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Chapter 6
CREATING PRODUCT SOLUTIONS
Chapter 6 begins Part 3 of the text, Developing a Product Strategy, which examines the
important role of complete and accurate product, company, and competitive knowledge in
personal selling. Lack of knowledge in these areas impairs the salesperson’s ability to configure
value-added solutions. Part 3 also describes several value-added selling strategies.
EXTENDED PRESENTATION OUTLINE
Salespeople serve as ambassadors for employers, providing what is often the only direct
source of information the prospect has about the company. Information about the company can
be a strong appeal during the sales presentation, particularly when products are very similar.
Being thoroughly acquainted with their product is also necessary for a successful sales plan.
Well-informed salespeople also have adequate knowledge of the competition.
As part of the Reality Selling Today Video Series, this chapter features Amy Vandaveer
from the TexasMonthly magazine, selling advertising and sales promotion.
I. Developing Product Solutions That Add Value
A. Product strategy
1. Helps salespeople make correct decisions concerning the selection and positioning of
products to meet identified customer needs.
2. Is a well-conceived plan that emphasizes becoming a product expert, selling specific
benefits, and configuring value-added solutions (see Figure 6.1)
B. Selling solutions
1. A solution is a mutually shared answer to a recognized customer problem.
2. A solution is often more encompassing than a specific product.
3. A solution provides measurable results such as greater productivity, increased profits,
or less employee turnover.
4. Selling a solution usually requires a greater effort to define and diagnose the
customer’s problem.
5. Solution selling is 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.
6. Most salespeople have adopted a broad definition of the term product.
a. Broadly interpreted to encompass information, services, ideas, and tangible
products.
b. Or some combination of these that satisfy the customer’s needs with the right
solution.
C. Tailoring the product solution (see Figure 6.2)
1. A product strategy should be tailored to the customer’s buying needs.
2. Transactional buyers are usually well aware of their needs.
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3. The consultative buyer may lack needs awareness and will usually welcome need
clarification.
4. Developing a product strategy for the strategic alliance customer usually offers the
greatest challenge.
D. Explosion of product options
1. The domestic and global markets are overflowing with a vast array of goods and
services.
2. Important role of salesperson is to simplify the customer’s study of product choices.
3. So much variety creates a “good news–bad news” situation.
a. Good news is that almost all buyers have a choice when it comes to purchasing a
product or service.
b. Bad news is that so many choices often complicate the buying process.
c. One of the most important roles of the salesperson is to simplify the customer’s
study of the product choices.
4. Creating solutions with product configuration
a. 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 buying problem.
b. Salesperson may have to bring together many parts of the company’s product mix
to develop a custom-fitted solution.
c. Product configuration is the product selection process.
d. Many companies use product configuration software because:
1) It develops customized product solutions quickly and accurately.
2) Incorporates product-selection criteria and associates them directly with
customer requirements.
e. Product configuration considers product options, prices, delivery schedules, and
other parts of the product mix while working.
f. Software can help salespeople with the product configuration.
g. A major element of product configuration is quotation management.
E. Preparing written proposals
1. Written proposals are part of the product strategy.
2. Can be defined as a specific plan of action based on the facts, assumptions, and
supporting documentation included in the sales presentation.
3. Well-written proposals add value to the product solution.
4. Offers the buyer reassurance that you will deliver what has been promised.
5. Written proposals include:
a. Budget and overview: Tell the prospect the cost of the solution you have
prescribed.
b. Objective: The objective should be expressed in terms of benefits.
c. Strategy: Briefly describe how you will meet your objective.
d. Schedule: Establish a time frame for meeting your objective.
e. Rationale: Present your rationale for taking action now.
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II. Becoming a Product Expert
A. Major challenges faced by salespeople:
1. Winning the customer’s trust
2. Product knowledge as the number-one characteristic of salespeople who are able to
build trust
3. A salesperson possesses product knowledge that meets and exceeds customer
expectations, increasing sales effectiveness and willingness to pay.
4. Recognized expert in any field is frequently “sought out by others, thereby in selling,
1. In product development the original idea for a product is tested, modified, and
retested before being offered to the customer.
2. Salespeople should be familiar with product development history, which often this
information sets the stage for stronger sales appeals.
3. Quality improvement continues to be an important long-term business strategy for
most successful companies.
4. Quality control involves measuring products against established standards.
5. Companies can confirm their quality control through ISO 9000 and 9002 certification.
C. Performance data and specifications
1. Most potential buyers are interested in performance data and specifications.
2. Performance data can be critical in cases in which the customer is attempting to
compare the merits of one product with another.
3. Salesperson must be prepared to address these types of questions in the written sales
proposal and the sales presentation.
4.
Performance data are especially critical in cases in which the customer is attempting
to compare the merits of one product with another.
5.
Comparative performance data may be supplied by testing programs.
D. Maintenance and service contracts – servicing the sale
1. Prospects often want written information regarding maintenance and care
requirements.
