Which of the following is true of the direct denial method of responding to an objection?

Presentation on theme: "Responding To Objections"— Presentation transcript:

1 Responding To Objections
Chapter 10 Responding To Objections

2 GOAL? Build relationships Sell Value
When do buyers object? Anytime and all the time!

3 Why Do Buyers Raise Objections?
Objections- a concern or question raised by the buyer Do anticipate and eliminate hidden objections When do objections occur? Objections can be raised from the initial securing of an appointment to after-sale follow-ups

4 Objections In The Sales Process
Setting Up An Initial Appointment Objections with appointment times or dates When products, services, or concepts are unfamiliar to the buyer The Presentation Disbelief in salesperson’s opening statement Buyers dislike of small talk Objections to salesperson’s stated goals for the meeting Points raised in the presentation (potentially positive; shows prospect’s interest)

5 Objections in the Sales Process
Attempting To Obtain Commitment Salesperson must uncover and respond to objections Salesperson must understand probable objections and provide supporting third-party documentation Lots of objections often result from salespeople with underdeveloped selling skills After The Sale Installation, quality of the product or service, customer service personnel’s lack of friendliness, or credit department’s refusal of terms promised by the salesperson

6 Common Objections Some buyers object to make salespeople nervous
Conditioned salespeople recognize this practice Five Major Types Of Objections (See exhibit 10.1 – P.261) 1) Objections related to needs 2) Objections related to the product 3) Objections related to the source 4) Objections related to the price 5) Objections related to time

7 Objections Related to Needs
I Do Not Need The Product Or Service Logical if the salesperson cannot establish a need in the buyer’s mind More difficult in pioneer selling I’ve Never Done It That Way Before Buyer’s are hesitant to change (fear or ignorance) Habits and customs help insulate the prospect from certain risks

8 Objections Related To The Product
I Don’t Like The Product Or Service Features Features are unsatisfactory or unavailable (Ex. I don’t like the design., We prefer printed circuits!) I Don’t Understand Seller must carefully observe the buyer’s nonverbal cues Misunderstanding of technical terms and benefits I Need More Information Attempt to get more information Logical justification of the purchase

9 Objections Related To The Source
I Don’t Like Your Company Satisfaction with the selling company is important Unvoiced concerns regarding the company (Ex. Is it true your company lost money last year?, Who does your designing?) I Don’t Like You Lack of trust or dislike of a salesperson Clashing personalities between buyer and seller Turnover- the account is given to a different salesperson

10 Objections Related To The Price
I Have No Money Companies lack the resources for the purchase Result of an incomplete or poor job of qualifying The Value Does Not Exceed The Cost Takes capital away from other necessary company functions Value of the product or service doesn’t offset the sacrifice Mask hidden reasons for the buyer’s reluctances

11 Objections Related To Time
I’m Just Not Interested Today Lack of interest, time, not in the mood, or previous unpleasant experiences Aggressive, rude, impolite, or pesky salespeople I Need Time To Think About It Pressure to make a decision on the spot (Ex. I haven’t made up my mind, I’m not ready to buy)

12 Other Objections Examples I’m satisfied with the company I use now
There is no demand for your product You’ll have to see Mr.X I’ve heard complaints from my friends who use your product We have no room for your line It’s a lot of hassle in paperwork and time to switch suppliers

13 Behaviors of Successful Salespeople
Anticipate objections Forestall objections (prevent by getting the answer ahead of time) LAARC Method in book – we have our own customized version of this. 5 step process: In your syllabus on role play rubric

14 Preparing To Respond Develop A Positive Attitude
True sincerity, refraining from arguing or contradicting, and welcoming objections Signs of sincerity are in the actions of the salesperson Temptations arise to prove a prospect wrong; keep focused Salespeople hear a lot of objections; maintain a positive attitude toward the prospect

15 Preparing to Respond Relax and Listen- Do Not Interrupt
Important to listen to a position completely Defuse nervousness through humor

16 Preparing to Respond Commit To Always Tell The Truth
Truthfulness establishes dignity, confidence and continued relations Understand your product and the industry It’s ethical Anticipate Objections Many companies make lists of common objections and effective answers and encourage salespeople Successful sales reps take notes on new objections and responses, and ask for suggestions

