Personal Selling Chapter 10 University of Houston-Downtown

indirect denial method

"You raise an excellent point, BUT..." Indirect denial should never be used if the prospect has raised a valid point or is expressing an opinion. It can be used for all personality types and especially effective for amiables and analyticals because they like less assertive sales people.

compensation method

Acknowledging objections' validity and then showing any compensating advantages. The compensation method is an explicit use of the multiattribute model. A low score one one attribute can be compensated for by a high score on another attribute.

Which of the following is considered the worst type of objection from a buyer?

An objection the buyer refuses to disclose

Excuses

Are concerns expressed by the buyer that mask the buyer's true objections.

direct denial method

As a way to address buyer's objections, a salesperson makes a relatively strong statement to indicate the error a buyer has made. No one likes to be told that he or she is wrong, so direct denial must be used with caution. It is appropriate only when the objection is blatantly inaccurate and potentially devastating to the presentation. Direct denial should be avoided even for a false statement if the objection is of little importance to the buyer. An indirect denial would be more appropriate in that case.

How should salespeople react when buyers voice their concerns or questions? (check all that apply)

By answering sincerely By refraining from contracting the buyers Welcoming- even inviting objections

probing method

Clarify prospect's concerns and ensures that sales people understand the objection

Objections related to need

I do not need the product or service I've never done it that way before

feel-felt-found method

Method of helpfully responding to objections in which the salesperson shows how others held similar views before trying the product or service. Those who teach this as the feel-felt-found method hightlight the importantace of the proper sequence: I can see how you feel, others felt, yet they found.

two-step approach

Price objections are best handled with a two-step approach. First, the salesperson should try to look at the objection from the customer's viewpoint, asking questions to clarify the customer's perspective. After learning more about the customer's perspective, the next step is to sell value and quality rather than price

Common methods for responding to objections

Probe first (using the probing method) to be sure you understand the objection and to make sure the buyer is really concerned about it. If the buyer makes a statement that is factually not true, use the direct denial and indirect denial methods. If the buyer raises a valid concern or offers an opinion use the compensation, referral, revisit, acknowledge, or postpone method.

Third-party testimony method

Proof of the salesperson's assertion in the form of a testimonial letter.

referral method

Relating how others found initial opinions to be unfounded after they tried the product. Although the referral method can be used for all personality types, it seems most appropriate for expressive and amiables. Both types tend to think and care about what others are doing.

When do buyers raise objections?

Salespeople can expect to hear objections any time during the buyer-seller relationship

Identify the intangible features that provide value that offsets price (check all that apply)

Service in the form of faster delivers Provision of field assistance Technical advice Company reputation-can they get me supplies in time? Salesperson-will the salesperson go above and beyond to help the company?

acknowledge method (pass-up method)

Simply let the buyer talk, acknowledge that you heard the concern, pause, and then move on to another topic.

LAARC METHOD

Some trainers suggest using this method when responding to objections. Listen, Acknowledge, Assess (the validity of the objection), Respond and Confirm (that the objection has been answered).

The compensation method is often referred to as the ____________.

Superior Benefit Method because the benefit of one attribute overcomes a concern about a less important attribute.

Why should a salesperson look out for verbal cues from buyers during a sales presentation?

The buyer may not understand the presentation and most likely will not admit to not understanding.

Responding to objections: Behaviors of Successful People

They anticipate objections and prepare helpful responses. They address known problems before the prospect does; that is, they forestall known concerns. They relax and listen and never interrupt the buyer. They make sure the objection is not just an excuse. They always tell the truth.

An excessive number of objections while obtaining commitment may indicate

a poor job of needs identification and the omission of significant selling points in the presentation. It may also reveal ineffective probing during the presentation to see whether the buyer understands or has any questions about what is being discussed.

A salesperson should understand that selling is easier when _____.

buyers raise their concerns

Some prospects voice objections simply to dismiss a salesperson. These objections mostly occur when a salesperson is __________.

cold calling

To truly sell value and establish a relationship, the seller must evaluate objections before answering. Objections may be classified as unsatisfied needs (that is, real objections) or ________.

excuses

The referral method to address buyers' objections is also known as the ________.

feel-felt-found method

Tessa, a salesperson, realizes that products she has to sell have limited features. But she has to quote a price that seems high as she is unable to offer cash discounts on these products. To be successful in selling the products, Tessa should _________.

forestall known concerns

Examples of how to forestall in written proposals is by adding______to the written proposal.

forestalling objections throughout the proposal by organically bringing up objections and then addressing them there and having a separate page or section titled "Concerns you may have with this proposal." The section could then list the potential concerns and provide responses to them.

Forestalling can be even more important in written proposals because________.

immediate feedback between buyer and seller is impossible

objection

is a concern or a question raised by a buyer. Salespeople should do everything they can to encourage buyers to voice concerns or questions. The worst type of objection is the one the buyer refuses to disclose because a hidden objection cannot be dealt with.

What should salespeople do when faced with a buyer's price objection?

make sure they have up-to-date information, establish the value of the product, and use communication tools effectively.

Salespeople must rely on observations, questioning, knowledge about why people buy, and experience to determine the validity of reasons offered for _________.

objections

The five major types of objections

objections related to needs, product, source, price, and time

When dealing with a buyer, salespeople should ___________.

persuade the buyer to make the most effective decision and be honest.

A salesperson has difficulty establishing a need in a buyer's mind when selling a new or different product, service or idea. This type of selling is known as _______ __________.

pioneer selling

Forestall

prevent by taking action in advance

To be successful in facing buyers' objections, salespeople should

relax and listen as the buyer raises the objectives

friendly silent questioning stare (FSQS)

the act of silently waiting to encourage buyers to elaborate or explain more fully what their concern is

7 common methods for responding to objections

the first two are direct denial, indirect denial (are only used when making an untrue statement) and the last five are, compensation, refferal, revisting, aknowledgment, and postponment (are useful when the buyer raises a valid point or offers an opinion). Before using any of these methods, salespeople need to use the probing method.

revisit method (boomerang method)

the salesperson turns the objection into a reason for buying the product or service. This method works with most personality types. Drivers may require the revisit method more often because drives tend to erect time constraints and other barriers and are less willing to listen to just any salesperson's presentation.

postpone method

the salesperson would ask permission to answer the question at a later time

turnover (TO)

when an account is given to a different salesperson because the buyer does not like you. Unfortunately, TOs occasionally occur because the buyer has gender, racial, or other prejudices or because the salesperson is failing to practice adaptive selling behaviors.