Part 3

Question 1

Define and provide an example of an objection

Answer 1

Objections: a concern or a question raised by the buyer; doesn’t have to be in a question format

Ex: I am not in the market for a new widget

Question 2

We discussed common objections related to six topics. List them and provide an example for each.

Answer 2

Needs → I do not need product or service
Product → I need more information
Price → I have no money
Source → I don’t like you
Time → I am just not interested today
Other → There is no demand for your product

Question 3

Using a cost/benefit framework, at which point will a customer be inclined to purchase from you?

Answer 3

When the benefits outweigh the costs

Question 4

What are two things to do when faced with an objection? What are two things not to do when facing
objections?

Answer 4

To Do:
Welcome the objection
Be sure to listen to them fully to know where to go next

No to Do:
Do not be defensive
Do not argue

Question 5

What is forestalling and how is it beneficial? Provide an example of forestalling in a sales presentation.

Answer 5

Forestalling: provide information ahead of time to prevent objections – perhaps even mention during presentation
Ex: I know this widget is a little pricey, but here is what it does and how it is superior to the others on the market.

Question 6

What are three things you can do when dealing with a difficult customer?

Answer 6

Be calm, be honest, and ask questions

Question 7

Define and provide an example of the following responses to objections: direct denial, indirect denial, compensation method, referral method, revisit method, acknowledge method, and postpone method.

Answer 7

Direct Denial: salesperson makes a relatively strong statement to indicate the error the prospect has made
Ex: I’m surprised your firm is still in business. Weren’t they under investigation for fraud last year? → not true

Indirect Denial: Salesperson denies the objection but attempts to soften the response
Ex: Your products break down more often than those of most of your major competitors → maybe in the past, but not anymore

Compensation Method: Acknowledging objections’ validity and then showing any compensating advantages
Ex: Your product doesn’t do everything Company X’s does → true and that’s why we are 25% cheaper

Referral Method: Relating how other found initial opinions to be unfounded after they tried the product
Ex: I can see how you feel…others felt the same way…yet they found…

Revisit Method: Salesperson turns the objection into a reason for buying
Ex: buyer mentions problem, you turn into a solution

Acknowledge Method: Salesperson lets the buyer talk, acknowledges it and moves on to another topic after a pause
Ex.) Hey, look a squirrel, hope to never bring it up again.

Postpone Method: Buyer raises an objection which salesperson would prefer to answer later
Ex: Can we take this off-line?” – not just in sales – when manager is pisses
- Seek permission to answer question after presentation

Question 8

When dealing with price as an objection, what should your first response not be? What is the two-step approach to establishing value?

Answer 8

First response should not be to lower the price

Two-Step Approach: look at the objection from the customer’s viewpoint
Sell value and quality rather than the price