1. © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

2. Responding to Objections How should salespeople sell value and build relationships when responding to objections? When do buyers object? What objections can be expected? Which methods are effective when responding to objections? How do you deal with tough customers? Some questions answered in this chapter are: 11-2 CHAPTER 10 McGraw-Hill/Irwin

3. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Proper attitude is shown by: –Answering sincerely –Refraining from arguing or contradicting –Welcoming objections 11-3 The Goal is to Build Relationships and Sell Value McGraw-Hill/Irwin

4. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Common Objections Objections related to needs Objections related to the product Objections related to the source Objections related to the price Objections related to time Other objections 11-4 McGraw-Hill/Irwin

5. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 11-5 Value: The Relationship Between Costs and Benefits McGraw-Hill/Irwin

6. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Anticipate objections Forestall known concerns Relax and listen – do not interrupt Evaluate objections Always tell the truth 11-6 Behaviors of Successful Salespeople McGraw-Hill/Irwin Forestall Prevent by doing something ahead of time.

7. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. No perfect method exists for answering all objectives completely In some instances, spending a lot of time trying to convince the prospect may not be wise Probing method –Can be verbal or nonverbal Blunders occur when the salesperson: –Does not understand the question –Answers the wrong question –Fails to fully answer the objection 11-7 Effective Response Methods McGraw-Hill/Irwin

8. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 11-8 Common Methods for Responding to Objections McGraw-Hill/Irwin

9. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Direct denial –The salesperson makes a relatively strong statement to indicate the error the prospect has made –Appropriate only when the objection is blatantly inaccurate –Should never be used if the prospect is merely stating an opinion Indirect denial –The salesperson denies the objection but attempts to soften the response –The salesperson must recognize the position of the customer who makes the objection and then continue by introducing substantial evidence 11-9 Effective Response Methods McGraw-Hill/Irwin

10. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Effective Response Methods (continued) Compensation method –Buyers may object because the salesperson’s product is less than perfect –The salesperson should acknowledge the validity of the objection and then proceed to show any compensating advantages –Also use when the prospect tries to put off closing the sale Referral method –Feel-felt-found method 11-10 McGraw-Hill/Irwin

11. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Revisit method –Salesperson turns the objection into a reason for buying (boomerang method) –Works with most personality types Acknowledge method –Buyer voices opinions or concerns to vent frustration –Salesperson listens, acknowledges, pauses, then moves on –Should not be used if the objection is factually false 11-11 Effective Response Methods (continued) McGraw-Hill/Irwin

12. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Effective Response Methods (continued) Postpone method –Buyer raises objections the salesperson would prefer to answer later in the presentation –The salesperson should ask permission to answer the question at a later time –Most useful when a price objection occurs early in the presentation Using the methods –Salespeople often combine methods –Sometimes several methods can be used in one answer 11-12 McGraw-Hill/Irwin

13. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Objections when selling to a group of buyers –Seller should rephrase the question and try to get a sense of whether other buyers share the concern –Throw the concern back to the group –Any response should be directed to all buyers, not just the one who asked the question –Make sure that all buyers are satisfied with the answer 11-13 Effective Response Methods (continued) McGraw-Hill/Irwin

14. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Use up-to-date information –Salespeople should ensure they have the most current pricing information available to them Establish the value –Establish product value before discussing price –Try to look at the objection from the customer’s point of view –Sell value and quality rather than price –Intangible features Use communication tools effectively –Show customers quality and value 11-14 The Price Objection McGraw-Hill/Irwin

15. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Dealing With Tough Customers Sellers need to maintain a positive attitude, even with rude, hard-to-get- along with prospects. It may be appropriate to point out the prospect’s rudeness. The buyer’s culture often dictates their response to a seller. 11-15 McGraw-Hill/Irwin

16. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Responding to objections is a vital part of a salesperson’s responsibility. Successful salespeople carefully prepare effective responses to buyers’ concerns. Buyers object for many reasons. Effective methods of responding to objections are available, and their success has been proved. 11-16 Summary McGraw-Hill/Irwin