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5-1
99THTH EDITION EDITION
CHAPTER 5CHAPTER 5CREATING PRODUCT CREATING PRODUCT SOLUTIONSSOLUTIONS
Manning and Reece
PART III
5-2
LEARNING OBJECTIVES-1 Explain importance of developing product strategy
Describe product configuration
Identify why sales people and customers benefit via thorough product knowledge
Discuss important kinds of product information sales people use to
create product solutions
5-3
LEARNING OBJECTIVES-2
Describe how knowledge of competition improves personal selling
List major sources of product information
Explain difference between product features and buyer benefits
Demonstrate translating product features into buyer benefits
5-4
PRODUCT STRATEGYDEFINED
”The product strategy is a well-conceived plan that emphasizes becoming a product expert, selling benefits, and configuring value-added solutions.”
5-6
EXPLOSION OF PRODUCT OPTIONS
Over 30,000 consumer Over 30,000 consumer products are turned out products are turned out each yeareach year
GOOD NEWSGOOD NEWS is greater is greater consumer choice consumer choice
BAD NEWSBAD NEWS is with more is with more choice, buying process is choice, buying process is more complicatedmore complicated
5-7
PRODUCT CONFIGURATION
Shows how different parts of your Shows how different parts of your product mix can combine to product mix can combine to
solve solve the customer’s problem the customer’s problem
Software for product configuration Software for product configuration – Can integrate with contact Can integrate with contact
management software like ACT!management software like ACT!– Incorporates customer selection Incorporates customer selection
criteriacriteria– Identifies options, pricing, delivery Identifies options, pricing, delivery
schedulesschedules
5-8
WRITTEN PROPOSALS Many clients ask for written Many clients ask for written proposals and some provide proposals and some provide detailed guidelines detailed guidelines
Most written proposals include Most written proposals include – Overview and BudgetOverview and Budget– ObjectiveObjective– Strategy Strategy – ScheduleSchedule– RationaleRationale
5-9
YOUR PRODUCTSYOUR PRODUCTSYOUR PRODUCTSYOUR PRODUCTS
YOUR COMPANY & ITS POLICIESYOUR COMPANY & ITS POLICIESYOUR COMPANY & ITS POLICIESYOUR COMPANY & ITS POLICIES
YOUR COMPETITION & INDUSTRYYOUR COMPETITION & INDUSTRYYOUR COMPETITION & INDUSTRYYOUR COMPETITION & INDUSTRY
NEED TO KNOWS
5-10
PRODUCT INFORMATION CATEGORIES
Product development and quality Product development and quality improvement processes improvement processes
Product configuration Product configuration
Performance data and Performance data and specificationsspecifications
Maintenance and serviceMaintenance and service
Price and deliveryPrice and delivery
5-11
PRODUCT DEVELOPMENT AND QUALITY IMPROVEMENT
DEVELOPMENTDEVELOPMENT--Be familiar with --Be familiar with
product historyproduct history
--Know stages of --Know stages of product testingproduct testing
--Link key features --Link key features & customer needs& customer needs
QUALITYQUALITY--Quality control --Quality control
involves measuring involves measuring against standardsagainst standards
--Extensive sales---Extensive sales-force training is key force training is key element of quality element of quality controlcontrol
5-12
PERFORMANCE DATA AND SPECIFICATIONS
Most clients interested in product Most clients interested in product performance and performance and
specificationsspecifications
Sales people must be prepared to Sales people must be prepared to answer performance-related answer performance-related questionsquestions
Data often critical when customer Data often critical when customer compares various productscompares various products
5-13
MAINTENANCE AND SERVICE CONTRACTS
Provide service-related Provide service-related information information in proposal and/or at in proposal and/or at time of sale time of sale
Understand customer’s service Understand customer’s service and and maintenance requirementsmaintenance requirements
Customized service agreements Customized service agreements add add value value
5-14
PRICE AND DELIVERY
Clients expect salespersons to be Clients expect salespersons to be well versed in price and well versed in price and
delivery delivery policies policies Giving salespersons price and Giving salespersons price and delivery decision power yields delivery decision power yields
strong positionstrong position Price objections often common Price objections often common
barrier to closing sale barrier to closing sale
5-15
QUANTIFYING SOLUTION
Process of determining whether Process of determining whether the the proposal adds value proposal adds value
Conduct cost-benefit analysisConduct cost-benefit analysis
See Table 5.1 for exampleSee Table 5.1 for example
5-16
KNOW YOUR ORGANIZATION
As closest-contact salesperson As closest-contact salesperson represents organization’s culture represents organization’s culture Organizational “culture” is Organizational “culture” is collection of collection of beliefs, behaviors, and beliefs, behaviors, and work work patterns common to firm’s patterns common to firm’s
employeesemployees Many prospects use a firm’s pastMany prospects use a firm’s pastperformance as index for current performance as index for current products/servicesproducts/services
5-18
KNOW COMPETITION AND INDUSTRY
Acquiring knowledge of Acquiring knowledge of competition key step competition key step
Knowing strengths and Knowing strengths and weaknesses of competing weaknesses of competing products allows you to products allows you to emphasize your benefitsemphasize your benefits
Prospects Prospects dodo raise questions about raise questions about competitioncompetition
5-19
HANDLING COMPETITION
1.1. Avoid referring to competition Avoid referring to competition during sales presentationsduring sales presentations
2.2. Never discuss competition Never discuss competition unless you have facts straightunless you have facts straight
3.3. Avoid criticizing competition Avoid criticizing competition
4.4. Be prepared to neutralize Be prepared to neutralize competitor proposals by adding competitor proposals by adding value to yoursvalue to yours
5-20
BE AN INDUSTRY EXPERT
Sales people need to become Sales people need to become expert in industry they expert in industry they representrepresent
Need to move beyond product Need to move beyond product specialist to business analyst specialist to business analyst
Knowledge of industry must be Knowledge of industry must be both current and detailedboth current and detailed
5-21
APPLICATION: INDUSTRYEXPERTISE
Process often starts in college experience Read trade journals Regularly attend industry
seminars and conventions
Become active in industry associations; many have special student membership rates
5-22
SOURCES OF PRODUCT INFORMATION
1.1. Product literatureProduct literature
2.2. Sales training programsSales training programs
3.3. Plant toursPlant tours
4.4. Internal sales/support team Internal sales/support team
5.5. CustomersCustomers
6.6. Product itselfProduct itself
7.7. Trade publicationsTrade publications
5-23
BRIDGE STATEMENTSStatements or transitional Statements or transitional phrases linking features to phrases linking features to benefitsbenefitsSample bridgeSample bridge– This product is nationally This product is nationally
advertised, advertised, which meanswhich means you will you will benefit from more pre-sold benefit from more pre-sold customerscustomers
Best method for presenting Best method for presenting benefits to customersbenefits to customers
5-24
PRODUCT FEATURE VERSUS PRODUCT
BENEFITPRODUCT PRODUCT FEATUREFEATURE
PRODUCT PRODUCT BENEFITBENEFIT
CAN BE SEEN, FELT, MEASURED
PROVIDES ADVANTAGE OR GAIN …DEFINED BY THE CUSTOMER
Also see Table 5.2 in text. 5-25
APPLICATION: CONVERT AUTO FEATURES TO BENEFITS
FEATUREFEATURE 30 MILES PER GALLON DUAL AIRBAGS DISK BRAKES JAPANESE ENGINEERING 100,000-MILE WARRANTY
BENEFIT?BENEFIT?