7-1 product-selling strategies that add value selling today 10 th edition chapter manning and reece...
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7-1
Product-Selling Strategies thatAdd Value
Selling TodaySelling Today10th Edition
CH
AP
TE
R Manning and Reece
7
7-2
Positioning and DifferentiationPositioning and Differentiation
• ___________ involves those decisions and activities intended to create and maintain a certain concept of the firm’s product in the customer’s mind
• ____________ refers to your ability to separate yourself and your product from that of your competitors. It is the key to building and maintaining a competitive advantage
7-3
Value PropositionValue Proposition
• The set of benefits and values the company promises to deliver to customers to satisfy their needs
• A well-informed customer will usually choose the product that offers the most value
7-4
Redefining Products in the Age of Information
Redefining Products in the Age of Information
• Products are problem-solving tools
• People buy products if they fulfill a problem-solving need
• Today’s better educated and more demanding customers are seeking a cluster of satisfactions
7-5
Product Selling ModelProduct Selling Model
• Today’s product
• Meets and exceeds expectations
• Better quality, larger selection
• Today’s salesperson
• Acts as partner
• More trustworthy, knowledgeable
• Today’s company
• Acts as team to provide
• Delivery, training, credit, service
7-7
Competitive AnalysisCompetitive Analysis
• Effective selling is based on a comprehensive analysis of the competitive situation
• Table 7.1, on the next slide, provides a template for competitive product analysis
7-10
Product Positioning OptionsProduct Positioning Options
• Position new versus established products
• Position with price strategies
• Position with value added
7-11
Selling New versusMature Products
Selling New versusMature Products
• Nature and extent of each stage in product life cycle determined by:
• Product’s perceived advantage over available substitutes
• Product’s benefits and importance of needs met by product
• Full spectrum of competitive activity
• Changes in technology, fashion, and/or demographics
7-13
Selling Products witha Price Strategy
Selling Products witha Price Strategy
• Low-price emphasis
• Consequences of low price tactics
• E-commerce impact on pricing
7-14
Various Forms of DiscountsVarious Forms of Discounts
• Quantity: lower price for high quantity or dollar amount
• Seasonal: price adjusted by time of year
• Promotional allowance: give special price linked to special promotion or advertising campaign
• Trade/functional discounts: given to wholesalers for special services
7-15
Consequences ofLow Price TacticsConsequences ofLow Price Tactics
• High/low involvement buyers?
• High emotional involvement with brand
• Low-involvement buyers focus on price
• Importance of quality?
• Role of price—quality relationship in sale
• Importance of service?
• Many buyers, particularly business-to-business, rank service above absolute price
7-16
E-commerce and PriceE-commerce and Price
• Transaction orientation: online sales persons mostly transaction-oriented, little value added
• Buyers often well informed: online buyers visit a number of Websites
• Adding value: again, adding value is very important
7-17
Value-Added SellingValue-Added Selling
• Progressive marketers add value with intangibles
• Increased service and courtesy
• Prompt deliveries, more innovations
• Value-added approaches yield unique niche and competitive edge
7-19
Four Product DimensionsGeneric Product
Four Product DimensionsGeneric Product
• Generic product: basic product you are selling, describes product category . . . such as hotels, MP3 players, or insurance
• Example: Every Smith Hotel offers guest rooms, meeting rooms, and other basic hotel services
7-20
Four Product DimensionsExpected Product
Four Product DimensionsExpected Product
• Expected product: Everything that meets the customer’s minimal expectations beyond generic product
• Example: Every Smith Hotel offers not only guest rooms—but the rooms are very clean and spacious
7-21
Four Product DimensionsValue-Added Product
Four Product DimensionsValue-Added Product
• Value-added product: Salesperson offers customers more than they expect
• Example: Every Smith Hotel recalls your newspaper preference, wake-up time, and that you require wirelessInternet access
7-22
Four Product DimensionsPotential Product
Four Product DimensionsPotential Product
• Potential product: What remains to be done, what is possible, anticipating customers’ future needs
• Example: Every Smith Hotel plans to offer complete office support services
7-23
Value Creation for . . .Value Creation for . . .• Transactional buyers
• Involves emphasis on eliminating costs, avoiding delays
• Consultative buyers
• Involves custom-tailored solutions to deliver more real benefits
• Strategic alliance buyers
• Requires leveraging the full assets of the company; investments go well beyond the sales force
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