CREATING PRODUCT SOLUTIONS Concepts and Practices

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

Strategic/Consultative Selling Model FIGURE 6.1

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

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

Tabasco

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

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!

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

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

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

Product Development and Quality Improvement 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

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

Sea Ray Salespeople Know the Product

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

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

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

Cost-Benefit Analysis TABLE 6.1

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

GEAR for Sports See the Website

Edward Jones’ Past Performance See the Website

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

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?”

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

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

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 have special student membership rates

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

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 advantage or gain General benefits Specific benefits

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

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

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

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