1. CREATING PRODUCT SOLUTIONS
Concepts and Practices

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

3. Strategic/Consultative Selling Model
FIGURE
6.1

4. 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

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

6. Tabasco

7. 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

8. 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!

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

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

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

12. 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

13. 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

14. Sea Ray Salespeople Know the Product

15. 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

16. 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

17. 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

18. Cost-Benefit Analysis
TABLE
6.1

19. 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

20. GEAR for Sports
See the Website

21. Edward Jones’ Past Performance
See the Website

22. 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

23. 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?”

24. 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

25. 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

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; many have special student membership rates

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

28. 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

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

30. 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

31. 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

32. 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