The Marketing Mix: Pricing Strategies: Segway Essay Example

is that albeit their expensive and costly components used, the basic materials cost very less and still the company prices its product at $5000 since 2001 with no reduction considering the fact that even laptops costing $2000 in 2001 have come down drastically to $200 and even in case of other tech-savvy equipments and devices.

Apple pricing model which speaks for frequent price cuts has not been followed in this case which is a direct relation to the increase and boosting up of the sales. If the pricing strategies have not been up to the mark, then there is no other way the product could be sold as other than riding the scooter, factors like the cool factor, ease in using, music, reliability etc. couldn’t much help in making the Segway’s sale increase. (ObserveBusiness, 2008).Pricing Alternative suggested by Bedford, N. H based company merging with General Electric: The option for the high prices which Segway had to offer, brought issues among the people with regards to its expensive costing which was not been affordable was that probably the company could think of a financing program where in instead of paying the full amount at the time of purchase, the amount could be spread across as manageable monthly installment payment system.

This will make the product more accessible to the customers and will enhance their relationship with the Segway dealers which should be adopted when the customers are showing interest in the energy efficiency modes of transportation. It is the upfront higher price that has kept many customers away from the purchase decision of the product Segway (Oswald, E. 2006). If this price tag continues the product will

continue to remain as a niche product in the niche market with less proximity to the people interested.Lack of understanding by the company regarding the mind set of the consumers with reference to the price associated with the product, the item became a novelty toy across the masses.

Conclusion: Should we accept the product? Looking into the dynamics and the study over the years, it is clear that Segway needs to sell more at an affordable price which would make the consumers locate the product, try it out and make it available at the price that is not exorbitant.The hefty price tag of $4,998. 95 or even $5000 wouldn’t serve the purpose of the consumers and the marketers. Their pricing methods also were related to the way the marketers promoted the product initially through mass media concept and lately focusing on interpersonal channels where in attention is given more to consumers rather than the general public to make it more obvious and easy to understand and articulate clearly the benefits that undergo.Currently the pricing formulation was targeted upon the consumers, business and the police security and its time for the company to redesign their target segment along with their price strategies towards the college campuses, grocery stores and the malls. This will help the company push up the sales of Segway there by overcoming the stage of the early adopters there by making the innovation more known and successful in their marketing mix strategies.

Suggestion: Our pricing and the marketing strategies would definitely be different taking into consideration the style and adoption followed in case of other technically equipped products PLC(product life cycle). Adopting the Apple

pricing technology does take into effect the need for price cuts if proper use and advantages are not been highlighted. Proper channeling into the products features and benefits and making the product innovation and invention felt across the target audience will help boost the sales of the product.