Monday, June 17, 2013

What product or service sells itself?

My answer base-lines the principle of consumer buying behaviour and then categorizes the specific product categories. Anyone can fit the products on to below matrix to decide upon which products sell itself, require push from company or can be pulled by consumer himself.

Philip Kotler demarcates the Needs, the Wants and the Demands of a consumer to illustrate the fundamental and the answer to your question also lies within it.

Needs can be categorized as the basic needs of consumer that are not influenced by marketing - needs pre-exist. This includes the physical needs of consumer based upon Maslow's hierarchy, and hence commodity items do not require any selling - e.g. Gas, Electricity and other Utilities. This is driven by price and not by marketing.

Wants are influenced from Needs and requires selling and marketing. Consumer wanting to buy an AUDI is a want but not a need. Needs grow up as Wants and require companies to sell. Amount on salesmenship however depends upon Demand.

Demand is the point where Wants of a consumer meets his Buying Capacity. Hence, a product high in Demand i.e. high want and high buying capacity of consumer, would require low Salesmenship. On the other hand, a product low in Demand i.e. low want and low buying capacity of consumer would require high Salesmenship.

Examples:

High Salesmenship: Cars, Fashion Brands, Electronics, Consulting Services, Financial Services
Low Salesmenship: Consumer Brands: Kraft Foods, Tyson Chicken, Campbell Soup etc.
No Salesmenship: Commodities: Fruits and Vegetables, Electricity, Gas

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