Suppose your roommate just invented an electronic pencil that senses when a word being written is...

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Finance

Suppose your roommate just invented an electronic pencil thatsenses when a word being written is misspelled, beeps, and showsthe correct spelling on a small screen on the side of the pencil.He figures the pencil can be manufactured for about $5, since thecost of computer chips has dropped so low.
Your roommate comes to you for advice and money. He will makeyou a 40% owner if you help manufacture and sell the pencils. Heasks you to put up $500 for materials for the first 100 units. Heasks that you help make and sell the pencils after classes.
Since your roommate is studying electronic engineering, he knowsabout as much about marketing as you know about electronics. Youagree to study the possibilities. You make a list of questions thatneed to be answered before you commit your $500.
1.         What needdoes this product fill?
2.         What is thepotential market for the product?
3.         What are thetarget markets for such a product?
4.         What type ofconsumer good is this product?
5.         How will youdistribute the product?
6.         How could theconsumer be convinced to purchase the product?
7.         What are theother questions that need to be answered before a decision ismade?

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3.5 Ratings (494 Votes)

1 What need does this product fill This product would best suit the student who has poor spelling skills this would help them to make sure they write correctly and improve them to spell better 2 What is the potential market for the product This is potential for people who use pencils to write the content in daily See Answer

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Transcribed Image Text

Suppose your roommate just invented an electronic pencil thatsenses when a word being written is misspelled, beeps, and showsthe correct spelling on a small screen on the side of the pencil.He figures the pencil can be manufactured for about $5, since thecost of computer chips has dropped so low.Your roommate comes to you for advice and money. He will makeyou a 40% owner if you help manufacture and sell the pencils. Heasks you to put up $500 for materials for the first 100 units. Heasks that you help make and sell the pencils after classes.Since your roommate is studying electronic engineering, he knowsabout as much about marketing as you know about electronics. Youagree to study the possibilities. You make a list of questions thatneed to be answered before you commit your $500.1. What needdoes this product fill?2. What is thepotential market for the product?3. What are thetarget markets for such a product?4. What type ofconsumer good is this product?5. How will youdistribute the product?6. How could theconsumer be convinced to purchase the product?7. What are theother questions that need to be answered before a decision ismade?