Chapters #10-14 Flashcards
Define and provide an example of an objection.
A concern or question proposed by the buyer. Does not have to be a question.
“It doesn’t have different color options.”
List common objections related to 6 topics. Provide example for each.
Needs: No need for it/never have seen it.
Product: Don’t like it/don’t understand. Needs more info.
Price: No money. Too expensive.
Source: I don’t like your company.
Time: Not today/need more time to think.
Other: Needs kickback. No room. What’s in it for me?
Using cost benefit framework, at which point is the customer inclined to purchase from you?
If benefits outweigh costs they will buy from you.
2 things to do when faced with an objection.
Welcome them.
Prepare for them.
Listen fully.
What is forestalling? How is it beneficial?
Provide information ahead of time in order to limit objections. You tell the bad things first so they don’t have to bring them up. You are WELL aware of what is wrong and have an advantage that way.
3 things you can do when dealing with difficult customer.
Ask questions/listen.
Be calm.
Be open, direct and honest.
Define/give example for responses to objections: direct denial, indirect denial, compensation method, referral method, revisit method, acknowledge method, and postpone method.
direct denial: Salesperson makes strong statement to indicate error that the prospect made. Do this when it could be devastating to presentation.
indirect denial: Salesperson denies the statement but softens the response.
compensation method: Acknowledges something unfortunate yet true but tells facts that make up for those poor things brought about. “yes I know we don’t have the color yellow, but we do offer free repairs”
referral method: relating the product to when other people tried it and loved it. “yes but farmer Joe who is a much larger customer than you tried it and fell in love after the first time.”
revisit method: turns objection into a reason to buy. “boomerang method”
acknowledge method: salesperson lets the buyer talk, pauses and then moves on past the irrelevant or not worthy to comment on thing said.
postpone method: buyer raises objection which salesperson answers later.
When dealing with price as an objection, what should first response NOT be? Tell of the 2-step approach to establishing value.
First response should not be to lower the price.
2-Step approach: (meant to establish value) #1: Look at objection from customer's viewpoint #2: Sell value and quality rather than price
3 goals of closing.
1- Help buyer solve real problems, not just sell product.
2- Increase credibility, build trust.
3- To meet your goals. (After customer’s that is.)
What do you study prior to determining your price?
Study the price before you actually set it with the buyer.
Define styles of salespeople: aggressive, submissive, and assertive.
Aggressive: Controls the sales interaction but all too often fails at commitment. (pushy car salesperson.)
Submissive: Excel at socializing and being people pleasers but rarely TRY to get commitment.
Assertive: Self-confident and positive.
4 effective methods for closing.
1- Direct request method: Merely ask for their commitment.
2- Benefit summary method: Remind buyer of the agreed on benefits of proposal.
3- Balance sheet method: helping prospect make a decision even when the reason for their behavior is not obvious.
4- Probing method: Using series of probing questions to determine reasons for hesitation.
3 traditional “sales-y” methods.
1- Continuous YES method: make them say yes so many times they cannot say no.
2- Assumptive close: buyer is beginning paperwork while they are still talking in order to insinuate what the answer should/will be.
3- Standing room only close: seller focuses on negative aspects of waiting.
3 components of action plan.
Leave with a clear plan for all parties.
1-Review what’s next.
2-What customer will do next.
3-When you will meet again.
Define negotiations. Example of a minor issues and major issues that might come up.
Negotiations: Bargaining process through which buyers and selling resolve areas of conflict and come to agreements.
minor issues: who should attend future meetings
major issues: cost or exclusive purchase offers
Define opening price, target price, maximum price.
Opening price: Price you start off at as the seller. Initial proposal.
Target price: What seller hopes to come to.
Maximum price: Buyer’s maximum that they are willing to spend.
ZOPA stand for? ZOPA and negative ZOPA example.
ZOPA: Zone of possible agreement
Buyer does not want to hit the right side of their spectrum and seller does not want to hit left.
Define and provide example of BATNA.
BATNA: Best alternative to negotiated agreement
Company is willing to pay $120,000 for entry level but the engineer is expecting $100,000. That $20,000 is the wiggle room for them to make agreement, ZOPA.
5 conflict-handling behavior modes.
1- Competing mode: assertive and uncooperative.
2-Accomodating mode: unassertive and highly cooperative.
3-Avoiding mode: Do not try to fill their needs or others
4-Compromising mode: people who lie in the middle of assertive and cooperative
5-Collaborating mode: both assertive and cooperative
Define behavioral loyalty and attitudinal loyalty.
Behavioral loyalty: Purchase of same product from same vendor. Will/can buy elsewhere.
Attitudinal loyalty: Emotional attachment to specific brand, company, or salesperson. Obsessed, cannot buy anything else.
Define solo exchanges and functional relationships. What is the difference between the two?
Solo exchanges: Buyer and seller both pursue their own self interest.
Functional relationships: Long term market exchanges defined by behavioral loyalty. Win-win situations.
One time vs lasting relationship.
Define relational and strategic partnerships.
Relational partnership: buyer and seller have close relationship, trust each other and are loyal.
Strategic partnerships: Long-term business relationships. Make profits for both parties.
5 phases of relationship development.
Awareness: Salespeople locate and quality prospects
Exploration: search and trial phase for both buyer and seller.
Expansion: both parties investigate benefits of a long term relationship
Commitment: customer and seller pledge to continue relationship for extended time
Dissolution: terminating relationship process
Customer orientation.
The degree as to which the salesperson puts the customer first.
