What really is this product? Review the benefits that Peter’s product provides. Reappraise Peter’s definition of the product and identify two other uses of Peter’s product, one in industrial situation, another one in commercial situation. (Hint: Marketing has to do with matching product offerings with customer demands). For each use you have identified, what segmentation variables would you use to segment the market? Consider Auto-Technic’s situation and What target market or target markets would you advise the company to focus on?
Please read the mini case below and answer the questions at the end of the mini case.
Auto-Technic is a small German company founded and run by an electronics engineer, Peter Schnider. He has built his small business over the past five years by undertaking subcontract work for large electronic companies. The work has mainly involved producing small control devices (Automatic switches, timers, etc.) in response to his business customers’ requests. Peter’s expertise is valued by the organizations with which he has dealt. Having returned from trips outside Germany, Peter noticed an increase in the number of homes making use of automatic garage doors. Drivers would either press a button on a device kept in the car, which activated a switch in a door-opening mechanism fitted to the garage door, or a device would be fixed in the car that automatically triggered a sensor as the car approached, which then operated the garage door-opening mechanism.
With his electronics expertise, Peter designed a better electronic system than the ones he had seen on his trips. His system contains extra security feature that ensure constantly changing but synchronised coding between the transmitter (fixed I the car) and the receiver (fixed on the garage door). In other words, other people should not be able to activate the opening switch. In Peter’s system, the garage door would automatically open as the car approached the receiving sensor. Peter has arranged for his system to be patented.
Peter recognises his limited understanding of marketing; his skills lie in technical electronic product development. He is convinced, however, that his new product idea will be profitable. As a first stage, he has asked you, as marketing consultant, to advise him how to define his market – just who would be interested in buying and using his product? He realises that, as with any product, his system is unlikely to have universal appeal.
- What really is this product? Review the benefits that Peter’s product provides. Reappraise Peter’s definition of the product and identify two other uses of Peter’s product, one in industrial situation, another one in commercial situation. (Hint: Marketing has to do with matching product offerings with customer demands).
- For each use you have identified, what segmentation variables would you use to segment the market?
- Consider Auto-Technic’s situation and What target market or target markets would you advise the company to focus on?
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