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CHAPTER6CreatingProductSolutionsLearningObjectivesExplaintheimportanceofdevelopingaproductstrategyDescribeproductconfigurationIdentifyreasonswhysalespeopleandcustomersbenefitfromthoroughproductknowledgeCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallLearningObjectivesDiscussthemostimportantkindsofproductandcompanyinformationthatsalespeopleuseincreatingproductsolutionsDescribehowknowledgeofcompetitionimprovespersonalsellingListmajorsourcesofproductinformationCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallProductStrategyDefined “Theproductstrategyisawell-conceivedplanthatemphasizesbecomingaproductexpert,sellingbenefits,andconfiguringvalue-addedsolutions.〞Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallStrategic/Consultative

SellingModelCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallFIGURE6.1SellingSolutionsAremutuallysharedanswerstorecognizedcustomerproblemsAremoreencompassing thanspecificproductsProvidemeasurable resultsRequireagreater efforttodefineanddiagnosethecustomer’sproblemsCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallTailoringtheProductStrategyTransactionalBuyersConsultativeStrategicAllianceStandardorgenericitemsHiddenfeaturesHighcostimportanceUnderstandtheirownproductneedsDifferentiatedchoicesLimitedsubstitutabilityProductcanbeeasilysubstitutedCustomizableCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallTheproductstrategyshouldbetailoredtothecustomer’sbuyingneeds:BUSCHCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallSeethe

WebsiteExplosionofProductOptionsDomesticandglobalmarketsoverflowingMorethan30,000consumerproductsareturnedouteachyearThegoodnewsis:buyershaveachoiceThebadnewsis:withmorechoices,buyingprocessismorecomplicatedCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallProductConfigurationProductselectionprocessisoftenreferredtoas“productconfiguration〞ProductconfigurationsoftwareDevelopscustomizedproductsolutionsquicklyandaccuratelyIncorporatescustomerselectioncriteriaIdentifiesoptions,pricing,deliveryschedulesCanintegratewithCustomerRelationshipManagementapplicationsCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallWrittenProposalsManyclientsaskforwrittenproposalsandsomeprovidedetailedguidelinesMostwrittenproposalsinclude:BudgetandoverviewObjectiveStrategyScheduleRationaleCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallBecomingaProductExpertProductdevelopmentandqualityimprovementprocesses PerformancedataandspecificationsMaintenanceandservicecontractsPriceanddeliveryCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallProductDevelopmentandQualityImprovementDevelopmentBefamiliarwithproducthistoryKnowstagesofproducttestingLinkkeyfeaturesandcustomerneedsQualityQualitycontrolinvolvesmeasuringagainststandardsExtensivesales-forcetrainingiskeyelementofqualitycontrol 6-13PerformanceDataandSpecificationsMostclientsareinterestedinproductperformanceandspecificationsSalespeoplemustbepreparedtoanswerperformance-relatedquestionsDataoftencriticalwhencustomercomparesvariousproductsCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHall

SeaRayBoats:Maintaininghighlevelsofquality

Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallSeethe

WebsiteMaintenanceandServiceContractsProvideservice-relatedinformationinproposaland/oratthetimeofsaleUnderstandcustomer’sserviceandmaintenancerequirementsCustomizedserviceagreementsaddvalueCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallPriceandDeliveryClientsexpectsalespeopletobewell-versedinpriceanddeliverypoliciesGivingsalespeoplepriceanddeliverydecisionpoweryieldsstrongpositionPriceobjectionsoftencommonbarriertoclosingthesale

Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallQuantifyingtheSolutionProcessofdeterminingifproposaladdsvalueConductacost-benefitanalysisusingcostsandanticipatedsavingsSeeTable6.1foranexample(nextslide)CalculateareturnoninvestmentKeydecisionmakersrespondfavorablytoROICopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallCost-BenefitAnalysisCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallTABLE6.1KnowYourCompanySalespeopleselltheircompanyasmuchormorethantheysellaproductOrganizationalcultureisacollectionofbeliefs,behaviors,andworkpatternscommontoafirm’semployeesManyprospectsuseafirm’spastperformanceasindexforcurrentproducts/servicesCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallGEARforSportsCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallSeetheWebsiteUPS,Inc.

SeetheWebsite“Thestrategieschangeandthepurposechanges,butthevaluesneverchange.〞

MichaelL.Eskew,chairmanandCEO,UPS,Inc.Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallKnowYourCompetitionAcquiringknowledgeofthecompetitionisanimportantstepKnowingstrengthsandweaknessesofcompetingproductsallowsyoutoemphasizeyourbenefitsProspectsdoraisequestionsaboutcompetition—bepreparedtoanswerCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallYourAttitudeToward

YourCompetitionAvoidreferringtothecompetitionduringsalespresentations

NeverdiscussthecompetitionunlessyouhaveyourfactsstraightNevercriticizethecompetitionBepreparedtoaddvalueCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallBeanIndustryExpertSalespeopleneedtobecomeanexpertintheindustrytheyrepresentNeedtomovebeyondproductspecialisttobusinessanalystKnowledgeofindustrymustbebothcurrentanddetailedCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallIndustryExpertise:

It’sNeverTooEarlyProcessoftenstartsincollegeexperienceReadtradejournalsRegularlyattendindustry

seminarsandconventionsBecomeactiveinindustry

associationsCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallSourcesofProductInformationProductliterature,catalogs,web-basedsourcesPlanttoursInternalsalesandsalessupportteamCustomersTheproductitselfTradeandtechnicalpublicationsCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallBenefitsNotFeatures “Idon’tthinkthatweunderstoodourrealgoalwhenwefirststartedFederalExpress.Wethoughtthatweweresellingthetransportationofgoods;infact,weweresellingpeaceofmind.〞—FrederickSmith,founderofFedExCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallFeaturesandBenefitsAfeatureisdata,facts,orcharacteristicsofyourproductorserviceAbenefitiswhateverprovidesthecustomerwithapersonaladvantage

orgainGeneralbenefitsSpecificbenefitsCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallAddingValuewithaFeature:

BenefitStrategySuccessfulsalespresentationstranslateproductfeaturesintobenefitsthatmeetaspecificneedOnlywhenaproductfeatureisconvertedintoabuyerbenefitdoesitmakeanimpactCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallAddingValuewithaFeature:

BenefitStrategyDistinguishbetweenfeaturesandbenefitsUsebridgestatementsStatementsthatconnectfeaturestobenefitsIdentifyfeaturesandbenefitsAvoidinformationoverloadCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHall

KeyConcept

DiscussionQuestions

Explaintheimportanceofdevelopingaproductstrategy

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