Need For Redefining MAarketing In Terms Of ‘Prodices’ Changing Times
The trends are changing with time. Customers no longer want just the Product or Service anymore. They prefer to have both and not one alone. If a customer wants to buy a car from a dealer apart from the features in the car that he is looking for – style, fuel economy, price, safety features; he will also be considering the post sales service after the purchase of the car as a criteria for buying it. The customer gets opinion from Primary and Secondary groups whose suggestions are influential. In this fast paced environment, people want efficient and fast service after they buy a car. Buyers worry about the maintenance and repair costs of the cars after purchase. So it is essential from customers’ point of view to receive an efficient post-sales service after purchasing the car. Similarly in the case of services – if we take the example of Retail services apart from the normal service of fast and efficient response time from the employees and availability of a variety of products, customers are also looking for In-House brand products. They are willing to purchase products such as clothing that are the brands of the store itself. Customer wants the whole range of Products and Services.
The change in trends has prompted the companies to offer their Products and Services under 5 main categories:
Pure good: Here the company would provide the customer with only the good i.e. the product. There is no service involved. These include products such as soaps, perfumes etc.
Good with accompanying service: These are the goods that have an accompanying service associated with it after buying. Ex: Consumer durables like Television with accompanying services such as warranty, repairing and maintenance.
Hybrid: Here the offering of the good and services are equal in nature. Ex: Food and the service expected at a restaurant.
Major service accompanying with minor goods: Here the provider is mainly giving some services and there is some products accompanying it. Ex: In-House branded products available at a retail store
Pure service: Here there is primarily only service is involved. There are no accompanying products. Ex: Baby-sitting
Tangibilizing the Intangible
Although Physical Evidence and the Processes can reduce the extent of the problems associated with Intangibility it is not that effective. This is because Physical evidences in the form of ambience and setting is relative. This is where a Product accompanying a service or augmenting it will help. The product will bring in the tangibility for the service and the customer can measure the service with the product. In the Retail service example the stores, the arrangement of racks and items, the ambience all serve as Physical Evidence. But this kind of physical evidence is common to almost all the big retail stores. Now if the retailer markets his brand of products including rice, apparel and others, customers who are already impressed with the services available will now visit the stores to purchase their in-house products as well. In fact this trend is fast catching up in the Retail Industry. The trend is disturbing for Organized brands like Allen Solly, Pepe or others who use the retail as a channel for sales. The retailer would obviously try to sell his own brand of products at his store.
The concept of Exclusive Show rooms on the other hand is case of Pure Product Manufacturers venturing into Services. Earlier products such as shirts and trousers were available at many smaller retail outlets. But these days we’ve exclusive showrooms where the manufacturer himself opens a store to market shirts and trousers. Thus we’ve Pepe opening ‘Pepe 1016’ stores to cater to the needs of the 10 to 16 years olds. Pepe is not only manufacturing jeans, it is also providing service through its showrooms.
Mind Share and Heart Share
The organization would use the marketing tools i.e. the 4 ‘P’s for capturing the Mind Share of the customer. The mind share of the customer can be captured through a durable product, affordable price, advertising and presence in many locations. All these measures would ensure that the customers recall the products in their minds. But merely having a mind share does not necessarily mean that customer will purchase the product. It gives an advantage in that, when the customer intends to buy a product he will consider those products first which have captured his mind share. Thus many companies which spend millions in Advertising and Promotions can capture the mind share. It is not an effective marketing tool to sign up a new customer. In addition to the mind share there is a need to capture the heart share as well. Only if the company captures the heart share, it will ensure that the customers buy the product. The heart share can be captured through the Services augmenting the product. If the customer is satisfied that the services he gets is good, he will definitely go ahead with the buying of the product and retain his loyalty to the product. Capturing mind share is efficient, but capturing heart share is effective.
