5 HOW do good marketers improve

customer support services?

Manufacturers of equipment—small appliances, office machines, tractors,

mainframes, airplanes—all must provide product-support services.

Some companies make significant profits from

product-support services.

Customers have three specific

worries about product service:

Reliability and Failure Frequency

Downtime- when equipments go

down

Out-of-pocket

Expenses

Customer estimates the life-cycle cost

Where reliability is important,

manufacturers or service providers

can offer guarantees to promote sales

Many companies offer service or extended

warranties

A manufacturer must identify the services customers value most and their relative

importance.

Product companies must understand their strategic intent

and competitive advantage in developing services.

Postsale Service

Strategy

1 Customer

service

evolution

May charge low for equipment prices but high prices for

parts and service

Manufacturers are diverting more maintenance and repair

service to authorized distributors and dealers

2 Customer-

service

imperative

Equipment manufacturers increasingly trying to have profit on their equipment, independent

of service contracts

Customers are less inclined to pay 2 percent to 10 percent

of the purchase price every year for service

Credits• http://7-themes.com/6976536-aeroplane.html

• http://dakselfstorage.com/wp-content/uploads/2014/10/kicthen-appliance-storage.jpg

• http://3.imimg.com/data3/MJ/DO/MY-803487/electrical-home-appliances-500x500.jpg

• http://blog.syncsort.com/wp-content/uploads/2014/07/Syncsort_mainframe_offload.png

• http://thesaleshunter.com/wp-content/uploads/2012/02/high-profit-selling-money.jpg

• http://states.aarp.org/wp-content/uploads/2015/05/empty-pocket-clipart-marketing-empty-pockets.jpg

• http://blog.zenoss.com/wp-content/uploads/2013/02/scheduled_downtime.png

• http://lawyernomics.avvo.com/files/2012/07/Lifecycle_CRM.jpg

• http://parknparty.com/images/Tailgate%20Photos/guarantee.gif

• http://cdn.shopify.com/s/files/1/0212/8106/files/CFBP---Competitive-Advantage.png?28812

• http://www.majesticpet.com/assets/114442223-man-driving-fork-lift-truck-isolated-on-white-thinkstock.jpg

• http://ecx.images-amazon.com/images/I/410EDdnrMcL._AC_UL320_SR312,320_.jpg

DISCLAIMER

•Created by ANURAG JAIN, NIT ALLAHABAD, during an internship by Prof. Sameer Mathur, IIM Lucknow.

• www.IIMInternship.com