18 July 2011

Marketing Mix: Product / Service Guide #10


A brand is built through customer experience with the brand.
Each purchase and each use is a customer interaction with the brand.  Through purchase and use, consumers build the experience with the brand that leads to either satisfaction, re-purchase, and brand loyalty or dissatisfaction and brand switching.  In almost all product categories, consumer research will reveal that the number one reason for considering the purchase of a brand is satisfactory prior experience with the brand.  Conversely, the number one reason for not considering a brand in the purchase process is unsatisfactory prior experience with the brand.
Because of the frequent purchase of package goods, the brands of package goods marketers have frequent interaction with their customers.  If these experiences are positive, brand loyalty is built.  Durable and semi-durable goods product categories are not purchased as frequently.  Thus, marketers of durable and semi-durable products have a tougher time building brand loyalty.  In the durable and semi-durable categories, this is compounded by the fact that customers don’t think about the product or the brand during use unless they have a problem.  As an example, consider your home heating/air conditioning system.  You take it for granted.  The thermostat regulates the temperature at a level that you have set and with which you are comfortable.  As long as you’re comfortable, you don’t think about it.  However, when the system fails on a hot day in August or a cold day in February, the system is your top-of-mind thought. 

Since a blog always its author to express personal experiences, let me give you a recent one in our household.  Three years ago, we purchased replacement clothes washers and dryers.  In 45 years of marriage, the purchase was only our fourth.  Three previous purchases over 45 years averaging 15 years between purchases certainly qualifies as a semi-durable/durable product category purchase.  After considerable product category research and expending our allotted shopping effort, we purchased a Whirlpool duet front-loading automatic washer and matching dryer.  I don’t recall the total purchase price for the washer/dryer and accessories, but it was somewhere in the neighborhood of $3,000.  We used the machines with little thought for two years and then the washing machine refused to function.  A service call led to the replacement of an electronic part at a cost of $300.  For another 1½ years, we used the machines with little thought; and then the washing machine started to make a high-pitched squealing noise during its spin cycle.  A service call resulted in a diagnosis of main bearing failure with an estimated repair cost of $1,300.  Would we repurchase the Whirlpool brand?  Definitely not.  Recall that the number one reason for not considering a brand in the purchase process is unsatisfactory prior experience with the brand.
Because customers of durable and semi-durable products don’t think about the product or the brand during use, marketers can’t rely upon purchase and use to build brand experience.  They need to look at other elements of the marketing mix to increase the interactions their target customers have with their brands. For example, outstanding customer service is more important in durable and semi-durable product categories.  When your customers have problems with your brand, their expectations are low.  Problem resolution can be a time that you not only satisfy, but delight, your customers.
In business-to-business product categories, the question is: Do the experiences support the brand promise?  Is the purchase process paper-intensive or customer friendly?  Is billing a cold and complicated demand for cash or a relationship-fostering and dialog-provoking interaction?
Marketing communications is arguably more important in semi-durable and durable product categories.  Lacking the frequency of purchase in package goods, marketing communications can be the brand reminder to customers.  If your brand has delivered its brand promise to customers who have purchased your brand, marketing communications will be the reminder that your brand has delivered a satisfactory experience.  Recall that the number one reason for considering a brand in the purchase process is satisfactory prior experience with the brand.

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