1. CHAPTER 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
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3. Learning Objectives
Discuss the most important kinds of product and company information that salespeople use in creating product solutions
Describe how knowledge of competition improves personal selling
List major sources of product information
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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.”
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5. Strategic/Consultative Selling Model
FIGURE
6.1
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6. Selling 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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7. Tailoring the Product Strategy
The product strategy should be tailored to the customer’s buying needs:
Transactional Buyers
Consultative
Strategic Alliance
Standard or generic items
Hidden features
High cost importance
Understand their own product needs
Differentiated choices
Limited substitutability
Product can be easily substituted
Customizable
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8. BUSCH
See the Website
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9. Explosion of Product Options
Domestic and global markets overflowing
More than 30,000 consumer products are turned out each year
The good news is: buyers have a choice
The bad news is: with more choices, buying process is more complicated
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10. Product Configuration
Product selection process is often referred to as “product configuration”
Product configuration software
Develops customized product solutions quickly and accurately
Incorporates customer selection criteria
Identifies options, pricing, delivery schedules
Can integrate with Customer Relationship Management applications
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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
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12. Becoming a Product Expert
Product development and quality improvement processes
Performance data and specifications
Maintenance and service contracts
Price and delivery
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13. 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
6-13

14. Performance Data and Specifications
Most clients are 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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15. Sea Ray Boats: Maintaining high levels of quality
See the Website
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16. 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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17. 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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18. Quantifying the Solution
Process of determining if 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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19. Cost-Benefit Analysis
TABLE
6.1
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20. 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
Many prospects use a firm’s past performance as index for current products/services
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21. GEAR for Sports See the Website
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22. UPS, Inc.
“The strategies change and the purpose changes, but the values never change.” Michael L. Eskew, chairman and CEO, UPS, Inc.
See the Website
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23. 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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24. Your Attitude Toward Your Competition
Avoid referring to the competition during sales presentations
Never discuss the competition unless you have your facts straight
Never criticize the competition
Be prepared to add value
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25. Be an Industry Expert
Salespeople need to become an expert in the 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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26. 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
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27. Sources of Product Information
Product literature, catalogs, web-based sources
Plant tours
Internal sales and sales support team
Customers
The product itself
Trade and technical publications
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28. 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 FedEx
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29. 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
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30. Adding Value with a Feature: Benefit Strategy
Successful sales presentations translate product features into benefits that meet a specific need
Only when a product feature is converted into a buyer benefit does it make an impact
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31. Adding Value with a Feature: Benefit Strategy
Distinguish between features and benefits
Use bridge statements
Statements that connect features to benefits
Identify features and benefits
Avoid information overload
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32. Key Concept Discussion Questions
Explain the importance of developing a product strategy
Describe product configuration
Identify why salespeople and customers benefit from thorough product knowledge
Discuss the most important kinds of product and company information needed to create product solutions
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

33. Key Concept Discussion Questions
Describe how knowledge of competition improves personal selling
List major sources of product information
Explain how to add value with a feature- benefit strategy
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

34. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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Copyright © 2010 Pearson Education, Inc.  
Publishing as Prentice Hall