1. Welcome Your Prospect’s Objections Chapter 11 McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 11-2 Chapter 11

3. 11-3 Main Topics  The Tree of Business Life: Objections  Welcome Objections!  What Are Objections?  When Do Prospects Object?  Objections and the Sales Process  Basic Points to Consider in Meeting Objections  Six Major Categories of Objections 11 Chapter

4. 11-4 Main Topics  Techniques for Meeting Objections  Technology Can Effectively Help Respond to Objections!  After Meeting the Objection—What to Do?  In All Things Be Guided by the Golden Rule 11 Chapter

5. 11-5 The Tree of Business Life: Objections The Golden Rule Guided by The Golden Rule:  Welcome objections.  Remember that objections may allow you to answer the prospect’s concern(s).  Realize your product or solution may not be for everyone.  If it is not for a particular customer, thank him and politely leave  If it would benefit the customer, politely, professionally, and ethically show how the product could be useful  Handling objections truthfully shows you provide ethical service in order to build true relationships.

6. 11-6 Presentation Discuss Product Present Marketing Plan Explain Business Proposition Suggest Purchase Selling Process Buyer’s Mental Steps Prospecting Preapproach Follow-up & Service Approach Presentation Trial Close Determine Objections Meet Objections Desire Conviction Present Marketing Plan Availability, Delivery, Guarantee, Merchandising, Installation, Maintenance, Promotion, Training, Warranty Explain Business Prop List Price, Shipping Cost, Discounts, Financing, ROI, Value Analysis Suggest Purchase Product, Quantity, Features, Delivery, Installation, Price Money Authority Desire Action (Purchase) Attention Discussion Sequence Discuss Product Show Feature Explain Advantage Lead into Benefit Let Customer Talk Interest Trial Close Close The Parallel Dimensions of Selling*

7. 11-7 Welcome Objections!  Accept objections as a challenge.  People do not want to be taken advantage of.  Learn to overcome objections – do not fear.

8. 11-8 What are Objections?  Opposition or resistance to information or the salesperson’s request is an objection.  Prospect who presents objections is often more easily sold.

9. 11-9  A prospect may object at any time during sales call.  Always be ready to handle a prospect’s objections.  Quickly determine what to do. When Do Prospects Object?

10. 11-10 Exhibit 11-1: When Objections Occur, Quickly Determine What To Do

11. 11-11 Basic Points to Consider in Meeting Objections  Plan for objections.  Anticipate and forestall.  Handle objections as they arise.  Postponement may cause a negative mental picture or reaction

12. 11-12 Basic Points to Consider in Meeting Objections, cont…  Postponement of objections may result in:  Prospect may stop listening  Prospect may feel that you have something to hide  You also feel that it’s a problem  You cannot answer because you don’t know the answer  May appear that you’re not interested in prospect’s opinion

13. 11-13 Basic Points to Consider in Meeting Objections, cont.  Be positive.  Use positive body language  Do not take objections personally – no hostility  Listen – hear them out.  Listening Guidelines – Chapter 4

14. 11-14 Basic Points to Consider in Meeting Objections, cont…  Understand objections:  Request for information  A condition  Objection that turns into a condition of the sale  Negotiation can overcome a condition  “Hopeless”  Major or Minor objections (true objections)  Practical (overt) or Psychological (hidden) objection  A real objection is tangible  The salesperson must uncover hidden objectives and eliminate them

15. 11-15 Exhibit 11-2: What Does a Prospect Mean by an Objection? Is the prospect’s response a... Condition? Hopeless objection? Request for more information? True objection? Minor? Major? Psychological? Practical? Psychological?

16. 11-16 Exhibit 11-3: Examples of Objections

17. 11-17 How Do You Handle Sales Objections?  The sales objection may:  Ask for information  Give strong resistance  Remember you want to help the person.

18. 11-18 Exhibit 11-4: Six Major Categories of Objections

19. 11-19 Six Major Categories of Objections 1. The hidden objection 2. The stalling objection (“I’ll think it over…”) 3. The no-need objection (“…but I’m not interested now.”) 4. The money objection 5. The product objection 6. The source objection

20. 11-20 Six Major Categories of Objections 1. The hidden objection – prospect who asks trivial, unimportant questions or conceals his feelings beneath a veil of silence a. Salesperson must ask questions and carefully listen in order to smoke out prospect’s real objections b. Smoke out hidden objections – ask questions, observe, “read between the lines” – prospect may not know what the objections are; as last resort, may have to ask what objections are

21. 11-21 Six Major Categories of Objections Hidden objections, cont… Consider the following questions: 1. What would it take to convince you? 2. What causes you to say that? 3. Tell me, what’s really on your mind?