2. The salesperson that can quickly and accurately provide this information has the
edge.
3. Service agreements add value to the sale.
4. Many salespeople are developing customized service agreements that incorporate the
customer’s special priorities, feelings, and needs.
5. Customized service agreements add value to the sale and help protect your business
1. Potential buyers expect salespeople to be well versed in price and delivery policies
and be in a position to set prices and plan deliveries.
2. Professional salespeople should be able to supply accurate price and delivery
information about their products and competing ones.
3. The ability to set prices puts the salesperson in a stronger position.
4. Decision-making authority in the area of pricing gives the salesperson more power
and responsibility.
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5. Price objections represent one of the most common barriers to closing a sale, so
1. The price quotation should be accompanied by information that creates value in the
mind of the customer.
2. The process of determining whether or not the proposal adds value is often called
quantifying the solution.
3. Quantifying the solution often involves a carefully prepared cost-benefit analysis.
(Table 6.1)
4. ROI (Return on Investment)
a. Another way to quantify the solution is to calculate return on investment (ROI).
b. As products and services become more complex and expensive, customers are
1. Company itself can have strong appeal in sales presentation.
2. Especially true when the customer is considering a strategic alliance.
3. Selling the company as much as the product.
B. Company culture and organization
1. Character and integrity are hallmarks of a successful sales organization. (see Chapter
5)
2. Organizational culture is a collection of beliefs, behaviors, and work patterns held
in common by people employed at a specific firm.
3. Research indicates the customer orientation of a firm’s salespeople is influenced by
organization’s culture.
4. Supportive culture that encourages salespeople to offer tailor-made solutions to buyer
problems sets the stage for long-term partnerships.
5. Many prospects will use the past performance of a company to evaluate the quality of
1. Progressive marketers support the products they sell.
2. Company support after the sale is also very important.
3. Keep in touch with customers to determine if they are satisfied – “service after the
sale” theme.
4. Involving workers in product support increases their commitment.
5. Postsale follow-up raises the workers’ commitment to the customer.
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Copyright © 2018 Pearson Education, Inc.
IV. Become the Industry Expert – Know Your Competition
A. The influence of competition
1. Acquiring knowledge of your competition is another important step toward
developing complete product knowledge.
2. Salespeople who have knowledge of their competitor’s strengths and weaknesses are
better able to emphasize the benefits they offer and add value.
3. Salespeople need to become experts in the industry they represent.
B. Developing and communicating a healthy attitude toward your competition
1. Regardless of how impressive your product is customers naturally seek information
about competing products and companies.
2. You must acquire facts about competing products before the sales presentation.
3. Every salesperson should develop a set of basic beliefs about the best way of dealing
with competing products.
1) Be prepared to neutralize the competitor’s proposal with a value-added
approach.
2) Customers appreciate an accurate, fair, and honest presentation of the facts.
3) Avoid mudslinging: Customers generally resent highly critical remarks about
1. This information is usually quite instructional, and salespeople should review it
carefully.
2. To save salespeople time, many companies give them computer software that
provides a constantly updated, online product catalog.
3. Often prepared by the company; provides detailed descriptions of the products.
4. May be in the form of brochures, catalogs, labels, or advertisements.
5. Some companies are using interactive distance learning (delivered via satellite) to
1. First-hand viewing will provide valuable product knowledge and increase the
salesperson’s enthusiasm for the product.
2. A new salesperson may spend several days studying the production process.
3.
Experienced personnel within the organization also can benefit from plant tours.
C. Build strong relationships with internal sales and sales support team members.
1. Team selling has become more common, because many complex sales require the
expertise of several sales and sales support personnel.
2. Expertise in the areas of product design, finance, or transportation may be needed to
develop an effective sales proposal
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D. Today’s wired customers have a lot of product, competitive, and industry knowledge.
1. Persons who actually use the product can be an important source of information
toward improved sales performance.
2. Can provide objective assessment of the product’s strengths and weaknesses.
3. Testimonials from satisfied customers can be collected and made available to sales
1. The product itself should not be overlooked as a source of valuable information.
2. Investigation, use, and careful evaluation of the product and its competition will
1. Trade and technical publications, popular magazines, and the business section of the
2. Publications such as Consumer Reports test products extensively and report the
1. It is generally not possible for salespeople to know too much about their products and
services.
2. Salespeople should be careful not to overwhelm the potential buyer with facts and
figures or knowledge that is above the prospect’s level of understanding.
3. In order to avoid overwhelming the potential buyer, salespeople should adopt the
feature/benefit strategy.
1.
“You are talking the customer’s talk” with solution–oriented statements that make an
impact on the customer.
1. Feature: data, facts, or characteristics of your product or service
a. Often relate to craftsmanship, design, durability, and economy of operation.
2. A benefit is whatever provides the customer with a personal advantage or gain.
E. See general versus specific benefits.
1. Neil Rackham, author of The Spin Selling Fieldbook, says that a statement can only
be a benefit if it meets a specific need expressed by the buyer.