CHAPTER

10th Edition

Selling Today

Manning and Reece

Product-Selling
Strategies that
Add Value
7-1

Learning Objectives
Describe positioning as a product-selling
strategy
Discuss product differentiation in personal
selling
Explain how todays customer is redefining
products

Describe how to sell products at various

stages of the product life cycle
7-2

Learning Objectives
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 product concept

7-3

Positioning and Differentiation

Positioning involves those decisions and
activities intended to create and maintain a
certain concept of the firms product in the
customers 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
7-4

Discussion Questions
What are some companies that
you feel are positioned well?
What reputations have these
companies established with their
customers?

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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

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Fuji Xerox Value Proposition

See the Website

7-7

Redefining Products in the

Age of Information
Products are problem-solving tools
People buy products if they fulfill a
problem-solving need
Todays better educated and more
demanding customers are seeking a
cluster of satisfactions

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Product Selling Model

Todays product
Meets and exceeds expectations
Better quality, larger selection

Todays salesperson
Acts as partner
More trustworthy, knowledgeable

Todays company
Acts as team to provide
Delivery, training, credit, service
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Product-Selling Model

FIGURE

7.1

7-10

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

7-11

Competitive
Analysis
Worksheet

TABLE

7.1

7-12

Product Life Cycle Stages

7-13

Product Positioning Options

Position new versus established products
Position with price strategies
Position with value added

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Selling New versus

Mature Products
Nature and extent of each stage in product
life cycle determined by:
Products perceived advantage over available
substitutes
Products benefits and importance of needs
met by product

Full spectrum of competitive activity

Changes in technology, fashion, and/or
demographics
7-15

Product-Selling Strategies
for Positioning
FIGURE 7.2

7-16

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
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Slipit Case

See the
Website
7-18

Selling Products with

a Price Strategy
Low-price emphasis

Consequences of low price tactics

E-commerce impact on pricing

7-19

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
7-20

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 pricequality relationship in sale

Importance of service?
Many buyers, particularly business-to-business, rank
service above absolute price
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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
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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

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Value
Added
by Lexus

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The Total Product Concept

FIGURE

7.3

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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

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Four Product Dimensions

Expected Product
Expected product: Everything that meets the
customers minimal expectations beyond generic
product
Example: Every Smith Hotel offers not only
guest roomsbut the rooms are very clean and
spacious

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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

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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

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Discussion Questions
For a rental car company, what could
be the:
Generic product?

Expected product?
Value-added product?

Potential product?

7-30

Value Creation for . . .

Transactional 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

7-31