Product, Price, Place & Promotion

The marketing mix consists of Product, Price, Place (meaning distribution channels) and Promotion. These four tools and more specifically the interaction between these elements shape market demand. Demand is influenced by the combination of product design, manufacture, packaging, and price, channels of distribution, advertising, promotion, and selling (Marketing: The Marketing Mix, 2004).

In 2001, a two-wheeled machine called the Segway Human Transporter (HT) was introduced. The device functions as a small one-person vehicle. The Segway HT is a self-balancing motorized scooter with two wheels on a single axle. It can travel up to about 12.5 miles an hour and moves and turns in response to slight shifts in the rider/driver's weight. The consumer version of the HT cost approximately $5,000. The expected demand never materialized.

According to John Lewis and Karen Field writing for Design News (2002), recognizing the company would not receive the expected return on investment if it continued to focus its sales and marketing efforts on consumers, Segway turned its attention to the business marketplace (Lewis & Field, 2002). The HT was touted by Segway as a robust productivity tool for business. As Segway's focus changed, the company realized it needed to produce a faster model, capable of carrying a larger payload over longer distances. The price for the HT business model was around $8,000. Segway believed there would be jobs for which spending $8,000+ on a HT personal t

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