22. 11-22 Six Major Categories of Objections 2. The stalling objection – prospect says, “I’ll think it over,” or “I’ll be ready to buy on your next visit,” must determine if truth or smokescreen designed to get rid of you – common tactic a. One of toughest to overcome arises when selling a new product b. Buyer says she has to get approval from someone else. Buyer’s attitude toward product will influence buying decision – make it positive

23. 11-23 Six Major Categories of Objections 2. The stalling objection, cont… c. Let buyer know you are on her side and help her with her objections. If she does not respond give her multiple choice question to display genuine attitude of caring d. Do not get demanding, defensive, or hostile e. Goal is to help prospect realistically examine reasons for and against buying now f. Main idea is not to be satisfied with false objection or stall. Bring out any or all main selling benefits and KOS

24. 11-24 Six Major Categories of Objections 3. The no-need objection – prospect says, “…but I’m not interested now,” and he stays as he presently is a. This is widely used because it gets rid of the salesperson b. It is tricky because it also includes a hidden objection or a stall

25. 11-25 Six Major Categories of Objections 4. The money objection – encompasses several forms of economic excuses and is simple for the buyer to say a. Respond by saying that it is risky to discuss price until it can be compared to product’s benefits. Once you convey product’s benefits, price becomes secondary factor which usually can be dealt with successfully b. Quote price and go right on selling

26. 11-26 Six Major Categories of Objections 4. The money objection, cont… c. Price/Value formula 1. Used to determine if prospect is or is not convinced price is too high 2. Price/Value = Cost a) Cost – comparison of what is received to money paid b) Value – what prospect sees the product doing for them c) Price – set at headquarters; not subject to change

27. 11-27 Six Major Categories of Objections 5. The product objection a. Not everyone likes the best selling product b. Your reaction must be positive c. You can use guarantee, testimonial, independent research results, or a demonstration

28. 11-28 Six Major Categories of Objections 6. The source objection a. Some prospects say they are happy with their current supplier b. Try to find out exactly bothers prospect and call on her routinely over a long period of time

29. 11-29 Six Major Categories of Objections  Salespeople often encounter the same objections from customer to customer.  After a sales call, ask yourself:  What were the objections?  How did I handle them?  How should I handle them next time?  Be prepared for the same objection to arise again!

30. 11-30 Once Again! What Are Objections?  Opposition or Resistance to:  Information  The salesperson’s request

31. 11-31 Salespeople Need To Be Good Communicators, but How?  Handling objections can be challenging:  Done incorrectly, you may appear rude.  Done correctly, you appear professional.

32. 11-32 There Are Time-Honored Communication Techniques that Can Help You to:  Be a good communicator.  Help others more effectively.

33. 11-33 Techniques for Meeting Objections

34. 11-34 Exhibit 11-7: Techniques for Meeting Objections

35. 11-35 Techniques for Meeting Objections 1. The dodge neither denies, answers, nor ignores. 2. Don’t be afraid to pass up an objection. 3. Rephrase an objection as a question. Easier to answer question than objection Exhibit 11-8). 11-8)  Acknowledge prospect’s viewpoint  Rephrase objections  Obtain agreement  Feel-felt-found:  “I understand how you feel…”  “Bill at XYZ felt the same way…”  “…but he found after reviewing our products…”

36. 11-36 Exhibit 11-8: Examples of Rephrasing Objections as a Question Back to 12-23

37. 11-37 Techniques for Meeting Objections 4. Postponing objections is sometimes necessary.  If you judge the objection will be handled to satisfaction by your customary method  That prospect truly willing to wait until that time later in presentation  You may politely forestall  Tactfully used forestall can leave you in charge of presentation

38. 11-38 Techniques for Meeting Objections 5. Send it back with the boomerang method.  Be ready at any time to turn an objection into a reason to buy  Convince the prospect that her objection is in fact a benefit  Requires good timing and quick thinking

39. 11-39 Techniques for Meeting Objections 6. Ask questions to smoke out objections:  Five-question sequence (Exhibit 11-10)(Exhibit 11-10)

40. 11-40 Exhibit 11-10: Five-Question Sequence Method of Overcoming Objection Back to 12-23

41. 11-41 Techniques for Meeting Objections  This series of questions keeps the conversation and gets the real objections out in the open – which helps increase sales

42. 11-42 Techniques for Meeting Objections 7. Use direct denial tactfully  Incomplete or incorrect objections should be acknowledged from the prospect’s viewpoint and then answered with complete and correct facts  Tact is critical  Do not say, “You’re wrong.” Closes prospect’s mind.  Try, “You know, you’re right to be concerned about this. Let me explain.”

