Tangible vs Intangible marketing
For example, when selling
cachaca from Brazil, you would want to sell fun, happiness, lifestyle, and not the mere product in a bottle. Because the product is tangible, you want to market the intangibles, such as "brazilian lifestyle", or the beach, or beautiful and happy people. You sell escape to the tropics...all wrapped up in a bottle. So, the person doesnt buy a glass of cahcaca mixed with lime, no,...instead they pay extra for all of the intangibles...love, life, happines...etc..
Products: bundle of tangible attributes, differentiation is based on intangibles.
Services: Intangibles, emphasis is on differentiating through tangible hooks.
8 Tangible vs. intangible.
More tangible the product…the differentiation is based on intangibles. Example: orange juice, you can no longer compete with what is in the bottle….so , instead…you sell health.
Intangibles….exact opposite. The more intangible the service, I have to give tangible evidence that separates me. Thunderbird = #1 in the world…doctor has awards….
You need to know where you lie on "tangibility spectrum" you lie….very important.
Services are important…..Xerox machines are a commodity…they differentiate with services. Money is in the services….for most products….copiers, autos, etc
Starbucks…variable cost = 0.24 dollars….and you pay $3….pay for experience. Its not about the coffee, its about the experience. Then give free wireless, so you have one more cup, that I make at .24, and you
Anytime you move a product into a restaurant, it becomes a service. You are paying for the privilege of consuming in there.
Car dealers ….don't make money on cars…they make money on services
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