1. Product-Selling Strategies that Add Value
Concepts and Practices

2. Positioning and Differentiation
Positioning involves those decisions and activities intended to create and maintain a certain concept of the firm’s product in the customer’s mind
Differentiation refers to your ability to separate yourself and your product from that of your competitors. It is the key to building and maintaining a competitive advantage

3. 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

4. Fuji Xerox Value Proposition
See the Website

5. Redefining Products in the Age of Information
Products are problem-solving tools
People buy products if they fulfill a problem-solving need
Today’s better educated and more demanding customers are seeking a cluster of satisfactions

6. 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

7. Product-Selling Model
FIGURE
7.1

8. 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

9. Competitive Analysis Worksheet
TABLE
7.1

10. Product Life Cycle Stages

11. Product Positioning Options
Position new versus established products
Position with price strategies
Position with value added

12. Selling New versus 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

13. Product-Selling Strategies for Positioning
FIGURE
7.2

14. 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 label reflects benefits that also are used, in detail, in sales materials and on the Web at slipit.com

15. Slipit Case
See the Website

16. Selling Products with a Price Strategy
Low-price emphasis
Consequences of low price tactics
E-commerce impact on pricing

17. 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

18. 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

19. 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

20. 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

21. Value Added by Lexus

22. The Total Product Concept
FIGURE
7.3

23. Four Product Dimensions Generic Product
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

24. 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—but the rooms are very clean and spacious

25. Four Product Dimensions Value-Added Product
Value-added product: Salesperson offers customers more than they expect
Example: Every Smith Hotel recalls your newspaper preference, wake-up time, and that you require wireless Internet access

26. Four Product Dimensions Potential 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

27. Value Creation for . . . Transactional buyers Consultative buyers
Involves emphasis on eliminating costs, avoiding delays
Consultative buyers
Involves custom-tailored solutions to deliver more real benefits
Strategic alliance buyers
Requires leveraging the full assets of the company; investments go well beyond the sales force