Chapter 6: Creating Product Solutions

Question 1

1. Explain the importance of developing a product strategy.

Answer 1

▸Product Strategy: Emphasizes acquiring extensive product knowledge, learning to select and communicate appropriate product benefits that will appeal to the customer, and creating value-added solutions.
*A Product Strategy helps salespeople make the right decisions concerning the selection and positioning of product to meet specific customer needs.
▸Solution: Mutually shared answer to a recognized customer problem.
▸Solution Selling: Process by which a salesperson uncovers a 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.

Question 2

2. Describe product configuration.

Answer 2

▸Product Configuration: 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 custom-fitted solution.
*Product configuration involves decisions regarding which product applications, or combination of applications can solve the buying problem.

Question 3

3. Identify reasons why salespeople and customers benefit from thorough product knowledge.

Answer 3

*Most common product information categories: 1. Product development and quality improvement process, 2. Performance data and specifications, 3. Maintenance and service contracts, 4. Price and delivery.
▸Product Development: Testing, modifying, and retesting of an idea for a product several times before offering it to the customer.
▸Quality Control: Evaluation or testing of products against established standards. This has important sales appeal when used by the salesperson to convince a prospect of a product’s quality.
*A knowledgeable salesperson is better able to identify and satisfy customer needs. Additional advantages to be gained from product knowledge are greater self-confidence, increased enthusiasm, improved ability to develop stronger selling appeals, and ability to overcome objections.
▸Quantifying the solution: Process of determining if a sales proposal adds value. Quantifying the solution is especially important in situations where the purchase represents a major buying decision.

Question 4

4. Discuss the most important kinds of product and company information needed to create product solutions.

Answer 4

*Salespeople should be product knowledgeable to meet/exceed expectations. Also know product information (product development, quality improvement processes, performance and data specifications, maintenance and service contracts, price and delivery). Information (organizational culture) about the company can be used to develop strong appeals that can enhance the sales presentation.
▸Organizational Culture: collection of beliefs, behaviours, and work patterns held in common by the people employed by a specific firm.

Question 5

5. Describe how knowledge of competition improves personal selling.

Answer 5

• Customers appreciate an accurate, fair and honest presentation of the facts and resent critical remarks about the competition. Fairness is a virtue that people greatly admire. Knowledge of competition’s strength/weaknesses allow salespeople to emphasize on benefits they can offer and add value.
• Attitude towards your competition:
  1. Do not refer to the competition during the sales presentation,
  2. Never discuss the competition unless you have all your facts straight,
  3. Never criticize the competition,
  4. Be prepared to add value.

Question 6

6. List major sources of product information.

Answer 6

1. Product literature developed by the company.
2. Sales training programs.
3. Plant tours.
4. Internal sales and sales support team members.
5. Customers.
6. The product.
7. Publications.

Question 7

7. Explain how to add value with a feature-benefit strategy.

Answer 7

▸Feature: Anything that a customer can feel, see, taste, smell, or measure to answer the question, “What is it?” Features often relate of craftsmanship, durability, design, and economy of operation.
▸Benefit: Something that provides the customer with personal advantage or gain to answer, for the customer, the question, “How will I benefit from owning or using the product?”.
▸Bridge statement: A transitional phrase that connect one or more product features with potential customer benefits.