The Selling Process


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The Selling Process

  1. 1. The Selling Process Objections and Closing the Sale L8 Prepared by: Brian Rutherford
  2. 2. Objectives <ul><li>Objections </li></ul><ul><ul><li>Why objections </li></ul></ul><ul><ul><li>Types of objections </li></ul></ul><ul><ul><li>Handling objections </li></ul></ul><ul><li>Closing the Sale </li></ul><ul><ul><li>When to close the sale </li></ul></ul><ul><ul><li>How to close the sale </li></ul></ul><ul><ul><li>Problems with closing the sale </li></ul></ul>
  3. 3. The Sales Process Prospecting/ Qualifying Preapproach/ Planning Presentation Handling Objections Closing the Sale Approach Follow up Identifying Needs Identifying Needs
  4. 4. Introduction <ul><li>Many objections should be anticipated, raised, and answered by the salesperson </li></ul><ul><li>The closing of the sale starts from the moment the salesperson greets the prospect </li></ul><ul><ul><ul><ul><ul><li>(Source: Hite and Johnston) </li></ul></ul></ul></ul></ul>
  5. 5. Introduction <ul><li>When closing or answering objections, the chance of losing the sale is the greatest. </li></ul><ul><li>Conflict can create a situation where no one wins </li></ul><ul><li>When the salesperson loses the sales the prospect loses the potential benefits from owning the product or service </li></ul><ul><ul><ul><ul><ul><li>(Source: Hite and Johnston) </li></ul></ul></ul></ul></ul>
  6. 6. Definition <ul><li>Objection- opposition or resistance to information or a request </li></ul><ul><li>Closing- step in the selling process in which the salesperson helps the prospect make a decision about the product to conclude the sale </li></ul><ul><ul><ul><ul><ul><li>(Source: Futrell) </li></ul></ul></ul></ul></ul>
  7. 7. Introduction <ul><li>What is an objection and how do you handle the objection? </li></ul>
  8. 8. Objections <ul><li>Why objections </li></ul><ul><li>Types of objections </li></ul><ul><li>Handling objections </li></ul>
  9. 9. Why objections? <ul><li>Why objections? </li></ul><ul><li>Prospect may be afraid of purchasing the wrong type of product </li></ul><ul><li>The salesperson should welcome objections </li></ul><ul><ul><li>The most difficult prospect to handle is one who says “no” and gives no reason </li></ul></ul><ul><ul><li>Objections should not be taken personally </li></ul></ul><ul><ul><ul><ul><ul><li>(Source: Hite and Johnston) </li></ul></ul></ul></ul></ul>
  10. 10. Why objections? <ul><li>Anticipating Objections </li></ul><ul><li>The salesperson should anticipating objections </li></ul><ul><li>Objections should never be ignored </li></ul><ul><li>Most of the time they should be answered immediately, but occasionally they should be put off </li></ul><ul><li>If the objections is not answered immediately, the prospect may hear little of what else is said </li></ul><ul><ul><ul><ul><ul><li>(Source: Hite and Johnston) </li></ul></ul></ul></ul></ul>
  11. 11. Types of Objections <ul><li>What do objections pertain to </li></ul><ul><li>Real vs. hidden </li></ul><ul><li>The stall </li></ul><ul><li>The specific objection </li></ul><ul><li>The price objection </li></ul>
  12. 12. Types of Objections <ul><li>Real objection- tangible </li></ul><ul><ul><li>With a real objection, the salesperson can show that the product provides the benefits necessary and is worth the price </li></ul></ul><ul><li>Hidden objections- when the object is not clearly state due to the prospect not wanting to clearly state it </li></ul><ul><ul><li>Usually the prospect will not purchase the product until the hidden objections have been handled </li></ul></ul><ul><ul><ul><ul><ul><li>(Source: Futrell) </li></ul></ul></ul></ul></ul>
