Weekly Assignment of MKTG430

1. In our Consultative-Strategic Selling Model, define the term “Product Strategy” as explained in Chapter 6?

2. What can a sales personnel do in order to become a person with Product Expertise in the product/s they are selling?

3. Briefly explain the term “Product Configuration”.

4. Explain the difference between a feature and a benefit of a product. Support your answer with an example.

5. What is a bridge statement? Support your answer with an example that is different from the ones illustrated by your Professor in Chapter 6.

6. List out the common sources of Product Information as described in this lecture.

Selling Today

Fourteenth Edition

Chapter 6

Creating Product Solutions

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ALWAYS LEARNING
Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved

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Product Strategy Defined
“The product strategy is a well-conceived plan that emphasizes becoming a product expert, selling benefits, and configuring value-added solutions.”
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e.g. Ritz Camera

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Strategic/Consultative
Selling Model
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FIGURE
6.1

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Tailoring the Product Strategy
Transactional Buyers Consultative Strategic Alliance
Standard or generic items Hidden features High cost importance
Understand their own product needs Differentiated choices Limited substitutability
Product can be easily substituted Customizable

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The product strategy should be tailored to the customer’s buying needs:

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Product Configuration
Product selection process is often referred to as “product configuration”
Product configuration software
Develops customized product solutions quickly and accurately (built your own bmw) my car
Incorporates customer selection criteria
Identifies options, pricing, delivery schedules
Can integrate with Customer Relationship Management applications
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Written Proposals
Many clients ask for written proposals and some provide detailed guidelines
Most written proposals include:
Budget and overview
Objective
Strategy
Schedule
Rationale
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e.g. proposals prepared for consultancy work

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Becoming a Product Expert
Product development and quality improvement processes
Performance data and specifications
Maintenance and service contracts
Price and delivery
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Be good in the following:

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Product Development and Quality Improvement
Development
Be familiar with product history
Know stages of product testing
Link key features and customer needs
Quality
Quality control involves measuring against standards
Extensive sales-force training is key element of quality control
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Performance Data and Specifications
Most clients are interested in product performance and specifications
Salespeople must be prepared to answer performance-related questions
Data often critical when customer compares various products
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Sales persons must have good product knowledge & be passionate about
the products /services they are selling: Youtube video

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Maintenance and Service Contracts
Provide service-related information in proposal and/or at the time of sale
Understand customer’s service and maintenance requirements
Customized service agreements add value
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Price and Delivery
Clients expect salespeople to be well-versed in price and delivery policies
Giving salespeople price and delivery decision power yields strong position
Price objections often common barrier to closing the sale
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Quantifying the Solution
Process of determining if proposal adds value
Conduct a cost-benefit analysis using costs and anticipated savings
See Table 6.1 for an example (next slide)
Calculate a return on investment
Key decision makers respond favorably to ROI
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Cost-Benefit Analysis
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TABLE
6.1

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Know Your Company
Salespeople sell their company as much or more than they sell a product
Organizational culture is a collection of beliefs, behaviors, and work patterns common to a firm’s employees
Many prospects use a firm’s past performance as index for current products/services
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Know Your Competition
Acquiring knowledge of the competition is an important step
Knowing strengths and weaknesses of competing products allows you to emphasize your benefits
Prospects do raise questions about competition—be prepared to answer
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Your Attitude Toward
Your Competition
Avoid referring to the competition during sales presentations
Never discuss the competition unless you have your facts straight
Never criticize the competition
Be prepared to add value
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Be an Industry Expert
Salespeople need to become an expert in the industry they represent
Need to move beyond product specialist to business analyst
Knowledge of industry must be both current and detailed
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e.g. Electrolux vacuum cleaner sales personnel
are well-trained to provide information
about healthcare industry

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Sources of Product Information
Product literature, catalogs, web-based sources
Plant tours
Internal sales and sales support team
Customers
The product itself
Trade and technical publications
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Benefits Not Features
“I don’t think that we understood our real goal when we first started Federal Express. We thought that we were selling the transportation of goods; in fact, we were selling peace of mind.”
— Frederick Smith, founder of FedEx
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Youtube video

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Features and Benefits
A feature is data, facts, or characteristics of your product or service
A benefit is whatever provides the customer with a personal advantage
or gain
General benefits
Specific benefits
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e.g. hybrid cars – MPG (feature) vs. $$ (benefit)
e.g. @50 miles a gallon for 1000 miles a month of usage, gas consumption is 20 gallons

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Adding Value with a Feature:
Benefit Strategy
Successful sales presentations translate product features into benefits that meet a specific need
Only when a product feature is converted into a buyer benefit does it make an impact

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e.g. Accounting Software

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Adding Value with a Feature:
Benefit Strategy
Distinguish between features and benefits
Use bridge statements
Statements that connect features to benefits
Identify features and benefits
Avoid information overload

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
e.g. selling a new snack food: “This product has been advertised nationally (a feature) , which means you will
benefit from more pre-sold customers (a benefit) ”
e.g. “since this photocopier can copy documents so much faster that other leading brands (a feature), you will
benefit from more time and cost savings (a benefit) for your organization.

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Table 6.2 Feature–Benefit Worksheet
FEATURE BENEFIT
Facilities Blank
The hotel conference rooms were recently redecorated. This means all your meetings will be held in rooms that are attractive as well as comfortable.
All our guest rooms were completely redecorated during the past 6 months and most were designated as nonsmoking rooms. This means your people will find the rooms clean and attractive. In addition, they can easily select a nonsmoking room.
Food Services Blank
We offer four different banquet entrees prepared by Ricardo Guido, who was recently selected Executive Chef of the Year by the National Restaurant Association. This means your conference will be enhanced by delicious meals served by a well-trained staff.
Our hotel offers 24-hour room service. This means your people can order food or beverages at their convenience.

Table 6.2 shows how salespeople employed by a hotel can enhance the sales presentation by converting features to benefits.
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Table 6.3 Feature–Benefit Worksheet
FEATURE BENEFIT
Our company has . . . This means for you . . .
1. The best selection of motors in the area Choice of the best models to interface with your current equipment
Equipment operates more efficiently

2. Certified service technicians Well-qualified service personnel keep your equipment in top running condition
Less downtime and higher profits

Table 6.3 shows how company features are translated into customer benefits.
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