Scribd
Upload
163 views

Personal Selling Strategies That Add Value

The document discusses product-selling strategies that add value, including positioning, differentiation, analyzing competitors, selling throughout a product's lifecycle, and using price and value-added strategies. It describes the total product concept of having a generic, expected, value-added, and potential product dimension.

Uploaded by

Firaas Dilawar
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
163 views

Personal Selling Strategies That Add Value

The document discusses product-selling strategies that add value, including positioning, differentiation, analyzing competitors, selling throughout a product's lifecycle, and using price and value-added strategies. It describes the total product concept of having a generic, expected, value-added, and potential product dimension.

Uploaded by

Firaas Dilawar
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 31

7-1

Product-Selling
Strategies that
Add Value
Selling Today
10
th
Edition
C
H
A
P
T
E
R

Manning and Reece
6
7-2
Learning Objectives
Describe positioning as a product-selling
strategy
Discuss product differentiation in personal
selling
Explain how todays customer is redefining
products
Describe how to sell products at various
stages of the product life cycle
7-3
Learning Objectives
Explain how to sell your product with a
price strategy
Explain how to sell your product with a
value-added strategy
List and describe the four dimensions of
the total product concept
7-4
Positioning and Differentiation
Positioning involves those decisions and
activities intended to create and maintain a
certain concept of the firms product in the
customers mind
Differentiation 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
7-5
Discussion Questions
What are some companies that
you feel are positioned well?
What reputations have these
companies established with their
customers?
7-6
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
7-7
Fuji Xerox Value Proposition
See the Website
7-8
Redefining Products in the
Age of Information
Products are problem-solving tools
People buy products if they fulfill a
problem-solving need
Todays better educated and more
demanding customers are seeking a
cluster of satisfactions
7-9
Product Selling Model
Todays product
Meets and exceeds expectations
Better quality, larger selection
Todays salesperson
Acts as partner
More trustworthy, knowledgeable
Todays company
Acts as team to provide
Delivery, training, credit, service
7-10
Product-Selling Model
FIGURE 7.1
7-11
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
7-12
Competitive
Analysis
Worksheet
TABLE 7.1
7-13
Product Life Cycle Stages
7-14
Product Positioning Options
Position new versus established products
Position with price strategies
Position with value added

7-15
Selling New versus
Mature Products
Nature and extent of each stage in product
life cycle determined by:
Products perceived advantage over available
substitutes
Products benefits and importance of needs
met by product
Full spectrum of competitive activity
Changes in technology, fashion, and/or
demographics
7-16
Product-Selling Strategies
for Positioning
FIGURE 7.2
7-17
Application: Slipit

Case
SLIPIT

is a family of lubricating products


marketed since 1939
Customers range from Otis Elevator to
Pennsylvania House Furniture
Note how the label reflects benefits that
also are used, in detail, in sales materials
and on the Web at slipit.com
7-18
Slipit Case
See the
Website
7-19
Selling Products with
a Price Strategy

Low-price emphasis
Consequences of low price tactics
E-commerce impact on pricing

7-20
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
7-21
Consequences of
Low Price Tactics
High/low involvement buyers?
High emotional involvement with brand
Low-involvement buyers focus on price
Importance of quality?
Role of pricequality relationship in sale
Importance of service?
Many buyers, particularly business-to-business, rank
service above absolute price
7-22
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
7-23
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
7-24
Value
Added
by Lexus
7-25
The Total Product Concept
FIGURE 7.3
7-26
Four Product Dimensions
Generic 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

7-27
Four Product Dimensions
Expected Product
Expected product: Everything that meets the
customers minimal expectations beyond generic
product
Example: Every Smith Hotel offers not only
guest roomsbut the rooms are very clean and
spacious

7-28
Four Product Dimensions
Value-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 wireless
Internet access

7-29
Four Product Dimensions
Potential 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

7-30
Discussion Questions
For a rental car company, what could
be the:
Generic product?
Expected product?
Value-added product?
Potential product?

7-31
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

You might also like