Opening Question 1 3 13 In your

Opening Question #1 – 3/? /13 In your own shopping experiences, list some common reasons that customers OBJECT to buying a product.

Continuing the Sales Process (Ch 14. 2 – 15) Marketing I

4. Overcoming Objections 5. Closing The Sale 6. Suggestion Selling 7. Relationship Building We’ll start with step 4 ~ Overcoming Objections…

Understanding Objections Overcoming Objections Closing the Sale Suggestion Selling Relationship Building Objections – are concerns, hesitations, doubts, or other honest reasons a customer has for not making a purchase • Could be questions or statements: – “Do you carry other brands? ” – “These shoe do not fit right. ” • Are they positive or negative? Positive – Gives salesperson an opportunity to present more information

Excuses vs. Objections? Overcoming Objections Closing the Sale Suggestion Selling Relationship Building Excuses – are insincere reasons for not buying or not seeing a salesperson • Examples: – “I’m too busy to see you today. ” – “We don’t need anymore…” – “I’m just shopping around. ”

Objection Analysis Sheet Overcoming Objections Closing the Sale Suggestion Selling Relationship Building Plan for objections… Objection Analysis Sheet – Details common objections and possible responses • Prepares salespeople for the most common objections that might occur • You can also incorporate anticipated objections into your product presentation – But avoid introducing doubt

Common Objection Categories Overcoming • Objections Closing the Sale • Suggestion Selling • Relationship Building “I really like this sweater but it doesn’t match anything I own. ” – Need – No immediate need or conflict between wanting something but not truly needing it “The color of this car is hideous!” – Product – Concern about such things as: construction, quality, size, appearance or style “The last time I bought something here, you wouldn’t let me return it. ” – Source – Occurs due to a negative past experience with the firm or brand

Common Objection Categories (cont. ) Overcoming Objections • Closing the Sale • Suggestion Selling Relationship Building “That’s more than I want to spend. ” – Price – Common with high-quality, expensive merchandise “Why should I buy a snow blower now when they’ll go on sale at the end of the season? ” – Time – Reveals a hesitation to buy now. These objections are sometimes excuses.

4 -Step Process for Handling Objections Overcoming Objections Closing the Sale Suggestion Selling Relationship Building 1. Listen 2. Acknowledge 3. Restate 4. Answer – See the following 7 methods for handling objections

Seven Specialized Methods of Handling Objections Overcoming Objections 1. 2. Closing the Sale 3. 4. Suggestion Selling Relationship Building 5. 6. 7. Substitution Boomerang Question Superior Point Denial Demonstration Third-party

Seven Specialized Methods of Handling Objections Overcoming Objections 1. Customer: “I don’t like the way this dress looks on me. ” Salesperson: “Here, why don’t you try this dress. It has a completely different look. I think it will fit your style better than the one you just had on. ” Closing the Sale Suggestion Selling Relationship Building Substitution – recommending a different product that would satisfy the customer’s needs 2. Boomerang - Sends the objection back to the customer as a selling point (using the same feature) Customer: “Jacket is too light to keep me warm. ” Salesperson: “It’s light because it uses thinsulate…”

Seven Specialized Methods of Handling Objections Overcoming Objections Closing the Sale 3. Question – Can reveal hidden objections or show objection is not valid • • Suggestion Selling Relationship Building • • • Customer: “I don’t see the point of 2 sinks in a master bathroom. ” Salesperson: “Do you and your husband ever need to get ready to go out at the same time? ” Customer: “Yes. ” Salesperson: “Does one you have to wait at those times? ” Customer: “Yes, I see your point. ”

Seven Specialized Methods of Handling Objections Overcoming Objections 4. Customer: “Your prices are higher than your competitors. ” Salesperson: “That’s true. Our prices are slightly higher, but our garments are made from high quality…” Closing the Sale Suggestion Selling Relationship Building Superior Point – acknowledge the objection, but offset it with other features/benefits 5. Denial – When the objection is based on misinformation or appears as a question Customer: “This garment will shrink. Won’t it? ” Salesperson: “No, it won’t shrink because it’s a cotton and polyester blend…”

