STRATEGIC SELLING BEGINS WITH TOTAL VALUE PROPOSITION (TVP)

 

STRATEGIC SELLING BEGINS WITH

TOTAL VALUE PROPOSITION   (TVP) 

Sales and marketing groups do their tasks well, this article shows how to stimulate sales by having Sales and Marketing operate more in alignment

 Secondly, customers define price differently. Like performance, customers will define price differently. Some customers need to keep the outlay of capital to a minimum, so initial lower cost and long-term payments represent a better price.  Others will accept lower levels of performance in order to get a lower price. Between these two extremes lies the fair value line, and, every customer is somewhere on this line. The task of Strategic Selling is to position the total cost of ownership is more important, and they can accept a large initial payment if that will lower the total cost of the product over its lifetime.

 There are  few critical dimensions or categories of  product performance  that can serve as a framework for strategic selling :

 1. FEATURES

Performance refers to a product's primary operating characteristics. For an automobile, performance would include traits like acceleration, handling, cruising speed, and comfort. Because this dimension of quality involves measurable attributes, brands can usually be ranked objectively on individual aspects of performance. Overall performance rankings, however, are more difficult to develop, especially when they involve benefits that not every customer needs.

 

2. AUGMENTED  FEATURES

Augmented Features are usually the secondary aspects of performance, the "bells and whistles" of products and services, those characteristics that supplement their basic functioning. The line separating primary performance characteristics from secondary features is often difficult to draw. What is crucial is that features involve objective and measurable attributes; objective individual needs, not prejudices, affect their translation into quality differences. Sometime Aesthetics  a subjective dimension of quality becomes important overruling other factors . How a product looks, feels, sounds, tastes, or smells is a matter of personal judgement and a reflection of individual preference hence  difficult to please everyone unless customization is possible .

 

3. DURABILITY & RELIABILITY

A measure of product life, durability has both economic and technical dimensions. Technically, durability can be defined as the amount of use one gets from a product before it deteriorates. Alternatively, it may be defined as the amount of use one gets from a product before it breaks down and replacement is preferable to continued repair. It also  reflects the probability of a product malfunctioning or failing within a specified time period. Among the most common measures of reliability are the mean time to first failure, the mean time between failures, and the failure rate per unit time. Because these measures require a product to be in use for a specified period, they are more relevant to durable goods than to products or services that are consumed instantly.

 

4. FITNESS FOR USE/ CUSTOMIZATION

Fitness-For-Use  or Conformance is the degree to which a product's design and operating characteristics meet established standards. The two most common measures of failure in conformance are defect rates in the factory and, once a product is in the hands of the customer, the incidence of service calls. These measures neglect other deviations from standard, like misspelled labels or shoddy construction, that do not lead to service or repair.

 

6. AFTER SALES SERVICE

Serviceability is the speed, courtesy, competence, and ease of repair. Consumers are concerned not only about a product breaking down but also about the time before service is restored, the timeliness with which service appointments are kept, the nature of dealings with service personnel, and the frequency with which service calls or repairs fail to correct outstanding problems. In those cases where problems are not immediately resolved and complaints are filed, a company's complaints handling procedures are also likely to affect customers' ultimate evaluation of product and service quality.

 

DRAW YOUR TOTAL VALUE PROPOSITION   (TVP)  CHART

 

 As information is gathered about the customer, it is essential to know the definition of Total Value Proposition  (TVP) from the customer's perspective, not your own. The perception of something is not always reality. Customers sometimes lack ability to analyse the  service or product and for comparing with the competitive products.  This is usually the case when it comes to reputation/ brand image or past customer experience  playing  a significant role when it comes to perceived quality.

Once you understand the customer's idea of value (price and performance), you can place the customer on the Total Value Proposition   (TVP)  Chart. Then assess you are relative to the customer and the competition? Clearly, if you are closer to the customer on the TVP Chart  than any of the competitors, then you have an advantage. If you are aligned with the customer on price but lower on performance, then you are offering superior performance at the price the customer wants.

If your position is not where the customer is on the TVP Chart, your overall strategy should be designed to bring your offering closer to the customer's position than any of your competitors' offerings. You might consider  redesigning  your solution, offering an attractive financing deal or providing an option for less expensive parts or equipment. The adapted offering would put you in a position of providing value that is in line with the customer's position making it possible to outsell the competition.

The key is to focus on aligning with both the customer's definition of value and their position on the TVP Chart . Then charting competitors' positions relative to your own; only then an effective competitive strategy can be crafted that will offer customers exactly what they want—and put the competition out of the running. The Total Value Proposition   (TVP)  Chart can thus help you strengthen your competitive position and go a long way toward preventing those surprise losses that companies who undertake strategic selling  dread. 

 with best compliments

 

Dr Wilfred Monteiro