Question

7-1 Why has product differentiation become so important in sales and marketing? 7-2 According to Ted Levitt, what is the definition of a product? What satisfactions do customers want? 7-3 Explain what is meant by positioning as a product-selling strategy. What is a value proposition? 7-4 Why have salespeople assumed an important role in positioning products? 7-5 Briefly describe the influence of electronic commerce on pricing. What types of products are likely to be sold on the Internet?

Answer 1

7-1

What Is Product Differentiation?

Product differentiation is a marketing procedure that endeavors to recognize and convey the interesting advantages or characteristics of a product contrasted with its competitors.

Why it is important?

It enables salesmen to isolate themselves and their product from their opposition; key to building and keeping up an upper hand

It enables the seller to balance its own product with contending products in the market and underline the one of a kind perspectives that make its product unrivaled. At the point when used effectively, sellers gain an upper hand by exhibiting why their products are one of a kind.

Product differentiation raises consumer intrigue. All the more importantly, it can build brand faithfulness and even endure a more expensive rate point.

In the event that a product is seen to be superior to its competitors, consumers will think of it as worth the more expensive rate.

Other than causing the product to get by in the market, product differentiation is important for the accompanying reasons:

   Product differentiation makes an interpretation of the product characteristics into advantages.

   It responds to the greatest inquiry of the customers – 'What's in for me?'.

   It gives the customers motivation to buy the brand's product and rehash the buy.

   It expands the review estimation of the product.

   It expands brand faithfulness and assembles brand equity.

   Attribute-based differentiation is important for the brand to safeguard their cost from leveling down to the base piece of the value range.

7-2

Definition of product according to Ted Levitt

Products are critical thinking tools; individuals purchase products to satisfy a critical thinking need.A bunch of satisfaction, products that meet the customers definite needs.