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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
2Customer-
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

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How do good marketers improve customer support