1. Selling Today CHAPTER 6 PRODUCT-SELLING STRATEGIES THAT ADD VALUE
9TH EDITION
Selling Today
Manning and Reece
CHAPTER 6
PRODUCT-SELLING STRATEGIES THAT ADD VALUE

2. 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

3. 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

4. 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.”

5. PRODUCT SELLING MODEL TODAY’S PRODUCT TODAY’S SALESPERSON
--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
Figure 6.1 next slide.
See Figure 6.1.

6. 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

7. PRODUCT - SELLING MODEL
Figure 6.1.
Figure 6.1

8. PRODUCT LIFE CYCLE STAGES
INTRO
GROWTH
MATURE
DECLINE

9. LEXUS

10. PRODUCT POSITIONING OPTIONS
POSITION NEW vs. ESTABLISHED PRODUCTS
POSITION WITH PRICE STRATEGIES
POSITION WITH VALUE-ADDED

11. SELLING NEW vs. MATURE PRODUCTS
Nature and extent of each stage in product life cycle determined by:
Product’s perceived advantage over available substitutes
Product’s benefits and importance of needs met by product
Full spectrum of competitive activity
Changes in technology, fashion, and/or demographics

12. PRODUCT SELLING STRATEGIES FOR POSITIONING
Figure 6.2.
Figure 6.2

13. 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.
Product, images, trademark, copyright 2004, Slipit Industries Inc., Highland, NY, used by permission.

14. SLIPIT CASE
Product and images copyright 2004, Slipit Industries Inc., Highland, NY. Label design by Paul Slaninka, Jr.

15. SELLING PRODUCTS WITH PRICE STRATEGY
LOW PRICE EMPHASIS
CONSEQUENCES OF LOW PRICE TACTICS
E-COMMERCE IMPACT ON PRICING

16. 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

17. 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

18. 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

19. 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

20. THE TOTAL PRODUCT CONCEPT
Figure 6.3.
Figure 6.3

21. 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.

22. 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

23. 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

24. 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

25. 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

26. COMPETITIVE ANALYSIS WORKSHEET
Table 6.1.

27. 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
Instructor Note: In personal computers and peripherals, new models are often cycled 3-4 times each year.
Last slide Chapter 6.