Marketing - Creating Product Solutions

Creating Product Solutions Developing a Product Solution That Adds Value ² Product Strategy – a well-conceived 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 value-added solutions Selling Solutions ² Solution – a mutually shared answer to a recognized customer problem ² More encompassing than a specific product ² Often provides measurable results ² 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. ² Tailoring the Product Strategy ² Transactional: Well aware of needs, Conducted own research, Little product differentiation ² Consultative: Lacks need awareness, different choices, customizable ² Strategic awareness: Time consuming, rewarding, expensive Explosion of Product Options - Good news: almost all buyers have a choice, people like to compare options Bad news: having too many choices often complicates the buying process Creating Solutions with Product Configuration ² 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 ² Product Configuration –the solution of complex buying needs; when the salesperson brings together many different parts of the company’s product mix or uses specialized software to develop a custom-fitted solution ² Requires quotation management Preparing Written Proposals ² 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 ² Varies in content, format, and length ² Offers buyer reassurance ² Adds value when well-written ² An effective proposal includes: ² Budget and overview – clear ² Objective – very specific ² Strategy – how to meet objectives ² Schedule – implementation timeframes ² Rationale – why take action now ² Should address the “invisible” customer Writing Effective Sales Letters 1) 2) 3) 4) 5) 6) Follow the standard visual format of a business letter Provide balanced white space bordering the entire letter Proper use of business punctuation Three paragraphs long Proper grammar and spelling Focused on customer Becoming a Product Expert ² The number one characteristic of salespeople who are able to build trust is level of product knowledge ² 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 and Quality Improvement Processes ² Product Development – the testing, modifying, and retesting of an idea for a product several times before offering it to the customer ² Salespeople need to: ² identify processes for quality improvement that provide a competitive advantage, and ² be prepared to discuss ² Quality Control – the evaluation or testing of products against established standard ² Sales appeal used to convince a prospect of a product’s quality ² International Standards Organization (ISO) assures customers of a high level of quality service through certification Performance Data and Specifications ² Especially critical when the customer is attempting to compare product merits ² Salesperson must be prepared to address this in sales proposals and presentations Maintenance and Service Contracts ² Proper maintenance and service contracts will usually extend the life of a product so should be provided ² Salespeople who can quickly and accurately provide information will have an edge ² Customized agreements add value and protect against competition Price and Delivery ² Decision-making authority in the area of pricing gives the salesperson more power and responsibility ² Quantifying the solution – process of determining if a sales proposal adds value ² Cost-Benefit Analysis ² Return on Investment (ROI) Become a Company Expert ² Key with a strategic alliance buyer ² Organizational Culture – a collection of beliefs, behaviours, and work patterns held in common by people employed by a specific firm ² Supportive culture that encourages salespeople to offer tailor-made solutions to buyer problems will set the stage for long-term partnerships ² Support for the product is also key Become the Industry Expert - 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 ² Customers appreciate an accurate, fair, and honest presentation of the facts from an industry expert Sources of Product, Company, and Industry Information - Web-based catalogues, and other product literature developed by the company - Sales training programs - Plant tours - Internal sales and sales support team members - Customers - Product - Publications Word of Caution: ² Communication problems can arise if the salesperson does not accurately gauge the prospect’s level of understanding ² Do not overwhelm the potential buyer with facts and figures ² Adopt the feature-benefit strategy Creating Value with a Feature-Benefit Strategy ² Successful sales presentations translate product features into benefits that meet a specific need expressed by the customer ² “Talking the customer’s talk” ² Solution-oriented statements make an impact on the customer Distinguish Between Features and Benefits ² Feature – data, facts, or characteristics of a product or service ² Anything the customer can feel, see, hear, taste, smell, or measure ² Often relate to craftsmanship, design, durability, and economy of operation ² Answers the question “what is it?” ² Feature dump – listing a series of features without enabling the customer to see what benefits these features provide ² Benefit –provides the consumer with personal advantage or gain ² “How will I benefit from owning or using the product?” ² “What’s in it for me?” ² General Benefit – shows how a feature can be helpful to a buyer ² Does not relate to a specific need expressed by the buyer ² Specific Benefit – when it fulfills a specific need expressed by the buyer ² Effective in large and complex sales ² Advantages – characteristics (i.e., features) of the product that can be used or will help the buyer ² Should only be included when the buyer has expressed a need for this information ² “What the feature does?” ² Bridge Statement – a transitional phrase that connects one or more product features with potential customer benefits Identify Features and Benefits Logical three step 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 ² Data Dump – salespeople who love their products and possess vast product knowledge overload customers with data they neither need nor want ² Once the needs are known, a customized sales presentation should be developed with specific benefits