Uploaded by rayowa

5681999

advertisement
CHAPTER
7
Product-Selling
Strategies that
Add Value
Positioning and Differentiation
 Positioning involves:
– Decisions and activities intended to create and
maintain a certain concept of the firm’s product in
the customer’s mind
 Differentiation refers to:
– The ability to separate yourself and your product
from your competitors and their products
– Key to building and maintaining a competitive
advantage
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
7-2
Creating a Value Proposition
 Value proposition is 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.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
7-3
Porsche Value Proposition
 The Porsche Principle states, “Our values
and philosophies permeate through
everything we do to ensure that we always
remain true to our principles.”
 Porsche has developed six principles by
which it serves its clients, including technical,
human, performance, and tradition principles.
See the website
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
7-4
The Cluster of Satisfactions Concept
 Products are problem-solving tools.
 People buy products if they fulfill a problemsolving need.
 Today’s better-educated and more
demanding customers are seeking a cluster
of satisfactions.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
7-5
Product-Selling Model
FIGURE
7.1
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
7-6
Product Life Cycle Stages
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
7-7
7-7
Product Positioning Options
 Position new versus established products
 Position with price strategies
 Position with value added features
Sales Skills Practice:
Role-play, p. 151
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
7-8
Selling Emerging 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
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
7-9
Selling Emerging versus Mature Products
FIGURE
7.2
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
7-10
Selling Products with a Price Strategy
 Pricing decisions must be made at each
stage of the life cycle.
 Setting price can be a complex process.
 First step is to determine pricing objectives:
– Some firms set prices to maximize profits.
– Others set a market share objective.
 Pricing strategies reflect a product’s position
in the marketplace.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
7-11
Transactional Selling Tactics
that Emphasize Low Price
 Quantity discount = Lower price for high
quantity or dollar amount
 Seasonal discount = Price adjusted by time of
year
 Promotional allowance = Price linked to
special promotion or advertising campaign
 Trade/functional discounts = Given to
wholesalers for special services
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
7-12
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.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
7-13
The Total Product Concept
FIGURE
7.3
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
7-14
Four Product Dimensions: Generic Product
 Generic product = Basic product you are
selling; describes product category (such as
hotels, MP3 players, or insurance)
 Example: Every Ritz-Carlton hotel offers
guest rooms, meeting rooms, and other basic
hotel services.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
7-15
Four Product Dimensions: Expected Product
 Expected product = Everything that meets the
customer’s minimal expectations beyond
generic product
 Example: Every Ritz-Carlton offers not only
guest rooms, but the rooms are upscale and
luxurious.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
7-16
Four Product Dimensions: Value-Added Product
 Value-added product = Salesperson offers
customers more than they expect
 Example: Every Ritz-Carlton recalls your
newspaper preference, wake-up time, and
that you require wireless
Internet access.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
7-17
Four Product Dimensions: Potential Product
 Potential product = What remains to be done,
what is possible, anticipating customers’
future needs
 Example: Every Ritz-Carlton plans to offer
complete services for
business meetings.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
7-18
Download