2 Personal Selling Process-Notes

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68 Chapter 4: THE SELLING PROCESS

Copyright Houghton Mifflin Company. All rights reserved.

8. Follows up with customers to provide service and ensure satisfaction, leading tocustomer loyalty

9. Works as a member of a team of specialists to serve customersB. Opportunities in Personal Selling

The demand for business-to-business salespeople is expected to grow sharply over the nextseveral years. Skilled technology salespeople, who are in short supply, may receive six-

figure signing bonuses, and some top performers can earn over $1 million a year.

The sales profession offers salaries, commissions, bonuses, sales contest prizes, andrelatively objective performance evaluations. In addition, salespeople may receive manyperks, including expense accounts, club memberships, company credit cards, automobiles,cell phones, and laptop computers. Beyond tangible rewards, high-performing salespeoplealso enjoy a high degree of recognition within their companies.

Because they interact with and know customers best, successful salespeople are among theemployees most likely to be promoted to senior management positions.

C. Careers for Different Types of IndividualsNo particular cultural background, ethnic group, demographic trait or personality ensuressuccess in selling.

Women and minorities may be especially effective salespeople when calling on female andminority customers.

D. Everyone Sells SomethingRobert Louis Stevenson, the well-known novelist, once said: Everybody lives by sellingsomething. What Stevenson recognized is that all of us, whether we earn our living in salesor not, must engage in persuasive two-way communication to convince (sell) others invarious situations at different times about various things, such as selling potentialemployers on hiringyou, rather than someone else with similar credentials.

Selling is not an art or innate talent but a discipline that almost anyone can learn.

II. WHAT SALESPEOPLE DO: STAGES OF THE PERSONAL SELLING PROCESS

The overlapping stages that form the personal selling process(PSP) include:

Prospecting and qualifying

Planning the sales call (preapproach)

Approaching the prospect

Making the sales presentation and demonstration

Negotiating sales resistance or buyer objections

Confirming and closing the sale

Following up and servicing the account

The seven stages of the PSP are best depicted as a continuous cycle or wheel of overlappingstages. Once the wheel of personal selling is set in motion, it continues to rotate from one stageto the next. Thus, its easy to see that stage seven isnt really the end of the cycle but rather a newbeginning because the salespersons follow-up and service activities can generate repeat sales orpurchases of new products and services as customer needs grow.

Figure 4.1. The Personal Selling Process


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Chapter 4: THE SELLING PROCESS 69


A. Prospecting and Qualifying

This is the stage of the selling process that gives the wheel its initial push.

Prospectingcontinuously searching for potential new customersis necessary for several

reasons:

To increase total sales Customers switch to other suppliers

Customers move out of your territory

Customers go out of business

Customers die

Customers businesses are taken over by another company

Customers have only a one-time need for the product

Relationships with some customers deteriorate, and they stop buying from you

Your buying contacts are promoted, demoted, transferred, or fired, or they retire orresign

Prospecting requires salespeople to first obtain leads.

A lead is anything that points to a potential buyer.

Salespeople must qualify a lead in terms of four basic criteria that can be remembered by the

acronym N A M E, as follows:

NNeed or want

AAuthority to buy

MMoney or ability to buy

EEligibility to buy

1. Random-Lead Searching

Sometimes called blind searching, generates leads by randomly calling on businesses.

Examples ofrandom-lead searching include:

Door-to-door canvassing and cold calls

Territory blitz of organizations

Advertising

Electronic mail and websites

2. Selective-Lead Searching: Direct SourcesThis refers to systematic strategies to generate leads from predetermined target

markets.

Examples of direct sources of selective-lead searching include:

Friends, neighbors, and acquaintances

Personal observation

Spotters


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Satisfied customers and former customers

Endless chain

Networking

Centers of influence

Internet (e-mails)

Junior salespeople and sales associates

Professional sales organizations

Company records

Mailing lists and directories

Newsletters

Surveys

3. Selective-Lead Searching: Indirect Sources

General announcements or calls to potential markets, hoping that prospects will comeforward and identify themselves.

