creating product solutions concepts and practices
TRANSCRIPT
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CREATING PRODUCT SOLUTIONS
Concepts and Practices
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Product Strategy Defined6-2
“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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Strategic/ConsultativeSelling Model
FIGURE 6.1
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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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Tailoring the Product Strategy The product strategy should be tailored
to the customer’s buying needs
FIGURE 6.2
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Tabasco
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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
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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!
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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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As a Salesperson,You Need to Know:
Your products
Your company and its policies
Your competition and industry
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Product Information Categories
Product development and quality improvement processes
Performance data and specifications
Maintenance and service contracts
Price and delivery
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Product Development and Quality Improvement
Development 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
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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
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Sea Ray Salespeople Know the Product
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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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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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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
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Cost-Benefit Analysis
TABLE 6.1
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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
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GEAR for Sports
See the Website
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Edward Jones’ Past Performance
See the Website
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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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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?”
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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
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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
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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 havespecial student membership rates
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Sources of Product Information
Product literature, catalogs, Websites Plant tours Internal sales and sales support team Customers The product itself Trade publications
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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 advantageor gain General benefits Specific benefits
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Slipit Features and BenefitsVisit the Website to see how Slipit translates features into benefits
See the Website
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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
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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
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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