Mastering Product Solutions for Sales Success in the Modern Market

1. 9TH EDITION Selling Today Manning and Reece CHAPTER 5 CREATING PRODUCT SOLUTIONS PART III

2. LEARNING OBJECTIVES-1 • Explain importance of developing product strategy • Describe product configuration • Identify why sales people and customers benefit via thorough product knowledge • Discuss important kinds of product information sales people use to create product solutions

3. LEARNING OBJECTIVES-2 • Describe how knowledge of competition improves personal selling • List major sources of product information • Explain difference between product features and buyer benefits • Demonstrate translating product features into buyer benefits

4. PRODUCT STRATEGYDEFINED ”The product strategy is a well-conceived plan that emphasizes becoming a product expert, selling benefits, and configuring value-added solutions.”

5. STRATEGIC/CONSULTATIVESELLING MODEL Figure 5.1

6. EXPLOSION OF PRODUCT OPTIONS • Over 30,000 consumer products are turned out each year • GOOD NEWS is greater consumer choice • BAD NEWS is with more choice, buying process is more complicated

7. PRODUCT CONFIGURATION • Shows how different parts of your product mix can combine to solve the customer’s problem • Software for product configuration • Can integrate with contact management software like ACT! • Incorporates customer selection criteria • Identifies options, pricing, delivery schedules

8. WRITTEN PROPOSALS • Many clients ask for written proposals and some provide detailed guidelines • Most written proposals include • Overview and Budget • Objective • Strategy • Schedule • Rationale

9. YOUR PRODUCTS YOUR COMPANY & ITS POLICIES NEED TO KNOWS YOUR COMPETITION & INDUSTRY

10. PRODUCT INFORMATION CATEGORIES • Product development and quality improvement processes • Product configuration • Performance data and specifications • Maintenance and service • Price and delivery

11. DEVELOPMENT --Be familiar with product history --Know stages of product testing --Link key features & customer needs QUALITY --Quality control involves measuring against standards --Extensive sales-force training is key element of quality control PRODUCT DEVELOPMENT AND QUALITY IMPROVEMENT

12. PERFORMANCE DATA AND SPECIFICATIONS • Most clients interested in product performance and specifications • Sales people must be prepared to answer performance-related questions • Data often critical when customer compares various products

13. MAINTENANCE AND SERVICE CONTRACTS • Provide service-related information in proposal and/or at time of sale • Understand customer’s service and maintenance requirements • Customized service agreements add value

14. PRICE AND DELIVERY • Clients expect salespersons to be well versed in price and delivery policies • Giving salespersons price and delivery decision power yields strong position • Price objections often common barrier to closing sale

15. QUANTIFYING SOLUTION • Process of determining whether the proposal adds value • Conduct cost-benefit analysis • See Table 5.1 for example

16. KNOW YOUR ORGANIZATION • As closest-contact salesperson represents organization’s culture • Organizational “culture” is collection of beliefs, behaviors, and work patterns common to firm’s employees • Many prospects use a firm’s past performance as index for current products/services

17. GEAR Figure 5.2

18. KNOW COMPETITION AND INDUSTRY • Acquiring knowledge of competition key step • Knowing strengths and weaknesses of competing products allows you to emphasize your benefits • Prospects do raise questions about competition

19. Avoid referring to competition during sales presentations Never discuss competition unless you have facts straight Avoid criticizing competition Be prepared to neutralize competitor proposals by adding value to yours HANDLING COMPETITION

20. Sales people need to become expert in industry they represent Need to move beyond product specialist to business analyst Knowledge of industry must be both current and detailed BE AN INDUSTRY EXPERT

21. APPLICATION: INDUSTRYEXPERTISE • 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

22. SOURCES OF PRODUCT INFORMATION • Product literature • Sales training programs • Plant tours • Internal sales/support team • Customers • Product itself • Trade publications

23. Statements or transitional phrases linking features to benefits 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 STATEMENTS

24. PRODUCT FEATURE VERSUS PRODUCT BENEFIT PRODUCT FEATURE CAN BE SEEN, FELT, MEASURED PRODUCT BENEFIT PROVIDES ADVANTAGE OR GAIN …DEFINED BY THE CUSTOMER

25. FEATURE 30 MILES PER GALLON DUAL AIRBAGS DISK BRAKES JAPANESE ENGINEERING 100,000-MILE WARRANTY BENEFIT? APPLICATION: CONVERT AUTO FEATURES TO BENEFITS Also see Table 5.2 in text.

26. BENEFITS NOT FEATURES ”I don’t think that we understood our real goal when we first started Federal Express. We (initially) thought we were selling the transportation of goods; in fact, we were selling peace of mind.” Frederick Smith, Founder, Federal Express Last slide Chapter 5.