Examples of indirect sources of selective-lead searching include:

Postal or electronic sales letters

Trade shows, fairs, and exhibits

Professional seminars, workshops, and conferences

Contests

Free gifts

Unsolicited inquiries Telemarketing for prospects

Table 4.2. Looking for Business and Organization Leads

B. Planning the Sales Call: Preapproach

To ensure sales success, plan for the sales call by using the following seven steps:

Table 4.3. Seven Steps in Preapproach Planning

1. Prepare the prospect for the initial sales call.

Prepare the prospect for the sales call by using seeding, which refers to prospect-

focused activities carried out several weeks or months before a sales call. The

salesperson mails pertinent news articles to the potential buyer over several weeks,

thereby establishing a kind of pen pal relationship before calling to ask for anappointment.

2. Sell the sales call

Sell the sales call appointment by prenotification using:

E-mail

Fax


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Mail

Telephone

3. Gather and analyze all relevant information about the prospect

Gather detailed information about the prospect and the buying situation from sources

may include: Trade associations

Chambers of commerce

Credit bureaus

Mailing list companies

Government and public libraries

Investment firms

Use the Internet to access information websites such as:

Thomas Register of American Manufacturers www.thomasnet.com

Yellow Pages www.yellowpages.com

Fortune Magazine www.fortune.com

Forbes Magazine www.forbes.com

Inc. Magazine www.inc.com

U.S. Census Bureau www.census.gov

Table 4.4. Selective Electronic Sources of Information

4. Identify the prospects problems and needs

5. Identify the product features, advantages, and benefitsIdentify thefeatures, advantages, and observable benefits likely to be of most interest

to the prospect, with major focus on the benefits.

6. Select the best sales presentation and demonstration strategy for the prospect

7. Plan and rehearse your approach to the prospect

C. Approaching the Prospect

The old saying that you never get a second chance to make a first impression indicates

how important that first face-to-face contact with the prospect can be.

Four strategies for approaching prospects include:

1. Non-product-related approaches:

Self-introduction

Mutual acquaintance or reference

Free gift or sample

Dramatic act

2. Peaking interest approaches:

Customer-benefit

Curiosity


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3. Consumer-directed approaches:

Compliment or praise

Survey

Question

4. Product-related approaches: Product or ingredient

Product demonstration

Table 4.5. Strategies for Approaching Prospects

When establishing objectives for a sales call, some salespeople set:

Primary objectives (targeted outcome)

Minimum objectives (lowest acceptable outcome), and

Optimal objectives (best possible outcome)

Salespeople can use S M A R T steps to set their objectives:

SSpecific: Establish a specific, major objective for the sales call.

MMeasurable: Ensure that your major objective is measurable or

quantifiablefor example, a certain number of units or dollar sales volume.

AAchievable: Make sure the goals you set are realistic and achievable.

RRelational: Always try to further a positive long-term relationship with the

prospect whether you achieve your major objective on this sales call or not.

TTemporal: If you can, establish with the prospect a specific timeframe for

achieving the major objective.

Ultimately, most sales calls should achieve one or more of three overall objectives:

a) Generate sales: Sell particular products to target customers on designated sales

calls.

b) Develop the market: Lay the groundwork for generating new business by

educating customers and gaining visibility with prospective buyers.

c) Protect the market: Learn competitors strategies and tactics and protect

relationships with current customers.

D. Making the Sales Presentation and Demonstration

Persuasive communication is at the heart of the selling process, and the sales

presentation/demonstration is the critical center stage or showtime for salespeople.

Remember the following issues during the presentation:

Ask the customer qualifying questions to uncover specific needs

Present the products and services that will best satisfy those needs

Stimulate desire for the offerings with a skillful demonstration

Highlight theirfeatures, advantages, and benefits

a) FFeatures are the obvious characteristics of the product.

b) AAdvantages are the performance traits of the product that show how it can

be used to help the customer better solve a problem than present products can.