Seven Specialized Methods of Handling Objections Overcoming Objections 6. Customer: “I can’t believe food won’t stick to this pan if you don’t use butter or oil. ” Salesperson: “I’m glad you brought that up. Let me demonstrate how…” Closing the Sale 7. Suggestion Selling Relationship Building Demonstration – Based on the saying: Seeing is believing Third Party – Use prior customer or neutral person to validate point Customer: “I can’t believe this will save me $1, 000 per year. ” Salesperson: “Frank Smith, one of my customers, thought the same thing. He bought it and saved $1, 200. Here’s a letter from him…”

Closing the sale Overcoming Objections • Things to think about… –When to close • Timing Closing the Sale –What do look for • Buying Signals –Trial Close Suggestion Selling Relationship Building • Why Beneficial

4 Rules for Closing the Sale Overcoming Objections Closing the Sale Suggestion Selling Relationship Building 1. Recognize closing opportunities – after? – Presentation/Removing objections 2. Help customers make decision – Summarize features and benefits 3. Create ownership mentality – “You will enjoy using this camera on your vacation. ” 4. Don’t talk too much

Specialized Methods for Closing the Sale Overcoming Objections Closing the Sale Suggestion Selling Relationship Building • Four specialized methods: 1. Which Close 2. Standing-Room-Only Close 3. Direct Close 4. Service Close

“Which Close” Method for Closing the Sale Overcoming Objections Closing the Sale Suggestion Selling Relationship Building Which Close – Encourages customer to decide between 2 items Follow these (3) steps: 1. Remove unwanted items to limit selection to 2 items 2. Review benefits of each item 3. Ask “Which one do you prefer? ”

“Standing-Room Only Close” Method for Closing the Sale Overcoming Objections Closing the Sale Suggestion Selling Relationship Building ‘SRO’ Close – When product is in short supply or price going up soon Use only when it honestly calls for it Car salesperson: “This is the last of this model in stock. The new model will cost more. ”

“Direct Close” Method for Closing the Sale Overcoming Objections Closing the Sale Suggestion Selling Relationship Building Direct Close – Ask for sale Use if buying signal is very strong Examples: • “I assume that we’re ready to talk about the details of your order? ” • “Would you like to pay with cash, check or credit card? ”

“Service Close” Method for Closing the Sale Overcoming Objections Closing the Sale Suggestion Selling Relationship Building Service Close – Explains services that overcome obstacles or problems Examples • Retail – Accepting credit, layaway, return policy, free alterations, delivery, warranties & guarantees • B 2 B – Longer payment terms, samples

6. Suggestion Selling

Step 6: Suggestion Selling Overcoming Objections • Suggestion Selling – is selling additional goods or services to the customer. • Any other items that could: Closing the Sale – Save time/money – Make the original purchase more enjoyable. Suggestion Selling • EXAMPLE: A customer buys a camera, and the salesperson offers a memory card. Relationship Building

Benefits of Suggestion Selling Overcoming Objections Closing the Sale Suggestion Selling Relationship Building • Who does it benefit: – Salesperson, customer and company • Salespeople: customers will want to do business again, plus added commission (at times) • Customer: he/she is more pleased with the original purchase • Company: the time and cost involved in suggestion selling is less than the cost of making the original sale…

Let’s Look at an Example Overcoming Objections Purchase Without Suggestion Selling Pants $75 Purchase With Suggestion Selling Pants Shirt Closing the Sale $75 35 WHY? ? ? Total time and effort are needed with suggestion$110 $75 • Less selling compared with the initial sale. Cost rent) - 55 Cost of business expenses (utilities & of remain the same, - 37 • Certain Suggestion Goods Sold extra sales activity. Goods Sold despite the Selling Relationship Building Gross Profit $38 Gross Profit $55 Other Expenses Net Profit - 12 $26 - 15 $40

Let’s Look at an Example Overcoming Objections Closing the Sale Suggestion Selling Relationship Building WHY? ? ? • Less time and effort are needed with suggestion selling compared with the initial sale. • Certain business expenses (utilities & rent) remain the same, despite the extra sales activity.