  13. 13. Types of Objections <ul><ul><li>The Stall </li></ul></ul><ul><ul><ul><li>1) I’ll be back </li></ul></ul></ul><ul><ul><ul><li>2) I need to think it over </li></ul></ul></ul><ul><ul><ul><li>3) I need to bring my spouse </li></ul></ul></ul><ul><ul><li>Care needs to be taken because a stall could be a specific objection </li></ul></ul><ul><ul><li>(Source: Huisken 173-174) </li></ul></ul>
  14. 14. Types of Objections <ul><ul><li>The Specific objection- Prospect telling you certain information that they are concerned with </li></ul></ul><ul><ul><ul><li>I am not sure about the color </li></ul></ul></ul><ul><ul><ul><li>I need to measure </li></ul></ul></ul><ul><ul><ul><li>The computer doesn’t have enough memory </li></ul></ul></ul><ul><ul><ul><ul><ul><li>(Source: Huisken174) </li></ul></ul></ul></ul></ul>
  15. 15. Types of Objections <ul><li>What do objections pertain to </li></ul><ul><ul><li>1) Price (discussed below) </li></ul></ul><ul><ul><li>2) Product </li></ul></ul><ul><ul><li>3) Timing </li></ul></ul><ul><ul><li>4) Source </li></ul></ul><ul><ul><li>5) Service </li></ul></ul><ul><ul><li>6) Need </li></ul></ul><ul><ul><ul><ul><ul><li>(Source: Hite and Johnston) </li></ul></ul></ul></ul></ul>
  16. 16. Types of Objections <ul><li>The Price Objection </li></ul><ul><li>An objection to price is one of two issues </li></ul><ul><ul><li>1) Value </li></ul></ul><ul><ul><li>2) Budget </li></ul></ul><ul><li>Many sales and profits are lost to the assumption that the objection is due to value as opposed to budget </li></ul><ul><ul><ul><ul><ul><li>(Source: Huisken) </li></ul></ul></ul></ul></ul>
  17. 17. Types of Objections <ul><li>The Price Objection </li></ul><ul><li>The price objection is often used in place of the real objection </li></ul><ul><li>The prospect may be saying, “You haven’t sold me” </li></ul><ul><li>If a salesperson reduces the price, this may or may not solve the problem </li></ul><ul><li>The salesperson should show the true economic value of the product (show that the benefits outweigh the costs) </li></ul><ul><ul><ul><ul><ul><li>(Source: Hite and Johnston) </li></ul></ul></ul></ul></ul>
  18. 18. Handling Objections <ul><li>Handling Objections </li></ul><ul><ul><li>Step One- Listen carefully, sincerely, with undivided attention </li></ul></ul><ul><ul><li>Step Two- Repeat the objection back, in a slightly different form </li></ul></ul><ul><ul><li>Step Three- Provide new evidence or information without offending the prospect </li></ul></ul><ul><ul><li>Step Four- Answer the objection </li></ul></ul><ul><ul><ul><li>1) convert the objection into a question </li></ul></ul></ul><ul><ul><ul><li>2) Use testimonials or third-party experiences </li></ul></ul></ul><ul><ul><ul><li>3) Use boomerang or positive conversion techniques </li></ul></ul></ul><ul><ul><ul><li>4) Use comparisons </li></ul></ul></ul><ul><ul><ul><ul><ul><li>(Source: Hite and Johnston) </li></ul></ul></ul></ul></ul>
  19. 19. Handling Objections <ul><li>Convert the Objection </li></ul><ul><li>Prospect: “Your price is too high” </li></ul><ul><li>Covert the statement to a question </li></ul><ul><li>Salesperson: “You have brought up a good question” or “Many people have the same question” </li></ul><ul><li>Covert the initial statement or objection to a question </li></ul><ul><li>Salesperson: “The question here is whether or not our product’s benefits are worth the additional costs, isn’t that correct?” </li></ul><ul><li>If the prospect agrees, then the question can be answered </li></ul><ul><li>If the prospect do not agree, then have the prospect restate the question </li></ul><ul><li>(Source: Hite and Johnston) </li></ul>
  20. 20. Handling Objections <ul><li>Use Third-Party Stories </li></ul><ul><li>Show that other people in a similar position have felt the same way </li></ul><ul><li>Allow how they felt their solution (your product or service) was the best </li></ul><ul><li>Use testimonial </li></ul><ul><ul><ul><ul><ul><li>(Source: Hite and Johnston) </li></ul></ul></ul></ul></ul>
