We all wonder why the same product is sold at a different price from one store to another. Is it the quality of the product? The company’s reputation? At his location? There is one fundamental concept in marketing: the global supply.
What is the global offer in marketing?
The global offer consists of a main offer and a related offer. The main offer corresponds to a product or service that fulfills a consumer’s basic need. The related offer represents products or services that are added to the main offer to differentiate from the competition. The related products or services can be, for example, after-sales service, delivery methods, storage, accessory products, etc.
The combinations of the global offer
There are four different combinations of the offer:
- a main good + a related service,
- a main asset + an associated asset,
- a main service + a related service,
- a main service + a related good.
practical case
The sophistication of French savoir-vivre, the warm elegance of a Belle Époque decor, the traces of the visit of Marcel Proust, F. Scott Fitzgerald or even Coco Chanel who felt “at home” there – these are the reasons for being Parisians Hotel, a coffee is sold for 11 euros.
If this hotel has been offering its coffee at this price for years, it is because it has been successful with customers. Isn’t that just a communication gimmick? NO. There is no hiding: the price is clearly announced.
What is worrying is that the value of the product is not necessarily (only) in the product. Even if the product is the basis of the value.
Let’s take a look at all of this using the Value Proposition ecosystem diagram:
What we do âž• What customers get âž• Why they prefer us
Here is the application for the above advantage offer from the hotel for selling its espresso for €11:
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Basically what the hotel bar does (comparative value: 2€)
- This is the technical description of the product as we manufacture it.
- This element of the offer includes the competitive characteristics of the product.
In general, the base product is difficult to modify, standardized to manufacture, and easy to duplicate. This allows the manufacturer to be considered credible for this product category.
Additionally, what customers of the hotel bar get (added value: 4€)
- These are the components that facilitate the purchase, delivery, storage of the product and its use or use.
- These elements of the overall offering may be options that provide choices to customers.
This level of the ecosystem makes it possible to outperform a base manufacturer by offering a first level of service. This makes the brand one of the qualified providers of this type of product. It can be imitated by a competitor.
Why hotel guests prefer this bar (added value: 5 €)
- These are additional services and tailor-made services that generate a unique experience for the customer.
- These elements of the offer are immaterial, relational, often invisible, but always benefit from a high level of emotional perception.
This large layer of the ecosystem makes it possible to build lasting, personal and privileged relationships with each customer. The company is characterized by the best solution for the customer. It protects the basic product by strengthening customer loyalty.
Note: The following values ​​(2+4+5€) are “fictional”. In reality, you have to ask customers about the value they associate with the elements of the offer.
Marketing and communication don’t have magic powers: they aim to create value that makes sense for the customers in question.
