Understand Value for Key Segments It is critical to identify and understand –the value structure of targeted segments and how they differed from others Developed by Purdue University

Chapter 82 Tangible Value Tangible value is value the customer can measure. –Absolute product performance –Relative or competitive performance –Service quality –Output quantity –Output quality –Price Developed by Purdue University

Chapter 83 Intangible Value Intangible value is value that comes from less measurable –Reduced time or hassle –Ease of doing business –Increased flexibility –Problem-solving expertise –Dependability Developed by Purdue University

Chapter 84 Relative Value To understand how the value –of your product/service offer “stacks up” against the competition, – you must return to understanding »what the customer values It is decided by real customers –who decide to buy one product rather than another Developed by Purdue University

Chapter 85 Relative Value To decide how you “stack up” to the competition: ÔTalk to your top customers Ôand to people you’d like to have as customers Ôabout their needs for products and services ÔAsk them how important some Ô of the “intangible” benefits are ÔAsk them who their “best” supplier is ÔAsk them who their “worst” supplier is Developed by Purdue University

Construct Your Competitive Scorecard Developed by Purdue University

Chapter 87 Building Competitive Selling Strategies Lead with your strength –If after your competitive analysis, that you are strong on a factor – that customers value, »make sure customers know about it! –Capitalize on the strengths you have Developed by Purdue University

Chapter 88 Building Competitive Selling Strategies Set the quality standard –that others must meet If you choose to set the quality standard – in an area you can perform more effectively or more efficiently than your competition, –you may be able to maintain »a competitive advantage for much longer Developed by Purdue University