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Chapter 10 Notes Responding to Objections THE GOAL IS TO BUILD RELATIONSHIPS AND SELL VALUE -

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An objection is a concern or question raised by the buyer. Salespeople should do everything they can to encourage buyers to voice concerns or questions. The worst type of objection is the one the buyer refuses to disclose because a hidden objective cannot be dealt with. Salespeople should keep in mind that the goal with regard to objections is the same as with every other part of the sales call – to sell value to the buyer. Proper attitude is shown by answering sincerely, refraining from arguing or contradicting, and welcoming – even inviting – objections. Objections should be expected and never taken personally. The greatest evidence of sincerity comes from the salesperson’s actions. Buyers will feel more comfortable about raising objections and will be much more honest the more they trust the salesperson, the better the rapport, and the stronger the partnering relationship. Salespeople must remember that objections present sales opportunities.

WHEN DO BUYERS RAISE OBJECTIONS? -

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Salespeople can expect to hear objectives at any time during the buyer-seller relationship. Objections are raised when the salesperson attempts to secure an appointment, during the approach, during the presentation, when the salesperson attempts to obtain commitment, and during the after-sale follow up. Objections can also be made during formal negotiation sessions. Setting up an initial appointment – prospects may object to setting the appointment times or dates that salespeople request to introduce the product. o This type of objection happens especially when products, services, or concepts are unfamiliar to the buyer The presentation – Buyers can offer objections during the beginning of the presentation. Objections also often come up to points made in the presentation. o Such objections usually show the prospect’s interest in the topic; thus, they can actually be desirable. o Selling is easier when buyers voice their concerns because the salesperson knows where the buyers stand and that they are paying attention.

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Attempting to obtain commitment – Objections may be voiced when the salesperson attempts to obtain commitment. o Skill in uncovering and responding to objections is very important at this stage of the sales call. o Also, knowing the objections that are likely to occur helps the salesperson prepare supporting documentation. o An excessive number of objections while obtaining commitment may indicate a poor job of needs identification and the omission of significant selling points in the presentation. It may also reveal ineffective probing during the presentation to see whether the buyer understands or has any questions about what is being discussed. Sales Behaviors to Enact each and every day: o Actively listen o Listen more than you speak o Be prepared o Be honest o Be organized o Stop selling and begin helping After the sale – Even buyers who have agreed to purchase the product or service can still raise objections. o To develop long-term relationships and partnerships with buyers, salespeople must carefully respond to these objections.

COMMON OBJECTIONS -

Prospects raise many types of objections. 5 Major Types of Objections: o Objections Related to Needs:  “I do not need the product or service.” – In pioneer selling – selling a new and different product, service, or idea – the salesperson has more difficulty establishing a need in the buyer’s mind.  “I’ve never done it that way before.” o Objections Related to the Product:  “I don’t like the product or service features.”  “I don’t understand.”  “I need more information.” o Objections Related to the Source:  “I don’t like your company.”  “I don’t like you.” – In some situations, the buyer may honestly have difficult dealing with a particular salesperson. If the concern is real (not just an excuse), the seller’s firm sometimes institutes a turnover (TO), which simply means the account is given to a different salesperson.

o Objections Related to the Price:  “I have no money.”  “The value does not exceed the cost.” o Objections Related to Time:  “I’m just not interested today.”  “I need time to think about it.” BEHAVIORS OF SUCCESSFUL SALESPEOPLE -

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With regard to objections, successful salespeople anticipate objections and forestall known concerns, listen without interrupting, evaluate objections before answering, and always tell the truth. Responding to objections in a helpful manner requires careful thought and preparation. Some trainers suggest that salespeople use the LAARC Method to respond to objections: Listen, Acknowledge, Assess (the validity of the objection), Respond, and Confirm (that the objection has been answered). Anticipate Objections – Salespeople must know that at some time, objections will be made to almost everything concerning their products, their companies, or themselves. o Common sense dictates that they prepare helpful, honest answers to objections that are certain to be raised. o Many companies draw up lists of common objections and helpful answers and encourage salespeople to become familiar with these lists. Forestall Known Concerns – Good salespeople, after a period of experience and training, know that certain features of their products or services are vulnerable, are likely to be misunderstood, or are materially different from competitors’ products. o In these situations, salespeople often forestall the objection. o To forestall is to prevent by doing something ahead of time. o In selling, this means salespeople raise objections before buyers have a chance to raise them. o Buyers are more willing to change their thinking when they do not feel constrained to defend a position they have already stated. o Although not all objections can be preempted, the major ones can be spotted and forestalled during the presentation. o Forestalling can be even more important in written proposals because immediate feedback between buyer and seller is not possible. Relax and Listen. Do Not Interrupt. – When responding to an objection, listen first and then answer the objection. o Allow the prospect to state a position completely. o Do not interrupt with an answer, even if the objection to be stated is already apparent to you. Listen as though you have never heard that objection before. o Salespeople should plan to relax as buyers offer objections.

