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| | The Marketing, Channels/Partnership & Sales Execs Network is not currently active and cannot accept new posts | | re: re: They don't buy benefits , they buy ... re: re: What do people buy? - Marketing Tip #2 | Views: 604 | | Dec 06, 2004 3:25 am | | re: re: They don't buy benefits , they buy ... re: re: What do people buy? - Marketing Tip #2 | # | 
Cijaye DePradine | | While I agree with both parties (Mike and Craig); I'd love to introduce real marketing theory here so that we can all share in the joy of having very "valuable" information to share...
You can only truly understand the "value" of a product or service, once you have determined the Features (Drill has X number of bits to interchange/Civic has 32 miles per gallon in the city, and 37 miles per gallon on the highway ) and Advantages (drills great holes in all different sizes/extremely economic choice in cars) and Benefits. The benefits (creating the right sized whole for the right project, ensuring your pictures hang straight and don't fall/saving you thousands of dollars on gas) are what you communicate to a customer who needs to perceive great value in their purchase.
So then "value" by nature is a "perception" - not a Feature, Advantage nor Benefit (although it can be very closely connected to the benefits). It is exclusive to each customer (what one person sees as valuable - may be worth $#!^ to another).
Take authors and musicians that get turned down 10x before finding a label who will invest in them; their FAB's usually stay the same when trying to get a publishing deal. The story or the music rarely changes - it's the decision maker who determines whether they see value in the work before investing in it.
The benefits are cold hard facts that we as business owners can take responsibility for. Values we can not.
This is why mentioning values may seem like a superficial method to marketing - after all, how can you "guarantee" that everyone will get the same value from your products or services?
Bottom line, we can not arrive at a sale without first understanding the FAB's and the potentially perceived value.
The trick is to find the FAB's that set you apart from the competition (USPs) - so that you get the sale and not them. If you are the only one that guarantees the benefits - you are more likely to get the sales.
It has been a pleasure sharing...
> Mike Brown wrote:
> I am being contrarian to you my brother by saying that people do, in fact, buy benefits.
>
>Perhaps it will help if I define a benefit for you.
>
>A benefit is something that a product or service does for the customer, that the customer deems or perceives to be valuable.
>
>People buy what products and services do for them.
>
>Would you buy a drill that has great value, but drills terrible wholes? I would suppose not, because the drill would not be of any value to you because it drills terrible holes. It would be of value to you if it drills great holes. Thus, drilling great wholes is a benefit of buying the drill, and it's the reason you buy it.
>
>People buy for specific benefits. People don't buy a honda civic because they get great value, although they do get that. They buy it because it gets 32 miles per gallon in the city, and 37 miles per gallon on the highway, and people save thousands of dollars in gas. With the gas prices going up, guess what car is being sold more? Guess why?
>
>Value, is a superficial label that everyone and their momma slaps on their product or service. They say, "we provide value and great service", and customers say "oh really, i've heard that before, yawn" However when you hit customers with a concrete benefit to back that general statement, then you get their attention. "X product will save you 25%, reduce your work by 30%, increase you profits by 50%, save you 3 hours of work time, etc..., and we guarantee it or your money back" Well then, there is a concrete benefit backed by a guarantee. That is what people buy my brother - benefits. Value can be created by benefits (percieved or otherwise), but it is not the reason that people buy things.
>
>> Craig Elias wrote:
>> Leslie and Udan;
>>
>>Not to be contrarian but people do not buy benefits.
>>
>>They buy value.
>>
>>They buy the value they get from those benefits.
>>
>>Do I buy a drill because it delivers the benefit of drilling great holes - NO.
>>
>>I buy a drill because I get great value from great holes.
>>
>>The value of knowing my pictures get hung straight and won't come out of the wall and I won't have to repair the wall and do the whole thing over again.
>>
>>Fell free to call me (415.613.6757) if you want to discuss this in person.
>>
>>Regards,
>>
>>Craig Elias
>>Chief Executive Officer, InnerSell, Inc.
>>San Francisco, CA
>>
>>
>>> UDAYAN BOSE wrote:
>>> Agreed for most cases.
>>>
>>>But maybe not for something like a $100,000 perfume etc. where aspirations guide the buying motives.
>>>
>>>> Leslie Wolff wrote:
>>>> Although millions of dollars are spent extolling the features of a product or service, people only buy BENEFITS, real or perceived.
>>>>
>>>>Can you succinctly express what the benefits are of your product or service? If not you've got a serious problem.
>> Private Reply to Cijaye DePradine | | |
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