Companies are moving from the simple sale of goods to the implementation of services in addition to the main product. However, these services must be correctly implemented, taking into account marketing principles. This paper aims to apply this theory to the implementation of consumer services in the fictional company Environmentalgear.
There are several types of services that can be incorporated into a business. Environmentalgear considers two areas: consumer and business services, reflecting existing corporate trends and niches in the market. However, at this stage, the development of the company should be directed towards consumer services. Firstly, the company has recently switched to household goods production; therefore, they need to develop their niche. Second, the company’s current slogan, “We make life healthier,” reflects more of a home-based commitment.
Therefore, Environmentalgear must address the consumer market instead of business deals. Unlike signing contracts with companies, communication with ordinary people is much more personalized. Consumer services focus on direct one-to-one interactions between a buyer of a product and a company representative (Grant, 2020). Therefore, to successfully consolidate in this direction, the company needs to develop this area by introducing and actively using services.
When consolidating in a new field of activity, it is necessary to take into account existing competition. In the case of Environmentalgear, the consumer services industry is attractive because of the low competition. According to Glassdoor, one of the largest US companies in this field is Ambient Consulting, operating in the market since 2001 and based in Minnesota (“Ambient Consulting,” n.d.). However, besides it, there are only a few small local corporations, which means a reasonably free market. Besides, Environmentalgear has one significant advantage over other companies in the industry: it manufactures the products it offers. This property favorably distinguishes the corporation from others, which should presumably allow it to take a favorable market position.
However, for these services to be effectively implemented, they need to be considered from the point of view of marketing schemes. One of the most commonly used analysis schemes consists of four components and is called 4 P’s. According to it, in any marketing, such elements as Product, Promotion, Place, and Price should be considered (“Defining the marketing mix,” n.d.). The first component is understood as a direct solution offered to the client. Since Environmentalgear strives to create a comfortable living environment, customization will meet the client’s characteristics.
Promotion means forms of communication between the client and the organization. In the case of Environmentalgear, services may be promoted from existing stores as an additional offer. Place in this context does not mean the store itself, but rather the site to receive the service and provide access to it (“Defining the marketing mix,” n.d.). If access to it is limited or complicated, then the demand will inevitably be low. Therefore, Environmentalgear needs to use the existing Internet resources and create new ones to ensure ordering this service from home.
Besides, attention should be paid to the determinants of the service quality model. SERVQUAL theory considers five dimensions: Reliability, Responsiveness, Assurance, Empathy, Tangibles (Arlen, n.d.). Reliability is related to the buyer’s belief in the seller’s agreements. Therefore, Environmentalgear must take care of the quality of the services provided, which must correspond to the declared parameters. Responsiveness shows the buyer’s speed of interaction, and this is an area that needs special attention. If communication with the client is delayed, the likelihood of a successful contract conclusion will decrease. Therefore, Environmentalgear must put in place a technical system to quickly accept applications for consultant services.
Assurance is directly related to the quality of the services provided. Thus, the company must take care of the high level of training of consultants. For Environmentalgear, Empathy is one of the most critical parameters since the essence of the services provided involves personal interaction. Therefore, consultants should be able to find a unique approach to each client. Finally, as with any business, presentation is an essential factor, so Tangibles, including the appearance of facilities and personnel, must also be considered.
Compliance with all the above principles will ensure the reliable operation of the company’s services. However, an essential factor is the initial stage of launching a new direction, which needs to be treated carefully. Most likely, given the company’s specifics, this service can be provided as an addition to the sale of goods. When a client buys a product, they may be offered a consultant’s assistance to help them make the correct choice. After that, the consultant can help implement the purchased product into the buyer’s home, linking it with existing solutions and suggesting new ones, thus forming a personalized home environment solution.
The second option for launching these services is to announce them on the company’s websites and bring this service into a separate category, which customers can contact directly.
Finally, since these services fit into the company’s rhetoric about quality of life, the current motto can promote a new service and link it to the brand. Since customized services can make people’s lives more comfortable, creating such a direction will look like a logical development of the existing concept. Besides, the connection of new services with the brand can be made by reviewing the company’s history, which has created enough products to form entire ecosystems within residential premises.
Thus, by considering the marketing mix principles and the quality model’s determinants, Environmentalgear can create a new direction within the company. This will help them gain a foothold in an already occupied niche, expanding their influence to an area where competition is weak enough. However, such an approach can only be carried out by taking into account all the parameters described above, carefully analyzing them, and following the defined plan.
References
Ambient Consulting. (n.d.). Glassdoor. Web.
Arlen, C. (n.d.). The 5 service dimensions all customers care about. Service Performance. Web.
Grant, M. (2020). Customer service. Investopedia. Web.
Defining the marketing mix. (n.d.). Lumen Learning. Web.