Market Segmentation Analysis of the Miele Dialog Oven

Advancement in technology offers a prospect for the development of useful consumer goods that will not only change our attitude to the goods currently in use but will also spark innovation due to their capability of stimulating curiosity (Wesley,Barczak,58). With the consumer’s positive attitude towards technology and a great fear towards its possible effects likely to be brought about by the technology, the use of new technology to develop consumer-based products creates a controversy on whether the people are likely to accept the positive side of the products or will be driven by their conscience to fear the unknown.

a.    What is the product name?  Describe the product.

The dialog oven will revolutionize the way people cook. Apart from just enabling the conventional way of cooking, it gives the user an opportunity to use electromagnetic waves to communicate with the oven as a means of giving it instructions.

b.    Identify and explain which market segmentation variable you are using

In marketing the Miele dialog oven, the behavioral consumer segmentation will work out the best. This type of segmentation divides the consumers based on their observed behaviors such as the benefit sought by the consumer, the purchasing occasion, the buyer readiness among many others.

c.    Why did you choose this method of customer segmentation?  Be specific.

Considering the technology used to come up with the product and its prices, this type of segmentation will best help to identify the consumers that are capable of purchasing the said product. While the product is useful in all geographical areas, not all of them have the capability of purchasing them hence a behavioral analysis would best help to identify the best market and hence the geographical location where the product would yield most profits (Bearden, Netemeyer, 76).

d.    Who is the target market?  Be specific.

The products target market include any adult above 18 years old who has an income of above $ 5000 per month. It also extends to any organization where cooking and warming of food takes place including both governmental and non-governmental organizations. Despite the product using high technology, however, the target market includes both the tech savvy and the non-tech savvy population as they can be taught how to use the same (Baker, Hart, 56).

e.    What are your product’s benefits to the target market?

The products main benefit to the target market is easing the cooking process. It will allow the customers to be able to handle other chores will cooking in addition to being able to start warming their food before reaching the house for example in a  case of traffic jam.

f.    At what price will your product be introduced?  Why

The dialogue oven will be introduced to the market at a price of $9, 000. Apart from just covering the production cost, this price also ensures that this product competes positively with other fast moving consumer appliances in the market.

g.    What new product pricing strategy are you using?  Why?

The premium pricing strategy is used in introducing the product to the market. This is based on the argument that the product is unique and offers features that have not been seen in other appliances before hence consumers will find the product being worth of the high price tag due to its high quality.

h.    What objectives will be accomplished by using this strategy?  Be specific.

1)    Using product quality to maintain a competitive advantage.

2)    Attaining a market share based on the product quality.

i.    Why is the product worth this price?

The technology used in developing the product and the innovativeness in designing the product is significant in coming up with the product’s worth.  Additionally, the economic signals also point to a high prospect for high price products hence setting up a low price in a world guided by a very competitive market for kitchen appliances will not only diminish its value but also ruin its reputation in both local and international markets (Lamb, McDaniel and Hair, 230).

j.    Identify and explain what happens to each of the 4 Ps at each stage of the PLC?

1)    Product: The product to be sold is identified at this stage (both intangible and tangible). In this case, the realization of the electromagnetic communication leads to the development of high-quality oven that can communicate with the consumer using electromagnetic waves.

2)    Price: a concrete understanding of the product leads to a decision on the price of the product to be commercialized. This is done based on some factors such as the other products in the market, the technology used to produce the product and the anticipated profit margins among many others (Tybout and Calder,140).

3)    Place: This is mostly based on putting the right product on the right market. The marketers do a market analysis and identify important factors such as the demand for the product and the affordability of people in different geographical locations. This analysis will then help them to come up with the ideal market for the oven.

4)    Promotion: this includes making the product known to the target market.  Public relations, social media, public advertising and search engine marketing (among many others) come in handy to promote the brand in addition to creating public awareness.

Work Cited

Baker, Michael, Hart, Susan, The Marketing book, Routledge, 2016

Bearden, William, Netemeyer, Richard, Handbook of Marketing Scales: Multi-Item Measures for marketing and Consumer behavior research, Third Edition, 2011

Lamb, Charles, McDaniel, Carl, Hair Joe, Essentials of Marketing, 2011.

Tybout, Alice,& Calder, Bobby, Kellog on Marketing, Hoboken Publishers, 2010

Wesley, David & Barczak, Gloria, Innovation, and Marketing in the video game industry: Avoiding performance trap, Burlington  publishers, Farnham, England, 2010