Creating Product Solutions

1. Selling Today 10th Edition CHAPTER Manning and Reece 6 Creating Product Solutions

2. Learning Objectives • Explain the importance of developing a product strategy • Describe product configuration • Identify reasons why salespeople and customers benefit from thorough product knowledge • Discuss the most important kinds of product and company information that salespeople use in creating product solutions

3. Learning Objectives • Describe how knowledge of competition improves personal selling • List major sources of product information • Explain the difference between product features and buyer benefits • Demonstrate how to translate product features into buyer benefits

4. Product Strategy Defined “The product strategy is a well-conceived plan that emphasizes becoming a product expert, selling benefits, and configuring value-added solutions.”

5. Strategic/ConsultativeSelling Model 6.1 FIGURE

6. Solutions • Are mutually shared answers to recognized customer problems • Are more encompassing than specific products • Provide measurable results • Require a greater effort to define and diagnose the customer’s problems

7. Tailoring the Product Strategy • The product strategy should be tailored to the customer’s buying needs 6.2 FIGURE

8. Tabasco

9. Explosion of Product Options • More than 30,000 consumer products are turned out each year • The good news is: greater consumer choice • The bad news is: with more choice, buying process is more complicated

10. Product Configuration • Shows how different parts of your product mix can combine to solve the customer’s problem • Product configuration software • Incorporates customer selection criteria • Identifies options, pricing, delivery schedules • Can integrate with contact management software like ACT!

11. Written Proposals • Many clients ask for written proposals and some provide detailed guidelines • Most written proposals include: • Budget and overview • Objective • Strategy • Schedule • Rationale

12. As a Salesperson,You Need to Know: Your products Your company and its policies Your competition and industry   

13. Product Information Categories • Product development and quality improvement processes • Performance data and specifications • Maintenance and service contracts • Price and delivery

14. Development Be familiar with product history Know stages of product testing Link key features and customer needs Quality Quality control involves measuring against standards Extensive sales-force training is key element of quality control Product Development and Quality Improvement

15. Performance Data and Specifications • Most clients interested in product performance and specifications • Salespeople must be prepared to answer performance-related questions • Data often critical whencustomer compares various products

16. Sea Ray Salespeople Know the Product

17. Maintenance and Service Contracts • Provide service-related information in proposal and/or at the time of sale • Understand customer’s service and maintenance requirements • Customized service agreements add value

18. Price and Delivery • Clients expect salespeople to be well versed in price and delivery policies • Giving salespeople price and delivery decision power yields strong position • Price objections often common barrier to closing the sale

19. Quantifying the Solution • Process of determining whether proposal adds value • Conduct a cost-benefit analysis using costs and anticipated savings • See Table 6.1 for an example (next slide) • Calculate a return on investment • Key decision makers respond favorably to ROI

20. Cost-Benefit Analysis 6.1 TABLE

21. Know Your Company • Salespeople sell their company as much or more than they sell a product • Organizational culture is a collection of beliefs, behaviors, and work patterns common to a firm’s employees—influences customer orientation of salespeople • Many prospects use a firm’s past performance as index for current products/services

22. GEAR for Sports See the Website

23. Edward Jones’ Past Performance See the Website

24. Know Your Competition • Acquiring knowledge of the competition is an important step • Knowing strengths and weaknesses of competing products allows you to emphasize your benefits • Prospects do raise questions about competition—be prepared to answer

25. Discussion Questions • How would you respond if a customer asks you about a competitor’s service, which you know from all accounts is horrible? • What would you tell a customer who has just said, “I think that salesperson from your competition is unethical. What do you think?”

26. Handling Competition • Avoid referring to the competition during sales presentations • Never discuss the competition unless you have your facts straight • Avoid criticizing the competition • Be prepared to neutralize competitor proposals by adding value to yours

27. Be an Industry Expert • Salespeople need to become an expert in industry they represent • Need to move beyond product specialist to business analyst • Knowledge of industry must be both current and detailed

28. Industry Expertise:It’s Never Too Early • Process often starts in college experience • Read trade journals • Regularly attend industryseminars and conventions • Become active in industryassociations; many havespecial student membership rates

29. Sources of Product Information • Product literature, catalogs, Websites • Plant tours • Internal sales and sales support team • Customers • The product itself • Trade publications

30. Features and Benefits • A feature is data, facts, or characteristics of your product or service • A benefit is whatever provides the customer with a personal advantageor gain • General benefits • Specific benefits

31. Slipit Features and Benefits Visit the Website to see how Slipit translates features into benefits See the Website

32. Bridge Statements • Transitional phrases linking a feature statement to a benefit statement • Sample bridge • This product is nationally advertised, which means you will benefit from more pre-sold customers • Best method for presenting benefits to customers

33. Bridge Statement Application For each of the following cell phone features, write down a benefit for the customer, then use a bridge statement to link them. Features: • Small and lightweight • Has voice-command capability • Has wireless Internet capability • Can store MP3 files/comes with earbuds • GPS technology can provide onscreen directions

34. Benefits Not Features “I don’t think that we understood our real goal when we first started Federal Express. We thought that we were selling the transportation of goods; in fact, we were selling peace of mind.” — Frederick Smith, founder of Federal Express