  21. 21. <ul><li>The Boomerang/Positive Conversion </li></ul><ul><ul><li>Convert the prospect’s objection into a reason why the prospect should buy </li></ul></ul><ul><ul><ul><ul><ul><li>(Source: Hite and Johnston) </li></ul></ul></ul></ul></ul>Handling Objections
  22. 22. <ul><li>Use Comparisons </li></ul><ul><ul><li>Best used when the prospect brings other products up </li></ul></ul><ul><ul><li>Let the prospect draw conclusions </li></ul></ul><ul><ul><ul><ul><ul><li>(Source: Hite and Johnston) </li></ul></ul></ul></ul></ul>Handling Objections
  23. 23. <ul><li>What type of objection is this and how would you handle the objection? </li></ul><ul><ul><li>1) I don’t think it is worth what you are asking </li></ul></ul><ul><ul><li>2) I don’t like the color </li></ul></ul><ul><ul><li>3)I am not ready to make a decision </li></ul></ul><ul><ul><li>4) You did not deliver our last order when you promised </li></ul></ul><ul><ul><li>5) I don’t need to take on another brand of breakfast cereal-we have plenty now </li></ul></ul><ul><ul><li>6) I thought the price of this was too high </li></ul></ul><ul><ul><li>7) It is really more than we wanted to spend </li></ul></ul>Handling Objections
  24. 24. Closing the Sale <ul><li>When do you try to close the sale? </li></ul>
  25. 25. Closing the Sale (Introduction) <ul><li>Viewed as part of the total selling process that will naturally occur if the salesperson meets the desires of the prospect </li></ul><ul><li>Close- a question or action by the salesperson intended to evoke a favorable decision from the prospect </li></ul><ul><ul><ul><ul><ul><li>(Source: Hite and Johnston) </li></ul></ul></ul></ul></ul>
  26. 26. Closing the Sale (Introduction) <ul><li>When to close the sale </li></ul><ul><li>How to close the sale </li></ul><ul><li>Problems with closing the sale </li></ul>
  27. 27. When to close the Sale <ul><li>When to close the Sale </li></ul><ul><ul><li>Salespeople need to learn to recognize the clues when they occur </li></ul></ul><ul><ul><li>1) Facial Expression </li></ul></ul><ul><ul><li>2) Physical Actions </li></ul></ul><ul><ul><li>3) Verbal Comments </li></ul></ul><ul><ul><ul><ul><ul><li>(Source: Hite and Johnston) </li></ul></ul></ul></ul></ul>
  28. 28. How to Close the Sale <ul><li>How to Close the Sale </li></ul><ul><ul><li>Direct close </li></ul></ul><ul><ul><li>Assumptive close </li></ul></ul><ul><ul><li>Summative close </li></ul></ul><ul><ul><li>Demonstration close </li></ul></ul><ul><ul><li>Negative close </li></ul></ul><ul><ul><li>Special concession close </li></ul></ul><ul><ul><ul><ul><ul><li>(Source: Hite and Johnston) </li></ul></ul></ul></ul></ul>
  29. 29. How to Close the Sale <ul><li>Direct Close- Asks for the sale </li></ul><ul><ul><li>Should not be used with </li></ul></ul><ul><ul><ul><li>insecure prospects </li></ul></ul></ul><ul><ul><ul><li>Timid prospects </li></ul></ul></ul><ul><ul><ul><li>Indecisive prospects </li></ul></ul></ul><ul><ul><ul><ul><ul><li>(Source: Hite and Johnston) </li></ul></ul></ul></ul></ul>
  30. 30. How to Close the Sale <ul><li>Assumptive Close-three types </li></ul><ul><ul><li>1) Fatal alternative-series of relatively minor choices that ultimately lead to the decision to buy </li></ul></ul><ul><ul><li>2) Open-ended question- assumes the prospect is ready to buy </li></ul></ul><ul><ul><ul><ul><li>“ Would you like me to deliver this unit?” </li></ul></ul></ul></ul><ul><ul><li>3) Action close-the salesperson may simply write up the order </li></ul></ul><ul><ul><ul><ul><ul><li>(Source: Hite and Johnston) </li></ul></ul></ul></ul></ul>
  31. 31. How to Close the Sale <ul><li>Summative Close- summing up the benefits and recapitulating the points of agreement-thereby encouraging the prospect to make the decision </li></ul><ul><ul><ul><ul><ul><li>(Source: Hite and Johnston) </li></ul></ul></ul></ul></ul>
