Developing Product Solutions That Add Value

  1. 6.1 Explain the importance of developing product solutions that add value

As noted in Chapter 2, a product strategy helps salespeople make correct decisions concerning the selection and positioning of products to meet identified customer needs. The product strategy is a well-conceived plan that emphasizes becoming a product expert, selling specific benefits, and configuring value-added solutions (Figure 6.1). Configuring value-added solutions is discussed in detail in Chapter 7. A McKinsey survey of more than 1,200 B2B purchasing decision makers revealed that, among the habits that undermine the sales experience, the second “most destructive” was a lack of knowledge about either their products or those of their competitors.2

An illustration shows the strategic/consultative selling model with three strategic steps.

Figure 6.1

Developing a product strategy enables the salesperson to custom-fit products or services to the customer’s needs.

Selling Solutions

A solution is a mutually shared answer to a recognized customer problem. In many selling situations, a solution is more encompassing than a specific product. It often provides measurable results such as greater productivity, increased profits, or less employee turnover. Selling a solution, versus selling a specific product, usually requires a greater effort to define and diagnose the customer’s problem.3 Think of solution selling as 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.4

Most salespeople have adopted a broad definition of the term product. It is broadly interpreted to encompass information, services, ideas, tangible products, or some combination of these that satisfy the customer’s needs with the right solution.5 Let’s look at the sales process at two firms:

  • Trilogy, an Austin, Texas–based company, creates configuration software for large manufacturers such as Boeing and Hewlett-Packard. These two companies sell products with a great many variants. Boeing, for example, can use a wide range of components to assemble a plane that matches the customer’s highly specific preferences. With the aid of Trilogy software, Boeing sales representatives, using a laptop computer, can translate a customer’s specific needs into a workable specification.6

  • Sunflower Travel Corporation, based in Wichita, Kansas, creates specialized vacation packages for individuals and groups. A package might include airline tickets, hotel reservations, and accommodations on a cruise line. The sales staff at Sunflower have the knowledge to plan a highly customized trip.7

From the customer’s point of view, salespeople employed by Trilogy and Sunflower are selling primarily information and expertise. The problem-solving ability these salespeople provide the customer is viewed as the product. When you sell a complex product, it is knowledge and expertise that create value.

A recent Corporate Executive Board study of more than 1,400 B2B customers found that those customers completed much of their decision making—such as researching solutions, ranking options, setting requirements, benchmarking pricing, and so on—before even having a conversation with a supplier.8 With our information-rich, Internet-driven marketplace, often salespeople will have to be more insightful into unrecognized needs the customer may not have considered, and sell solutions to these needs. If they don’t, they likely will find themselves in a price war with their competitors. Salespeople in this environment will have to master the use of what are called “implication” or “pain” questions to help customers discover their unrealized needs. These questions will be discussed in detail later in Chapter 11.

Tailoring The Product Strategy

A product strategy should be tailored to the customer’s buying needs. Transactional buyers are usually well aware of their needs. Most of these customers have conducted their own research and have a good understanding of the product that will meet their needs. The office manager who frequently buys a large amount of copy paper knows that this standard item can be purchased from several vendors. The quality of the paper usually does not vary from one vendor to another.

The consultative buyer may lack a “needs awareness” and will usually welcome “need clarification.” This customer will want help evaluating possible solutions and usually needs a customized product solution. The customized solution appeals to the customer’s desire for choices that are tailored to his or her needs. Developing a product strategy for the strategic alliance customer usually offers the greatest challenge. Study of the proposed alliance partner can be very time consuming, but the rewards of a successful alliance may be substantial. In some cases, the company that wishes to form an alliance with a new customer must be prepared to make a large investment in capital-intensive technology and additional personnel.9

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