CREATING PRODUCT SOLUTIONS Concepts and Practices

CREATING PRODUCT SOLUTIONS

Concepts and Practices

Product Strategy Defined6-2

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

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Strategic/ConsultativeSelling Model

FIGURE 6.1

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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

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Tailoring the Product Strategy The product strategy should be tailored

to the customer’s buying needs

FIGURE 6.2

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Tabasco

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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

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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!

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Written Proposals

Many clients ask for written proposals and some provide detailed guidelines

Most written proposals include: Budget and overview Objective Strategy Schedule Rationale

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As a Salesperson,You Need to Know:

Your products

Your company and its policies

Your competition and industry

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Product Information Categories

Product development and quality improvement processes

Performance data and specifications

Maintenance and service contracts

Price and delivery

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Product Development and Quality Improvement

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

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Performance Data and Specifications Most clients interested in product

performance and specifications Salespeople must be prepared to answer

performance-related questions Data often critical when

customer compares various products

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Sea Ray Salespeople Know the Product

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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

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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

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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

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Cost-Benefit Analysis

TABLE 6.1

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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

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GEAR for Sports

See the Website

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Edward Jones’ Past Performance

See the Website

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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

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Ethics: For Discussion

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?”

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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

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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

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Industry Expertise: It’s Never Too Early

Process often starts in college experience Read trade journals Regularly attend industry

seminars and conventions Become active in industry

associations; many havespecial student membership rates

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Sources of Product Information

Product literature, catalogs, Websites Plant tours Internal sales and sales support team Customers The product itself Trade publications

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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

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Slipit Features and BenefitsVisit the Website to see how Slipit translates features into benefits

See the Website

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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

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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

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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