  32. 32. How to Close the Sale <ul><li>Demonstration Close- demonstrating the product or equipment in actual use can be very effective </li></ul><ul><ul><li>Most effective with the cautious, deliberate type of prospect </li></ul></ul><ul><ul><ul><ul><ul><li>(Source: Hite and Johnston) </li></ul></ul></ul></ul></ul>
  33. 33. How to Close the Sale <ul><li>Negative Close- Normally used as a last resort </li></ul><ul><ul><li>Product shortage </li></ul></ul><ul><ul><li>Price increases will follow </li></ul></ul><ul><ul><li>Used on procrastinators or people who want to think it over indefinitely </li></ul></ul><ul><ul><ul><ul><ul><li>(Source: Hite and Johnston) </li></ul></ul></ul></ul></ul>
  34. 34. How to Close the Sale <ul><li>Special Concession Close- </li></ul><ul><ul><li>offering a price concession </li></ul></ul><ul><ul><li>some additional piece of merchandise either free or at X off the price </li></ul></ul><ul><ul><li>Additional case free for every x amount bought </li></ul></ul><ul><ul><li>Can cause problems with repeat buyers </li></ul></ul><ul><ul><li>Prospects may feel undue pressure </li></ul></ul><ul><ul><li>Best used on procrastinators </li></ul></ul><ul><ul><ul><ul><ul><li>(Source: Hite and Johnston) </li></ul></ul></ul></ul></ul>
  35. 35. Problems with closing the sale <ul><li>Problems with Closing the Sale </li></ul><ul><ul><li>1) Problems with the Prospect </li></ul></ul><ul><ul><li>2) Problems with the Salesperson </li></ul></ul>
  36. 36. Problems with closing the sale <ul><li>Problems with the Prospect </li></ul><ul><ul><li>Prospects may be afraid to buy </li></ul></ul><ul><ul><li>Industrial buyers often face greater risks that than the seller </li></ul></ul><ul><ul><li>Industrial buyer must consider: </li></ul></ul><ul><ul><ul><li>1) Judge the supplier in terms of reliability, capability, and value </li></ul></ul></ul><ul><ul><ul><li>2) Companies budget </li></ul></ul></ul><ul><ul><ul><li>3) Goals of the firm </li></ul></ul></ul><ul><ul><ul><li>4) Capabilities of the equipment being considered </li></ul></ul></ul><ul><ul><ul><li>5) Complying with regulations </li></ul></ul></ul><ul><ul><ul><li>6) The buyer’s personal reputation as an effective purchaser </li></ul></ul></ul><ul><ul><ul><ul><ul><li>(Source: Hite and Johnston) </li></ul></ul></ul></ul></ul>
  37. 37. Problems with closing the sale <ul><li>Problems with the Salesperson </li></ul><ul><ul><li>1) Fear of rejection </li></ul></ul><ul><ul><li>2) Wrong attitude </li></ul></ul><ul><ul><li>3) Talking too much </li></ul></ul><ul><ul><li>4) Inadequate presentation </li></ul></ul><ul><ul><li>5) Improper prospecting </li></ul></ul><ul><ul><ul><ul><ul><li>(Source: Hite and Johnston) </li></ul></ul></ul></ul></ul>
  38. 38. Closing the Sale <ul><li>Which type of closing technique is this and when is it most appropriate? </li></ul><ul><ul><li>1) Shall I drop off a case tomorrow? </li></ul></ul><ul><ul><li>2) When would you like me to deliver this unit? </li></ul></ul><ul><ul><li>3)This is the last one we have in stock </li></ul></ul><ul><ul><li>4) This is a limited time offer </li></ul></ul><ul><ul><li>5)So what do you think, would you like to go ahead with the purchase? </li></ul></ul><ul><ul><li>6) “This home has a two-car garage, fenced yard, three bedrooms, is in the school district you wanted, and in the price range you are looking for. Should we make an offer? (Huisken)” </li></ul></ul><ul><ul><li>7) If you take it today I will give a surge proctor at no charge, but that is only for today </li></ul></ul>
  39. 39. Advance Topics in Personal Selling <ul><li>After the sale </li></ul><ul><li>Adding-on </li></ul><ul><li>Saving the Sale (The Turnover) </li></ul><ul><li>Other forms of closing the sale </li></ul>