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6 Creating Product Solutions

MANNING AHEARNE REECE© Pearson Education Limited 2014

Learning Objectives

• Explain the importance of developing a product strategy

• Describe product configuration

• Identify reasons why salespeople and customers benefit from thorough product knowledge

• Discuss the most important kinds of product and company information needed to create product solutions

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• Describe how knowledge of competition improves personal selling

• List major sources of product information

• Explain how to add value with a feature-benefit strategy

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Learning Objectives (Cont.)

• A product strategy is a well-conceived plan that emphasizes becoming a product expert, selling specific benefits, and configuring value-added solutions

• A product encompasses information, services, ideas, tangible products, or some combination of these that satisfy the customer’s needs with the right solution

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What is a Product Strategy?

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• Transactional

• Consultative

• Customized solution

• Strategic alliance partner

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Tailor the Product Strategy

• Budget and overview

• Objective

• Strategy

• Schedule

• Rationale

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Preparing Written Proposals

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• Visual format

• Proper use of white space

• Proper punctuation

• Proper grammar and spelling

• Minimal use of personal pronouns

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Writing an Effective Sales Letter

• Sender’s address

• Date

• Inside address

• Salutation

• Body of letter

• Complimentary close

• Typed name

• Handwritten signature

• Notation of any enclosures

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Components of a Business Letter

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• Product development and quality improvement processes

• Performance data and specifications

• Maintenance and service contracts

• Price and delivery

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Product Information Categories

Quantifying the Solution with Cost-Benefit Analysis

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Table 6.1

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• What kind of information is needed in most selling situations?

• Company culture and organization• Product information• Past performance

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Become a Company Expert

• Lexus has a statement of values that explain what is important to the company.

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Figure 6.2 Lexus Values

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• Be able to discuss your strengths and weaknesses relative to the competition

• Do not refer to competition directly during sales presentation

• Only discuss competition if you know your facts

• Never criticize the competition

• Be prepared to add value

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Know the Competition

• Web-based sources, catalogs, and marketing-related sales support information

• Plant tours

• Internal sales and sales support team members

• Use the products

• Read and study publications

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Where Can You Find Information?

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• What does Federal Express sell?• Transportation or peace of mind?

• What does Amazon sell?• Products or product assortment and selection?

• What does Starbucks sell?• Coffee or the best 20 minutes of the day?

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Understanding a Feature-Benefit Strategy

• Features include data, facts, and characteristics of product or service

• Benefits include whatever gain is provided to the customer• General• Specific

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Features Versus Benefits

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Feature Benefit

The hotel conference rooms were recently redecorated

All meetings will be held in rooms that are attractive and comfortable

Hotel offers 24-hour room service People can order food and beverages at their convenience, anytime of day or night

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Table 6.2 Feature-Benefit Worksheet

Feature Benefit

Our company has the best selection of motors in the area

This means that you can find the best model of motor to interface with your current equipment

Our company has certified service technicians

Well-qualified service personnel can keep your equipment running in top condition, with less downtime, and higher profits

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Table 6.3 Feature-Benefit Worksheet

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• Why is it important for a salesperson to have a product strategy?

• What is a product configuration?

• Why is it important that a salesperson be a product, company, and industry expert?

• What are the major sources of product information?

• How can we explain feature-benefit strategies?

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For Review