chap011 - selling

8/13/2019 Chap011 - Selling

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ChapterChapter1111

Questionsanswered

At ti tude aboutobjections

When are thereobjections?

Reasons forobjections

The valueequation

At ti tudes

Postponing/forestalling

Responsemethods

Angrycustomers

Priceobjections

Terminology

Some questions answered inome questions answered inChapter 11Chapter 11

When do buyers object?

What objections can be

expected?

How should salespeople

prepare to respond to

objections?

What methods and

techniques are effective

when responding toobjections?

How do you deal with tough

customers?


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BuyersBuyers ObjectionsObjections

BuyersBuyers objections areobjections are

normal and natural partnormal and natural part

of the sales process,of the sales process,

and considered aand considered a salessales

opportunityopportunity ..

Salespeople should doSalespeople should do

everything they can doeverything they can do

to encourage the buyerto encourage the buyer

to voice concerns andto voice concerns and

questions asquestions as hiddenhiddenobjectionsobjections can't be dealtcan't be dealt

with.with.

A n a b s o l u t e l y p e r f e c t p r o d u c th a s n e v e r b e e n d e v e l o p e d


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Terminology

Think back to the last time you raised anThink back to the last time you raised anobjection during a sale. Why did you do it?objection during a sale. Why did you do it?

For the challenge to makethe salesperson work hard

for the order.

Because of a lack of

interest the salesperson

did not qualify you or failed

to help you identify a need.

Procrastination to avoid

making a decision.Due to a drawback the

product did not meet your

needs sufficiently.


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Terminology

Think back to the last time you raised anThink back to the last time you raised anobjection during a sale. Why did you do it?objection during a sale. Why did you do it?

Due to misunderstanding you may not have

understood what the

salesperson meant.

Personal risk making a

bad decision could have

damaged your reputation.

Some kinds ofobjections are hidden

Some kinds ofobjections are hidden

Obj ti ll tbj ti ll t


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Objections are usually notbjections are usually notpersonalpersonal

Wh d b iWh d b i


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When do buyers raiseWhen do buyers raiseobjections?objections?

As the salesperson istrying to set up the

initial appointment.

During thesalespersons

approach.

When the salespersontries to use small talk.

As the product is being

explained.When the salesperson

attempts to gain

commitment.After the sale.

When do b ers raiseWhen do b ers raise


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At ti tudes


Responsemethods

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Terminology

When do buyers raiseWhen do buyers raiseobjections?objections?


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ObjectionObjection A Question + TensionA Question + Tension

An objection is nothing moreAn objection is nothing more

thanthan a questiona question, expressed under, expressed under

thethe tensiontension of making a decision.of making a decision. First thing to do is to relieve theFirst thing to do is to relieve the

tension, that is relatively easily totension, that is relatively easily to

do with the question behind thedo with the question behind thetension.tension.

The 3 steps are:The 3 steps are:

1. Listen to defuse the tension.1. Listen to defuse the tension.

2. Clarify the question behind the objection.2. Clarify the question behind the objection.

3. Problem solve by answering the the question3. Problem solve by answering the the questionbehind the objection.behind the objection.

A salesperson is trying to sell youA salesperson is trying to sell you


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Terminology

A salesperson is trying to sell youA salesperson is trying to sell youa brand new luxury car!a brand new luxury car!

List all of the objections you can think of.

Objections to buying a newbjections to buying a new


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Objections to buying a newbjections to buying a newluxury carluxury car

The objections probably fell in f ive categories:You didnt need a new car.You didnt l ike the car.You didnt l ike the company or the salesperson.

You thought the price was too high.You needed time to think about it.


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Common Objections ICommon ObjectionsCommon Objections II

Five major types of objectionsFive major types of objections

1. Need1. Need

I do not need the productI do not need the product ..

I need more informationI need more information ..

IIve never done it that way before, newve never done it that way before, newproductproduct ..

IIm just not interestedm just not interested ..

2. Product2. Product

I donI don t understand, verbal, nont understand, verbal, non--verbalverbal ..

I donI don t like the product or servicet like the product or servicefeaturesfeatures ..


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Common Objections IICommon ObjectionsCommon Objections IIII

3. Source3. Source

I donI don t like your companyt like your company ..

I donI don t l ike you, clashest like you, clashes ..

4. Price4. Price

your price is too high, true or falseyour price is too high, true or false ..

