Raghavan Mukund, CEO of Saber Learning and author of "Don't Sell, Make Them Buy," reveals how the digitized world has commoditized products. He argues that true sales professionals must pivot from feature-based selling to understanding and creating customer needs to deliver genuine value.
The salesperson is not really assisting you but the feature which is bashing you from all sides through ads through marketing through all kinds of you know information through the media has made you decide a wrong thing which you probably wouldn't be happy about or was not value driven in your mind.
— Raghavan Mukund, Sabre Learning and Author
This framework highlights the fundamental difference between products based on how customers perceive them and the role of the salesperson. Commoditized products are those where features are widely known, leading customers to compare based primarily on price. Think of basic potatoes – you buy them for a common need, and price is often the deciding factor.
Value products, however, address deeper, often unarticulated needs through tailored solutions. Raghavan Mukund illustrates this by noting how basic potatoes become "organic potatoes" when the customer's need shifts to health consciousness. Similarly, a simple bar of soap can be transformed into a value product by adding ingredients like Tulsi, Lime, or Neem, each catering to specific, higher-order needs like health, freshness, or disease prevention.
The digital age has profoundly reshaped the sales landscape. Raghavan Mukund explains that the internet has armed customers with an unprecedented amount of information. They can research products, compare features, and often make purchase decisions online without direct interaction with a salesperson. This shift has, in many cases, commoditized products, as customers already know what they want and primarily look for the best price.
The traditional role of the salesperson, which once heavily relied on face-to-face contact to introduce and explain products, is now challenged. Customers often only seek out a salesperson when they are confused or need specific assistance, highlighting a move towards non-face-to-face interactions. This necessitates a more strategic, value-driven approach where salespeople engage informed buyers on a deeper, problem-solving level rather than just repeating easily accessible information.
In a market saturated with commoditized products, the role of the salesperson often becomes redundant, as customers can easily find and purchase products independently. However, Raghavan Mukund emphasizes that in value selling, the salesperson becomes indispensable. Their crucial function is to go beyond mere product presentation and actively understand, change, or even create customer needs.
Mukund contrasts a product salesperson, who might just list features of a Google Home device and discuss its price, with a solution salesperson. The latter would tell a compelling story about a connected home, ask probing questions about the customer's ideal living situation, and thereby create an interest in how Google Home can solve their specific problems and enhance their lifestyle. This ability to create attraction and demonstrate genuine solutions is what elevates a salesperson from a mere order-taker to a true value provider.
Raghavan Mukund differentiates between the broad appeal of marketing and the targeted nature of selling. Marketing, he explains, is designed to address general community needs and create widespread awareness for a product. It's effective for commodity items where the purchase decision is often straightforward and price-sensitive.
However, for products to truly deliver and be perceived as "value products," both marketing and selling must operate in seamless synergy. Marketing builds the initial interest and addresses common needs, but it cannot delve into the unique, individual requirements of each customer. This is where the salesperson becomes vital, stepping in to uncover specific customer needs, tailor the value proposition, and ensure that the perceived value aligns with the delivered solution. Without this integrated approach, even a valuable product risks being treated as a mere commodity.
At the heart of value selling is a profound understanding of customer needs, which are rarely static. Raghavan Mukund emphasizes that true value emerges when a product not only meets an existing need but also adapts to its evolution. This requires salespeople to look beyond the obvious features and uncover the nuanced, often unspoken desires of the buyer.
Consider the humble potato: if a customer buys it for a basic meal, it's a commodity. But if they seek organic potatoes, their need has shifted to health and wellness, transforming the product into a value-added item. Similarly, a generic bar of soap becomes a differentiated, high-value product when infused with ingredients like Tulsi for antiseptic properties, Lime for freshness, or Neem for specific skin concerns. By identifying and addressing these distinct underlying needs, businesses can move away from generic offerings and create propositions that resonate deeply and personally with their customers.
In today's information-rich environment, customers already have access to product features online. Salespeople who merely recite features contribute to commoditization, turning sales into a price-driven race. Raghavan Mukund asserts that true selling involves a deeper engagement: uncovering latent or unarticulated customer needs and then positioning the product as a tailored solution, thereby creating and communicating genuine value.
When customers are fully aware of what a product does, it often becomes a commodity, purchased based on convenience or price rather than active sales intervention. Mukund argues that a product is truly 'sold' when a salesperson actively influences or creates a customer's perception of need, elevating the product beyond a simple transaction. Without this, products are simply moved through channels, not value-exchanged.
While marketing is crucial for generating broad awareness and appealing to general market segments, it cannot address the unique, specific needs of an individual customer. Raghavan Mukund highlights that the salesperson is critical for personalizing the value proposition, delving into a customer's particular situation, and transforming a widely marketed product into a bespoke solution. This individual touch is indispensable for true value delivery.
"What challenges are you currently facing that prevent you from achieving your desired outcome?"
Purpose: Uncover pain points & unarticulated needs."If you could wave a magic wand and solve one problem in your business/life, what would it be?"
Purpose: Identify aspirational needs & priorities."How do you currently address [identified problem], and what are the limitations of that approach?"
Purpose: Understand existing solutions & their shortcomings."What would the ideal solution look like for you, beyond just the features you might expect?"
Purpose: Explore desired outcomes & potential value."How does [specific current trend, e.g., digitization] impact your decision-making process for solutions like this?"
Purpose: Address external factors & market context."What would be the impact on your business/personal goals if this problem were completely resolved?"
Purpose: Quantify value & motivate purchase.Shift your focus from product features to deeply understanding and creating customer needs. Engage in profound discovery, tell compelling stories that illustrate solutions, and position your offering as the indispensable answer to their unique challenges, rather than just another option in a commoditized market.
Avoid the commodity trap by identifying and addressing customer needs that are often unarticulated or overlooked by competitors. Design your product and sales narrative around creating genuine value, ensuring your team is equipped to communicate this differentiation effectively beyond just price or basic features.
While marketing creates broad awareness, collaborate closely with sales to develop messaging that enables them to tailor value propositions to individual customer needs. Provide tools and stories that help salespeople create attraction and demonstrate specific solutions, bridging the gap between general market appeal and personalized value.
Develop your ability to ask insightful questions and listen actively to uncover customer needs, not just product requirements. Focus on becoming a solution-oriented professional who can identify and create value, setting yourself apart in a sales landscape increasingly dominated by informed buyers and commoditized offerings.
It is the salesperson who changes the needs of the customer or creates the need in the customer.
— Raghavan Mukund, Sabre Learning and Author
Raghavan Mukund is the visionary CEO of Sabre Learning, bringing over 40 years of profound industry experience to the table, including a significant tenure with companies like Saint-Gobain. He is a distinguished author of two impactful books, "Don't Sell, Make Them Buy" and "Above and Beyond," which encapsulate his philosophy on modern sales. Mukund is renowned for his dynamic approach to sales education, emphasizing the critical shift from traditional feature-based selling to a value-driven methodology that focuses on understanding and creating customer needs.
CEO · Author · Sales Leadership · 40+ Years Industry ExperienceJoin thousands of Indian professionals learning from industry experts.
Explore All Courses →