5 Rules for Suggestion Selling Overcoming Objections Closing the Sale Suggestion Selling Relationship Building 1. Do suggestion selling after the customer has made a commitment to buy, but before payment is made or the order written. 2. Make your recommendation from the customer’s point of view and give at least one reason for suggestion.

5 Rules for Suggestion Selling Overcoming Objections Closing the Sale Suggestion Selling Relationship Building 3. Make the suggestion definite. Don’t say “Will that be all? ” Say “This oil is specifically designed…” 4. Show the item you are suggesting. 5. Make the suggestion positive “This scarf will complement your coat. ”

Suggestion Selling Example Overcoming Objections Closing the Sale CROSS-SELLING SPECIAL SALES OPPORTUNITIES UP-SELLING Suggestion Selling Relationship Building

3 Suggestion Selling Methods Overcoming Objections 1. Offering Related Merchandise – Closing the Sale 2. Recommending Larger Quantities – Suggestion Selling Relationship Building (Cross-selling) is probably the easiest and most effective suggestion selling method. EXAMPLE: Offering a tie to match the shirt. (Up -selling) suggesting a larger quantity (retail) usually works with inexpensive items or when money, time, and/or convenience will be saved. EXAMPLE: Buy 1 hat for $20, or 2 hats for $30 In B 2 B selling, the salesperson may suggest a larger quantity so the customer can take advantage of lower prices or special considerations. (EXAMPLE: Free shipping)

3 Suggestion Selling Methods Overcoming Objections Closing the Sale Suggestion Selling Relationship Building 3. Call Attention to Special Sales Opportunities – salespeople are obligated to communicate special sales opportunities. They often involve new merchandise, special sales, and holiday items. EXAMPLES: – “We are having a One-Day Sale on all items in the store!” – “Since Valentine’s Day is approaching, you may want to look at our special display of gift ideas. ” In B 2 B selling, the salesperson often show new items to their customers after they have completed the sale of merchandise requested.

7. RELATIONSHIP BUILDING

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Step 7: Relationship Building Overcoming Objections Closing the Sale Suggestion Selling Relationship Building • Relationship Marketing – Strategies businesses use to stay close to their customers – Want repeat business by establishing a relationship – Completing the sale is the first step establishing a relationship – After-sale activities are key…

After-Sales Activities Overcoming Objections Closing the Sale Suggestion Selling Relationship Building • Processing the Order – Bagging/wrapping the order – In B 2 B, Completing the paperwork • Departure – Reassure the person of the wise buying decisions that have been made – Take time to educate customer (give them any reminders) – Always thank the customers, and invite them back!

After-Sales Activities Overcoming Objections Closing the Sale • Order Fulfillment – Customer pays for the merchandise – In E-Commerce, fulfillment is more complicated (which card, packing it, shipping it) • Follow-up Suggestion Selling Relationship Building – Follow through on all promises (e. g. certain shipping date) – Checking customer satisfaction with the purchase (e. g. phone call, thank you note)

After-Sales Activities Overcoming Objections Closing the Sale Suggestion Selling Relationship Building • Customer Service – How you handle problems, complaints, and maintenance • Keeping a Customer File – Take notes on conversation, what they bought, their preferences, etc. – In B 2 B, note personal information • Evaluate your Sales Effort – Companies have formal process – Evaluate yourself! - Consider everything you did during the sales process

Customer Relationship Management (CRM) Overcoming Objections Closing the Sale Suggestion Selling Relationship Building • Involves finding customers and keeping them satisfied • Lead generation, sales support, customer service and other after-sales support • Involves: – Technology – Maintaining contact (consultative selling) – Maintain relationship (personalized emails) – Develop customer loyalty/reward program