The value does not exceed the costThe value does not exceed the cost ..

5. Time5. Time

I need time to think about it,I need time to think about it,

analytical and amiable, late majorityanalytical and amiable, late majority ..


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This would cost too much!This would cost too much!

Youve been explaining

a new service that

would change the wayyour prospects

company would handle

a frequent problem.The prospect has been

receptive, but

suddenly says, Thiswould cost too much.

What should you do?

The value does not exceed the cost!The value does not exceed the cost!


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The value does not exceed the cost!The value does not exceed the cost!IIm not going to buy.m not going to buy.

Hassle to switch$20,000 price

Improve co. image

Costs

Benefits

Exhibit 11.2

The value exceeds the costsThe value exceeds the costs


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The value exceeds the costs.The value exceeds the costs.When can you deliver it?When can you deliver it?

Hassle to switch

$20,000 price

Reduce trainingcosts; save $10,000

Reduce errorssave $15,000

Reduce absenteeism;save $15,000

Increase moraleImprove co. image

Costs

Benefits

Exhibit 11.2


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Are police our friends?Are police our friends?

Ch tCh t

A li f i d ?A li f i d ?


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Are police our friends?Are police our friends?

What if youve just been speeding?

Ch tCh t

Obj ti f i dObj ti f i d


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Objections are our friendsObjections are our friends

They help us know what isgoing on in the buyers mind.

But they often come at the

wrong time just as were

covering an important point.

Even so, we should

have a positiveattitude about them.

ChapterChapter

Traits and behaviors of successfulTraits and behaviors of successful


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Traits and behaviors of successfulTraits and behaviors of successfulsalespeople in responding to objectionssalespeople in responding to objections

Develop and maintain a positive attitude aboutobjections.

Commit to always tell the truth.

Anticipate objections and prepare helpful responses.

Relax and listen and never interrupt the buyer.

Address known problems before the buyer does.

Make sure the objection is not just an excuse.

Are sincerely empathetic to the buyers objections.

Exhibit 11.3

ChapterChapter

Traits and behaviors of successfulTraits and behaviors of successful


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Traits and behaviors of successfulTraits and behaviors of successfulsalespeople in responding to objectionssalespeople in responding to objections

ChapterChapter


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What is the difference

between postponing

and forestalling

objections?

ChapterChapter

What is the difference betweenWhat is the difference between


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at s t e d e e ce bet eepostponing and forestalling objections?postponing and forestalling objections?

In an early part of a sales call,

the buyer may raise objectionsthe salesperson would prefer

to answer later.

The salesperson askspermission to answer the

objection at a later time.

Postponing an objection

ChapterChapter

What is the difference betweenWhat is the difference between


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postponing and forestalling objections?postponing and forestalling objections?

The salesperson raises an

objection before the buyer hasa chance to raise it.

Buyers are more willing to

change their thinking whenthey do not feel they need to

defend a position theyve

already stated.

Forestalling an objection

ChapterChapter

Common methods forommon methods or


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Common methods forommon methods orresponding to objectionsresponding to objections

If the buyer makes a statementIf the buyer makes a statementthat is factually not true, use:that is factually not true, use:

If the buyer raises a validIf the buyer raises a valid

concern or offers an opinion, use:concern or offers an opinion, use:

Direct denialIndirect denial

Compensation

Feel-felt-found

Boomerang

Pass-up

Postpone

Exhibi t 11.4

ChapterChapter

Create an open and honestreate an open and honest


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ppatmosphereatmosphere

ChapterChapter

Responding to objections:Responding to objections:


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p g jp g jdirect denialdirect denial

Buyer:

Your productsquality is too low.

Response:

That simply is not true.Our product has been

rated as the highest in

the industry for the lastthree years.

From Exhibit 11.5

ChapterChapter

Direct DenialDirect Denial


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Direct DenialDirect Denial

This will lead to

confrontation.

Could be a fake

objection!

You may think you

have correctlydefined the objection

and thus give an

immediate response?

ChapterChapter

Using direct denialUsing direct denial


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1111

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Using direct denialUsing direct denial

Direct denial

should only be

used when theobjection refers

to something that

is of trivial

importance to the

buyer.True

False

ChapterChapter11

Responding to objections:Responding to objections:i di t d i li di t d i l


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p g jp g jindirect denialindirect denial

Buyer:Your products quality

is too low.

