Personal selling strategies that add value
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Transcript of Personal selling strategies that add value
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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