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6-1
Creating Product Solutions
Selling TodaySelling Today10th Edition
CH
AP
TE
R Manning and Reece
6
6-2
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.”
6-3
Strategic/ConsultativeSelling Model
Strategic/ConsultativeSelling Model
FIGURE 6.1
6-4
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
6-5
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
6-11
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
6-12
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
6-13
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
6-16
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
6-17
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
6-20
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
6-21
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
6-22
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