Personal Selling MKT 310 Final Exam ch. 12, 13, 14

Major or Minor objections

Once you determine that the prospect has raised a true objection, determine its importance (major or minor).

Meet the objection

Once you fully understand the objection, you are ready to respond to the prospect.

Ask questions to smoke out objections.

People who ask Intelligent question whether they know much about the product, the prospect's business, or life in general, are often admired.

the Hidden Objective

Prospects who ask trivial, unimportant questions or conceal their feeling beneath a veil of silence. Such prospects may have a good conversation with you without revealing their true feelings.

Technology can effectively help respond to objections

Providing buyers the necessary information to make a decision can frequently overcome objections. Data storage in handheld computers or laptops, or obtained using a telephone modem or satellite transmission, can provide information to overcome buyers' objections.

How to provide above expectations of service

Providing good service in today's competitive marketplace is not enough--service must be excellent. Excellent service often requires technology and automation.

How many friends?

Real friends are one of the greatest assets you have in your life. Yet three true, intimate business friends may be all you can handle and have time for.

Build a professional reputation

Sales professionalism directly implies that you are a professional person--due to the respect and ready for the responsibilities that accompany the title. In speaking before a large class of marketing students pushed sales professionalism.

Is the customer always right?

Salespeople are often placed in positions of determining what is right and what is wrong. While others will disagree, your author feels the customer is not always right. Customers should at least get the benefit of the doubt.

Close based upon the Situation

Since different closing techniques work best for certain situations, salespeople often identify the common objections they encounter and develop specific closing approaches designed to overcome these objections.

Rephrase the objection as a question

Since it is easier to answer a question than to overcome an objection, counter an objection with a rephrasing question when you can do so naturally. 3 steps: 1. acknowledging the prospect's viewpoint. 2. rephrasing the objection into a question. 3. obtaining agreement on the question.

Compensation or Counterbalance method

Sometimes a prospect's objection is valid and calls for the compensation method. Several reasons for buying must exist to justify or compensate for a negative aspect of making a purchase.

Get the order--then move in

Talking also can stop the sale after the has said yes. An exception would be if you ask the customer for names of other prospects. Once this is done, it is best to take the order and move on.

How to build a business relationship

The answer is that you build a business friendship in much the same way that you build a personal relationship. ex. staying in contact with them and ask what is going on

Knowledge versus Wisdom

The knowledge is good, but there is a vast difference between knowledge (having the facts) and wisdom (applying these facts to taking care of customers)

The price/value formula

The price objection is a bargaining tool for savvy buyers who want to ensure the best, absolutely lowest price. price/value= cost

When do prospects object?

The prospect may object at any time during the sales call- from introduction to the close.

What is a business friendship?

The relationship between a salesperson and a client that revolves around business related issues is referred to as a business friendship.

Avoid control and one-upmanship

There is often a tendency for one person to take control in a relationship. Another tendency in relationships is to try to outdo, or one-up, your friend

Caring is hard to do

This kind of caring is hard to do. That is why people notice when the seller does it.

Closing under fire

To close more sales effectively, never take the first no from the prospect to mean an absolute refusal to buy. Instead, you must be able to close under fire, meaning that you must try to close even if the prospect is in a hostile mood towards the sale or...you.

3 levels of customer relationship marketing:

Transaction Selling: the salesperson sells to customers and does not contact them again. Relationship Selling: after the purchase the seller finds out if the customer is satisfied and has future needs. Partnering: the seller works continually to improve the customer's operations, sales, and profits.

Be positive

When responding to an objection, use positive body language such as a smile or show interest in their concern, and keep the prospect in a positive mood.

Move back into the presentation

When you have answered and overcome an objection, make a smooth transition back into your presentation.

Closing begins the relationship

When you make a sale for the first time, you change the person or organization from a prospect to a customer. You have helped the customer. You have contributed to the customer's welfare.

the Stalling Objection

When your prospect says, "I'll think it over," or "I'll be ready to buy on your next visit," you must determine if the statement is the truth or if it is a smoke screen designed to get rid of you. (stalling is a common tactic)

Do you pressure a true friend?