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Evaluate Objections – To truly sell value and establish a relationship, the seller must evaluate objections before answering. o Objections may be classified as unsatisfied needs (that is, real objections) or excuses. o Excuses are concerns expressed by the buyer that mask the buyer’s true objections. o Circumstances provide a clue to whether an objection is a valid concern. o Salespeople must rely on observation, questioning, knowledge about why people buy, and experience to determine the validity of reasons offered for objections. Always Tell the Truth – Truthfulness is an absolute necessity for dignity, confidence, and relationship development.

EFFECTIVE RESPONSE METHODS -

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No perfect method exists for answering all objections completely. In some instances, spending a lot of time trying to convince the prospect may not be wise. Common Methods for Responding to Objections:

Before using any method, salespeople almost always need to probe to help the prospect clarify concerns and to make sure they understand the objection. This method is often called the probing method. Probing method – method to obtain commitment in which the salesperson initially uses the direct request method, and, if unsuccessful, uses a series of probing questions designed to discover the reason for the hesitation. Probing is usually verbal, but it can also include nonverbal probing. The friendly silent questioning stare (FSQS) is the act of silently waiting to encourage buyers to elaborate or explain more fully what their concern is. Don’t malign or disparage the competition. Sell your product on its own merits, not by trying to do so by making the competitive product sound inferior.

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Social media can help resolve objections. Direct denial – At times, salespeople face objections based on incomplete or inaccurate information of the buyer. They should respond by providing information or correcting facts. o When using the direct denial method, the salesperson makes a relatively strong statement to indicate the error the prospect has made. o Direct denial must be used with caution. o It is appropriate only when the objection is blatantly inaccurate and potentially devastating to the presentation. o The salesperson must also possess facts to back up such a denial. o Direct denial should never be used if the prospect is merely stating an opinion or if the objection is true. Indirect denial – In the indirect denial method, the salesperson denies the objection but attempts to soften the response. o The salesperson takes the edge off the response by agreeing with the prospect that the objection is an important one. o This approach avoids a direct contradiction and confrontation. o To begin an answer, a salesperson would do well to agree with the prospect, but only to the extent that the agreement does not weaken the validity of the salesperson’s later denial. o The important features of indirect denial are that salespeople recognize the position of the customer wo makes the objection and then continues by introducing substantial evidence. o Indirect denial should never be used if the prospect has raised a valid point or is merely expressing an opinion. o It can be used for all personality types and is especially effective for amiables and analyticals because they like less assertive people. Compensation method – Every product has some advantages and some disadvantages compared to competing products. Also, an absolutely perfect product or service has never been developed; the firm always has to make cost-benefit decisions about what features to include. o Buyers note these trade-offs and often object because the salesperson’s product is less than perfect. o The wise salesperson will admit that such objections are valid and then proceed to show any compensating advantages. o This approach is called the compensation method of responding to objections. o The compensation method is often referred to as the superior benefit method because the benefit of one attribute overcomes a concern about a less important attribute. o This method is most appropriate for analyticals, who are accustomed to conducting trade-off analyses. o Another time that the compensation method may be used is when the prospect says, “I’m just going to think about it. I’ll be in touch with you later.” The seller

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can show how acting today more than compensates for the “pain” of making a decision today. Referral method – When buyers’ objections reflect their own attitudes or opinions, the salesperson can show how others held similar views before trying the product or service. o In this method, called the referral method or the feel-felt-found method, the salesperson goes on to relate that others actually found their initial opinions to be unfounded after they tried the product. o The sequence should be as follows: I can see how you feel…. Others felt the same way… yet they found… o Proof of the salesperson’s assertion in the form of a testimonial letter strengthens the method; in fact, some trainers refer to this approach as the third-party-testimony method. If a letter is not available, the salesperson might be able to supply the name and phone number of the third party, o The referral method is most appropriate for expressives and amiables because both types tend to care about what other people think and are doing. Revisit method – When using the revisit method (also called the boomerang method) of responding to objections, the salesperson turns the objection into a reason for buying the product or service. o This method can be used in many situations. o The revisit method requires care. Acknowledge method – At times, the buyer voices opinions or concerns more to vent frustration than anything else. o When this occurs, the best strategy may be to use the acknowledge method, also called the pass-up method. o Simply let the buyer talk, acknowledge that you heard the concern pause, and then move on to another topic. o Sometimes the salesperson can use the acknowledge method by simply agreeing with the prospect and then moving on which suggests to the buyer that the concern really should not be much of an issue. o The acknowledge method should not be used if the objection raised is factually false. o Should be used sparingly. Postpone method – In the early part of a sales interview, the prospect may raise objections that the salesperson would prefer to answer later in presentation, after discovering the prospect’s needs. o Using the postpone method, the salesperson would ask permission to answer the question at a later time. o Salespeople make the most use of the postponement method when a price objection occurs early in the presentation. However, this method can be used for almost any type of objection or question. Salespeople often combine methods when answering an objection. Before moving on with the presentation, the salesperson needs to make sure that the buyer agrees that all objections have been completely answered.

