Product Selection for marketing research analysis Essay Example

company's product line. This system will allow the company to expand into a larger segment of the HVAC market and maintain its industry leadership in innovations.

The Mediumistic Electric product line offers a wide range of heating and cooling mini split-ductless systems that are suitable for various applications. These systems can heat a single room in a home or multiple offices in a large commercial building using a split-zoning ductless system.

Consumers are interested in this type of product because it saves energy, eliminates the potential for mold growth in ducts, frees up space taken by duct runs, and is easy to install in retrofits since no ducts are required (Roth, Shall & Akers, 2013, p. ix). All Mediumistic systems meet or exceed the industry-standard requirement of 13 SEER for efficiency.Mediumistic offers systems that have a high energy efficiency rating of up to 26 SEER, making them eligible for up to $300 in Federal tax credits for energy-efficient home improvements (Mediumistic Rebate, 2013). Additionally, all Mediumistic systems are protected by a Limited Warranty, which covers parts for five years and the compressor for seven years.

One of the benefits of Mediumistic's multi-head split systems is that they are designed to heat and cool individual rooms. This allows consumers to only heat or cool the rooms that they frequently use, resulting in energy savings and lower utility bills. In contrast, central heating and cooling systems often waste energy by heating or cooling all rooms, including those that are not frequently used.

Installation costs for split systems are also lower compared to central air duct systems. This is because less material is required for installation and the installation of small-diameter refrigerant

piping is easier than installing ductwork. The overall cost of the system and installation is approximately 30% cheaper than installing a condensing air conditioner (CA) and condensing furnace in a very low-energy home (Roth, Shall & Akers, 2013, p.13). With $3,000 in installation savings, along with the potential $300 Federal tax credit and annual energy savings, consumers can enjoy significant cost savings.Promotion:

Mediumistic can distribute information on the Mediumistic ductless system to consumers through brochures. Additionally, a working display can be set up in-store for consumers to see, feel, and operate before making a purchase. The initial target group for promotion will be contractors, as a licensed contractor is required for installation. Product demonstrations can also be conducted at home improvement stores and local home improvement shows to increase public awareness of the system.

Place: The Mediumistic ductless system can be obtained through wholesale distributors, and customers can order the systems and pick them up from designated locations.

Environmental Scan

Social: The target market for the Mediumistic ductless system includes homes in need of HVAC replacement systems. In the United States alone, there are over 20 million homes with electric resistance heating and cooling that require or will require replacement (Pratt, 2012, p.20). While this is a sizable market, some homeowners may not find installing a ductless system beneficial due to their location or ample availability of electric utilities required to run the system.

Economic: The number of units sold annually will depend on the strength of the economy and homeowners' incomes. To address potential financial constraints, Mediumistic offers a financing program that distributors or contractors can offer to consumers, thereby increasing the likelihood of selling

more systems.

The consumer may not qualify for the system if they do not meet all credit requirements, which could result in them using a credit card or home equity loan for the purchase. Technologically, Mediumistic is ahead of the competition with their ductless HAVE systems, meeting standards set by ENERGY STAR, EPA, AIR, I-IL, SHARE, TTL, and ISO (Mediumistic Technology, 2013). They face competition threatening to surpass their technology. In terms of competition, Mediumistic is globally recognized for their high quality standards and competitive pricing. Compared to traditional forced air HAVE systems, the ductless system is more affordable to purchase and install, providing better performance. The target demographic for purchasing this system is mid-income individuals aged 35 to 55 living in homes that are 15 years or older. These homeowners are likely looking to add value to their homes through updates, as older heating and cooling systems are inefficient and in need of replacement due to age.The system replacement not only adds value to the home but also saves the homeowner utility costs, which is a major benefit. Mediumistic Electric conducts business ethically and in compliance with the law and industry standards. They have publicly published their "Mediumistic Electric Group Conduct Guidelines" that outline their ethical business practices. The guidelines state that they will always abide by applicable laws and consider changes in social ethics or local practices. This shows that Mediumistic Electric prioritizes the consumer's best interests and holds themselves accountable by making their conduct guidelines public. Giving back to the community is important, and Mediumistic Electric is one of those companies that understands this. They have established the Mediumistic Electric America Foundation

(MIFF), which aims to enhance the quality of life for young people with disabilities. In summary, Mediumistic Electric not only provides value to homeowners but also operates with ethical conduct and demonstrates social responsibility through their charitable efforts.Heating supports MIFF through the Leading Others through Voluntary Efforts (L. O. V. E.) Committee, which is just one area that Mediumistic Electric is involved in the community. This involvement is a plus for consumers who are aware of it. Additionally, building an internet presence for global marketing purposes will further enhance the sales of Mediumistic Electric ductless Systems. By being easily found on the internet, the number of people interested in certain ductless lines will increase. Mediumistic Electric's website provides a convenient platform for consumers to learn about ductless systems, find distributors and contractors through the "Find a Local Dealer" feature, and request additional information. Moreover, utilizing Facebook as a marketing platform for Mediumistic Electric's ductless line presents opportunities for connecting with millions of other affiliations. Distributors can request to be friends with current contractors and businesses that purchase from them, and their website will have a link to their Facebook page for visitors to access.The ductless system can also be promoted on the linked website to expand its presence. However, caution must be taken when introducing the system online to comply with city, state, and country laws and guidelines. The renowned reputation of Mediumistic Electric will require minimal explanation of the company. The focus will be on marketing the ductless system line by utilizing brochures for existing customers. The marketing strategy will involve informing the local market about where to purchase the system. Word of mouth

will be the most effective form of marketing to increase sales.