What pricing strategy should North Pittsburgh Telephone Company use and how will it be created? What is North Pittsburgh's performance to date? What is the nature of the industry? What is NPT's competitive positioning in the market place? What type of communication/media is needed to attract customers to the new services? What types of implications are there for pricing? Do nothing and offer CLASS Features on subscription rates charged monthly.2. Offer CLASS Features on a usage sensitive pricing basis to customers.3. Offer CLASS Features on a usage sensitive pricing along with subscription rates.AnalysisAs of 1992, North Pittsburgh Telephone Company had about 49,000 subscribers predominately North of Pittsburgh. This number includes 36,453 residential lines and 12,671 business lines. The expected growth of the company for the next five years was estimated to be 13.75 percent. Since this industry is at a regulated state, it could be considered a mature market. The total number of new lines would be 6755 new line (36,453 + 12,671 * .1375) over this five year period. NPT offers a reasonable price for their current services, and must stay competitive with the industry in the area, because the telephone industry is regulated. If NPT were to do something drastic, Sprint/United, to the north or Bell Atlantic, to the south, will here about this and file a claim to the PUC. The PUC is the regulating body for the telephone companies.The current marketing communications used by North Pittsburgh Telephone Company are very scarce. In the case, it explains there are no types of media that affect all of their customers. There are local newspapers and cable outputs that are spoken of. In addition, Greg stated that the reason that so many customers know of other features is because their competitors advertise heavily. Customers call up with expectations, given from competitors advertising which makes NPT have to stay one step ahead on techn...
