Scribd
Upload
12 views

Manning 05

Uploaded by

Astir Le
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
12 views

Manning 05

Uploaded by

Astir Le
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 26

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 well-conceived


plan that emphasizes becoming a product
expert, selling benefits, and configuring
value-added 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
YOURPRODUCTS
PRODUCTS

YOUR
YOURCOMPANY
COMPANY&&ITS
ITSPOLICIES
POLICIES

YOUR
YOURCOMPETITION
COMPETITION&&INDUSTRY
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 QUALITY
--Be familiar with --Quality control involves
product history measuring against
--Know stages of product standards
testing --Extensive sales-force
--Link key features & training is key element
customer needs 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. Product literature
2. Sales training programs
3. Plant tours
4. Internal sales/support team
5. Customers
6. Product itself
7. 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 BENEFIT?
30 MILES PER
GALLON
DUAL AIRBAGS
DISK BRAKES
JAPANESE
ENGINEERING
100,000-MILE
WARRANTY
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

You might also like