Marketing Troika- I

Whenever we talk about public policy and marketing it is always assumed that the discussion is about the responsibility of the government in protecting the customer's interest. But why should there be any protection of interest in this globalised world? It is important for us to realise that there are other players in this crucial discussion; the companies that market the products and the customers who buy.

So let us look at the public policy from three angles,

The role and the responsibility of the government under which the companies and the customers operate.

The role and the responsibility of the company that makes and markets the products. The company works under the aegis of the government.

And the role and the responsibility of the customers who buy these products and who are the citizens of the country.

It is worthwhile to remember, "before we ask for our rights it is better to remember our responsibilities". And "before we ask what the country did for us better to ask what we did for our country."

The government is the first and most important player in the marketing process. Let us examine its roles and responsibilities:

Level playing ground: It is very important that the government provides a level playing ground for all the concerned. It has been noticed in the past that certain companies both local and foreign are given a preferential treatment. This preferential treatment leads to unhealthy monopolies and other unhealthy business practices.

Equal treatment for all: It is imperative that the government deals with all the companies equitably. The law of the land should be same for all and should not be different for different companies.

Public safety: The customer's safety is of paramount importance and every government should have laws that ensure the same. No company however big should be allowed to compromise this dictum.

Right to redressal: Irrespective of how well the marketing system works there will always be some grievances or complaints about the system. These complaints have to be handled and handled quickly if the marketing system has to mature. Setting of consumer courts and consumer forums which are effective and efficient will go a long way in addressing this crucial issue.

Spurious products: Many economies are suffering the bane of spurious products. Spurious products are products that look like the original products and try to confuse the customer. Spurious liquors, spurious food products and other such items have killed lots of innocent people. Government needs to carefully watch these unscrupulous practices and handle them with a firm hand.

Fake products: Fake products are products that appear to be exactly like the original products, for example Soni for SONY, Adibas for ADIDAS, and Panasonice for PANASONIC etc. Governments should not think that the customers are getting cheap substitutes; the companies that have invested money on developing of these products are getting harmed by these practices. The same is the case with the music industry which according to the news is getting killed because of cheap pirated versions of licensed music.

Control of certain products: The government has a right to control the sale of certain products like drugs and medicines. There are many cases in which harmful and addictive drugs were given to customers without any valid prescription from a registered medical doctor.

Regulation of sale of certain products: The government also has a responsibility to regulate the sale of products like kerosene, diesel, petrol, water and electricity. The role of the government was brought into sharp notice in the recent sharp increase of essential commodities like dal and others prices which shot up drastically in the last few months.

Price fixing (administered price): The government also has to control the price of certain commodities like kerosene, diesel, petrol, water and electricity. Administered price is an imperative; otherwise greedy retailers might hoard the products and try black market for undue profit.

Fair price: The government also has a role in seeing that there is a fair price that is charged for the products. It is alright to say that let the market dictate the price. But is the market mature enough to dictate the price?

Cartel formation: It has been noticed that a group of sellers come together and set an artificial high price and don't let the price come down. This type of cartel formation is very dangerous and should be broken at any cost. Cartel formations are harmful to all concerned except the cartel itself.

MRP: It has been noticed that in many cases the same product is sold to different people at different prices. This happens because there is no price tag on the product package. This leads to frequent over charging. The best way out is to have a MRP (maximum retail price) that is strictly enforced. Now-a-days MRP has become a joke. Sivakasi crackers have a MRP that is thousand times the original price. MRP should not become a paper tiger!

Adherence to standards: The government has the responsibility to see that the companies are adhering to the set standards. The quality control division should conduct frequent checks to see that the standards are not being diluted. The most abused standard is the wrong weights that are used in weighing the merchandise.

Encourage recycling: One of the thrust area that the government needs to focus is recycling. Most products that we use are environment unfriendly like plastics and mobiles. Government should seriously consider laws that encourage recycling.

Encourage local products: It is also noticed that globalisation is resulting in lots of cheap products for the customer. But globalisation is sweeping away the local products. This should be avoided at all costs. The best way is to encourage the producers of the local products and provide them with a level playing ground.

Encourage competition: The best way to make the companies more competitive is to allow competition. Once the competition enters the companies will cut the flab and will offer better products at a more economic price.

Discourage wasteful products: It has also been noticed that there are lots of companies that encourage the customers to buy wasteful products. Government should watch these trends and should cut such practices in the bud stage itself. For example, most of the products that are advertised in the "Sky shopping programmes of various television channels" can be considered as wasteful.

Protect own markets: Globalisation does not mean that we will allow everybody with open arms. Every country has the right to protect its own markets, companies and customers from exploitation. The government needs to draw up a comprehensive policy to address this issue.

Encourage local products that are labour intensive: The government needs to encourage companies that are labour intensive and that generate employment for a large number of people.

Discourage blind aping: The government through the media should subtly say how we are better off using our own indigenous products rather than blindly trying to ape the customers of some other countries.

The second player in the Troika is the company that makes and markets the products. Let us examine its role and responsibilities. The company is the critical clog in the triad of Government – company and customer and it is the company that makes the product or the service that satisfies the need of the product.

Confusion: No company will deliberately or accidently create any confusion about the product, its usage or about competitions or about competitor's products. For example saying "my product is 102 per cent better than the competition" does create confusion.

Safety: It is the company's responsibility to market only those products that can be used safely. We have heard of products especially electronic that give the users electrical shocks when they are used. Safety precautions or circuit breakers should be provided. There have been cases of cellphones that have exploded while charging.

Usage instructions: The Company should provide a clear instruction manual clearly stating how the product should be used safely. If the product is technical, training should be imparted to the user.

Stick to promises: Deliver the promises made. It is said that good service leads to the satisfied customer telling one of his friend about the good service and bad service leads the dissatisfied customer telling ten others about the bad service.

Never be too aggressive: It never pays to bad mouth the competition. The more the sales people talk bad about competitors the more the customer will think positively about the competition. This would generate positive feeling about the competitors who are not present. Customers usually defend the underdogs (the competitors) who are not able to defend themselves.

Differential pricing: No company will sell the same product to two different customers at two different prices. No advantage of distances, low literacy or any other factor should be taken into consideration to push differential pricing.

Forced attachments: No company will force a customer to buy consumables (or material to run the product) when substitutes are available in the market. For example, the printer company should not force the customer to use its toner only.

Good after sales service: Good after sales service is no longer seen as something special. It is very much a part of the product offering and a company that offers mediocre service will be consigned to the dustbins.

Competitive products: No company shall physically damage competitive products to gain competitive advantage. There have been examples of blade companies who have deliberately rusted competitors’ blades and put these rusted competitive blades next to their own in the market.

Misleading advertisements: No claims should be made in the advertisements that can't be proved or validated. There is a need for self-control and a watch dog in the company circles to discourage companies in indulging in these activities.

By:Dr M Anil Ramesh