The Satisfyer Concept

by Prof. Etienne CRACCO, PhD.

THE SATISFYER
The satisfier approach in marketing is the result of the frequent finding of a divorce between the designed
marketing strategy and its implementation. The satisfier management integrates these two inseparable
dimensions and highlights the potential inconsistencies between the strategic definition and the tactical
marketing decisions. It becomes a tool for developing a marketing strategy or / and a diagnosis tool for an
integrated marketing strategy. The satisfier is what creates and delivers the satisfaction to the consumer, it
is the osmosis of attributes that, in the process of consumption, are transformed and result in satisfaction.
Two axes of analysis make it possible to understand the process of creating satisfaction: the axis of tangible
attributes and that of the intangibles. Thus, there is an interdependence between the tangibles and the
intangibles. For each intangible must correspond a dynamic set of tangibles that give credibility to the
intangible (s) sought by the consumer. But any tangible will project intangibles based upon the consumer
experience, therefor a guidance by the company is fundamental if we want the consumer to perceive the
foreseen intangible.

THE TANGIBLES
The tangibles are real-world factors that the consumer "expects" from a product and must be met with four
decision variables that are like the famous E. McCarthy's 4 P's. The tangibles are classified into four
categories:

A – SOLUTION: the global solution (hard & soft) in terms of technical characteristics of the product, services
and support as key to the overall solution sought.

B – VALUE: Well beyond the purchase price, but also in terms of opportunity costs, resale value, economic
life, time and experience savings, transactional ease (time, flexibility, reliability, and guarantees, i.e.
consumer friendly.) in terms of the acquisition process as well as consumption.

C – COMMUNICATION (Communicative Presence): All the perceived elements that contribute to convey a
message on the proposed satisfier: brand, design, advertising, public relations, reputation, presence on the
social networks, the product image, user manual, product experience, sources of information, etc.

D – ACCESSIBILITY: Accessibility methods to the desired satisfier: from user friendly to space, time,
technological and financial accessibility.

Prof. Etienne CRACCO, Phd. 1

THE INTANGIBLES
Intangibles are the motivating factors the consumer will choose. The choice process implies first the
consideration of the satisfier’s supplier, then it leads to adopting the offered satisfier. Avoiding rejection
means that the company is meeting the required constraints set by the potential consumer, so called “the
fundamental intangibles”. Secondly to adopt the satisfier, the consumer must identify himself with his
potential purchase through a set of perceived critical elements of choice; these are called the dynamic
intangibles.

A - THE FUNDAMENTAL INTANGIBLES

All the fundamental intangibles are the attributes that must be integrated into the satisfier or else they will
be rejected. But if they have them it does not necessarily mean that the satisfier will be adopted “in fine”.
The satisfiers, responding to these fundamental intangibles, form the universe of reference within which
they will finally choose. These fundamental intangibles can be likened to physiological needs, security, and
social needs of belonging if one refers to Maslow's typology. What are the fundamental intangibles?

There are six:

1-FUNCTIONALITY: does the satisfier fulfill the minimum working expectations of the "universal consumer"?
These expectations vary according to the industrial sectors but today having its own website, be ISO 9000,
publish the technical characteristics and performance of the solution, offer guarantees, etc. are all
attributes of the satisfier that demonstrate the operational functionality of the satisfyer.

2-SECURITY: What are the potential risks (economic, technological, financial, image, environmental ...) that
the satisfier presents? Does the consumer accept them? What guarantees does the satisfier supply? In
recent years many tangibles, linked to fundamental security intangibles, have emerged: ISO, fair trade,
green point, recycling of materials, allergens, financial auditors, customer references, AACSB, guarantee
contract, call centers 7/7, reimbursed if not satisfied - no question asked- ....

3- QUALITY: Is the satisfier quality certified? and by which institution? But let's not forget that quality does
not mean that the product is good!!! It only means that it applies production rules /process that are not
modified and that remains stable and that the satisfier remains identical in its production process over
time! The tangibles illustrative to support this intangible would be: warranty contracts, quality labels,
customer loyalty ...

4-HONESTY: What are the risks of a known but hidden defect to the consumer, of misleading information or
erratic behavior? This intangible is one of the most difficult to tangibilize especially for young companies
that are not known in the market. Is the consumer guaranteed to receive all the necessary information to
make the right decision? Relational clarity is perhaps the best way to fulfill this requirement as well as
customer references or sales trends, the quality of the managerial executive team, and the quality of the
first customers!

5-CONTINUITY: Is the satisfier offered, supported by a reliable brand / company that cannot disappear from
one day to another? Will it be there all the life of the satisfier? Here again the quality of information related
to the company and its satisfiers become critical in the decision: financial strength, quality of human
capital, professionalism of the organization are all elements that support this intangible.

6-SOCIAL CONFORMITY: Are the satisfier and his company recognized as acceptable within the reference
social group to which the potential consumer identifies himself ?This intangible plays the role of risk
transfer from the executive decision taker to the satisfier’s company , in case an unforeseen problem
arises .In the case of the luxury industry , it is very often critical because the consumer is very anxious to
preserve its social status and its image !!! Since the fundamental intangibles are not a choice criterion as

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such but a retention one, they should not be used as a vector of communication in negotiations but ensure
in the pre-negotiation stages that all stakeholders are informed that the company and its satisfier fulfills all
the conditions to join the group of referents in the market. In a single case these fundamental intangibles
can be decisive is when none of the competitors does cover all the fundamental intangibles (case of
equipment suppliers in nuclear facilities where almost none of the suppliers are able to provide all the
safety performances especially after the Fukushima problems) and then promote on the failing critical
criterion can be judicious.

