Introduction
In some product markets certain types of consumer goods and services require “an extra push” so to speak when trying to conduct normal business operations. In such instances, as explained by Professor John Zang from the Wharton School of Business, “if customers aren’t buying, more often than not it is an indication that a company is targeting the wrong people” (Malik, 2008).
Taking this into consideration it can be assumed that in cases where a hard to sell product is involved it is not that the company is experiencing a situation where the consumer does not want to be a customer but rather the company is merely targeting the wrong consumer market.
Targeting the Correct Market Segment
What must be understood is that the ultimate goal of marketing is to be able target products to the consumers who want to buy them. As such, in order to create sales for certain products what is needed is to examine current market and customers and determine why a product or service is not selling and revise strategies accordingly in order to target the correct market segment.
Zang explains that companies in such situations can approach their relationships with consumers through the use of “a systematic, rigorous process of segmentation, targeting and positioning” which should result in the company being able to determine which consumer segment to approach and how to properly position itself to create sales and maximize profit (Malik, 2008).
Changing Selling Strategies
Another aspect to take into consideration is the fact that at times certain products become a “tough sell” as a direct result of consumer objections to the product itself. One case where this is evident is changing consumer attitudes in the U.S. towards the use of gas guzzling SUVs.
From 1995 to the early 21st century SUVs were considered almost the vehicle of choice for a large percentage of families and consumers within the U.S. however due to increasing gas prices the demand for SUVs has severely plummeted resulting in a significant deterioration the market base for current SUV dealers (Stoddard, 2004).
Professor Stephen Hoch of the Wharton school of Business explains that in such cases what is needed is to “frame an offer to get rid of the objection” (Malik, 2008). This means to create a buying situation where the consumer observes the perks of buying a particular product and neglects to take into account the possible negative implications of the sale.
One strategy advised by Hoch is the use of trade-in discounts when selling particular products such as SUVs, not only does this encourage the sale of SUVs already in stock but it gives the company access to a plethora of models which would otherwise not be available to them giving them the ability to reach a wider consumer base that looks for particular types of SUV models (Stoddard, 2004).
Proper Pricing
The last approach that should be considered by companies when approaching consumer relationships is to take into account business cycles and market slumps and adjust prices accordingly. As explained by Professor Leonard Lodish of the Wharton school of Business “pricing is a critical element of successful marketing, in good times and in bad and many companies do not focus enough on getting their pricing right” (Malik, 2008).
It is based on this and the cyclical cycle of business that companies should consider proper pricing strategies when selling particular hard to move products. This takes the form of taking into account the physical value of the product being sold as well as various non-tangible elements that consumers take into consideration before they will be willing to pay for a product (Malik, 2008).
For example, the state of the housing market in the U.S. is at an all time low however there are still individuals who are in need of homes. In such cases developers need to take into account the physical cost of the home itself and factor in the current housing slump before creating a price range for a particular apartment or home.
It is based on this that it can be said that the greater the amount of non-tangible assets that are taken into consideration by the customer before making a purchase the greater the need for companies to fix prices in accordance with what is necessary to sell the product itself.
Reference List
Malik, M. (2008). The hard sell: how to market products that are no longer popular. Web.
Stoddard, H. (2004). Keep on Truckin’. Ward’s Auto World, 40(4), 19. Retrieved from EBSCOhost.