By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

• Competency 3: Develop a customer product strategy by determining customer buying, learning, and communication behaviors.
  • Explain the life cycle phase of a product and why the phase is critical to a customer product strategy.
  • List features of a product or service being sold.
  • Discuss benefits of a product or service being sold.
  • Examine a competitive product.
  • Describe elements of a product strategy that are necessary in order to be competitive.
  • Communicate in a manner that is professional and consistent with expectations for members of the business professions.
• Competency 4: Evaluate customer relationship management software tools and applications as they relate to various aspects of the selling process.
  • Describe technology utilized to implement product selling strategy.
  • There are a number of different ways by which companies bring their products into the marketplace. The competition is always a major concern, so companies use different techniques to make their products and services look different in the eyes of consumers. One of the key contributions that salespeople can make is to assist management staff in the development and implementation of these techniques through observation in the field and interviews with actual and prospective customers.

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    The Assessment 2 Context document contains additional information covering the following topics:

    • Product Differentiation.
    • Value-Added Strategy.
    • Balancing Knowledge and Communication.
    • Ethics.
    • Performance Management.
    • Time Management.
    • Territory Management.
    • Records Management.
    • Stress Management.
    • Communication Style.
    • Sales Management.
    • Choosing the Sales Team.
    • The Ethics of the Sales Manager and Team.
    • Develop a 3–5-page product strategy to support the presentation and sale of a product to potential customers.
      

      Preparation

      Your product strategy will support the effective sale and presentation of a product or service to prospective customers. You may use the same organization or product or service (or both) that you used for the previous assessment, or you may choose another.

      Get to know the product inside and out, along with how it is used (and sometimes misused) by customers. It is also important to understand how your product compares to others in the market. Not only must the salesperson be well acquainted with all product features, he or she must be able to link each feature to a particular customer benefit. Also, take into account the age and life cycle of the product for the product strategy to be effective.

      Directions

      Write a product strategy paper that addresses the following:

      • Describe the product or service, or the created product solution.
      • Explain the product’s current status in the product life cycle. Is it a new or emerging product? Is it a mature and well-established product?
      • Identify the product features and benefits. (Note that there is a difference between features and benefits.)
      • Identify close competitive products and compare your chosen product to the competition. This will help you understand product differential and advantage. You may use a chart to make this comparison if you also summarize your findings.
      • Describe your product strategy regarding price, value added, or other elements of product strategy. Support your choice of strategy.
      • Include a bulleted summary of the key points of the product strategy, which a new sales associate could use to learn about the product and situation.
      • Describe the available technologies you would utilize to implement your strategy.

      Additional Requirements

      • Written communication: Written communication is free of errors that detract from the overall message.
      • APA formatting: Resources and citations are formatted according to APA (6th edition) style and formatting.
      • Number of resources: Minimum of two resources.
      • Length of paper: 3–5 typed, double-spaced pages.
      • Font and font size: Times New Roman, 12 point.
      • Must include…..
      • Evaluates the life cycle phase of a product and why the phase is critical to a customer product strategy.
      • Describes features of a product or service being sold, with supporting examples and explanations.
      • Breaks down the benefits of a product or service being sold.
      • Evaluates a competitive product.
      • Analyzes elements of a product strategy that are necessary in order to be competitive.
      • Evaluates technology utilized to implement product selling strategy.
      • Communicates in a manner that is professional, scholarly, and consistent with expectations for members of the business professions.
      • MUST BE in APA 6th. ed. rules require references to be double spaced, hanging indent (1st line of each entry flush left, indent subsequent lines 5-7 spaces.
      • Product Differentiation

        Product differentiation is an excellent competitive tool for a sales professional. Customers today are well informed and often seek a cluster of satisfactions. They seek satisfactions that arise from the product itself, from the company that makes or distributes the product, and from the relationship with the salesperson.

        Salespeople must understand that a product’s positioning strategy changes during the product’s life cycle, and adjust their selling approaches accordingly. The sales strategy used to sell a new and emerging product should be significantly different from strategies used to sell a mature, well-established product. The salesperson must be familiar with the maturity level of the product, and therefore be able to choose a strategy that is appropriate for positioning new and developing products or mature and well-established products.

        With products that lend themselves more to transactional selling, the salesperson will often use a price strategy. A sales professional can use any number of means to affect the price of the product including client discounts, quantity discounts, finite time period discounts, and promotional allowances. These strategies can make the product more attractive to the customer.

        Value-Added Strategy

        A popular way for salespeople to position their products is with a value-added strategy. Companies add value to their products with a set of intangibles such as:

        • A better-trained sales staff.
        • Increased levels of service.
        • A more convenient product delivery.
        • A more thorough follow-up service after the sale.

        Any innovations that augment the product’s value in the eyes of the customers can be considered part of the sales strategy. Many of today’s highly successful companies have implemented strategic market plans that rely on value-added strategies.

        It is important to study other companies that sell similar products, in order to determine their approaches, as well as the competitors’ advantages and disadvantages. Salespeople should have a clear understanding of the features present in competitive products, how these compare to their product, and what the inherent benefits are. Salespeople add value by highlighting the features-benefit connections for each particular customer. Furthermore, by knowing their competition, salespeople can develop a stronger knowledge of the product, the company, and the industry in general. In most cases, though, it is not advisable to make reference to the competition while doing the sales presentation.

        Balancing Knowledge and Communication

        Generally, salespeople cannot know too much about their products and services. The salesperson needs to be aware of the buyer’s level of retention and understanding, and be careful not to overwhelm the potential buyer with facts, data, and technical knowledge. This is particularly important when it comes to the sales presentation, when considerable amounts of information are shared with the customer. The presentation should emphasize product features of interest to the customer and resulting benefit to the buyer. The information and benefits emphasized depend on the salesperson’s assessment of a prospect’s needs and motivation.

