Sat, 7 July 2007
-Creating Value for Customers
-5 Customer Needs-including secret ones!
-The 4 Questions you must answer to Sell anything
Welcome back to the MBA Working Girl Podcast-Where Business Theory and the Real World Collide! I'm your host, Laura Adams.
MBA Essential Tip:
The price of a product or service is not just a revenue generator. Price is also a vehicle that communicates with the customer in a psychological way. The psychology can come from:
Reference Prices - these are standards of comparison against which a purchase price is evaluated. These can be either external or internal. An external example would be a price tag that shows an original price from which markdowns have been made. An internal example would be the price a customer paid for the exact same product last year.
Price and Perceived Quality Relationship - contrary to standard economic theory, a higher price can create higher, rather than lower demand! This happens when a high price is used as a signal that the product or service is of high quality.
So, the purpose of a product's price is not just to recover it's costs, but to capture the maximum perceived value that the customer holds in their mind for the product.
"No matter how good you get you can always get better" -Tiger Woods
In this episode I review the Customer Value Triad and give you a mathematical way to think about Value. We'll also cover the 5 types of needs all customers have (whether they know it or not!). And I'll share the 4 critical questions that hold the power for salespeople and marketing managers to be able to sell anything!
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Thanks for listening-
Do Good Work, Laura
Direct download: MBA_WGP_20_-_You_Can_Always_Get_Better.mp3
Category: podcasts -- posted at: 9:15 PM