Availability of Warranties


In countries where consumer rights are protected, the seller makes the written warranty terms available to the prospective buyer before the sale. The text of the warranty is often displayed next to the product, or on the package in which the product is enclosed. Warranty terms can also be collected in notebooks in the department that sells the goods and may even be microfilmed, so long as the prospective buyer can readily use the microfilm reader. The maker of the warranty is required to make the text of the warranty available to sellers in forms that sellers can readily use, such as providing copies of the written warranty with each product, or on a tag, sticker, label, or other attachment to the product, or on a sign or poster. These warranty requirements also cover catalog and door-to-door sales.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

The Utilities Created by Marketing


 

All of marketing’s functions are performed to move goods from products to consumers. During this process, marketing adds utility (value) to goods and services. There are five types of utilities: 1) form, 2) time, 3) place, 4) possession, and 5) information.

1)      Form utility: refers to the changing of raw materials into a finished product. Taking grains and turning them into cereal is an example of form utility. Form utility is usually considered a production function rather than a marketing function.

2)      Time utility: it helps consumers by making products available when the consumer wishes. Supermarkets that are open 24 hours a day provide time utility. Making fresh fruit available in the winter is also a form of time utility.

3)      Place utility: it makes sure that the goods and services are conveniently located where consumers want them.

4)      Possession utility: it helps make the exchange of goods between buyers and sellers easy.  Anything that helps complete the sale – delivery, installation, warranties, credit – is considered part of possession utility.

5)      Information utility: it informs buyers of the product’s existence, how to use it, the price, and other facts. Such information is provided through advertising, salespeople, and packaging.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Products Liability


Over the years, individuals have demanded stricter laws to protect them from faulty products. Consumer protection statutes have been enacted in most countries. Manufacturers, wholesalers, and retailers are generally responsible to the user of a product if he or she is harmed by it. Three theories of liability have been established:

  1. Absolute or strict liability
  2. Negligence
  3. Breach of warranty (express or implied) and misrepresentation.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Franchises


A franchise is a contract arrangement by which the owner of a trade name, trademark, copyright, or process grants permission to others to use this property in selling goods or services under specified conditions.

The purchaser of a franchise (franchisee) obtains the advantage of offering a well-known or unusual product that may already have wide appeal. The franchisee  also receives the benefit of mass buying and advertising. Typically, the buyer of a franchise may pay a flat fee for the franchise as well as an additional percentage based on sales. The franchisee may also be required to pay a fractional share of the franchisor’s promotional costs and to purchase certain supplies from the franchisor.

Contract and sales laws pertaining to franchises are comparatively new. If the franchise involves the resale of goods or food, both the franchisor and franchisee will usually be liable under a breach of warranty if the food or other merchandize is not wholesome or proper from the consumer’s standpoint. However, tort liability to a third person is usually the responsibility of the franchisee alone. In a case where the franchisee’s truck struck  and negligently injured a pedestrian , the franchisor would normally have no responsibility.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Unique Superior Product


It is not enough to have good strategy, good management preparation, and a good organization. These will permit good new products management, but too often it just doesn’t happen. Why? If there is one reason above all others, if there is one concept that should be the last one violated, it is the commitment to producing a unique, superior product. Obviously, if things are well organized, if there are capable people doing the work, and if good process is used it probably will happen. But research shows that more products are lost to this factor than any other.

Note the two words—unique and superior. That means no me-too products, unless there is important uniqueness in the augmentation circle, such as service or warranty. But the more critical term is superior, and that means superior in benefit to the end user. Some phrases used by managers on this point are: “meets customer needs better,” “solves problems customers have with competitive productive,” and “has better value-in-use.”

Products are thought to fall when end users lack the problem the product solves, or the product doesn’t solve it, or the marketing (communication) fails to get the message across. These are all measurable, in advance, by three key tests in the recommended process. We can learn, for sure, whether our new item is unique, and whether it offers a superior solution to a problem the end user has.  Whether we know the product is superior is not as important as whether the customer knows. Superior products can fail if communication fails, even when the item is a piece of medical equipment.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Full Warranty


A full warranty means:

  1. The warrantor will fix or replace any defective product, including removal and reinstallation if necessary, free of charge.
  2. It is not limited in time (say, to one or two years).
  3. It does not either exclude or limit payment for consequential damages unless the exclusion or limitation is printed conspicuously on the face of the written warranty.
  4. If the product cannot be repaired or has not been repaired after a reasonable number of efforts to repair it, the consumer may choose between a refund and a replacement.
  5. The warrantor cannot impose duties on the consumer except reasonable duties (the warranty cannot require the consumer to ship a piano to the factory) or a duty not to modify the product.
  6. The warrantor is not required to fulfill the warranty terms if the problem was caused by damage to the product through unreasonable use.

A full warranty does not have to cover the whole product. It may cover only part of the product, such as the picture tube of a television set. Also, anyone who owns the product during the warranty period may invoke or use the warranty.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Limited Warranty


A limited warranty is that does not meet the standards for a full warranty. For example, a limited warranty may cover only parts, not labor, or may require the purchase to return a heavy product to the seller or service representative for service. It may also require the purchaser to pay for handling or allow only a pro rata refund or credit, depending on the length of time since the product was purchased. Often, a limited warranty protects only the first purchaser.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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