Saturday, September 12, 2009

Capabilities Before Technical Specifications

Each time you sell a product, you're selling not just the brand name of the item, but also the brand name of your store. So why should a customer buy that product brand name from you rather than from somebody else? One reason is that you make it easier for the customer to distinguish products from each other based on what the products can do for the customer. Don't confuse our shoppers with technical specifications. Shoppers are more interested in what each of the products can do than in how the products do it.
     This point is being put to use by computer chip maker AMD. By and large, consumers won't be buying an AMD computer. They'll buy a Dell or an HP that contains an AMD chip. To distinguish themselves by making it easier on the shopper, AMD is embarking on a marketing campaign in which the manufacturer can assign one of three labels to the computer: Vision Basic computers contain the AMD chip that has the best price/technology tradeoff for fundamental internet use. Vision Premium computers hit the sweet spot for multimedia, and Vision Ultimate computers are for the heavy-duty video gamer. AMD intends to have a Vision Black category for even more demanding computer processing.
     AMD won't bother us with the technical details—that is, unless we want them. Then the details will be easily available. And according to researchers at University of Chicago and China's Shanghai Jiao Tong University, having the specifications clearly available does help make the sale, even if the shopper doesn't actually read the specs.
     In your retailing, be ready to fill in the technical details promptly whenever you realize the customer is looking for them. But make your lead story the different capabilities of the different product choices you're offering the customer.

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