developing product-selling strategies c h a p t e r 7
TRANSCRIPT
Developing Product-Selling Strategies
C H A P T E R 7
Copyright 2004 Pearson Education Canada Inc.7-2
C H A P T E R 7
Learning Objectives
• Describe positioning as a product-selling strategy
• Discuss product differentiation in personal selling
• Explain how today’s customer is redefining the product
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C H A P T E R 7
Learning Objectives (Continued)
• Discuss selling strategies for emerging products and mature products
• Explain how to position products with a value-added strategy
• Describe the four dimensions of the total product
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C H A P T E R 7
Product Positioning. . .
includes the decisions, activities and communications strategies that are directed toward trying to create and maintain a firm’s intended product concept in the customer’s mind.
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Product Differentiation. . .
is achieved on the basis ofQualityPriceConvenienceEconomy
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Customers Purchase on the Strength of Clusters of “Satisfactions”
Satisfactions are the positive benefits that customers seek when making a purchase. They arise from
the product/service itselfthe company making the productthe salesperson servicing the product
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Bombardier Buyers Ask Questions before Making the Buying Decision
Questions Related to the Product
“What system is best suited to our high speed passenger rail cars?”
Questions Related to the Company
“Is this vendor financially secure so that it will still be in business if we have problems with the systems in the longer term?”
Questions Related to the Salesperson
“Does the salesperson possess the knowledge and experience needed to recommend the best system to us?”
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Product Selling ModelToday’s product
(Meets and exceeds expectations)
• Better quality
• Larger selection
• New product improvements
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Product Selling ModelToday’s product
(Meets and exceeds expectations)
• Better quality
• Larger selection
• New product improvements
Today’s salesperson
(Acts as a partner)
• More courteous and trustworthy
• More knowledgeable
• More understanding of customers
• Provides service after the sale
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C H A P T E R 7
Product Selling Model
Today’s product
(Meets and exceeds expectations)
• Better quality
• Larger selection
• New product improvements
Today’s salesperson
(Acts as a partner)
• More courteous and trustworthy
• More knowledgeable
• More understanding of customers
• Provides service after the sale
Today’s company
(Acts as a team to provide)
• Delivery and installation
• Orientation and training
• Quick response times
• Credit options
• Customer service
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C H A P T E R 7
Product-Selling StrategiesFor Emerging Products versus Mature Products
New and emerging products Mature and well-established products
• Emphasize brand superiority• Emphasize company superiority• Point out unique features• Provide outstanding customer service• Focus on sustaining existing market share
• Develop new levels of expectations
• Change habits
• Establish new standards
• Build desire for product
• Focus on creating new markets
Product selling strategyProduct selling strategy
Time
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C H A P T E R 7
Selling Tactics for Pricing
Quantity Discount
A price reduction made to encourage a larger volume purchase than would otherwise be expected
Time-period pricing
Adjusting prices up or down during specific times to spur or acknowledge changes in demand
Promotional allowance
A price reduction given to a customer who participates in an advertising or sales support program
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C H A P T E R 7
When using Low-Price Tactics…
Consider
• Are you selling a high or low involvement buyer?
• How important is quality in the mind of the buyer?
• How important is service after the sale?
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Value Added
Value-added strategies are relationship, product, or service strategies that a company uses that add value for the customer.
A new challenge for salespeople
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The Total Product Concept – Four Possible Products
Product (generic)
(Customer’s perceptions)
(Salesperson’s knowledge)
(Mutually discovered possibilities)
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Generic Product . . .
Describes only the basic substantive product being sold.
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The Total Product Concept
Expected product
Product (generic)
(Customer’s perceptions)
(Salesperson’s knowledge)
(Mutually discovered possibilities)
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Expected Product . . .
describes everything that represents the customer’s minimal expectations.
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The Total Product Concept
Value-added product
Expected product
Product (generic)
(Customer’s perceptions)
(Salesperson’s knowledge)
(Mutually discovered possibilities)
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Value-Added Product . . .
describes the product that exists when salespeople offer the customer more than what is expected.
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The Total Product ConceptPotential product
Value-added product
Expected product
Product (generic)
(Customer’s perceptions)
(Salesperson’s knowledge)
(Mutually discovered possibilities)
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Potential Product . . .
refers to what may remain to be done, or what is possible. It is the exploration of new opportunities.
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Interpersonal Value . . .
is “win-win” relationship building with the customer that results from keeping that person’s best interests always at the forefront.