5.1:
Products, Services, and Experiences
The foundation for marketing mix planning is the market offering; It includes the products, services, and experiences created for the customers.
Customers expect value in exchange for their time, efforts, and money invested in a product or service.
They assess it based on technical, economic, service, and social benefits received relative to the price paid.
Products are tangible entities that can be physically interacted with, owned, and stored—for example, laptops, cars, and houses.
Services are intangible solutions exchanged between the buyer and seller, lacking tangibility and permanence—for example, medical services, banking, and tourism.
Customer experiences are uniquely designed and managed by brands to enhance their value in the face of commoditization.
For example, Starbucks exemplifies this by transforming coffee from a mere commodity to an immersive experience, promoting conversation and community-building alongside its usual offerings.
Netflix uses data-driven algorithms to offer personalized experiences.
A brand's marketing goal is to curate an offering that delivers value to the target audience, fostering profitable customer relationships.
5.1 Products, Services, and Experiences
The marketing landscape has transformed from focusing on products and services to emphasizing customer experiences. This shift is driven by the understanding that consumers are interested in the functional attributes of a product or service and the overall experience associated with it.
For example, Nike has shifted from being a product company to creating an all-encompassing customer experience. Nike has done this in several ways. First, they have leveraged technology to enhance the customer experience. For instance, the Nike Run Club app offers personalized training plans, tracking capabilities, and motivational audio-guided runs, transforming the solitary act of running into a shared community experience. Nike's retail stores are designed to create an immersive brand experience. They offer services like expert advice, workout sessions, and the ability to customize products, making shopping at Nike a memorable event rather than just a transaction.
Similarly, Apple does not just sell technology products; it offers an integrated and seamless Apple experience that starts with product design and extends to customer service, retail store design, and even the unboxing process.
Technological advancements have facilitated this transition by enabling firms to interact directly with their customers and personalize their offerings, enhancing the overall customer experience.