CHAPTER
10th Edition
Selling Today
Manning and Reece
7 Product-Selling
Strategies that
Add Value
7-1
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
7-2
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
7-3
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
7-4
Product-Selling Model
FIGURE 7.1 7-5
Product Life Cycle Stages
7-6
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
7-7
Product-Selling Strategies
FIGURE 7.2 for Positioning
7-8
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
7-9
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
7-10
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
7-11
The Total Product Concept
FIGURE 7.3 7-12