Yet to maintain a healthy and lasting business relationship, the needs of the people you serve should come before your own self-interest. What is most important...the most important ingredients in building a lasting friendship are truly caring for the other person and placing their interests before your interests.

How does service increase your sales

You--the salesperson-increase sales by obtaining new customers and selling more products to present customers. Salespeople are continually planning, implementing, and evaluating their purpose, plans, and success for contacting each customer.

sales proverbs

a proverb is a short, wise, easy-to-learn saying that calls a person to think and act. ex. of proverbs of sales wisdom-You lose X percent of sales or customers per year.

the trial close

always asks for the prospect's opinion not a decision to buy.Trial Close asks about what was said in the presentation, and typically causes to ask a question and/or state objections.

ABC is an acronym for:

always be closing; the successful salesperson does not stop with the prospect's first no. This makes for a good closer

Level 2: Friends

are people whom we spend more time with and with whom we share common interests and/or hobbies

Level 1: Acquaintances

are people whose names you know, whom you see occasionally, and whom you may know a little about even if you've known them for a long time.

Reading buying signals

buying signals refer to anything that prospects say or do indicating they are ready to buy your product or service. It hints to the salesperson that the buyer is in the conviction stage of the buying process.

The importance of service and the follow -up

by maintaining contact with a customer (or prospect) in order to evaluate the effectiveness of the product, and the satisfaction of the customer is the answer.

Smoke Out the Hidden Objection

consider the following questions: -What would it take to convince you? -What causes you to say that? -Let's consider this, suppose my product would (do what prospect wants)..then you would want to consider it, wouldn't you? -Tell me, what's really on your mind?

the Money Objection

encompasses several forms of economic excuses: I have no money, I don't have that much money. It costs too much, or your price is too high. These are simple objections for the buyer to say, especially in a recessionary economy.

5 things to remember when handling objections as they arise

if you choose to postpone answering the objection, it may give a negative mental picture to the buyer: -The prospect may stop listening until you address the objection. -The prospect may feel you are trying to hide something. -You also feel it's a problem. -You cannot answer because you do not know the answer or how to with this objection. -It may appear that you are not interested in the prospect's opinion.

the T-Account Close

is a close based on the process that people use when they make a decision. ex. To Act/ fast delivery, good profit, good credit....Not to Act/ narrow assortment

the Negotiation Close

is not to haggle over who gets the larger slice of pie, but to find ways for everyone to have a fair deal. Both the buyer and seller need to win. ex. If you could find a way where we could eliminate the need for a backup machine and guarantee availability, would you be happy with this arrangement?

Use direct denial tactfully

is objection is incomplete or incorrect use the direct denial method. Direct Denial is based on facts, logic, and politeness can effectively overcome the objection. Stay open minded don't say no, but rather acknowledge their concern and tell the prospect why.

Account penetration

is referred to as the ability to work and contact people throughout the account, and discussing your products to others.

Relationship marketing builds friendships

is the creation of customer loyalty and retention. Most company goals consist of not just getting customers but retaining customers.

the Source Objection

is the last major category of objections salespeople typically face. Source objections relate loyalty to a present supplier or salesperson.

Closing

is the process of helping people make a decision that will benefit them. Asking them to buy your product or service. So when should you attempt to close a sale? Simply, when the prospect is ready!

the Dodge neither denies, answers, nor ignores

it is called the dodge because the salesperson neither denies, answers, nor ignores the objection, but simply temporarily dodges it. ex. "before you decide to buy..."

the Product Objection

objections that relate directly to the product, and remember you are always selling against the competition. Focus on the advantages and benefits of your product over the competitor.

Level 3: Intimate Friends

often called "best friends," are the people we know on a deeper level than others.