B - DYNAMIC INTANGIBLES
Dynamic intangibles cover the purchase motivation (partially or not at all acknowledged satisfiers) involved
in the selection of a brand among the satisfiers considered. Each of these satisfiers draws the subsequent
psycho-sociological-benefit profile of the segmentation by tribe. The motivations, backing the concept of
dynamic intangibles, are among the two higher needs categories on Maslow's scale (need for esteem and
achievement). The brand becomes the rallying flag for a motivation / "satisfier" solution sought. According
to the dynamic intangibles sought, we will adapt differentiation by aggregating tangibles to the
fundamental intangibles. Through the purchase of his satisfier, the consumer is identifying himself with this
one but is also reinforcing his belonging to his tribe, which shares the same satisfier (case of buyers of
'Harley Davidson). What typology of satisfiers could we identify? Seven satisfiers stand out clearly:

1 – HOMO OECONOMICUS (the economic rationality): the global acceptable solution representing "the
least expensive on the market" constitute the best alternative! Often criticized as a destructive strategy in
the market, this segment represents only 10 to 15% of it, but has often been the basis of significant
managerial innovation

2 – INTERNAL SOCIAL SERVICE (The good family man): Here we recognize that the cheapest does not always
provide the necessary support in case of need or problem. Therefore, we are looking for a satisfier offering
a better alternative for the "family" or the "internal organization" at the right price. We do not show one’s
purchase to everyone, but everyone recognizes the merits of the decision aiming the "no problem"
solution. This tribe covers 30 to 35% of the market and is therefore a prime target for any large industrialist.

3 – EXTERNAL SOCIAL SERVICE (The professional): It is the satisfier who underlines the recognition of the
success (organizational or professional) and values it by sharing it and communicating it to its tribe but also
to its groups of references. It offers the very good without “splashing” generating criticism but rather
inducing an admiration. The luxury industry, which mainly attacked luxury, is now trying to capture this
niche, which also accounts for 30 to 35% of the market. This market is also a strategic target of major
manufacturers.

4 – FASHION /AESTHETICS /DESIGN (The trendy): This satisfier, which generally generates a large
communication presence, affects 10 to 15% of the market. It is characterized by a cyclical behavior of
newness making events (haute couture) based on the seasons or technological innovation and periodic
aesthetics uplifting (smartphones) energized mainly by the "social influencers".

5 – TRADITION (The nerdy) This segment seeks time and technological continuity, the "symbol of a culture"
to which the consumer is attached. This segment represents about to 5 to 10% of the market but is
characterized by a high level of consumer loyalty and is strategically important in terms of image in
industries such as food, finance, pharmacy ...

6 – PRESTIGE (The posh): It is a coveted satisfier, very present in terms of image in the market but very
limited in quantity (5 to 7% depending on the products) but not in sales. This segment attracts the likes and

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dislikes 'illustrated by the dynamics of the number of fake products that it generates indirectly according to
its notoriety.

7 – TECHNOLOGICAL PERFORMANCE (The Customized Elite): About 1% of the market requires this satisfier
based on advanced technology and a close relationship between the manufacturer and the consumer. This
exclusive context makes it the technological and service laboratory of what the industry of the future would
be. Strategically, a satisfier must fulfill in priority all the constraints included in the fundamental intangibles,
then within a long-term context only one dynamic intangible per brand should be identified and
implemented in that market segment chosen. Possibly a second intangible could be selected as a support to
the main one (positioning tactic) as to broaden the coverage of consumers but also to adapt its offer to the
demographic and economic profiles of its coveted environments. Jean Paul Gauthier is a good example in
haute couture where his satisfier is the fashion / social external service for the mass market but is the
fashion / technological performance for the entertainment industry.

THE SATISFIER: ITS STRATEGIC SCOPE

Through its systemic approach, the satisfier favors an integrating process strategy / implementation /
tactics / coherence control / identification of critical links thanks to the matrix approach of the two Tangible
/ Intangible axes (see table). The satisfier is very useful in the overall decision-making strategy / action
because it is basically a "relative concept" related to the consumer and its environment. It leads to the
strategic need to adapt the tangibles to preserve not only all the fundamental intangibles covered but also
to ensure that the differentiation of the tangibles keeps the satisfier intact in the eyes of the consumer at
the global level.

In this respect, certain observations must be made:

1- The fundamental intangibles of one are not necessarily the fundamental intangibles of others.
2- The perception of the dynamic intangibles, through the tangibles, result that in different
environments one is obliged to adapt the underlying tangibles to another environment as to reach
the same perceptual result.
3- Without clear strategic definition of the satisfier it is impossible to offer a global solution to the
needs of the consumer that would be shared by the tribe and manageable in the long term.
4- The tangible requirements of fundamental and dynamic intangibles change over time in response
to changes in consumer, environment and competitive offerings.
5- One brand and only one per satisfier.
6- If the consumer identifies three dynamic intangibles under a single brand, not only does he become
confused in his brand perception, but it is he who will define the perceived satisfier that could be in
opposition with the strategic marketing objectives, and any later modification is very complex and
difficult to successfully implement them.
7- Every company / every consumer has his DNA of satisfiers! The DNA of one is not the DNA of the
other! Every company has the strategic choice to either exclusively operate a satisfier with a brand
for a wide range of products (Case of NIVEA brand internal social service) or to cover the entire
market with one brand per satisfier (Case of the Volkswagen Group: SKODA, VOLKSWAGEN, AUDI,
SEAT, BENTLEY, BEETLE, PORSCHE) CONCLUSION This innovative approach only integrates widely
known variables in a process that ensures strategic coherence at all levels, better strategic
communication within the company, identify key tangible, allow a better strategic comparison with
our competitors, monitor our results and identify weak links in the marketing strategy pursued.

Prof. Etienne CRACCO, Phd. 4