7.2 Explain the 3D product solutions selling model
Ted Levitt, former editor of the Harvard Business Review, says that products are problem-solving tools. People buy products if they fulfill a problem-solving need. Today’s better-educated and more demanding customers are seeking a cluster of satisfactions. Satisfactions arise from the product itself, from the company that makes or distributes the product, and from the salesperson who sells and services the product.11 As noted in Chapter 6, many companies are attempting to transform themselves from product selling to solution selling. Figure 7.1 provides a description of the Three-Dimensional (3-D) Product Solutions Selling Model. The 3-D Product Solutions Selling Model illustrates the product, company, and salesperson features available to satisfy the customer’s potential 3-D cluster of satisfactions. To develop and sell solutions with many competitive “look-alike” products, salespeople must be familiar with the unique satisfactions that meet the needs of each customer.
To illustrate how the 3-D Product Solutions Selling Model works in a business setting, let us examine a complex buying decision. Elaine Parker, a sales representative for Elmore Industries Incorporated, sells metals for manufacturing operations. Over a period of six months, she frequently called on a prospect who had the potential to become a valued customer. During every call, the buyer’s receptionist told her they were happy with their current supplier. She refused to give up and finally the buyer agreed to see her. At first, she was greeted with cool silence, so she decided to ask him some questions about his business: “How’s the slow economy affecting your sales?” The buyer’s answers focused on materials costs. He said his company could not raise prices or cut quality. He wanted to lower costs, but was unsure how it could be done. Parker, offering product developments the buyer wasn’t familiar with, suggested he consider trying some new alloys that were less expensive than the standard metals he had been purchasing. As she described the new alloys, which exceeded the buyer’s expectations, interest began to build. She offered to bring in two of her company’s best product engineers to help make a full presentation to the buyer and his engineers at a follow-up meeting. The second meeting was a success. Soon after that meeting, Parker received her first order from the customer. Within a year, she had become the customer’s most trusted advisor on technological developments in the industry and his exclusive supplier.12
Elaine Parker used questions to engage the customer and identify his problem. She also provided satisfactory answers to questions raised by the customer:
What product is best for our type of operation?
Are there new product developments we aren’t aware of?
Does the solution meet our quality standards?
Given the cost of this product, will we maintain our competitive position in the marketplace?
Does this company provide the most advanced technology?
What is the company’s reputation for quality products?
What is the company’s reputation for standing behind the products it sells?
Is there a technical support team available?
Does this salesperson possess the knowledge and experience needed to recommend the right product?
Can the salesperson clearly communicate specific buyer benefits?
Can this salesperson serve as a trusted advisor?
Will this salesperson provide support services after the sale?
Understanding the the 3-D Product Solutions Selling Model (or cluster of product-selling satisfactions model, as it is sometimes referred to) enables the salesperson to custom-fit solutions that successfully position, yet differentiate their solutions in today’s competitive and often complex situations. Elaine Parker used all three parts of the cluster of satisfactions product-selling model to differentiate and position her selling solution—a product that exceeded the customer’s expectations, relationship skills that set her apart as a trusted partner, and technical customer-support personnel. In many of today’s selling situations, the products offered by various suppliers are very similar, often referred to as “look-alike” products. In these situations, while being able to meet the product needs of the customer, the competitive advantage may be the knowledge and relationship skills of the salesperson and/or the company’s support personnel. For example, salespeople in the competitive automobile-retailing marketplace face this situation. The service departments and the knowledge and relationship-building skills of the salesperson are increasingly becoming the most important parts of successfully meeting customers’ needs.
Salespeople who are knowledgeable in all areas of the 3D Product Solutions Selling Model are better able to position their product solution. This knowledge also helps to achieve product differentiation, understand the competition, and prepare an effective value proposition. The competitive analysis worksheet (Table 7.1) can help you discover ways to position and differentiate your product as the superior choice over your competition.
MY COMPANY | COMPETITOR A | COMPETITOR B | |
---|---|---|---|
Product Attributes | |||
Quality | |||
Durability | |||
Reliability | |||
Performance | |||
Packaging flexibility | |||
Warranty | |||
Brand | |||
Company Attributes | |||
Reputation | |||
Industry leadership | |||
Facilities | |||
Ease of doing business | |||
Distribution channels | |||
Ordering convenience | |||
Returns, credits, etc. | |||
Salesperson Attributes | |||
Knowledge/expertise | |||
Responsiveness | |||
Pricing authority | |||
Customer orientation | |||
Honesty/integrity | |||
Follow-through | |||
Presentation skills |
Because many of today’s information age products are very complex, product differentiation must be handled with care. Salespeople are sometimes tempted to use technical lingo, real and invented, to impress the buyer. This problem often surfaces in a situation in which the salesperson is not sure how to describe the value-added features of the product. Robert Notte, former technology chief for travel outfitter Backroads, says that, during the telecom boom, salespeople representing major suppliers often babbled endlessly, using industry jargon that was often unintelligible. “They wanted you to be impressed,” Mr. Notte says. Some customers were so intimidated they were afraid to ask questions or make a buying decision.13
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