Negotiation

refers to reaching an agreement mutually satisfactory to both buyer and seller. "I'll buy your equipment if you can deliver it in one month instead of three." prospect determine if it is a condition and if you can satisfy that in your negotiation

Customer Service

refers to the activities and programs the seller provides to make the relationship satisfying for the customer.

Customer Satisfaction

relates to met expectations. and refers to feelings toward a purchase. is the customer pleased or disappointed with the purchase.

the Summary-of-Benefits Close (most popular)

remember the FAB's of your product throughout the presentation. the summary-of-benefits close on a prospect, ex. Assume that the prospect indicates during your sales presentation that she likes your profit margin, delivery schedule, and credit terms.

the Minor-Points Close

represents a non threatening close. This close is similar to the alternative-choice close. Both methods involve giving the buyer a choice between two options. ex. giving the prospect single or multiple-product element choices

the Continuous-yes Close

the continuous-yes Close is like the summary close. However, instead of summarizing the product benefits, the salesperson develops a series of benefit questions that the prospect must answer. ex. Ms. Stevenson, you have said you like our quality products, is that right? And you like our fast delivery? .....

sales objection

the opposition or resistance to information or to the salesperson's request. Welcome sales objections because they indicate prospect interest and help determine what stage the prospect has reached in the buying cycle-attention, interest, desire, conviction, or readiness to close.

the Assumptive Close

the salesperson assumes the prospect will buy. Statements can be made such as "I'll call your order in tonight." or "I'll have this shipped to you tomorrow."

the Probability Close

this close permits your prospects to focus on their real objections. Once you have a real objection, convert that objection with a persuasive argument. ex. based upon their percentage of buying, 50-85%, 85% to 100%, or less than 50% you will act accordingly to what close you will provide.

the Standing-Room-Only Close

this close pushes action. Motivate the prospect to act immediately. -I'm not sure if I have your size. Would you want them if I have them in stock? -The cost of this equipment will increase 10 percent next week. Can I ship it today, or do you want to pay the higher price?

the Technology Close

this technique is very impressive to buyers.The exact use of technology in closing a sale depends on the type of product and customer you're selling to.

the No-Need Objection

used widely because it politely gets rid of the salesperson. Some salespeople actually encourage it by making a poor sales presentation

the Alternative Choice Close

was a close popularized in the 1930's as the story spread of the Walgreen Drug Company's purchase of 800 dozen eggs at special price. ex. Which do you prefer--one or two neckties to go with your suit? Giving the customer an option to choose an alternative that wasn't known before

Keys to improved Selling

-Ask questions to gather information and uncover needs -Recognize when a customer has a real need and how the benefits of the product or service can satisfy it. -Establish a balanced dialogue with customers. -Recognize and handle negative customer attitudes promptly and directly -Use a benefit summary and an action plan requiring commitment when closing.

The essentials of closing sales:

-Be sure your prospect understands what you say. -Always present a complete story to ensure understanding. -Tailor your close to each prospect. Prepare for different customer reactions, 80% will respond to a standard close, the other 20% will respond differently. prepare yourself with all facts needed. -Consider the customer's point of view in everything you do and say. -Never stop at the first no. -Learn to recognize buying signals. -Before you close, ask a trial close. Once the buyer says no, it is hard to change the person's mind. Come back another day... -After asking for the order--be silent. -Set high goals for yourself and develop a personal commitment to reach your goals. -Develop and maintain a positive, confident, and enthusiastic attitude toward yourself, your products, your prospects, and your close.

Things not to do during the close:

-Tells instead of tells; doesn't ask enough questions. -Overcontrols the call: asks too many close ended questions -Doesn't respond to the customers needs with benefits -Doesn't recognize need: gives benefits prematurely -Doesn't recognize benefits or handle negative attitudes effectively -Makes weak closing statements, doesn't recognize when or how to close.

After meeting the objection- what to do?

-Use a trial close-ask for opinion -Move back to the presentation -Move to close your sale -If objection can not be overcome

Ways to anticipate objections.

