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

Opening Question #1 – 3/?/13

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)

Continuing the Sales Process

(Ch 14.2 – 15)

Marketing I

4. Overcoming Objections5. Closing The Sale6. Suggestion Selling7. Relationship Building

4. Overcoming Objections5. Closing The Sale6. Suggestion Selling7. Relationship Building

We’ll start with step 4 ~ Overcoming Objections…

Understanding ObjectionsUnderstanding ObjectionsObjections – 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

OvercomingObjections

Closing theSale

SuggestionSelling

RelationshipBuilding

Excuses vs. Objections?Excuses vs. Objections?

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.”


Closing theSale

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Objection Analysis SheetObjection Analysis Sheet

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


Closing theSale

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Common Objection CategoriesCommon Objection Categories

• “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


Closing theSale

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Common Objection Categories (cont.)

Common Objection Categories (cont.)

• “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.


Closing theSale

SuggestionSelling


4-Step Process for Handling Objections

4-Step Process for Handling Objections

1. Listen

2. Acknowledge

3. Restate

4. Answer– See the following 7 methods for handling objections


Closing theSale

SuggestionSelling


Seven Specialized Methods of Handling Objections


1. Substitution

2. Boomerang

3. Question

4. Superior Point

5. Denial

6. Demonstration

7. Third-party


Closing theSale

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1. Substitution – recommending a different product that would satisfy the customer’s needs

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.”

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…”


Closing theSale

SuggestionSelling




3. Question – Can reveal hidden objections or show objection is not valid

• 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.”


Closing theSale

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4. Superior Point – acknowledge the objection, but offset it with other features/benefits

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…”

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…”


Closing theSale

SuggestionSelling




6. Demonstration – Based on the saying: Seeing is believing

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…”

7. 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 theSale

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Closing the saleClosing the sale

•Things to think about…–When to close

•Timing

–What do look for•Buying Signals

–Trial Close•Why Beneficial


Closing theSale

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4 Rules for Closing the Sale4 Rules for Closing the Sale

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


Closing theSale

SuggestionSelling


https://www.youtube.com/watch?v=NpWAlvWNZj0

Specialized Methods for Closing the Sale

Specialized Methods for Closing the Sale

• Four specialized methods:

1. Which Close

2. Standing-Room-Only Close

3. Direct Close

4. Service Close


Closing theSale

SuggestionSelling


“Which Close” Method for Closing the Sale

“Which Close” Method for Closing the Sale

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?”


Closing theSale

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“Standing-Room Only Close” Method for Closing the Sale

“Standing-Room Only Close” Method for Closing the Sale

‘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.”


Closing theSale

SuggestionSelling


“Direct Close” Method for Closing the Sale

“Direct Close” Method for Closing the Sale

Direct Close – Ask for saleUse if buying signal is very strongExamples: • “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?”


Closing theSale

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“Service Close”Method for Closing the Sale

“Service Close”Method for Closing the Sale

Service Close – Explains services that overcome obstacles or problems

Examples• Retail – Accepting credit, layaway,

return policy, free alterations, delivery, warranties & guarantees

• B2B – Longer payment terms, samples


Closing theSale

SuggestionSelling


6. Suggestion Selling

6. Suggestion Selling

Step 6: Suggestion SellingStep 6: Suggestion Selling

• Suggestion Selling – is selling additional goods or services to the customer.

• Any other items that could:– Save time/money – Make the original purchase more enjoyable.

• EXAMPLE: A customer buys a camera, and the salesperson offers a memory card.


Closing theSale

SuggestionSelling


Benefits of Suggestion Selling

Benefits of Suggestion Selling

• 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…


Closing theSale

SuggestionSelling


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.

Let’s Look at an ExampleLet’s Look at an Example

Purchase Without

Suggestion Selling

Pants $75

Total $75

Cost of Goods Sold

- 37

Gross Profit

$38

Other Expenses

- 12

Net Profit $26


Closing theSale

SuggestionSelling


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.

Let’s Look at an ExampleLet’s Look at an Example


Closing theSale

SuggestionSelling


5 Rules for Suggestion Selling


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.


Closing theSale

SuggestionSelling




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.”


Closing theSale

SuggestionSelling


Suggestion Selling ExampleSuggestion Selling Example

CROSS-SELLING

UP-SELLING

SPECIAL SALES OPPORTUNITIES


Closing theSale

SuggestionSelling


3 Suggestion Selling Methods


1. Offering Related Merchandise – (Cross-selling) is probably the easiest and most effective suggestion selling method.EXAMPLE: Offering a tie to match the shirt.

2. Recommending Larger Quantities – (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 $30In B2B selling, the salesperson may suggest a larger

quantity so the customer can take advantage of lower prices or special considerations. (EXAMPLE: Free shipping)


Closing theSale

SuggestionSelling




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 B2B selling, the salesperson often show new items to

their customers after they have completed the sale of merchandise requested.


Closing theSale

SuggestionSelling


7. RELATIONSHIP BUILDING

7. RELATIONSHIP BUILDING

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=4gY8EsQHn5KEgM&tbnid=z7z3rG_u7ie42M:&ved=0CAUQjRw&url=http%3A%2F%2Fspecialreportclub.com%2Fcomplete-info-product-packs%2Frelationship-marketing-plr-report-package&ei=OF5DUbDVK6aO0QGL_4DIBg&bvm=bv.43828540,d.dmg&psig=AFQjCNF_dA1iGaW70TFPNal01tri3BYzGg&ust=1363455911415953

Click to edit Master title styleClick to edit Master title style

Step 7: Relationship Building

Step 7: 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…


Closing theSale

SuggestionSelling


After-Sales ActivitiesAfter-Sales Activities

• Processing the Order – Bagging/wrapping the order – In B2B, 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!


Closing theSale

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• Order Fulfillment – Customer pays for the merchandise – In E-Commerce, fulfillment is more

complicated (which card, packing it, shipping it)

• Follow-up – Follow through on all promises (e.g.

certain shipping date)– Checking customer satisfaction with the

purchase (e.g. phone call, thank you note)



Closing theSale

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http://amazon.com/gp/cart/view.html/ref=topnav_cart_gw/104-5774805-2803931

• Customer Service– How you handle problems, complaints, and

maintenance

• Keeping a Customer File– Take notes on conversation, what they bought,

their preferences, etc.– In B2B, note personal information

• Evaluate your Sales Effort– Companies have formal process– Evaluate yourself! - Consider everything you did

during the sales process



Closing theSale

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Customer Relationship Management (CRM)

Customer Relationship Management (CRM)

• 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


Closing theSale

SuggestionSelling


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

Documents

customer objections

anticipated objections

information welcome

common reasons

price common

positive relationship

customer talkacknowledge

sales process ch