Cross Selling vs Product proposal

[Former Member]

hello everyone,

i am confused between the above 2 concepts, what is the difference between them ,and why would one company uses for example cross selling instead of product proposal or vice versa. hope my question is clear.

regards

Dilip

[Former Member]

Hi Dilip,

Cross Selling is material specific. It means when you buy a pair of shoe for example the shopkeeper tries to offer you a pair of socks or shoe polish. It happens irrespective of the cusotmer who is buying it.

whereas Product Proposal / item Proposal is based on the customers buying behaviour. A home maker regularly buys products 1/2/3 from a shop. So the shop keeper keeps that in mind and when ever she comes he will remind her these products. In SAP we store that as part of item proposal so at the time of sales order entry it not only speeds up the process of entry but also ensures that the customer is buying those things.

A little furhter in CRM we have up selling and down selling.

Up-selling

You can define other products that should be proposed if you sell a specific product.

If a business partner orders a fax machine, you u201Cup-sellu201D by proposing a more expensive, better-equipped version.

Down-selling

Under certain circumstances, you may want to suggest a cheaper product or products as an alternative.

A telesales agent is able to view both more expensive (up-selling) and cheaper (down-selling) alternatives (depending on Customizing settings). As a rule, the agent will generally try to promote up-selling products to the customer, but to prevent a no-sale he/she may also be forced to propose down-selling alternatives instead. If you create up-selling and down-selling rules that are target group-specific, you can control for which business partners you generally want to perform up-selling, and for which down-selling.

Hope the info helps you.

regards

sadhu kishore

[Former Member]

Hello,

A product proposal is a list of products for a specific customer that is automatically proposed during sales document processing.

The product proposal differs from cross selling in that it is dependent on the customer and sales area, and is therefore displayed in the sales document as soon as you have entered a customer. Cross selling, on the other hand, is triggered by the material. In other words, the system proposes cross-selling materials according to the material or a characteristic of the material you have entered.

Prase

[Former Member]

Dear Dilip,

You need not confuse as both the processes are completly different from each other.

Product proposal is more alike an Order entry tool which helps the end users to use against customers who frequently buy same materials with same quantitys.

Cross selling is a push marketing tool where the business advices the customer to buy another related material along with the ordered one.

Regards

KV

Edited by: krishna vamshi on Jun 22, 2008 2:28 AM