6-1

Creating Product Solutions

Selling TodaySelling Today10th Edition

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AP

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R Manning and Reece

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Product Strategy DefinedProduct Strategy Defined“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

Strategic/ConsultativeSelling Model

FIGURE 6.1

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SolutionsSolutions

• 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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TabascoTabasco

6-6

Product ConfigurationProduct 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!

6-7

Written ProposalsWritten Proposals

• Many clients ask for written proposals and some provide detailed guidelines

• Most written proposals include:

• Budget and overview

• Objective

• Strategy

• Schedule

• Rationale

6-8

As a Salesperson,You Need to Know:As a Salesperson,You Need to Know:

Your products

Your company and its policies

Your competition and industry

6-9

Product Information CategoriesProduct Information Categories

• Product development and quality improvement processes

• Performance data and specifications

• Maintenance and service contracts

• Price and delivery

6-10

Performance Data and Specifications

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

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Maintenance and Service Contracts

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 DeliveryPrice 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 SolutionQuantifying 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

6-14

Know Your CompanyKnow 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

6-15

Edward Jones’ Past PerformanceEdward Jones’ Past Performance

See the Website

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Know Your CompetitionKnow 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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Handling CompetitionHandling 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

6-18

Be an Industry ExpertBe 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

6-19

Industry Expertise:It’s Never Too EarlyIndustry 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

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Sources of Product Information

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 BenefitsFeatures 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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Benefits Not FeaturesBenefits 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