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Selling to a group of buyers requires some extra care. If one person offers an objection, the seller should try to get a sense of whether other buyers share the concern. Any response from the seller should usually be directed to all buyers, not just the one who asked the question. After responding, the seller needs to make sure that all buyers are satisfied with the answer before moving on.

THE PRICE OBJECTION -

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Price is perhaps the most frequently mentioned obstacle to obtaining equipment. In fact, about 20% of buyers are thought to buy purely on the basis of price. Unfortunately, the first response of many salespeople to a price objection is to lower the price. Inexperienced salespeople, desiring to gain business, often quote the lowest price possible as quickly as possible. For mutually beneficial long-term relationship to exist, their firm must make a fair profit. Also, by cutting prices, the firm has to sell more to maintain profit margins. When faced with a price objection, salespeople should ensure that they up-to-date information, establish the value of the product, and use communication tools effectively. Use up-to-date information – Successful salespeople make sure they have the most current pricing information available to them, including not only their prices but competitors’ prices as well. Establish the value – the product’s value must be established before the salesperson spends time discussing price. The value expected determines the price a prospect is willing to pay. o Value cannot be established during the early stages of the presentation. o Price objections are best handled with a two-step approach:  First, the salesperson should try to look at the objection from the customer’s viewpoint, asking questions to clarify the customer’s perspective.  After learning more about the customer’s perspective, the next step is to sell value and quality rather than price. o Intangible features can also provide value that offsets price. Some of these features are:  Good service in the form of faster deliveries, technical advice, and field assistance.  For a customer tempted to buy on price alone, salespeople can emphasize the importance of having a thoroughly reliable source of supply: the salesperson’s company.  Customers value sales representatives who go out of their way to help with problems and promotions – salespeople who keep their word and follow through when they start something.

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Use communication tools effectively – by demonstrating the product, showing test results and quality control procedures, using case histories, and offering testimonials.

DEALING WITH TOUGH CUSTOMERS -

Sellers need to maintain the positive attitude even with rude, hard to get along with prospects. The buyer’s culture often dictates how he or she will respond to a seller. Some of the toughest customers aren’t those who are noisy and boisterous. Rather, they are often the passive ones, the quiet ones – the ones who don’t object, don’t question, and don’t buy.

CHAPTER 10 QUIZ QUESTIONS: -

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Objections during a presentation show the prospect is paying attention. o TRUE Selling a new and different good, service, or idea is called… o Pioneer selling When dealing with an objection, successful salespeople… o Anticipate the objection and prepare a helpful response, make sure the objection is not just an excuse, relax and listen and never interrupt the buyer, forestall known concerns before they arise Successful salespeople make sure they have the most current pricing information available to them. o TRUE Professor Donoho at Northern Arizona University teaches a method called the _____ that is used to encourage buyers to elaborate or explain more fully what their concerns are. o Friendly silent questioning stare (FSQS) The compensation method of responding to objections is often referred to as the superior benefit method because… o The advantage of one attribute overcomes a concern about a less important attribute. The use of a third-party testimonial letter strengthens the ________ method of responding to a prospect’s objections. o Referral No exact formula has been devised to separate excuses from real objections. o TRUE

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"I agree, sir, that the valve buttons on this brand of aerosol paint are very difficult to remove, and you will be glad they are. They are made that way to prevent children, who might sneak into your garage to play, from painting everywhere, accidentally harming themselves, and so on." Which of the following methods for responding to objections has been used in this scenario to convince the customer? o Revisit method

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Karen said to the sales executive of a holiday resort, "Your resort is miles away from the city and does not provide pickup and drop off facilities." The sales executive replies, "Yes, I know our resort facility is away from the city, but the serenity and beauty of this area is conducive for a very relaxed and peaceful holiday experience to our customers." Which of the following methods for responding to objections has been used by the sales executive to address Karen's objections? o The acknowledge method Which of the following is a danger posed by the postpone method of responding to objections? o The buyer is unable to focus on what a salesperson is saying until his or her concern is addressed. Price objections are best handled by lowering the price until the prospect is happy. o FALSE

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PRESENTATION SECRETS OF STEVE JOBS: 1. 2. 3. 4. 5. 6. 7.

Plan in analog Answer the one most important question – why should my listener care? Develop a messianic Create Twitter-like headlines Draw a roadmap Introduce the antagonist Reveal the conquering hero

ARISTOTLE: 1. 2. 3. 4. 5.

Deliver a story or statement that arouses the audience’s interest Pose a problem or question that has to be solved or answered Offer a solution to the problem you raised Describe the specific benefits for ….. solution State a call to action...