Question

Topic: Student Questions

Marketing Strategy/term For Synergistic Products

Posted by nickmb17 on 9/8/2016 at 9:20 AM ET 250 Points
What is the term or strategy name for selling a line of products that advantageously [only] work with one-another?

For example, if I were to sell a soap dispenser, but the only soap refill that fits the product is also sold by me, forcing the consumer no choice but to keep buying my soap refills.

Or a less rigid example, Apple having a wide product line where all of the content shares/syncs very easily between devices, which would make it difficult on a consumer if they wanted to switch from an iPhone to an Android phone if they already own an iPad and Mac, forcing them to give up that convenience and making them less-likely to switch away from Apple.
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RESPONSES

  • Posted by Mike Steffes on 9/8/2016 at 1:00 PM Accepted
    Closed ecosystem
    Walled garden

    They are forms of brand lock-in.
  • Posted on 9/8/2016 at 5:58 PM Accepted
    "Interlocked products"
  • Posted by Peter (henna gaijin) on 9/9/2016 at 11:26 AM Accepted
    I've heard it called Razor-Razorblade model.
    https://www.investopedia.com/ask/answers/08/razor-blade-model.asp

    And setting pricing using this is called Razor-And-Blades Pricing Strategy
    https://www.investopedia.com/ask/answers/08/razor-blade-model.asp
  • Posted by Peter (henna gaijin) on 9/9/2016 at 11:28 AM Member
    Oh, some also use printer and ink to describe this
  • Posted on 9/9/2016 at 12:39 PM Moderator
    "system selling"
  • Posted by Gary Bloomer on 9/9/2016 at 12:55 PM Accepted
    Another term is forced continuity. Premium cable or streaming TV services that only offer one kind of content are powerful examples (think of HBO's Game of Thrones, or Netflix and House of Cards).

    Another powerfully anchored example is in automotive servicing, where owners of newer cars tend to have their vehicle serviced by the dealership's in-house service facility. All of these products, goods, or services—IF and WHEN they are anchored to positive and memorable experiences that the customer or client wants to repeat, AND that they want to tell their families and friends about—all of these things help create elements of brand loyalty.

    In the presence of sustained and anticipated value (or in the presence of habit), price becomes less of an issue.
  • Posted by Shelley Ryan on 11/9/2016 at 4:36 PM Moderator
    Hi Everyone,

    I am closing this question since there hasn't been much recent activity.

    Thanks for participating!

    Shelley
    MarketingProfs
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