        Ethics

        As salespeople frequently provide the primary link between their organization and the customers, the ethical conduct of the salesperson must always be above reproach, to avoid tarnishing the image of the company. The sales professional must consistently operate according to his or her own personal code of ethics, in harmony with that of his or her organization. Salespeople’s ethical standards determine how they will conduct relationships with a customer, employers, and competitors. An ethical misjudgment can be damaging to the salesperson, the organization, and the customer. In addition, a major lapse in judgment is not easily erased from the public’s memory and may even result in legal issues for the involved parties.

        Performance Management

        Salespeople face many challenges that are different from those of employees in other departments within the organization. They must keep personal records of their time and efforts, which generally are measured against a company or industry standard. This is often referred to as management of time or management of territory. In many companies and industries, this is measured by call reports and attainable quotas, based on a number of different factors. The salesperson will often agree on the number of call reports necessary and the measurement of quotas through quarterly meetings with their sales managers. Some of the major areas that are often discussed are listed below:

        • Time management.
        • Territory management.
        • Records management.
        • Stress management.

        The multiple demands of the sales position, as well as the competitive and fast pace of business, make it imperative that the salesperson effectively manage each of these dimensions.

        Time Management

        Time management concerns not only the effective use of your time, but also the effective use of your customer’s time. It can involve structuring the work of the day or week, and, in general, leveraging the scarce resource of time in an effective manner. Many new salespeople receive training in time management and general organizational skills in their initial sales orientation.

        Territory Management

        Of course, time management is strongly tied to other self-management considerations, such as territory management. Territory management starts with classifying customers according to sales volume or other appropriate criteria. This also includes analyzing customer segments, estimating sales potential, and developing a marketing mix based on the needs and desires of the marketplace.

        Records Management

        Strongly coupled with territory management is the need to keep accurate records. A well-organized record-keeping system provides many advantages to a salesperson. Accurate, up-to-date records can save time as information is quicker to access, use, and report. The company benefits as well, because sales reports provide an important communication link with members of management and the sales force, allowing adjustments to the sales strategy to be made. With today’s technology, a lot of information can be shared directly between the salesperson and the sales manager, allowing real-time monitoring and communication as needed.

        Stress Management

        The sales position has many demands and responsibilities. Stress, specifically distress, can be significant to sales professionals. They need to have initiatives in place to help effectively deal with it. There are a variety of stress-related occurrences associated with personal selling, including the emotional perception that this role requires a person to be accessible around the clock, feelings that come with uncertain earnings, and the need to continually be mentally sharp when prospecting. When stressed, it is often hard to focus on the customers, attend to their needs, and manage other components of the sales situation. Sales can be lost or relationships damaged because stress affects how salespeople communicate with prospects. Successfully managing stress is imperative for the sales professional.

        Communication Style

        Differences in communication styles can contribute to the salesperson’s challenges—or enhance them. One communication style model is based on two major aspects of human behavior: dominance and sociability. The intersection of these two criteria can identify an individual’s dominant communication style among four categories: emotive, directive, reflective, or supportive. Each style has unique characteristics. An understanding of individual communication style, as well as the style of prospects or others, can enhance communication. In the assessment for this unit, you will identify your style, the potential fit of your style with others, and how this style directly affects the sales process.

        Sales Management

        In any organization, there is a chain of command, and for the sales professional, the individual responsible for managing and coordinating sales efforts is the sales manager. This job involves diverse duties such as recruiting, selecting, training, coaching, and supervising salespeople. The sales manager is part of the management team and therefore in a leadership position. The sales manager sets and communicates goals regarding what the team is working for overall, as well as personal goals for each individual. Beyond goal setting, the sales manager supervises and manages individual salespeople, coordinates efforts, and is responsible for the results of the team. As a result, both a tactical and strategic orientation are needed for this role.

        Choosing the Sales Team

        Many sales managers are involved directly or indirectly in recruiting and selecting salespeople. This is an important responsibility, because poorly selected individuals can be costly. Successful sales managers must have the ability and skills to continuously train, motivate, and reward their sales force to ensure continuous improvement, and satisfaction and retention. Employees must be rewarded appropriately, as well. Most companies use a combination of salary and financial incentives rather than straight salary or straight commission plans to reward their salespeople. This provides salespeople with a guaranteed salary and motivates them to reach their sales goals to earn commissions, bonuses, or other available rewards. The reward structure can include intrinsic motivators, such as achievement, challenge, responsibility, involvement, and enjoyment of work itself. The company can also offer extrinsic motivators such as contests, prizes, and money; or a combination of rewards.

        The Ethics of the Sales Manager and Team

        Besides establishing, building, and maintaining long-term relationships with customers, it is also essential to conduct business in an ethical way. Sales managers can have a significant effect on promoting and ensuring the ethical behavior of the company’s salespeople. They interpret company policy and establish guidelines for acceptable and unacceptable selling practices. They also have the responsibility for ensuring the proper behavior of their salespeople. The sales manager should act as a stabilizing influence and be a visible role model. With an increasingly global marketplace and expanded sales opportunities, sales managers need to become well versed in diverse international markets and cultures, so that their teams conduct business across borders in an appropriate and ethical manner.

         

ASSESSMENT 3

Create a 3–5-page customer relationship strategy for a selected product or service.

A successful salesperson needs to develop strategies for developing and maintaining customer relationships.

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