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c) BBenefitsare what the customer wants from the product.In preparing sales presentations to achieve specific objectives, you can use several

alternative sales presentation strategies, including:

a) Stimulus-response

Salesperson asks a series of positive leading questions.

b) FormulaSalesperson leads the prospect through the mental states of buying (attention,

interest, desire, and action).

c) Need satisfaction

Salesperson tries to find dominant buying needs.

d) Consultative problem solving

The most frequently recommended and most successful sales presentation

strategy for todays professional salespeople, it focuses on the prospects

problems, not the sellers products. It emphasizes the partnership of buyer and

seller and stresses win-win outcomes in negotiations.

e) Depth selling

Experienced salesperson employs a combination of several sales presentation

methods.

f) Team selling

Salesperson makes the sales presentation to a group of decision makers from

different functional areas.

Several sales presentation strategies are identified above, but most professional B2B

salespeople find the consultative problem-solving strategy to be most effective, along with

tactics that anticipate likely interactions between buyer and seller.

Table 4.6. Sales Presentation Strategies

1. Adaptive versus canned sales presentations

a) Adaptive sellingIt stresses the adaptation of each sales presentation and demonstration to fit each

individual prospect.

b) Canned (or programmed) selling

Although adaptive selling is generally best, canned or program selling refers to

any highly structured or patterned selling approach.

Both adaptive and canned sales presentations can be effective when matched with

the appropriate prospect in a designated sales situation.


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E. Negotiating Sales Resistance or Buyer Objections

Objections are statements, questions, or actions by the prospect that indicate resistance or an

unwillingness to sign a purchase agreement. Without sales resistance, there would not be any

need for salespeople.

Sales resistance can be categorized into eithervalidorinvalidobjections. Salespeople need

to recognize each type in negotiating with prospects or customers.1. Valid objections

Valid objections are sincere concerns that the prospect needs answered before he or she

is willing to make the commitment to buy. Types of valid objection include:

a) Product objections

Product objections usually concern the features, advantages, and benefits

associated with a product or service. When prospects use this form of resistance

to purchasing, salespeople should provide additional information to reassure

them.

b) Price objections

Price objections are the most frequently raised form of initial resistance. To

counter price resistance, salespeople must show that their product or serviceoffers the prospect higher value per dollar spent than competitive offerings.

c) Promotion objections

Promotion objections are commonly used as a resistance tactic when the seller is

known not to promote products aggressively. To overcome this resistance,

salespeople may have to offer buyers promotional allowances or cooperative

advertising arrangements, special rebates, or purchase incentives.

d) Distribution objections

Distribution objections typically involve the physical movement of products

through the channels of distribution. These forms of buyer resistance include

concerns about long delivery time, high delivery costs, and large-quantity

stocking requirements.e) Capital objections

Capital objections generally revolve around budgetary issues that prospects give

as an excuse for not purchasing products now. This resistance tends to increase

with the price of the product or service.

f) Source objections

Source objections may result from negative publicity about unethical, illegal, or

inefficient business practices by the seller. Conversely, the seller company may

not be well enough known for the prospect to feel comfortable purchasing from

it. Source objections also can result from the prospects loyalty to a competing

firm.

g) Needs objectionsNeeds objections are raised by prospects who feel they simply do not currently

need or have use for the products or services being offered. Handling no need

objections requires innovative approaches by salespeople to educate prospects on

the potential benefits to be derived from purchasing their products.

