Value-added strategy

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Value-added strategy is a term from business administration and is part of a company's sales policy or marketing .

In the competition between market participants, the pure price policy is becoming less important. This is related to the fact that this cannot be continued indefinitely, as a minimum margin is necessary to sell the products sensibly.

By contrast, the company tries to achieve sustainable customer loyalty via the value-added strategy . There are two approaches here as a value-added strategy:

  • Product-oriented: A service or additional service is added to the actual product - for example the floor mats when buying a car.
  • Sales-oriented: The sales staff and salespeople are trained to present the product benefits to the customer in order to minimize price discussions.

The value-added strategy is about offering the customer tangible and measurable added value that is concretely useful in one way or another. This strategy helps companies to position themselves in the market through this added value instead of just through price. The individual value-added fields are divided into the following areas:

  • Added value through the product or the service offered
  • Added value through the entire product process
  • Added value through the people involved in the sale
  • Added value through the profit generated for the customer

This 4P strategy was developed by Josua Fett and based on the four Ps in Marketing (Price / Product / Placement / Promotion) launched by Jerome McCarthy .

Value-added strategy in the area of ​​financial products

In the area of ​​financial services, value-added strategies have established themselves as instruments of differentiation and loyalty. A slightly comparable service such as the current account is expanded to include value-added services. This increases the perceived value of the product and makes it difficult to compare it with competitive offers. Typical additional services are:

  • Key recovery service
  • Legal protection insurance
  • Travel service
  • Ticket booking service

In the current account area, banks and savings banks pursue added value strategies. These are used as an alternative to zero-price strategies , which in turn would lead to significant earnings losses. The costs for value-added services, on the other hand, are partially refinanced through higher bank fees .

In the credit card sector, insurance services have established themselves, for example international health insurance , travel cancellation insurance or international protection letter services .

literature

  • Josua Fett: The added value strategy. This is how you get customers to pay higher prices . 4th edition. Pro-Literatur-Verlag, Mammendorf 2009, ISBN 3-86611-188-6 .