Current Issues in Marketing Strategy

Mainstream marketing logic implies that you should respect your customer, communicate with them & give them plenty of options. This can be one of the biggest mistakes you can make. The old tried and tested rules of 'know your product & your customer' is the key. So strategically, offering too many options doesn't necessarily increase value to your customers and in the long run, can reduces your profits and string out the buyer decision process.

McDonalds is a great example of a company that has its' product down pat. There are only a certain amount of options, very little catagory overlap and yet people never complain about options, because there are always short term specials that give the illusion of change. Contrast to this the example of Outdoor Furniture. When I was at University I worked for an outdoor furniture company, my knowledge was excellent, but it took time to know my customer, so I fell into a pit.

Offering too many options was usually the difference between an immediate sale and them going home to think about it (which gives a competitor a chance to snaffle them). I would ask them what they wanted it made out of, the size, how many seats, which seats, color, padding etc. It was simply outside their consideration set.

Some may argue that these customers were in the wrong part of the buyer decision process, but I can tell you first hand, less options is better. As a further example, I currently work in PPC (Pay Per Click) advertising. The key is to give the customer control, but always lead their hand. A friend of mine who works in FMCG calls it the suggestive sell, but it is more than that, to quote Cori Hodge "People are Idiots", so treat them like they know everything, but assume they know nothing.

Josh Strawczynski's Opinion
The message I am sending is not to act condescending to your customers or tell them what to buy, that would be stupid. What I am suggesting is that too many options increases your carrying cost and supply chain efficiency, it strings out the buyer decision process and eventually these things influence your bottom line.

Sam Berringer's Opinion
Offer your customers a range, but today we live in a world of specialization, so specialize in what you do, sell people on the benefits of what you have to offer.