Friday, April 22, 2016

Rethinking Your Total Value Proposition (TVP)

Part One
It is fundamental to selling that you the salesperson have a strong understanding of your own Total Value Proposition or TVP. The TVP encapsulates a products total offering to its target market and includes all the key features and benefits that are being offered to them.

It looks at the price to not only purchase but also to use, store, replenish and ultimately trade or dispose of the product.

In every case the customer makes a comparative assessment of your products TVP against that of the most relevant, rival options and ultimately, it is the basis on which customers will decide who they will buy from and why.

Broadly speaking there are 5 options available and they are:

1. Offering more for more
Luxury product, goods and services. Superior quality, skill, performance, talent, craftsmanship, experience, style, flair, etc. which is linked to superior status. These products are sustainable as long as market is willing and able to buy it and it becomes susceptible in economic downturns and if similar products are available and sell for less.
Typical examples include: Ferrari, Versace, Grange Hermitage, etc.

2. Offering more for the same
Key strategy to counter rival brands by offering more for the same amount as other brands cost. Comparable quality for similar or equal money but with more quantity or benefits.
The more component can be a value added service for example such as Dial a Dino’s Pizza who were the first to provide free home delivery of pizza at no cost. The strategy is promoted as: affordable quality.
Examples include: Black Jack Wines, Honda (Best luxury car under $57,000).

3. Offering the same for less
Buyers will evaluate your brand as equal quality for less money. 
In these cases the status of brand is good enough to avoid ridicule and any criticism from others.
Typical examples may include: IBM clones, aftershaves, clothes.
From an electronics point of view: Panasonic versus Sony.

4. More for less
Buyers will evaluate your brand as quality and value for money. Where ever possible this is a very successful strategy
Examples include: Officeworks, Bunnings, Dan Murphy, Etc.

5. More for Much less
Buyers will evaluate your brand as great value. The question is whether it is sustainable over time.
Advantage: Difficult for rivals to erode your market share.

Next time we will continue to expand on our discussion on TVP and naturally to learn more about any other area of social media be sure to check for the latest dates for Victorian Chamber of commerce and Industry courses on:   

So until next time, good luck and good marketing.