Response:

I can certainly see whyyou would be concerned

about quality. Actually,

though, our product hasbeen rated as the highest

in the industry for the last

three years.

From Exhibit 11.5

ChapterChapter1111

Responding to objections:Responding to objections:ti th dti th d


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p g jp g jcompensation methodcompensation method

Buyer:Your products quality is toolow.

Response:

I agree that our quality is notas high as some of our

competitors. However, it wasdesigned that way forconsumers who are looking fora lower-priced alternative,perhaps just to use in aweekend cottage. So you see,our somewhat lower quality is

actually offset by our muchlower price.

From Exhibit 11.5

ChapterChapter1111

Responding to objections:Responding to objections:f lf l f ltf lt f d th df d th d


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p g jp g jfeelfeel--feltfelt --found methodfound method

Response:I can certainly understand

how you feel. Mortimer

Jiggs felt the same waybefore he bought the

product. But after

using it, he found that

the quality was actually

superior to that of otherproducts.

From Exhibit 11.5

Buyer:Your products quality is too low.

ChapterChapter1111

Responding to objections:Responding to objections:b th dboomerang method


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boomerang methodboomerang method

ChapterChapter1111

Responding to objections:Responding to objections:b th dboomerang method


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boomerang methodboomerang method

Buyer:Your products quality is

too low.Response:

The fact that the quality is

lower than in other productsis probably the very reasonyou should buy it. You said

that some of your customersare looking for a low-pricedproduct to buy for theirgrandchildren. This product

fills that need.

From Exhibit 11.5

ChapterChapter1111

Responding to objections:Responding to objections:passpass up methodup method


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passpass--up methodup method

Response:I understand your concern.

You know one of the

things I always look foris how a products

quality stacks up

against its cost.

[Pause] Now, we were

talking about

From Exhibit 11.5

Buyer:Your products quality is too low.

ChapterChapter1111

Responding to objections:Responding to objections:postpone methodpostpone method


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postpone methodpostpone method

Response:

Thats an interesting point.

Before discussing it fully, I

would like to cover just two

things that I think will helpyou better understand the

product from a different

perspective. Okay?

From Exhibit 11.5

Buyer:Your products quality is

too low.

ChapterChapter1111

How would you respond?How would you respond?


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y py p

You are interviewing fora job when the recruiter

tells you, I cant hire

you! Youre too young.Provide an example of your

response using each of these

techniques: Work SheetWork SheetDirect denial

Indirect denial

Compensation methodFeel-felt-found

Boomerang

Pass-upPostpone

ChapterChapter1111

What is your advice?What is your advice?


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yy

You are helping afriend rehearse for a

job interview. After

responding to anobjection, your friend

moves on, without

asking if you agree thatthe objection has been

resolved.

What advice would you

give your friend?

ChapterChapter1111

Adjusting for social styleAdjusting for social style


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j g yj g y

How would you attempt to answer the

objection, Your new product will have more

service problems than your competitors

product in each of the following situations?You are calling on an amiable that you

have been doing business with for four

years.You are calling on an expressive for the

first time.

You are calling on an analytical thatbought one of your products three years ago

but has bought nothing since then.

You are calling on a driver who currentlyuses your competitors product.

ChapterChapter1111

Responding to objections:Responding to objections:dealing with angry customersdealing with angry customers


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dealing with angry customersdealing with angry customers

How did the employee

handle it?Were you satisfied?

What could you have

done differently?

Think of the last time

you confronted a

salesperson or store

employee becauseyou were angry about

something that had

happened.

ChapterChapter1111

Responding to objections:Responding to objections:suggested stepssuggested steps


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suggested stepssuggested steps

Listen carefully dont interrupt.

Evaluate the objection.

Decide on the method(s) to use in

answering the objection.

See if their objection has been

answered.11-41

ChapterChapter1111

Categorizing ObjectionsCategorizing Objections


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g g jg g j

A popular way to categorize objections isA popular way to categorize objections is

by the nature of the customerby the nature of the customers concern.s concern.

MisunderstandingMisunderstanding the customer hasthe customer has

some incorrect information.some incorrect information.

SkepticismSkepticism the customer questionsthe customer questionswhether the product will provide whatwhether the product will provide what

you say it will.you say it will.

