Principles of Marketing .

RUNNING HEAD: Principles of Marketing
Principles of Marketing
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Principles of Marketing 1
1. What is the product name? Describe the product.
The name of the product is Smart Helmet. This is a product especially designed for the bikers
present in the market. The Helmet is called smart because it is made up using innovation and
technology. The helmets are designed to be light in weight that would provide GPS service to the
biker, the helmet will also provide walkie talkie service to the biker. The helmet will come with
LED light to reduce the risk of accidents at night. The GPS of helmet can get connected to
mobile through application so as to help people track the location of the biker. The GPS system
is attached with laser light that will help the biker in enrooting towards the right road (Baker,
Michael 2014).
2. Identify and explain which market segmentation variable you are using
The marketing segmentation variable chosen for the Smart Helmet product is demographic
segmentation. This type of segmentation target people on the basis of their income, age, gender,
education, occupation etc. On the basis of demographic segmentation, the product will be able to
target the right type of customers on the basis of their income level, occupation and interests as
well. Interest factor present in psychographic segmentation plays the lead role in attracting the
customers to buy this product in the market. The demographic segmentation will explain in
attracting the right type of customer and the psychographic segment will help in attracting the
customer on the basis of their interest for biking (Bajaj, et. al.).
3. Why did you choose this method of customer segmentation? Be specific.
I chose this method for customer segmentation because it divides the target market in a very
organized manner. The demographic segmentation helps in analysing the customer on the basis
of various aspects like their income level, age, gender etc., whereas the interest factor in
psychographic segmentation will help in attracting the customers on the basis of their biking
interest. Involvement of this type of segmentation in the marketing process of the company will
help them to target all the skimmed customers present in the complete market. If the company
will target people on the basis of demographic segmentation then they will not able to target the
people who having interest of biking and do not fall in the demographic segmentation (Jaworski,
Bernard, 63-70).

Principles of Marketing 2
4. Who is the target market? Be specific.
On the basis of demographic segmentation, the company should target people belonging between
the age group of 16 to 40 years. The company should target these people who belong to upper
middle class income level and have a keen interest in biking. As the product is presented in the
market at a valuable price to which only premium and upper middle class people can afford to
buy it. Further, on the basis of demographic segmentation, the company should target the people
who are professional bikers. Also, the company should target the biking companies that provide
trekking and racing bikes to the people in the market. Through this company, the Smart Helmet
should also be served to the bikers in the target market. Selling the product through biking
organizations will promote the company to diversified customers. Thus, product should target
people that belong upper middle class and are bikers or have a keen interest in biking (Ruan, et.
al., 785-796)
5. What are your product’s benefits to the target market?
There are various benefits that product serve to the customers in the target market. These benefits
are discussed below:
 This helmet will help the biker to continue biking on the right track using GPS service
available in the helmet. The helmet will also provide a laser view of the path that the
want to lead.
 The helmet is light in weight and soft from inside that do not make the biker feel
burdened on their head (Ebben, Jay, and Johnson, 113-122).
 LED light will also reduce the risk of accident, as it will make the biker visible while
biking at night. Further, through the GPS service the family member of the biker can also
know the exact location of the biker and talk to them using walkie-talkie.
6. At what price will your product be introduced? Why?
The product should be introduced at a price at which it is placed in premium range products
present in the market. Smart Helmet should be introduced in the market at a price of $ 250.
7. What new product pricing strategy are you using? Why?