9TH EDITION
Manning and Reece
CHAPTER 5
CREATING PRODUCT
SOLUTIONS
PART III
5-1
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
5-2
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
5-3
PRODUCT STRATEGY
DEFINED
”The product strategy is a wellconceived plan that emphasizes
becoming a product expert, selling
benefits, and configuring valueadded solutions.”
5-4
STRATEGIC/CONSULTATIVE
SELLING MODEL
Figure 5.1
5-5
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
5-6
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
5-7
WRITTEN PROPOSALS
Many clients ask for written
proposals and some provide
detailed guidelines
Most written proposals include
–
–
–
–
–
Overview and Budget
Objective
Strategy
Schedule
Rationale
5-8
NEED TO KNOWS
YOUR PRODUCTS
YOUR COMPANY & ITS POLICIES
YOUR COMPETITION & INDUSTRY
5-9
PRODUCT INFORMATION
CATEGORIES
Product development and quality
improvement processes
Product configuration
Performance data and
specifications
Maintenance and service
Price and delivery
5-10
PRODUCT DEVELOPMENT AND
QUALITY IMPROVEMENT
DEVELOPMENT
--Be familiar with
product history
--Know stages of
product testing
--Link key features &
customer needs
QUALITY
--Quality control
involves measuring
against standards
--Extensive salesforce training is key
element of quality
control
5-11
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
5-12
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
5-13
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
5-14
QUANTIFYING SOLUTION
Process of determining whether the
proposal adds value
Conduct cost-benefit analysis
See Table 5.1 for example
5-15
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
5-16
GEAR
Figure 5.2
5-17
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
5-18
HANDLING COMPETITION
1. Avoid referring to competition
during sales presentations
2. Never discuss competition
unless you have facts straight
3. Avoid criticizing competition
4. Be prepared to neutralize
competitor proposals by adding
value to yours
5-19
BE AN INDUSTRY EXPERT
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
5-20
APPLICATION: INDUSTRY
EXPERTISE
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
5-21
SOURCES OF PRODUCT
INFORMATION
1.
2.
3.
4.
5.
6.
7.
Product literature
Sales training programs
Plant tours
Internal sales/support team
Customers
Product itself
Trade publications
5-22
BRIDGE STATEMENTS
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
5-23
PRODUCT FEATURE VERSUS
PRODUCT BENEFIT
PRODUCT FEATURE
CAN BE SEEN, FELT, MEASURED
PRODUCT BENEFIT
PROVIDES ADVANTAGE OR GAIN
…DEFINED BY THE CUSTOMER
5-24
APPLICATION: CONVERT
AUTO FEATURES TO BENEFITS
FEATURE
30 MILES PER
GALLON
DUAL AIRBAGS
DISK BRAKES
JAPANESE
ENGINEERING
100,000-MILE
WARRANTY
BENEFIT?
Also see Table 5.2 in text.
5-25
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.
5-26