-depending upon something a competitor might say, tailor a presentation to focus on all advantages. -discuss disadvantages before the prospect does. -To brag about the product and turn it into a sales benefit.

11 types of closing techniques:

1. Alternative Choice Close 2. Assumptive Close 3. Compliment Close 4. Summary of Benefits Close 5. Continuous-yes Close 6. Minor-points Close 7. T-account or balance-sheet Close 8. Standing-room-only Close 9. Probability Close 10. Negotiation Close 11. Technology Close

6 ways service can keep your customers

1. Concentrate on improving your account penetration. 2. Contact new accounts frequently and on a regular schedule. 3. Handle customers' complaints promptly 4. Always do what you say you will do. 5. Provide service as you would to royalty. 6. Show your appreciation.

What are the four ways to respond to sales objections?

1. If there is a positive response to the trial close immediately after the presentation, move to the close. 2. If the prospect raises an objection, understand or clarify it, respond to it, and ask another trial close to see if you have met the objection. 3. After meeting one objection, be prepared to determine if there are other objections, may have to take a step back. 4. If, after responding to the objection and asking a trial close, you have not overcome the objection, return to the presentation and further discuss the product relative to the objection.

5 question sequence of overcoming objection

1. There must be some good reason why you're hesitating to go ahead now. Do you mind if I ask what it is? 2. In addition to that, is there any other reason for not going ahead? 3. Just supposing you could convince yourself that...Then you'd want to go ahead with it? (if positive response, go back to selling: if negative response, go to the next question) 4. Then there must be some other reason. May I ask what it is? (After a response, return to the second question. You can directly to the last question or complete the sequence one or two more times before going to the last question) 5. What would it take to convince you?

12 keys to a successful closing

1. Think success! Be enthusiastic. 2. Plan your sales call. 3. Confirm your prospects needs in the approach. 4. Give a great presentation. 5. Use a trial close after overcoming each objection. 6. Smoke out a prospect's real objections. 7. Overcome real objections. 8. Use a trial close after overcoming each objection. 9. Summarize benefits as related to a buyer's needs. 10. Use a trial close to confirm step 9. 11.Ask for the order and then be quiet. 12. Leave the door open. Act as a professional.

4 things to win back customers

1. Visit and investigate- contact the buyer 2. Be professional- show your appreciation 3. Don't be unfriendly- never criticize 4. Keep calling- treat a former customer like a prospect

Six Major categories of Objections

1. the Hidden Objection 2. the Stalling Objection 3. the No-Need Objection 4. the Money Objection 5. the Product Objection 6. the Source Objection

Structure for Survival

A good relationship needs structure to survive.

Using a trial close and asking for opinions

After meeting an objection at any time during the interview, you need to know if you have overcome the objection. Ask questions, such as: -That clarifies this point entirely, don't you agree? -That's the answer you were looking for, isn't it? -With that question out of the way, we can go ahead- don't you think? -Do you agree with me that we've covered the question you raised and given you a way to handle it?

Research reinforces these sales success strategies

Although it is difficult to summarize all sales success strategies discussed throughout this book, one research report reinforces several key procedures that improve sales performance.

When to not make the sale

Although you should try, you cannot always sell to everyone. Act as a professional, adult salesperson, and do not take the buyer's denial personally, but recognize it as business decision.

Send it back with the Boomerang Method

Always be ready to turn an objection into a reason to buy. By convincing the prospect that an objection is a benefit, you have turned the buyer immediately in favor of your product. This is the heart of the Boomerang Method.

Let a third party answer

An effective technique for responding to an objection is to answer it by giving a third party answer and using someone else's experience as proof of testimony for your product line.

the indirect denial works

An indirect denial is different from a direct denial in that it initially appears as an agreement with the customer's objection but then moves into a denial of the fundamental issue within the objection.

