©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Addressing Concerns and Earning Commitment 8

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Learning Objectives Explain why it is important to anticipate and overcome buyer concerns and resistance. Understand why prospects raise objections. Describe the five major types of sales resistance. L 1 L 2 L 3

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Learning Objectives Explain how the LAARC method can be used to overcome buyer resistance. Describe the recommended approaches for responding to buyer objections. List and explain the earning commitment techniques that secure commitment and closing. L 4 L 5 L 6

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Key Thoughts Buyers will raise objections, but if the salesperson did a good job qualifying the buyer, the resistance shouldn’t be insurmountable. Perhaps the most essential component of handling buyer resistance is listening. Buyer’s want to perceive a net gain in value from the exchange (purchase) before committing to it. Making a purchase is inherently risky; finding ways to reduce perceived risk will increase the probability of the buyer committing to the purchase. The purchase decision is a true test of the extent to which the buyer trusts the salesperson.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Objection (Sales Resistance) Anything the buyer says or does that slows down or stops the buying process.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Sales Resistance Buyer’s objections to a product or service during a sales presentation.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Q. 1. Why do prospects raise objections?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Reasons Why Prospects Raise Objections The prospect wants to avoid the sales interview. The salesperson has failed to prospect and qualify properly. Objecting is a matter of custom. The prospect resists change. The prospect fails to recognize a need. Prospect lacks information.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Summary of Reasons Why Prospects Raise Objections

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Q. 2. What are the types of objections?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Major Categories of Objections No Need Product or Service Objection Company Objection Price is Too High Time/Delaying

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Major Categories of Objections

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Responding to Need Objections

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Responding to Product/Service Objections

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Responding to Company/Source Objections

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Responding to Price Objections

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Responding to Time Objections

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Q. 3. What is the LAARC method of handling objections?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Handling Buyer Resistance

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Ethical Dilemma

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Q. 4. What are the other methods of handling objections?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Other Methods for Handling Buyer Resistance Forestall – Introduce the source of the objection before the prospect brings it up. Direct Denial – A rather harsh response that the prospect is wrong. Indirect Denial – Softening the blow when correcting a prospect’s information. Translation or Boomerang – Turn a reason not to buy (the source of the objection) into a reason to buy. Compensation – Counterbalance the objection with an offsetting benefit.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Other Methods for Handling Buyer Resistance Question – Ask the buyer assessment questions to gain a better understanding of the what they are objecting to. Third Party Reinforcement – Use the opinion or data from a third party source to help overcome the objection and reinforce the salesperson’s points. Feel-Felt-Found – Salesperson relates that others actually found their initial opinions to be unfounded. Coming-to-That – The salesperson tells the buyer that he or she will be covering the objection later in his or her presentation.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Commitment

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Q. 5. What are the guidelines for earning commitment?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Guidelines for Earning Commitment Look for Commitment Signals – “That will get the job done” – “I didn’t realize you delivered everyday.” – “The price is lower than I thought it would be.” Ask Trial Commitment Questions – “What do you think about what we’ve discussed?” – “Do you see how this will help your organization?”

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Guidelines for Earning Commitment Resolve “Red Light” Statements Made by the Prospect – “I’m not sure that will work." – “The price is higher than I thought it would be.” – “Your delivery schedule does not work for us.” – “I don’t see the advantage of going with your proposal.”

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Q. 6. What are the techniques for earning commitment?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Techniques to Earn Commitment

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Techniques to Earn Commitment

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Techniques to Avoid

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Ethical Dilemma

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Dealing with Yes! Obtain the customer’s signature Provide a plan of action (i.e., answer the question “now what?”) Answer any remaining questions. Assure the buyer you will follow-up Thank the customer for the business

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Dealing with No! Evaluate the customer’s explanation Maintain the relationship foundation Understand rejection is a fact of life Evaluate your performance Learn from the situation Make improvements