Product Value

Topics: Sport, Brand, Nike, Inc. Pages: 4 (1165 words) Published: September 17, 2013

1. Understand that the first component of value is "utility." It means that whatever you are delivering to your customer has to be fit for the purpose the customer will give to it. In essence, for any goods or service you deliver to a customer, having utility means that the customer can enhance the performance of their own assets, or remove some sort of constraint that prevents them from receiving more values from their assets

* If it is a car wash, the car has to end up clean.
* If it is a snow plowing service, the customer has to be able to traverse the path you plowed as the customer defined.

2. Know that the next component is "warranty." It means that the goods or services that you deliver to your customer must be fit for use. * The car wash, for example, has to be open at the time the sign says the business will be open, and it must be able to handle the demand for its use, otherwise the line will grow long, customers will tire of waiting and will leave.

3. Strive to identify and overcome the barriers of the customer's perceptions. The easiest way to explain this is to think back to the day you bought your last automobile. Why did you pick that one? After all, all cars are the same four wheels, chassis, engine, transmission, differential, body, seats, steering wheel, glass, seat belts, etc... Or are they? The job of the salesperson who wants to make the sale is to identify these perceptions and determine the best way to present the service – a car in a way that will convince the customer that this is the vehicle that meets all of the requirements, real and perceived.

4. The perceptions of the customer are what makes or breaks the transaction that exchanges value for money. For example, most people would not pay $100 for a can of corned beef, right? However, put a person in a situation where that person has not eaten for days and that's all to be found, and that person will exchange anything of value for...
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