Communicating with Salespeople
On an operational level, product managers spend a moderate amount of time on the phone with salespeople and prospects. Sometimes the calls are requests for price adjustments or special deals that require product management approval or authorization. Other calls will be questions about product attributes. The more itemized the product fact book (see Chapter 8), the more efficient a product manager will be in providing the answers. Even if salespeople have received the informa- tion previously, it is often quicker and more efficient for them if the product manager provides the information on the spot.
That does not mean that the product manager should not also pro- vide the sales force with written information. Salespeople should be informed of any product or marketing change that affects their rela- tionships or negotiations with customers before the information reaches their customers! Mailgram, E-mail, fax, special delivery, and similar techniques are useful for high-priority information.
Many companies require product managers to spend a certain amount of time (e.g., 25–30 percent) making customer contacts, pos- sibly through calls with salespeople. These sales calls provide an oppor- tunity to learn more about the customer, or on some occasions to help close a sale. However, there must be clarity prior to the call about the specific role the product manager is expected to play.
Most of the operational activities will not appear on the market- ing plan, although they might be part of annual performance objectives (e.g., percentage of time spent in the field). What should be included in the marketing plan are budgets for travel expenses, any special incen- tive programs (for spurring sales of products that aren’t achieving objectives or for introducing new products), or any activities under- taken as part of territory redesign or sales force changes.
Sales Training
Sales force training can cover a variety of issues: sales skills, company data, product knowledge, and market and competitive intelligence. The effectiveness of training can be a significant factor in making a new product launch successful.1(See Chapter 10 for more on new-product launching.) Although teaching sales skills per se will not typically be part of a product manager’s responsibilities, the product training does
have to fit within the framework of the selling process, and the mar- ket and competitive intelligence has to be presented in support of this process.
As an example, assume that five elements are included in a com- pany’s standard sales training process: (1) planning, (2) establishing trust, (3) qualifying needs, (4) providing customized and visible solu- tions, and (5) building partnerships. The product training and the role of the product manager should fit into this process.
Planning
First, what information will help the salespeople in the function of planning? They need to know who is most likely to buy the product.
Instead of describing the primary and secondary target markets, the product manager should profile the “ideal” account, suggesting specific customers, if appropriate. If noncustomers need to be cultivated, sales- people need to know the types of uses, applications, and functions appropriate for the product. For example, a company selling flat panel display screens might direct salespeople to engineers in specific indus- tries that require a monitor with graphics clarity.
Both product managers and salespeople should understand the dif- ferences between key accounts, target accounts, and maintenance accounts (as well as, of course, “why bother?” accounts). Key accounts consist of the 20 percent of customers who account for 80 percent of gross profitability. Target accounts are those customers who form the competitors’ key accounts, or they are significant prospects for a new product or service. Maintenance accounts may include existing small customers and possibly futurestrategic accounts.2
Establishing Trust
Second, how will the product manager help establish trust with the customer? If a new product is being introduced, the product manager has to demonstrate that the internal support systems are already in place, that the product has been tried and proven, and that customer orders can indeed be filled if sales are made. Promotional support aimed at “getting a foot in the door” of noncustomers can also be shared with salespeople, along with tips on effective use of support material.
Qualifying Needs
Third, what information about the customers must the salespeople obtain to qualify needs? What does the salesperson need to know about the prospect to determine the appropriateness of the sale? Customer satisfaction results from the best match between product benefits and customer needs. If the salespeople “successfully” sell to the wrong peo- ple or for the wrong applications, the revenue will be short-lived. There- fore, the product manager must provide customer-friendly questions that enable salespeople to assess the fit before closing the sale.
There should be questions about how prospects perform the func- tion(s) provided by the product, what tolerances are required, what applications they would have for it now and in the future, and so on.
The questions should not simply push the prospect toward a sale, but rather indicate whether the prospect has a true need for the product (thereby screening out inappropriate prospects). For example, a col- lege textbook product manager responsible for a line of products to be sold to university professors will need to provide questions that assess teaching philosophy, level of rigor, and content preferences of the fac- ulty, while the product manager selling flat panel display screens may need to determine whether the screen is used in bright sunlight or office light, whether the primary usage is text or graphics, and whether sim- ple or complex software is involved.
Customizing Solutions
Fourth, how can salespeople use the answers from the preceding ques- tions to develop customized and visible solutions for the account? This requires the product manager to look for creative ways to demonstrate a product’s competitive edge. (See Part III for more on this subject.)
Building Partnerships
Fifth, what assurance is there that this product will increase the part- nership already established between the customer and the salesperson?
Customer partnerships require careful and timely follow-up to ques- tions and problems. Salespeople expect the necessary support in instal- lation, training, troubleshooting, and repair. Even though product managers may not have the hands-on abilities to handle all the activi-
ties, they still have the responsibility to be sure they get done. There- fore, their interactions with customers and product support services (as mentioned later in this chapter) will help salespeople cement long-term relationships with customers. (More information on working with the sales force as part of a new-product launch is presented in Chapter 10.)