2. Invalid objections

Invalid objections are merely defense mechanisms used by prospects to stall, slow

down, or prevent the sales process from proceeding. Invalid objections are typically


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irrelevant, untruthful, delaying, or latent reasons for the prospects unwillingness to

negotiate. They are difficult to identify and overcome because the prospect does not

deal with the salesperson in a straightforward, honest manner. Types of invalid

objection include:

a) Latent objections

Latent objections are hidden and sometimes too personal or embarrassing for theprospect to reveal, so they remain unspoken.

b) Stalling objections

Stalling objections are usually delaying tactics articulated by such comments as

Around here, all decisions are shared, so just leave your product literature for us

to look over, and well get back to you if were interested. It is usually a waste

of time to attempt to overcome repeated prospect objections that appear invalid.

c) Time objections

Time objections are delaying tactics that usually surface in prospect statements

such as Ive got to prepare for a meeting in ten minutes, so I dont have time to

talk now, or Im just too busy for the next several weeks with a special project

to meet with you.

d) Unethical objectionsUnethical objections include actions or attitudes that seem unprincipled or

immoral. Examples of unethical resistance to buying include excuses about not

doing business with a particular ethnic group or religious persuasion, use of

sexual overtures, and soliciting bribes or kickbacks.

Table 4.8. Types of Valid and Invalid Objections

3. Specific techniques for negotiating buyer objections

Various methods have been developed and tested to handle prospect objections, which

are classified under five categories: put-off, switch focus, offset, denial, and provide

proof.

Suggestions for handling each objection are also offered below.

a) Put-off strategies

(1) Im coming to thatput off things like price until the end so you dont

turn off the prospect early.

(2) Pass-offkeep a pleasant expression but say nothing.

b) Switch focus strategies

(1) Alternative productswitch focus to another model.

(2) Feel, felt, foundtrace own experience with product.

(3) Comparison or contrastcompare product with another.

(4) Answer with a questionWhy do you think?

(5) Humoruse lighthearted humor to ease tension and redirect the focus.

(6) Agree and neutralizegive some level of agreement, then explain benefit.c) Offset strategies

(1) Compensation or counterbalancecounter an objection that cannot be

denied by citing an even more important buying benefit.

(2) Boomerangturn the objection into a reason for buying.d) Denial strategies

(1) Indirect denialagree with prospects objection but follow with a

disclaimer.

(2) Direct denialtackle the false rumor head-on.


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e) Provide proof strategies

(1) Case historytell experience of a satisfied customer.

(2) Demonstrationdramatize major advantages and benefits.(3) Propose trial useoffer free trial use.

F. Confirming and Closing the Sale

The close is that stage in the selling process where the salesperson tries to obtain agreement

from the prospect to purchase the product.

There are five categories of closes:

Clarification closes

Psychologically oriented closes

Straightforward closes

Concession closes

Lost sale closes

1. Clarification closes

a) Assumptive closeAssume that the purchase decision has already been made so that the prospect

feels compelled to buy.

b) Choice closeOffer the prospect alternative products from which to choose.

c) Success story close

Tell a story about a customer with a similar problem who solved it by buying the

product.

d) Contingent close

Get the prospect to agree to buy if the salesperson can demonstrate the benefits

promised.

e) Counterbalance close

Offset an objection that cannot be denied by balancing it with an important

buying benefit.

f) Boomerang closeTurn an objection around so that it becomes a reason for buying.

g) Future order close

If a prospect does not have a current need, but may have one in the future, the

salesperson can ask for a commitment from the prospect to purchase at a future

time.

h) If-when close

Asking the prospect to provide a clarification as to when an order will be placed,as opposed to ifan order will be placed.

i) Probability close

Although seemingly comparable to the if-when close described above, the

probability closing technique asks the prospect to assign a quantified likelihood

of signing a sales contract in the near future.


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j) Suggestion close

Gets the prospect to accept the advice offered without giving it a great deal of

thought. A salesperson can suggest that customers who have purchased the

product have reported high levels of satisfaction, thereby suggesting or implying

that the prospect should purchase it, too.

