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 11 McGraw-Hill/Irwin

3. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 11-3 McGraw-Hill/Irwin “I had to learn not only to handle the objections in my new job, but also how to bring objections out of the buyer.” ~Peter Troup Jaffee Insurance Concepts

4. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Proper attitude is shown by: –Answering sincerely –Refraining from arguing or contradicting –Welcoming objections Salespeople must assume the attitude of helper, counselor, and adviser and act accordingly Objections present sales opportunities Arguing and contradicting won’t build relationships Maintaining a positive attitude toward objections goes a long way toward building goodwill 11-4 The Goal is to Build Relationships and Sell Value McGraw-Hill/Irwin

5. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Setting up an initial appointment –Most common when products, services, or concepts are foreign to the buyer The presentation –Usually show the prospect’s interest Attempting to obtain commitment –May reveal a poor job up to this point After the sale –Carefully respond to these objections 11-5 When do Buyers Raise Objections? McGraw-Hill/Irwin

6. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Common Objections Objections related to needs –I do not need the product or service –I’ve never done it that way before Objections related to the product –I don’t like the product or service features –I don’t understand –I need more information 11-6 McGraw-Hill/Irwin

7. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Objections related to the source –I don’t like your company –I don’t like you Objections related to the price –I have no money –The value does not exceed the cost 11-7 Common Objections (continued) McGraw-Hill/Irwin

8. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 11-8 Value: The Relationship Between Costs and Benefits McGraw-Hill/Irwin

9. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Objections related to time –I’m just not interested today –I need time to think about it Other objections –We have no room for your line –There is no demand for your product –Sorry, but I just don’t do business with blacks or women –I’ve heard complaints from my friends who use your product. –I prefer to do business with Arab-owned firms. –It’s a lot of hassle in paperwork and time to switch suppliers. 11-9 Common Objections (continued) McGraw-Hill/Irwin

10. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Anticipate objections –Prepare helpful responses Forestall known concerns –Raise objections before buyers have a chance to raise them –Very important in written proposals 11-10 Behaviors of Successful Salespeople McGraw-Hill/Irwin Forestall Prevent by doing something ahead of time.

11. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Behaviors of Successful Salespeople (continued) Relax and listen – do not interrupt –Listen first, then answer the objection –Do not interrupt with an answer –Plan to relax as buyers offer objections Evaluate objections –Objections may be classified as unsatisfied needs or excuses –Circumstances can provide clues Always tell the truth –Lying and deception are not a part of a successful long-term relationship 11-11 McGraw-Hill/Irwin

12. © 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 11-12 Effective Response Methods McGraw-Hill/Irwin

13. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 11-13 Common Methods for Responding to Objections McGraw-Hill/Irwin

14. © 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 11-14 Effective Response Methods McGraw-Hill/Irwin

15. © 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 11-15 McGraw-Hill/Irwin

16. © 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 11-16 Effective Response Methods (continued) McGraw-Hill/Irwin

17. © 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 11-17 McGraw-Hill/Irwin

18. © 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 11-18 Effective Response Methods (continued) McGraw-Hill/Irwin

19. © 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 11-19 The Price Objection McGraw-Hill/Irwin

20. © 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. 11-20 McGraw-Hill/Irwin

21. © 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. 11-21 Summary McGraw-Hill/Irwin