Prospective buyers signal readiness to buy when they:

Ask questions- "How much is it?", "What is the earliest time that I can receive it?" If your question is answered positively, the prospect is showing a high interest level and you are nearing the close. Ask and person's opinion- The executive calls someone on the telephone and says, "Come in here a minute; I have something to ask you." Relax and become friendly- Once the prospect decides to purchase a product, the pressure of the buying situation is eliminated. The anxiety of the purchase is lessened because you are his friend. Pull out a purchase form- If, as you talk, your prospect pulls out an order form, it is time to move toward the close. Carefully examine merchandise- What a prospect carefully scrutinizes your product or seems to contemplate the purchase, this may be an indirect request for prompting. given, attempt a trial close

A Condition

At times, prospects may raise an objection that turns into a condition of sale. If you sense that the objection is a condition, quickly determine if you can help the prospect meet it.

Preparing a multiple close sequence

By keeping several different closes ready in any situation, you are in a better position to close more sales. Combine methods of closing to achieve the best outcome.

Caring is seen

Caring about the customer is more than simply warm feelings; it is an attitude that reveals itself in action.

Difficulties with closing

Closing the sale is the easiest part of the sales presentation. The salesperson should remember that it is the prospect's decision and responsibility whether or not to buy. over prepare for the presentation

how to plan for objections.

Consider not only the reasons that prospects should buy but why they should not buy. Structure your presentation to minimize the disadvantages of your product, but focus upon the objections from the sales call.

How many times should you close?

Courtesy and common sense imply a reasonable limit to the number of closes a salesperson attempts at any one sitting. To help others by selling your product, you must be able to use multiple closes, especially if it is a product that the buyer actually needs and could benefit from.

Techniques for meeting Objections

Dodge, Pass up the Objection, Rephrase the objection as a question, Postpone the objection, Boomerang the objection, Ask questions regarding the objection, directly deny the objection, indirectly deny the objection, Compensate for the objection, obtain a third party answer to the objection

Dress your armor

Each day before leaving for work, the salesperson should prepare to meet a few unethical and dishonest people. This requires a salesperson to have tough skin!

the Compliment Close

Everyone likes to receive compliments. The compliment close is especially effective when you talk with a prospect who is a self-styled expert, who has a big ego, or who is in a bad mood.

Don't be afraid to pass up the objection

First, you can say, "Well, if you ever do, here is my card. Give me a call." Or second, you could take the pass up approach used by top salespeople and say something that allows you to move into your presentation.

Listen

Hear the prospect out, don't jump on an objection before the prospect finishes. Understand fully what the objection is before answering.

If you cannot overcome the objection

If you cannot overcome an objection or close a sale because of an objection, be prepared to return to your presentation and concentrate on new or previously discussed features, advantages, and benefits of your product.

Move to close your sale

If you had finished your presentation when the prospect raised an objection, and the prospect's response to your trial close indicates that you overcame an objection, your next move is to close the sale.

Postponing the objections is sometimes necessary

If you judge that your customary method will handle the objection to your prospect's satisfaction, and that the prospect is willing to wait until later in the presentation, you politely postpone the objection. ex. your price is too high. (prospect) In just a minute. I'll show you why this product is reasonably priced, based on the savings you will receive compared to what you presently do. That's what you're interested in, savings, right? (salesperson)

Wisdom is Learned

In sales, one gains wisdom through a constant process of growing. First, we must trust and honor people. Second, we must realize that our purpose is to help people. Third, we must make a lifelong series of right choices and avoid moral pitfalls. Fourth, we must learn from our errors and recover.

Why is it important to Listen

Many times, prospects appear to make objections when they are requesting more information. If you listen then you will be able to answer their objection more effectively.

Ask the order and be quiet

No matter when or how you close, remember that when you ask for the order, it is important to be silent. As soon as you say anything you increase the chance that you will lose the sale. (rarely the silence will last longer than 30 seconds)

practical or psychological objections

Objections, minor or major, can be practical (overt) objections, or psychological (hidden) objections in nature. practical ex. price, delivery schedules psychological ex. resistance to spending, predetermined beliefs