43. 11-43 Techniques for Meeting Objections 8. Indirect denial works  It initially appears as agreement with customer’s objection, but moves into denial of the fundamental issue  Done in in natural, conventional way, salesperson will not offend prospect

44. 11-44 Techniques for Meeting Objections 9. Compensation or counterbalance method  Sometimes a prospect’s objection is valid and must be overcome  Calls for compensation method  Present advantages to counterbalance the objection

45. 11-45 Techniques for Meeting Objections 10. Let a third party answer  Answer it by referring to a third party and using his experience as “proof or testimony”  If source is reliable or reputable, can easily be successful even with expert or skeptical prospect

46. 11-46 Technology Can Effectively Help Respond to Objections!  Data stored in handheld computers or laptops, or obtained using a telephone modem or satellite transmission, can provide information to overcome buyer’s objections.

47. 11-47 After Meeting the Objection–What to Do?  First, use a trial close – ask for opinion.

48. 11-48 Exhibit 11-12: The Procedure to Follow when a Prospect Raises an Objection Prospect raises an objection Response to the objection Use a trial close Move into your presentation Close the sale

49. 11-49 What Does the Trial Close Do?  Does it ask for the order?  Does it ask for an opinion?

50. 11-50 Yes, the Trial Close Asks For An:  Opinion or feedback about what was just said or shown

51. 11-51 The Trial Close Is a Powerful Communication Technique that Can Produce:  Two-way communication  Participation from the other person

52. 11-52 A Challenge!  Use the trial close in normal conversation to:  Improve your communication  Stimulate others to participate in the conversation  Simply ask an occasional opinion-type question:  “Is that a good place to eat?”  “What did you think about the movie?”  “How does that sound to you?”

53. 11-53 Let’s Review! When Is It Time to Use a Trial Close?  After making a strong selling point in the presentation  After the presentation but before the close  After answering an objection  Immediately before you move to close the sale

54. 11-54 Let’s Review! What Does the Trial Close Allow You to Determine?  Whether the prospect likes your product’s FAB – the strong selling point  Whether you have successfully answered the objection  Whether any objections remain  Whether the prospect is ready for you to close the sale

55. 11-55 Why Do You Use a Trial Close After Answering an Objection?  To see if you have answered the objection!

56. 11-56 What is an Example of a Trial Close Used to Respond to an Objection?  “Does that answer your question?”  “With that question out of the way, we can go ahead – don’t you think?”

57. 11-57 Once You Have Satisfactorily Responded to the Objection, What Should You Do Next?  Make a smooth transition back into your presentation:  “As we were discussing…”  Move to close the sale if you have completed your presentation.  Move to close again if objection was after a close.

58. If You Cannot Overcome the Objection, What Are Three Alternatives to Consider? (#1)  Return to presentation concentrating on new or previously discussed FABs of your product.

59. 11-59 If You Cannot Overcome the Objection, What Are Three Alternatives to Consider? (#2)  Admit it.  Compensate for it by showing how your product’s benefit(s) outweigh the disadvantage(s).

60. 11-60 If You Cannot Overcome the Objection, What Are Three Alternatives to Consider? (#3)  If 100% sure the customer will not buy:  Go ahead and close  Always ask for the order  Allow the buyer to say “no” – don’t say it yourself  Your competitor(s) may not be able to overcome the objection(s) either  A competitor may make the sale because he/she asked for it  Be professional, not pushy.  Leave the door open for a return visit.

61. 11-61 If After Your Presentation You Received a Positive Response to Your Trial Close, What Would You Do? Approach Presentation Trial Close Determine Objections Meet Objections Trial Close Close

62. 11-62 If After Your Presentation You Received a Negative Response to Your Trial Close, What Would You Do? Approach Presentation Trial Close Determine Objections Meet Objections Trial Close Close

63. 11-63 If After You Meet the Objection You Received a Positive Response to Your Trial Close, What Would You Do? Approach Presentation Trial Close Determine Objections Meet Objections Trial Close Close

64. 11-64 Approach Presentation Trial Close Determine Objections Meet Objections Trial Close Close If After You Meet the Objection You Received a Negative Response to Your Trial Close, What Would You Do?

65. 11-65 Let’s Review By Taking a Closer Look at the Interactions Within the Sales Presentation Presentation Trial Close Determine Objections Meet Objections Trial Close Close Approach

66. 11-66 In All Things Be Guided By the Golden Rule  The reason to use the many communication techniques in this chapter is to serve others from your heart, not from your pocketbook.

67. 11-67 Summary of Major Selling Issues  Be prepared to logically and clearly respond to your prospect’s objections.  Basic points to consider in meeting objections:  Plan for them  Anticipate and forestall them  Handle them as they arise  Listen to what is said  Respond warmly and positively  Make sure you understand  Respond using an effective communication technique

68. 11-68 Summary of Major Selling Issues, cont…  Objections are classified as hidden, stalling, no-need, money, product, and source.  Objections help you determine if you are on the right track to uncover prospects’ needs and if they believe your product will fulfill those needs.  Objections show inadequacies in a salesperson’s presentation or product knowledge.

69. End of Chapter 11 Chapter 11 McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.