In December of 2001, a strange looking two-wheeled machine called the Segway Human Transporter was introduced. The device consisted of a one-person vehicle. Through some highly sophisticated engineering and with the aid of on board microprocessors, it is able to respond to shifts in weight so that it moves forward as the driver shifts forward and stops when he or she stands up straight. This product's manufacturers believed that consumers would line up to purchase this product. However, consumers did not. Consumers were driven away by the impracticality of the vehicle, as well as its $5,000 price tag, its limited range of about ten miles, and its slow maximum speed of twelve miles an hour. The manufacturer, Segway, introduced a business and institutional version that was faster and had a higher weight capacity. Segway touted the product as a "robust productivity tool." Business, government and institutional buyers were unimpressed.
The marketing management process failed at Segway. The company misjudged the appeal of the Segway vehicle to consumers. Consumers believed this unique product was simply too expensive. Segway's decision to shift its marketing strategy to target business, institutional, and government (B.I.G.) buyers failed when the company could not back up its assertion that the product could and would significantly improve productivity. Segway needed facts and figures demonstrating to purchasing managers and accountants working for B.I.G. that its benefits outweighed its costs. It is not enough to demonstrate that the Segway will pay for itself over time. The seller must demonstrate that acquiring this product is the best investment choice a business or an institution can make. In accounting terms, Segway needed statistics to allow B.I.G. buyers to determine its Return on Investment.
The Segway is an invention in search of a market. There is little doubt that there are niches in which this product is ...