2. Psychologically oriented closesa) Stimulus-response close

Use a sequence of leading questions to make it easier for the prospect to say yes

when finally asked for the order.

b) Minor points close

Obtain favorable decisions on several minor points leading to eventual purchase

decision.

c) Standing-room-only (SRO) close

Suggest that the opportunity to buy is brief because demand is great and the

product is in short supply.

d) Impending event close

Warn the prospect about some upcoming event that makes it more advantageous

to buy now.

e) Advantage close

This variation of the impending event close emphasizes the specific advantages

of making a timely decision, while still stressing a sense of immediacy.

f) Puppy dog close

Let the prospect take the product home for a while and, as with a puppy, an

emotional attachment may develop, leading to purchase.

g) Compliment closeCommend prospects for raising interesting and intelligent questions to subtly

flatter their egos so that they agree to sign the sales order.h) Reserve advantage close

In this slight variation of the advantage close described above, salespeople

identify a number of merits for purchasing a product, but save a few to use if the

prospect exhibits resistance yet again.

i) Dependency close

Used to break the choke-hold that a competing firm has over a prospects

business by suggesting that the prospect have an alternative supplier to reduce the

risk of being dependent on one supplier.

3. Straightforward closesa) Ask for the order close

Ask for the order directly or indirectly.

b) Order form close

While asking the prospect a series of questions, start filling out basic information

on the contract or order blank. Or hand the order form and a pen to the prospect.

c) Summary close

Summarize the advantages and disadvantages of buying the product before

asking for the order.


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d) Repeated-yes close

This variation of the summary close requires a salesperson to pose several

leading questions to which the prospect has little choice but to respond in an

affirmative manner.

e) Benefits close

Also a variation of the summary close, it requires the salesperson to identify andpresent a synopsis of the various salient benefits that the sales solution offers.

f) Action close

The salesperson simply hands the prospect a pen along with the contract, and

frequently the prospect, almost by reflex, will sign.

g) Negotiation close

Both the buyer and the salesperson negotiate a compromise, thus ensuring a win-

win agreement.

h) Technology closeThe salesperson more effectively summarizes key value-added benefits for the

prospect by using technologies such as PowerPoint, Excel, or other multimedia

tools.

4. Concession closes

a) Special-deal close

Offer a special incentive to encourage the prospect to buy now.

b) No-risk close

Agree to take the product back and refund the customers money if the product

doesnt prove satisfactory.

c) Management closeWhen salespeople do not have the authority to make the prospects requested

commitments or concessions, they can elicit the assistance of a senior sales

manager who has the authority to make the necessary decisions to close the sale.

d) Takeaway close

Used as an emotional fear appeal to cause anxiety that the prospect may lose out

on a special deal or incentive. A salesperson could suggest that the special offer

to provide an ancillary product or service free of charge is available only for

another week, thereby evoking an immediate purchase.

5. Lost sale closes

a) Turnover close

Turn the prospect over to another salesperson with a fresh approach or better

chance to make the sale.

b) Pretend-to-leave close

Start to walk away, then remember another benefit or special offer after theprospect has relaxed his or her sales defenses.

c) Ask for help close

When the sale seems lost, apologize for not being able to satisfy the prospect and

ask what it would have taken to get him or her to buy; then offer that.

Table 4.10. Types of Closes


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B. CRM Training and Rewards

To develop the skills of empowerment and customer relationship building needed for

effective CRM, salespeople need appropriate training programs. They must be trained and

rewarded for proactively taking initiatives that build customer relationships.

Traditional sales quota systems for motivating, evaluating, and rewarding the sales force

needupdating to include tangible goals and rewards for cultivating and retaining keycustomers through empoweredCRM activities.

KEY TERMS

Wheel of Personal SellingDepiction of the seven stages of the personal selling process (PSP) as a

continuous cycle of stages carried out by professionals in the field of sales.

ProspectingFirst step in the PSP, wherein salespeople find leads and qualify them on four criteria:

need, authority, money, and eligibility to buy.

LeadThe name and address or telephone number of a person or organization potentially needing the

companys products or services.

PreapproachThe approach-planning stage of the PSP.

ApproachThe first face-to-face contact with the prospect.