DrawbacksDrawbacks the customer believesthe customer believes

another solution offers a desirableanother solution offers a desirable

feature your solution doesnfeature your solution doesn t provide.t provide.

ChapterChapter1111

Responding to MisunderstandingsResponding to Misunderstandings


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The customer has some incorrectThe customer has some incorrect

information.information.

Rather than just giving them the properRather than just giving them the proper

information, you want to confirm yourinformation, you want to confirm your

understanding of the customerunderstanding of the customers need.s need. ThenThen acknowledgeacknowledge their need.their need.

NextNext showshow how your product actuallyhow your product actually

does meet the need.does meet the need.

ThenThen confirmconfirm their acceptance of thistheir acceptance of this

answer.answer.

ChapterChapter1111

Responding to SkepticismResponding to Skepticism


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The customer questions whether theThe customer questions whether theproduct will provide what you say it will.product will provide what you say it will.

FirstFirst probeprobe to be sure you understand theto be sure you understand thecustomercustomers concern.s concern.

ThenThen acknowledgeacknowledge their concern.their concern.

Next, explain whyNext, explain why your productyour product provides theprovides thedesired attribute, and providedesired attribute, and provide proofproof offer aoffer atestimonial letter, publicationtestimonial letter, publication, or another form, or another form

of proof that is acceptable to them.of proof that is acceptable to them. Evaluate the customerEvaluate the customers attitudes attitude toward yourtoward your

proofproof if they donif they don t seem convinced, tryt seem convinced, tryoffering a more acceptable form of proof.offering a more acceptable form of proof.

ChapterChapter1111

Responding to DrawbacksResponding to Drawbacks


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The customer believes another solutionThe customer believes another solutionoffers a desirable feature your solutionoffers a desirable feature your solution

doesndoesn t provide.t provide.

FirstFirst probeprobe to make sure you fully understandto make sure you fully understand

the customerthe customers concern.s concern. ThenThen acknowledgeacknowledge their concern.their concern.

Next youNext you ll want toll want to minimizeminimize the importancethe importance

of the feature they desire. To do this, makeof the feature they desire. To do this, makethe customer aware of the benefits that willthe customer aware of the benefits that willoutweigh the drawback.outweigh the drawback.

Then confirm their acceptance of this answer.Then confirm their acceptance of this answer.

ChapterChapter1111

Price objectionsPrice objections


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To help a prospect

overcome his or herobjection to price, the

salesperson should

carefully explain the sellers

costs and show that the

price is fair in comparison

to the costs.

True

False

ChapterChapter1111



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Be convinced that the price you areoffering is absolutely reasonable.

Identify the social style of theprospect.

Combine more than one method in

responding to price objections

(Boomerang with compensation and

FFF methods).The products value must be

established before discussing the

price.

ChapterChapter1111



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Price objections are the most often typeof objections even they may be masked

to hide the real reasons for the buyers

objections.

20% of buyers buy depending on the

price.80% of buyers buy for reasons other

than the price, because they need

(want) the product, fill ing the gap

between have and want.

Price still an issue even betweenpartners.

ChapterChapter1111

The Price ObjectionsThe Price Objections


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Two step approach:Two step approach:

1. Ask questions1. Ask questions to understand theto understand the

customercustomers view point.s view point.2. Sell value and quality:2. Sell value and quality:

Complete costComplete cost--benefit analysis.benefit analysis.

Use communication tools (brochures,Use communication tools (brochures,

documents, samples, premiums,documents, samples, premiums,

demonstration, , , ).demonstration, , , ).

Use intangible benefits as:Use intangible benefits as:A. Services.A. Services.

B. Company reputation.B. Company reputation.

C. You the salesperson yourself (value creator).C. You the salesperson yourself (value creator).

ChapterChapter1111



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Paint a Word Picture in

Responding to PriceObjections

ChapterChapter1111

Q ti



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PricePrice--value sandwich techniquevalue sandwich technique

A business truism says that you can cut, cut, cut, until

you cut yourself out of business. Look before you cut

prices! You must sell more to break even.

ChapterChapter1111

Questions

Any questions about theAny questions about theterminology?terminology?


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gygy

Boomerang method

Compensation methodDirect denial

Excuses

Feel-felt-found methodForestall

Indirect denial

Objection

Pass-up method

Pioneer sellingPostpone method

Probing method

Superior benefit methodThird-party-testimony

method

Turnover (TO)

ChapterChapter1111

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