Question

Marketers sometimes say that nothing happens in business unless somebody sells something. That something is the firm’s product or service offering. However, the marketer must cultivate the attitude that he or she is not selling a product or service per se. Rather, the marketer is selling an experience or a means to solve a problem. The offering’s value comes from the ability to deliver benefits to enhance the customer's situation.

– Describe how a successful marketing firm might determine the various product attributes, both tangible and intangible, that constitute a product offering. Give examples to illustrate how the marketing firm might create customer value.

Answer 1

Most customers don't buy products. They buy solutions to their needs, both implied and expressed. This is particularly true for products that solve a problem, or enhance the physical, social, emotional and psychological well being of a person. A marketer's success depends on how well he /she engages with a prospective customer to understand issues faced by him /her, map the products / services offered by the company with the customer requirements and provide the right product at the right place, time and at right price, to create value. The more value is created, the more successful the marketing effort is.

A marketer needs to gain better insights about customer's needs, not only those which are visible on surface, but also that lie deep within and need extra efforts to come out on the surface. An example is a car. The primary customer needs from a car is convenience, saving of time and cost and comfort. The secondary need is the social prestige and status that comes with a car. There are societies, especially in developing nations, where a customer's social and economical status is determined by the car he /she drives or the place he /she lives in. Many carmakers came to know that people in developing nations focused on vehicle's size and masculine looks, in addition to long standing attributes like fuel efficiency, low cost and sturdiness. This resulted in conception of cars that looked like an SUV from outside but were powered by 1000-1200 cc engines that power small cars elsewhere, and are known for their fuel efficiency and low cost of maintenance. These attributes satisfied both demands- first tangible needs of spacious, and still cheap and fuel efficient car and second, the one that gives rise to aspirations of big and muscular vehicle, something that is associated with high social status and machismo of the owner. Needless to say, this specific attribute determined by the marketers was a huge success, and today, this type cars are most sought after in this part of the world. So much so that it is not uncommon to see a $5000 car with looks of a miniature SUV.