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Product-Selling Strategies that Add Value

Selling Today. 10 th Edition. CHAPTER. Manning and Reece. Product-Selling Strategies that Add Value. 7. Positioning 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

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Product-Selling Strategies that Add Value

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  1. Selling Today 10th Edition CHAPTER Manning and Reece Product-Selling Strategies thatAdd Value 7

  2. Positioning 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

  3. Value 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

  4. 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

  5. Product 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

  6. Product-Selling Model 7.1 FIGURE

  7. Competitive 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

  8. Competitive Analysis Worksheet 7.1 TABLE

  9. Product Life Cycle Stages

  10. Product Positioning Options • Position new versus established products • Position with price strategies • Position with value added

  11. 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

  12. Product-Selling Strategiesfor Positioning 7.2 FIGURE

  13. Selling Products witha Price Strategy • Low-price emphasis • Consequences of low price tactics • E-commerce impact on pricing

  14. Various 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

  15. Consequences 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

  16. E-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

  17. Value-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

  18. The Total Product Concept 7.3 FIGURE

  19. 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

  20. 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

  21. 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

  22. 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

  23. 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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