CHAPTER 6: Creating Product Solutions - Amazon S3

[Pages:5]CHAPTER 6: Creating Product Solutions Strategic/Consultative Selling Model:

Developing a product solution that adds value: Product Strategy ? a wellconceived plan for sales that emphasizes acquiring extensive product knowledge, learning to select and communicate appropriate product benefits that will appeal to the customer, and creating valueadded solutions Product ? information, services, ideas, tangible products, or some combination of these that satisfies the customer's needs, with the right solution Solution ? a mutually shared answer to a recognized customer problem Solution Selling ? a process by which the salesperson uncovers and clarifies a customer's problem, works with the customer to create a vision of how things could be better, and then develops a plan for implementing the vision. With a complex product, it is knowledge and expertise that create value

Tailoring the Product Strategy:

The Explosion of Product Options: One of the most important roles of the salesperson is to simplify the customer's study of the product choices. Good News: Almost all buyers have a choice when it comes to purchasing a product or service Bad News: Having too many choices often complicates the buying process Creating Solutions with Product Configuration: The challenge facing both customers and salespeople in this era of information overload is deciding which product applications, or combination of applications, can solve the customer's buying problem Product Configuration ?the solution of complex buying needs; for instance, when the salesperson brings together many different parts of the company's product mix or uses specialized software to develop a customfitted solution Major element is quotation management Preparing Written Proposals: Written proposal ? a specific plan of action based on the facts, assumptions, and supporting documentation about a buying solution that are included in the sales presentation Varies in content, format, and length Offers buyer reassurance Adds value when wellwritten Most effective proposals include: 1.Budget and overview ? clearly laid out 2.Objectives ? specific 3.Strategies ? how to meet the objectives 4.Schedules ? implementation timeframes 5.Rationales ? to act now Should be addressed to the "invisible" customer Writing Effective Sales Letters Selling today:

1)Follow the standard visual format of a business letter 2)Provide balanced white space bordering the entire letter 3)Proper use of business punctuation 4)Three paragraphs long 5)Proper grammar and spelling 6)Focused on customer's needs Becoming a Product Expert: The number one characteristic of salespeople who are able to build trust is product knowledge Level must meet and exceed customer expectations to increase sales effectiveness and willingness to pay Most common product information categories are: 1)Product development and quality improvement processes, 2)Performance data and specifications, 3)Maintenance and service contracts, and 4)Price and delivery. Product Development ? the testing, modifying, and retesting of an idea for a product several times before offering it to the customer Salespeople need to identify processes for quality improvement that provide a competitive advantage Be prepared to discuss Quality Control ? the evaluation or testing of products against established standard Important sales appeal when used to convince a prospect of a product's quality International Standards Organization (ISO) assures customers of a high level of quality service through certification Most potential buyers are interested in performance data and specifications (Salesperson must be prepared to address this in sales proposals and presentations) Proper maintenance and service contracts will usually extend the life of a product so should be provided (Development of customized services) Potential buyers expect salespeople to be well versed in price and delivery policies and be in a position to plan Quantifying the solution ? process of determining if a sales proposal adds value

CostBenefit Analysis Return on Investment (ROI) Know Your Company

Organizational Culture ? is a collection of beliefs, behaviours, and work patterns held in common by people employed by a specific firm Key with a strategic alliance Supportive culture that encourages salespeople to offer tailormade solutions to buyer problems will set the stage for longterm partnerships Support for the product is also key Know Your Competition Helpful guidelines: 1)Do not refer to competition 2)Never discuss the competition unless you have all your facts straight 3)Never criticize the competition 4)Be prepared to add value Customers appreciate an accurate, fair, and honest presentation of the facts from an industry expert Sources of Product Information Product Literature, Catalogues, and WebBased Sources Plant Tours Internal Sales and Sales Support Team Members Customers Product Publications Word of Caution: Communication problems can arise if the salesperson does not accurately gauge the prospect's level of understanding Do not overwhelm the potential buyer with facts and figures Adopt the featurebenefit strategy Adding Value With A FeatureBenefit Strategy Successful sales presentations translate product features into benefits that meet a specific need expressed by the customer Only then does it have impact on the customer

Distinguish between Features and Benefits Feature: data, facts, or characteristics of a product or service Often relate to craftsmanship, design, durability, and economy of operation Answers the question "what is it?" Benefit: whatever provides the consumer with personal advantage or gain Answers the question "how will I benefit from owning or using the product?" General Benefit: an advantage statement developed for a feature Included in a sales presentation even when the buyer has not expressed a need Specific Benefit: when it fulfills a specific need expressed by the buyer Effective in large and complex sales Bridge Statement: a transitional phrase that connects one or more product features with potential customer benefits Permits customers to connect the features of the product to the benefits they will receive Use of advantages can do this Advantage: "what the feature does" Logical threestep approach: 1)Identify all important features and arrange in logical order 2)Write beside each feature the most important benefit for the customer 3)Prepare a series of bridge statements to connect features with benefits Avoid information overload: Data Dump ? salespeople who love their products and possess vast product knowledge overload customers with data they neither need nor want Once the needs are known, a customized sales presentation should be developed with specific benefits

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