1. CHAPTER 7
Product-Selling Strategies that Add Value

2. 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

3. 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.

4. 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

5. The Cluster of Satisfactions Concept
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
FIGURE
7.1

7. Product Life Cycle Stages

8. Product Positioning Options
Position new versus established products
Position with price strategies
Position with value added features
Sales Skills Practice:
Role-play, p. 151

9. 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

10. Selling Emerging versus Mature Products
FIGURE
7.2

11. 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.

12. 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

13. 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.
Many progressive marketers have adopted a market plan that emphasizes value-added strategies.
Companies can add value to their product with one or more intangibles, such as:
- Better-trained salespeople
- Increased levels of courtesy
- More dependable product deliveries
- better service after the sale, and
- Innovations that truly improve the product’s value in the eyes of the customer.
In today’s highly competitive marketplace, these value-added benefits give the company a unique niche and competitive edge.
Companies that don’t make selling and delivering high-value solutions a high priority will consistently lose sales to competitors.
You may want to review the Reality Selling Today role-play video from Chapter 5 to watch what Edith Botello says and does to custom fit the mattress and what she offers for after-purchase service.

14. The Total Product Concept
FIGURE
7.3

15. 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.

16. 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.

17. 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.

18. 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.