Developing Product-Selling Strategies C H A P T E R 7

7 Copyright  2004 Pearson Education Canada Inc. 7-2 Learning Objectives Describe positioning as a product- selling strategy Discuss product differentiation in personal selling Explain how today’s customer is redefining the product

C H A P T E R 7 Copyright  2004 Pearson Education Canada Inc. 7-3 Learning Objectives (Continued) Discuss selling strategies for emerging products and mature products Explain how to position products with a value-added strategy Describe the four dimensions of the total product

C H A P T E R 7 Copyright  2004 Pearson Education Canada Inc. 7-4 Product Positioning... includes the decisions, activities and communications strategies that are directed toward trying to create and maintain a firm’s intended product concept in the customer’s mind.

C H A P T E R 7 Copyright  2004 Pearson Education Canada Inc. 7-5 Product Differentiation... is achieved on the basis of Quality Price Convenience Economy

C H A P T E R 7 Copyright  2004 Pearson Education Canada Inc. 7-6 Customers Purchase on the Strength of Clusters of “Satisfactions” Satisfactions are the positive benefits that customers seek when making a purchase. They arise from the product/service itself the company making the product the salesperson servicing the product

C H A P T E R 7 Copyright  2004 Pearson Education Canada Inc. 7-7 Bombardier Buyers Ask Questions before Making the Buying Decision Questions Related to the Product “What system is best suited to our high speed passenger rail cars?” Questions Related to the Company “Is this vendor financially secure so that it will still be in business if we have problems with the systems in the longer term?” Questions Related to the Salesperson “Does the salesperson possess the knowledge and experience needed to recommend the best system to us?”

C H A P T E R 7 Copyright  2004 Pearson Education Canada Inc. 7-8 Product Selling Model Today’s product (Meets and exceeds expectations) Better quality Larger selection New product improvements

C H A P T E R 7 Copyright  2004 Pearson Education Canada Inc. 7-9 Product Selling Model Today’s product (Meets and exceeds expectations) Better quality Larger selection New product improvements Today’s salesperson (Acts as a partner) More courteous and trustworthy More knowledgeable More understanding of customers Provides service after the sale

C H A P T E R 7 Copyright  2004 Pearson Education Canada Inc Product Selling Model Today’s product (Meets and exceeds expectations) Better quality Larger selection New product improvements Today’s salesperson (Acts as a partner) More courteous and trustworthy More knowledgeable More understanding of customers Provides service after the sale Today’s company (Acts as a team to provide) Delivery and installation Orientation and training Quick response times Credit options Customer service

C H A P T E R 7 Copyright  2004 Pearson Education Canada Inc Product-Selling Strategies For Emerging Products versus Mature Products New and emerging productsMature and well-established products Emphasize brand superiority Emphasize company superiority Point out unique features Provide outstanding customer service Focus on sustaining existing market share Develop new levels of expectations Change habits Establish new standards Build desire for product Focus on creating new markets Product selling strategy Time

C H A P T E R 7 Copyright  2004 Pearson Education Canada Inc Selling Tactics for Pricing Quantity Discount A price reduction made to encourage a larger volume purchase than would otherwise be expected Time-period pricing Adjusting prices up or down during specific times to spur or acknowledge changes in demand Promotional allowance A price reduction given to a customer who participates in an advertising or sales support program

C H A P T E R 7 Copyright  2004 Pearson Education Canada Inc When using Low-Price Tactics… Consider Are you selling a high or low involvement buyer? How important is quality in the mind of the buyer? How important is service after the sale?

C H A P T E R 7 Copyright  2004 Pearson Education Canada Inc Value Added Value-added strategies are relationship, product, or service strategies that a company uses that add value for the customer. A new challenge for salespeople

C H A P T E R 7 Copyright  2004 Pearson Education Canada Inc The Total Product Concept – Four Possible Products Product (generic) (Customer’s perceptions) (Salesperson’s knowledge) (Mutually discovered possibilities)

C H A P T E R 7 Copyright  2004 Pearson Education Canada Inc Generic Product... Describes only the basic substantive product being sold.

C H A P T E R 7 Copyright  2004 Pearson Education Canada Inc The Total Product Concept Expected product Product (generic) (Customer’s perceptions) (Salesperson’s knowledge) (Mutually discovered possibilities)

C H A P T E R 7 Copyright  2004 Pearson Education Canada Inc Expected Product... describes everything that represents the customer’s minimal expectations.

C H A P T E R 7 Copyright  2004 Pearson Education Canada Inc The Total Product Concept Value-added product Expected product Product (generic) (Customer’s perceptions) (Salesperson’s knowledge) (Mutually discovered possibilities)

C H A P T E R 7 Copyright  2004 Pearson Education Canada Inc Value-Added Product... describes the product that exists when salespeople offer the customer more than what is expected.

C H A P T E R 7 Copyright  2004 Pearson Education Canada Inc The Total Product Concept Potential product Value-added product Expected product Product (generic) (Customer’s perceptions) (Salesperson’s knowledge) (Mutually discovered possibilities)

C H A P T E R 7 Copyright  2004 Pearson Education Canada Inc Potential Product... refers to what may remain to be done, or what is possible. It is the exploration of new opportunities.

C H A P T E R 7 Copyright  2004 Pearson Education Canada Inc Interpersonal Value... is “win-win” relationship building with the customer that results from keeping that person’s best interests always at the forefront.