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Manning 06

Uploaded by

Astir Le
Copyright
© © All Rights Reserved
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Download as PPT, PDF, TXT or read online on Scribd
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9TH EDITION

Manning and Reece

CHAPTER 6
PRODUCT-SELLING
STRATEGIES THAT ADD
VALUE

6-1
LEARNING OBJECTIVES-1
Describe positioning as a product-
selling strategy
Discuss product differentiation in
personal selling
Explain how today’s customer is
redefining products
Describe how to sell products at various
stages of product life cycle

6-2
LEARNING OBJECTIVES-2
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

6-3
PRODUCT POSITIONING
DEFINED
”…Those decisions and activities designed to create
and maintain a certain concept of the firm’s
product in the customer’s mind.
A product’s position is the customer’s concept of
the product’s attributes relative to the concepts of
competing products.”

6-4
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

See Figure 6.1. 6-5


REDEFINING PRODUCTS IN AGE OF
INFORMATION
Products are problem-solving tools
People buy products if they fulfill a
problem-solving need
Demanding consumers seek clusters of
satisfactions

6-6
PRODUCT - SELLING MODEL

Figure 6.1 6-7


PRODUCT LIFE CYCLE STAGES

INTRO GROWTH DECLINE


MATURE

6-8
LEXUS

6-9
PRODUCT POSITIONING OPTIONS
POSITION NEW vs. ESTABLISHED PRODUCTS

POSITION WITH PRICE STRATEGIES

POSITION WITH VALUE-ADDED

6-10
SELLING NEW vs. MATURE
PRODUCTS
Nature and extent of each stage in product
life cycle determined by:
1. Product’s perceived advantage over
available substitutes
2. Product’s benefits and importance of needs
met by product
3. Full spectrum of competitive activity
4. Changes in technology, fashion, and/or
demographics
6-11
PRODUCT SELLING STRATEGIES FOR
POSITIONING

Figure 6.2 6-12


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 new “test” label reflects
benefits which also are used, in detail,
in sales materials.

6-13
SLIPIT CASE

6-14
SELLING PRODUCTS WITH PRICE
STRATEGY
LOW PRICE EMPHASIS

CONSEQUENCES OF LOW
PRICE TACTICS

E-COMMERCE IMPACT ON
PRICING

6-15
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

6-16
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 price—quality relationship in sale
IMPORTANCE OF SERVICE
--Many buyers, particularly business-to-business, rank
service above absolute price

6-17
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

6-18
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

6-19
THE TOTAL PRODUCT CONCEPT

Figure 6.3 6-20


FOUR PRODUCT DIMENSIONS
GENERIC PRODUCT
GENERIC PRODUCT—Basic product you
are selling, describes product category… such as
hotels or MP3 players

EXAMPLE: Every Smith Hotel offers guest


rooms, meeting rooms, and other basic hotel
services.

6-21
FOUR PRODUCT DIMENSIONS
EXPECTED PRODUCT
EXPECTED PRODUCT—Everything that
meets the customer’s minimal expectations
beyond generic product

EXAMPLE: Every Smith Hotel offers not only


guest rooms—the rooms are very clean and
spacious

6-22
FOUR PRODUCT DIMENSIONS
VALUE - ADDED PRODUCT
VALUE - ADDED PRODUCT—
Salesperson offers customers more than they
expect

EXAMPLE: Every Smith Hotel recalls your


newspaper preference, wakeup time, and
that you require high-speed modem in room

6-23
FOUR PRODUCT DIMENSIONS
POTENTIAL PRODUCT

POTENTIAL PRODUCT—What remains


to be done, what is possible,
anticipating customer’s future needs

EXAMPLE: Every Smith Hotel plans to offer


complete office support services

6-24
COMPETITIVE ANALYSIS
Effective selling is based on
comprehensive analysis of the
competitive situation

Table 6.1, next slide, provides a template


for competitive product analysis

6-25
COMPETITIVE ANALYSIS WORKSHEET

6-26
ADDING VALUE– THE FUTURE
ADDING VALUE WILL BE EVEN MORE
IMPORTANT IN FUTURE AS:
-- Product life-cycles shorten, some are now under
6 months
--Buyers will anticipate more customized solutions
to their problems
-- New economy shifting rapidly toward a service
economy

Last slide Chapter 6. 6-27

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