6-1 Creating Product Solutions Selling Today 10 th Edition CHAPTER Manning and Reece 6

6-2 Product Strategy Defined “The product strategy is a well-conceived plan that emphasizes becoming a product expert, selling benefits, and configuring value-added solutions.”

6-3 Strategic/Consultative Selling Model FIGURE 6.1

6-4 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

6-5 Tabasco

6-6 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!

6-7 Written 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: Your products Your company and its policies Your competition and industry

6-9 Product 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 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

6-11 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 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 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 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 Performance See the Website

6-16 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

6-17 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

6-18 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

6-19 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

6-20 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 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

6-22 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