SMART ObjectivesA method of setting sales calls objectives that are specific, measurable,

achievable, relational, and temporal.

Adaptive SellingModifying each sales presentation and demonstration to accommodate each

individual prospect.

Canned (or programmed) SellingAny highly structured or patterned selling approach.

ObjectionAnything that the prospect or customer says or does that impedes the sales

negotiations.

Valid ObjectionsSincere concerns that the prospect needs to have addressed before he or she will bewilling to buy.

Invalid ObjectionsIrrelevant, untruthful delaying actions or hidden reasons for not buying.

CloseThe stage in the PSP where the salesperson tries to obtain the prospects agreement to purchase

the product.

Trial CloseAny well-placed attempt to close the sale; can be used early and often throughout the

PSP.

Follow-UpCustomer service provided not just after the sale is closed, but throughout the PSP.

REVIEW AND APPLICATION EXERCISES

1. Why do you think so many successful CEOs of top companies have come up through sales? [LO1]

Because they interact with and know customers best, successful salespeople are among the

employees most likely to be promoted to senior management positions. Many CEOs of Fortune500 corporations began their careers as sales representatives. As direct revenue generators,

salespeople are vital to the success of their companies. Unless its products and services are

profitably sold, a company cannot stay in business long, and its employees will lose their jobs.


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Thus, because of their customer orientation and knowledge of the competition, many salespeople

have risen through the ranks to become CEOs.

2. What qualities do you think are needed by top-performing salespeople of today and tomorrow?

[LO 2]

Because salespeople generally have the greatest influence in reducing customer defection, their

efforts largely determine the effectiveness of customer relationship management (CRM) strategiesfor increasing customer loyalty. Because they are heavily involved in CRM, contemporary top-

performing salespeople should have the following traits:

Are customer oriented

Think mainly aboutservingcustomers

Develop sales calls strategy to achieve specific objectives

Listen to and communicate meaningfully with customers

Sales presentation focuses on customer benefits

Think in terms of helping customers solve problems

Goal is to develop long-term, mutually beneficial relationships

Follow up with customers to provide service and ensure satisfaction leading to customer

loyalty

Work as a member of a team of specialists to serve customers

3. Describe the seven stages in the professional personal selling process (PSP). Why are they

depicted as a revolving wheel? [LO 3, 4, 5, 6, 7]

a. Prospecting for and Qualifying the Prospectinvolves identifying potential customers and

determining their need, authority, ability, and eligibility to buy

b. Planning the Sales Call (the Preapproach)involves the planning necessary to prepare for

the sales call

c. Approaching the Prospectinvolves the salespersons initial contact with the prospect

d. Making the Sales Presentation and Demonstrationinvolves identifying the prospects

needs; presenting the products features, advantages, and benefits; and demonstrating the

product

e. Negotiating Prospect Resistance and Objectionsinvolves understanding and negotiating

reasons why prospects resist buying

f. Confirming and Closing the Saleinvolves convincing the customer to make the purchase

g. Follow-up and Servicing Customersinvolves all actions necessary to maintain the account

These stages are depicted as a wheel because the process does not end. It continues to spin fromone interconnecting and overlapping stage to the next. After the follow-up, repeat sales and new

customer needs rotate the wheel back to the first stage for another revolution.

4. Salespeople spend more time on prospecting than on any other of the seven PSP stages. Why do

you think this is so? [LO 4]

A companys current customers may leave for various reasonsdeath, bankruptcy, relocation, or

switching to other suppliers. Thus, to increase or even maintain sales volume, salespeople must

continually search for potential new customers, calledprospects. But prospecting requires


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salespeople to first obtain leads, whichis basically the name and address or telephone number of a

person or organization potentially needing the companys products or services. Before considering

a lead to be a valid prospect, the salesperson must qualify it in terms ofneedor want, authority to

buy, money to buy, and eligibility to buy. One way to remember these four qualifiers is the

acronymNAME, each of which is a prospecting stage. Encompassing an extremely time-

consuming process, when companies or individuals pass all four of these screens, they become

prospects for a sales call, after which salespeople can plan the next step of the personal sellingprocess.

