberalised market they are automatically more advanced in understanding their own requirements.
Phones4Less is founded out of a telecoms value added reseller that was established in 1992. The founders entered telecoms in 1986 and 1987 respectively. Founder expertise is segmented into Technical Execution and Financial Analysis.