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May 30, 2010

Public policy on Marketing (Part 3)

The second most important player in this process is the company that makes and markets these 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.

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

2. 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 shocks when they are used. Safety precautions or circuit breakers should be provided.

3. How to use safely: Expanding the above the company should provide a clear instruction manual clearly sating how the product should be safely be used. And if the product is technical training should be imparted to the user.

4. Stick to promises: The saying goes deliver to the promises made. It is said that good service leads to the satisfied customer telling one another about the good service and bad service leads to the dissatisfied customer telling 10 more about the bad service.

5. Never be too aggressive: It never pays to bad mouth the competition. The more the sales people talk bad about a competitor the more the customer will think positively about the competitor. It is the positive feeling about the competitor who is not present or defense of the underdog.

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

7. 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 own toner only.

8. 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 offer mediocre service will be consigned to the dustbins of history.

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

10. 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.

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