New method for product differentiation – how to create a product worth selling

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New Method For Product Differentiation – How To Create A Product Worth Selling

One of the toughest questions is how to make a product more valuable to the customers. The goal is simple; the more valuable the product is in the eyes of the customer, the more the customer will pay. www.cynthiakocialski.com


New Method For Product Differentiation – How To Create A Product Worth Selling

Product development creates real value since it’s development that puts the bells and whistles into every product. So what’s needed is a development process that is integrated with marketing. Why? Because customers don’t pay for real value, they pay for perceived value and its marketing that’s crafts perceived value. www.cynthiakocialski.com


New Method For Product Differentiation – How To Create A Product Worth Selling

Old-style Product Differentiaton Process

In a nutshell, development adds the bells and whistles and marketing takes them and creates the perceived value for the customer. The problem is this is a usually a serial process. If the development team hasn’t added true product differentiation that the customer is willing to pay for, marketing is going to have difficulty generating demand and sales won’t be able to convert customers. www.cynthiakocialski.com


New Method For Product Differentiation – How To Create A Product Worth Selling

Simple 5 Steps to Define a More Desirable Product

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New Method For Product Differentiation – How To Create A Product Worth Selling

Step 1. Customers will always compare your product or service to others in the marketplace. Even if you have a new product, they will compare it to how they are doing it now. Determine the top three contending products. www.cynthiakocialski.com


New Method For Product Differentiation – How To Create A Product Worth Selling

Step 2. Identify the features in these products. Now here’s the hard part. Try to determine the value of every feature; how much is the current customer willing to pay for that particular feature. The product’s price is the sum total of all the features. Next, determine the priority of the features from the customer’s perspective. www.cynthiakocialski.com


New Method For Product Differentiation – How To Create A Product Worth Selling

Step 3: Now that you know that value of every feature in a competing product, determine how the features of your upcoming product compares. Are your features better or worse than theirs? Now, you have a relative price the customer will be willing to pay for that feature. www.cynthiakocialski.com


New Method For Product Differentiation – How To Create A Product Worth Selling

Step 4: Integrate this procedure into the development of a new product or creation of a new service. Every time someone suggests adding a new feature, ask how much the customers are willing to pay for it. At the end of the development cycle, sales has to turn those features into revenue. www.cynthiakocialski.com


New Method For Product Differentiation – How To Create A Product Worth Selling

Step 5: Think about how to convey the product differentiation in a simple way that is easy for customers to compare to the other contenders. When it comes to marketing and showcasing a product’s outstanding points, a common mistake is to confuse the customer. Proven wisdom says, “a confused customer never buys unless they must”. www.cynthiakocialski.com


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