Direct Response Marketing

Retail Outlet: The Business Is Changing but Proven Principles Never Vary

1 Nov, 2006 By: Donald L. Potter Response

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For more than a century, successful marketers built consumer brand confidence by adhering to a simple, yet effective, axiom: quality + service + price = value.

Donald L. Potter

The consumer was once considered the boss when it came to determining which product he or she would invite into his or her home. Superior quality was a benefit that advertisers stressed through demonstrations, testimonials or even an explanation of manufacturing techniques. Consumers expected and demanded products that performed better and lasted longer. There was little room for compromise.

Service was a multi-faceted issue. Consumables were expected to be consistently good, with the manufacturer standing 100-percent behind their product(s), as did retailers. If products did not measure up on this scale, the consumer stopped buying the brand. Or if it was a commodity, they might stop shopping at the store where it was purchased.

Durable goods had a larger stake in the service aspect of the marketing mix. Some products required fast and inexpensive home repairs and maintenance, while others called for the consumer to take the item to an authorized dealer and have the work performed. In either instance, if the service and the costs were not considered acceptable, neither was the product. Consumers expected the guarantees and warrantees to be honored and to be given the benefit of the doubt if questions arose.

Price was a simple part of the equation, because most products could be measured in terms of specific benefits, features or the extras being offered. People figured they got what they paid for, because it was easy to compare the price with the quality and service received in order to determine whether or not they were receiving a value.

Today, the evaluation criteria are dramatically different. It seems that consumers expect products on store shelves to offer comparable quality. Tech products and many durable goods have become too complex for the average consumer to comprehend; so people tend to buy based on desired attributes, and hope the product outlasts the length of the payment contract. This is a direct result of moving from a society that embraced fine workmanship and long lasting quality to one that accepts built-in obsolescence as a fact of life or those who have been conditioned to believe that products are simply disposable.

Service, as it was once known, is all but extinct. Sure, manufacturers put an 800 number or URL on packaging or in their literature in order to assure consumers that they care while trying to build a relationship with them. However, in more cases than not, this is just a way to do more selling or a way to avoid addressing the problem by providing an abundance of educational information. Ever spend an interminable amount of time going through the maze of automated phone answering systems or trying to get a fast answer to a question on a company's Web site?

It seems as if a growing number of marketers, as well as retailers, are bent on trying to convince the buying public that low price is synonymous with good value. This might produce short-term volume gains, but does little to establish a positive brand identity that delivers long-term sales and profits.

So, it's back to basics. Whether you're using the DRTV model to market directly to consumers, or as a means to complement and supplement a general branding campaign, the proven principles work. And, the savvy marketer will apply them to gain a stronger position in the marketplace. Those who try to short cut the process are only fooling themselves, because plenty of consumers know that quality + service + price = value.

Author's Note

This is my final column. I have decided it's time to pass the baton to the new generation of marketers. The business has been good to me in so many ways for nearly 50 years. I am gratified that some of my contributions to general and DR advertising have made a positive impact and look forward to directing my attention to other areas of service unencumbered by material motivation. Thanks and farewell.

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