Tuesday, April 27, 2010

In response to Doug's question

Do you think that performing a service well is good enough promotion within itself? What recommendations would you give to a start-up business that offers only services?

Services are a problem to marketers because they are intangible. Most services offered are those that people actually need. I could never cut my own hair so this requires me to go pay and have it done. I just recently got my car worked on and it's nothing I could have fixed on my own. I know how to drive and put gas in my car, that is about it. So I brought it to Leons in Keene and they fixed it up for me.
I think that it is important for companies to promote their services even if they are good enough. They say that if you walk out of a business and you aren't happy with the service, you tell at least 10 people about your bad experience which makes them also not want to go there. But if people enjoy the service then it promotes itself in a way. If I have good service I tend to tell people about it and recommend it. Companies should still try to promote their services because it will definitely bring in some new customers who may not have heard of them before.
I would recommend that new businesses get their name out there with promotions and deals. Maybe first time customers get 50% off a hair cut (if it's a salon). Some sort of way to get people into their business is very important especially if the company is new and no one has any experience with.

When you have a bad experience, whether it's in a store or have had bad services, do you tell your friends or family about it? or do you let it go and just find another place?

Direct Selling

Direct selling is the marketing of products to ultimate consumers through face-to-face sales presentations at home or even in the workplace. Once called door-to-door selling, direct selling in the United States has grown into a sizable industry of several hundred firms. Although direct selling is though of as face to face, it is now done through the mail, telephone, internet, or even shopping-malls. Some examples of companies who use a direct selling approach are Mary Kay and Avon.
My mother used to purchase avon and a representative was always sent to our home. The woman had a catalog and would bring samples and talk about what product was popular and what each product did. She typically just bought face cream from Avon but they always try to sell you whatever they can. My grandma just recently had a woman from Mary Kay come to her house and help her choose a make-up that went well with her skin tone. They bring actual make up and have you put a little on your face to see what options are best. These representatives are informative and have knowledge of make-up and of all their products. My grandma was happy and the woman left her house with a new customer.
Although most people are online these days, some people still appreciate that face-to-face interaction with companies. My grandfather sells electrolux vacumms and has for a long time. Every time I say my last name people ask me if my grandfather is the guy who sells vacuums. Most people know him and call him for repairs, new vacuums and for vacuum bags. He had a store for a little while but realized people like it more if he comes to them (he delivers and makes house calls) or if they can come to him at his home. It is more personal and it seems as though some people still like this way of selling.

What do you think about direct selling? Would you enjoy more face-to-face encounters from companies or do you like the way most companies operate now?