Personal selling strategies that add value

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    7-1

    Product-Selling

    Strategies thatAdd Value

    Selling Today10

    th

    Edition

    C

    HAPTER

    Manning and Reece

    6

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    Learning Objectives

    Describe positioning as a product-sellingstrategy

    Discuss product differentiation in personalselling

    Explain how todays customer is redefiningproducts

    Describe how to sell products at variousstages of the product life cycle

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    Learning Objectives

    Explain how to sell your product with a

    price strategy

    Explain how to sell your product with avalue-added strategy

    List and describe the four dimensions of

    the total product concept

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    Positioning and Differentiation

    Positioning involves those decisions andactivities intended to create and maintain acertain concept of the firms product in the

    customers mind

    Differentiationrefers to your ability toseparate yourself and your product from

    that of your competitors. It is the key tobuilding and maintaining a competitiveadvantage

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    Discussion Questions

    What are some companies that

    you feel are positioned well?

    What reputations have these

    companies established with their

    customers?

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    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

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    Fuji Xerox Value Proposition

    See the Website

    http://www.fujixerox.com.sg/index.php?option=content&task=view&id=14&Itemid=48http://www.fujixerox.com.sg/index.php?option=content&task=view&id=14&Itemid=48http://www.fujixerox.com.sg/index.php?option=content&task=view&id=14&Itemid=48
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    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

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    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

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    Product-Selling Model

    FIGURE 7.1

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    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

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    Competitive

    Analysis

    Worksheet

    TABLE 7.1

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    Product Life Cycle Stages

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    Product Positioning Options

    Position new versus established products

    Position with price strategies

    Position with value added

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    Selling New versus

    Mature Products Nature and extent of each stage in productlife cycle determined by:

    Products perceived advantage over availablesubstitutes

    Products benefits and importance of needsmet by product

    Full spectrum of competitive activity

    Changes in technology, fashion, and/ordemographics

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    Product-Selling Strategies

    for PositioningFIGURE 7.2

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    Application: SlipitCase

    SLIPITis a family of lubricating products

    marketed since 1939

    Customers range from Otis Elevator toPennsylvania House Furniture

    Note how the label reflects benefits that

    also are used, in detail, in sales materialsand on the Web at slipit.com

    http://www.slipit.com/prodsfsc.htmlhttp://www.slipit.com/prodsfsc.html
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    Slipit Case

    See the

    Website

    http://www.slipit.com/prodsfsc.htmlhttp://www.slipit.com/prodsfsc.htmlhttp://www.slipit.com/prodsfsc.htmlhttp://www.slipit.com/prodsfsc.html
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    Selling Products with

    a Price Strategy

    Low-price emphasis

    Consequences of low price tactics

    E-commerce impact on pricing

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    Various Forms of Discounts

    Quantity: lower price for high quantity ordollar amount

    Seasonal: price adjusted by time of year

    Promotional allowance: give special pricelinked to special promotion or advertisingcampaign

    Trade/functional discounts: given towholesalers for special services

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    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

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    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 veryimportant

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    Value-Added Selling

    Progressive marketers add value withintangibles

    Increased service and courtesy

    Prompt deliveries, more innovations

    Value-added approaches yield uniqueniche and competitive edge

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    Value

    Addedby Lexus

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    The Total Product Concept

    FIGURE 7.3

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    Four Product Dimensions

    Gener ic Produc t 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

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    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

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    Four Product Dimensions

    Value-Added Produc t Value-added product: Salesperson offers

    customers more than they expect

    Example: Every Smith Hotel recalls yournewspaper preference, wake-up time, and that

    you require wireless

    Internet access

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    Four Product Dimensions

    Poten t ial 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

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    Discussion Questions

    For a rental car company, what could

    be the:

    Generic product? Expected product?

    Value-added product?

    Potential product?

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    Value Creation for . . .

    Transactional buyers Involves emphasis on eliminating costs, avoiding delays

    Consultative buyers

    Involves custom-tailored solutions to deliver more realbenefits

    Strategic alliance buyers

    Requires leveraging the full assets of the company;investments go well beyond the sales force