Marketing Intangibles
This article covers meaning & overview of Marketing Intangibles from marketing perspective.
What is Marketing Intangibles?
There are activities a company undertakes which can be measures and taken account of. However, some activities like buyer experience, loyalty, nostalgia etc. associated with the company and its product cannot be measured. These are activities or things which cannot be measured are known as marketing intangibles. There has always been a huge debate regarding the intangibles associated with the company’s campaigns and events. Marketing Intangibles is a huge issue when transfer pricing is carried out. Transfer pricing is the setting of price for the goods and services sold within a company. So while a goods and services is being sold within a company, the company cannot gauge the value of intangibles associated with the product and has to give a price to it accordingly.
How do companies use these intangibles to their advantage? The companies use the following to get the most out of the intangibles. They create a nostalgia around the product or service they are offering i.e. they market their product in such a way that triggers a memory of the past in the consumers mind. For instance, a dairy firm can trigger the memory of the consumers childhood days for him/her to buy their milk. Social status associated with the product can be used to buy a product. Many car companies use this to market and sell their products. The consumer may be given comfort and convenience while he/she is buying the product or service. There can be many more intangibles which the company can use to leverage their position and gain the market share.
There are many advantages associated with the companies using market intangibles towards their advantage. It can make the consumer buy their products and in turn make him/her recommend the product to others. The reputation build because of these can help the companies launch a new product in the market. There can be disadvantages of using this also. Since it is intangible and if the consumer gets completely opposite of what he/she is expecting, it may lead to negative publicity of the company and the product. Hence, marketing intangibles must be monitored regularly to ensure that it is not going the wrong way.
Hence, this concludes the definition of Marketing Intangibles along with its overview.
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