17 Continued Evaluate Objections
Objections can be classified as unsatisfied needs or excuses Excuses- concerns expressed by the buyer that mask the buyer’s true objections Real objections may be disguised as an excuse Use observation, questioning, knowledge, and experience to determine the validity of reasons offered for objections

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19 Effective Response Methods
No specific technique to answer all objections See Exhibit – P.276 for examples Procedure for responding to objections 1) Listen carefully; don’t interrupt 2) Repeat the prospect’s objection 3) Acknowledge the apparent soundness of the prospect’s opinion 4) Evaluate the objection 5) Decide on the method(s) to use in answering the objection 6) Get a commitment from the prospect

20 Effective Response Methods See Exhibit 10.5 – P.271 for examples
Probing method- helps the prospect clarify their concerns and make sure they understand the objection Seven most common methods for responding to objections 1) Direct denial 2) Indirect denial 3) Compensation method 4) Referral method (also known as feel/felt/found method) 5) Revisit method (also known as boomerang method) 6) Acknowledge method (also known as pass-up method) 7) Postpone method

21 Direct Denial Objections based on incomplete or inaccurate information by the buyer Direct denial- the salesperson makes a relatively strong statement to indicate the error the prospect has made Be cautious! Use when devastating to the presentation, however, don’t use when the objection is true or if it’s a mere statement of the prospects opinion

22 Indirect Denial The salesperson denies the objection but attempts to soften the response Be agreeable! Recognize and address concern, followed by an introduction of substantial evidence Don’t use if a valid point is made, or of merely opinion

23 Compensation Method Used to respond helpfully to objections by agreeing that the objection is valid, but then proceeding to show any compensating advantages Also known as superior benefit method, because the benefit of one attribute overcomes a concern about a less important attribute Used in response to such comments as, “I’m just going to think about it. I’ll be in touch with you later.”

24 Referral Method Sometimes called the Feel-Felt-Found Method
Definition: method of helpfully responding to objections in which the salesperson shows how others held similar views before trying the product or service I can see how you feel, others felt, yet they found Third-party-testimony method- method of responding to an objection during a sales presentation that uses a testimonial letter from a third party to corroborate a salesperson’s assertions

25 Revisit or Boomerang Method
The salesperson turns the objection into a reason for acting now Be careful, it may appear to be a pushy tactic Often the product or service is designed to save the buyer a substantial amount of time or money

26 Acknowledge or Pass-Up Method
Method which lets the buyer talk, acknowledging that you heard the concern, and then moving on to another topic without trying to resolve the concern Many times buyers are just venting frustration Should not be used if the objection raised is factually false

27 Postpone Method The salesperson asks permission to answer the questions at a later time Generally seldom refuses if the sales rep appears to be acting in good faith Some objections are best answered when they occur; others can be responded to most effectively by delaying the answer Frequently occurs when a price objection occurs early in the presentation

28 Using The Methods See text – pages 270-277
One method may work for answering an objection, while others may use several methods for one answer Before moving on in the presentation, the salesperson needs to reassure the buyer agrees that all objections have been completely answered Selling to a group of buyers requires extra care (salesperson may have to throw the issue back to the group)

29 The Price Objection Price is the most frequently mentioned obstacle to obtaining commitment Only about 20% of buyers really buy just on price, but they use it as an excuse Use Up-To-Date Information Keep up with the most current pricing information (Including competitors information) Establish The Value Determine the price a customer is willing to pay Sell value and quality rather than price

30 Continued Use Communication Tools Effectively
Telling customers about quality and value is not enough Tangible features- product demonstrations, test results and quality control procedures, case histories, and testimonials Services Faster deliveries, technical advice, and field assistance may illustrate value, savings, and profit to a customer Company Reputation A reliable supplier is important; image of quality The Salesperson Sales reps who go out of there way strengthen the relationship

31 Dealing With Tough Customers
Understand we all have bad days Situational Actions Reschedule meeting If unreasonably rude, politely handle The buyer’s culture often dictates the way he or she will respond to a seller

32 Questions?

What is direct denial method?

Which of the following is true of the direct and I'll method of responding to an objection?

Which of the following is an important feature of the indirect denial method of responding to objection?

What is an example of direct denial?