Sofema Aviation Services (SAS) www.sassofia.com considers the best practices related to Product Value & Sales
Introduction – What do we mean by product value?
Product value relates to the totality of benefits which a given product offers to our target customers.
- Ultimately the overall value of a product will be a measure of the degree to which it meets or exceeds customers’ expectations.
- Knowledge concerning product value will impact both the design of the product as well the pricing strategy.
Companies can use metrics concerning product value to
- Prioritize sales & marketing
- Improve targeting, and
- Optimize brand messaging.
What is a product value proposition?
This is the company statement which highlights both the features and intended use of a product.
- Value propositions explain in the clearest terms the benefits and unique qualities of a particular product
- A Value proposition shows how the product solves customers’ problems.
- When writing a value proposition for a product consider the following elements
o Prospective customers’ needs,
o Expectations,
o Any Potential Issues (pain points)
How can we increase the perceived value of our product?
Consider the customer view concerning the utility of our Product
- Utility refers to the total satisfaction or value that you get from consuming a particular product or service.
- Utility values are critical for determining why different goods have different costs and levels of demand.
Important Note: Products with higher utility usually have more demand, meaning they can command higher prices
- In general, the better the fit of your product within the framework of expectations of your customer the more likely your customer will be willing to pay more for the product.
- Always ensure that your perception of utility is in alignment with your customer’s perception.
Can we increase prices by adding features? (Must be value added with a real benefit understood by the customer)
- Customer Valuations are related to both customer personal likes & dislikes as well as general preferences.
- Customer perception can be influenced by social awareness and acceptance of our product (The more popular it seems – the more popular it becomes) – Brand awareness is the key.
Consider Additional Ways to Improve Brand Recognition
- Control the status and perceived value of your product, ensure you remain consistent, and focus on the customers you see as your primary target strong marketing has the ability to raise the value of your product over time.
Product Price Comparison
We will always be exposed to comparisons our task is to maintain a value proposition which shows a favourable result for our product.
- The more choices which are available to the customer, the lower is the willingness for the customer to pay a premium unless we can demonstrate a specific or unique product value proposition.
- Establish the customer fit to our product so that the price point selected provides
- Find the optimum product-market fit that works specifically for the value proposition which is offered.
Next Steps
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aviation, Aviation Leadership, Aviation Leadership and Management, Brand Recognition, EASA, Leadership, Leadership Diploma, Product Value, sales, SAS blogs, Sofema Aviation Services, Soft Skills, SOL Training