5. Describe the different sales presentation strategies, including the advantages and disadvantages

associated with each one. [LO 5]

a. Stimulus-response. Salesperson asks a series of positive leading questions. Advantage or

disadvantage: Customer develops habit of answering yes, which may lead to a positive

response to the closing question. Can appear manipulative to sophisticated prospects.

b. Formula. Salesperson leads the prospect through the mental states of buying (attention,

interest, desire, and action).

Advantage or disadvantage: Prospect is led toward purchase action one step at a time, as

the prospect participates in the interview. May come across as too mechanical and rehearsedto win prospects trust and confidence.

c. Need satisfaction. Salesperson tries to find dominant buying needs.

Advantage or disadvantage: Salesperson listens and responds to the prospect while

leading the prospect to buy; the salesperson learns dominant buyer needs and motivations.

Salesperson must not overlook latent needs of prospect that are not articulated.

d. Consultative problem solving. The most frequently recommended and most successful

sales presentation strategy for todays professional salespeople, it focuses on the prospects

problems, not the sellers products. It emphasizes the partnership of buyer and seller and

stresses win-win outcomes in negotiations.

Advantage or disadvantage: Through the parties working together to understand and solveproblems, the salesperson forges a trusting, consultative relationship with the prospect.

Salesperson and buyer negotiations focus on a win-win outcome and a long-run relationship.

e. Depth selling. Experienced salesperson employs a combination of several sales presentation

methods.

Advantage or disadvantage: A customized mix of the best features of all of the strategies

that draws on most of their advantages. Depth selling requires exceptional salesperson skill

and experience.

f. Team selling. Salesperson makes the sales presentation to a group of decision makers from

different functional areas.

Advantage or disadvantage: Team selling involves counterparts from both the buyer andseller organizations interacting and cooperating to find solutions to problems. Salesperson

serves as coordinator of the buyer-seller team interactions.

6. How should salespeople view buyer objections and resistance? [LO 6]

An objection is anything that the prospect or customer says or does that impedes negotiations.

Even after an effective sales presentation and demonstration, most prospects and customers are

likely to ask more questions and resist making the purchase. However, salespeople shouldnt be

discouraged by prospect resistance or objections. Buyer objections or resistance can be both a


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challenge and an opportunity because prospect objections are usually positive signs of interest in

the sales presentation and indirect requests for more information so that the prospect can justify a

purchase decision. Before you make a sales call, its always a good idea to anticipate prospect

objections and prepare appropriate responses to win the sale.

7. Identify the five basic techniques for handling buyer objections, and give examples of each one.

[LO 6]a. Put-off strategies

Im coming to thatput off things like price until the end so you dont turn off the

prospect early.

Pass-offkeep a pleasant expression but say nothing.

b. Switch focus strategies

Alternative productswitch focus to another model.

Feel, felt, foundtrace own experience with product.

Comparison or contrastcompare product with another.

Answer with a questionwhy do you think?

Humoruse lighthearted humor to ease tension and redirect the focus.

Agree and neutralizegive some level of agreement, then explain benefit.

c. Offset strategies

Compensation or counterbalancecounter an objection that cannot be denied by citing

an even more important buying benefit.

Boomerangturn the objection into a reason for buying.

d. Denial strategies

Indirect denialagree with prospects objection but follow with a disclaimer.

Direct denialtackle the false rumor head-on.

e. Provide proof strategies

Case historytell experience of a satisfied customer.

Demonstrationdramatize major advantages and benefits.

Propose trial useoffer free trial use.

8. What is a trial close? Give some examples of trial closes. When should they be used? [LO 5, 7]

A trial close is any well-placed attempt to close the sale; it can be used early and often throughout

the selling process. Professional salespeople should be prepared to close anytime, anywherebecause they know their ABCs (i.e.,Always Be Closing),which advocates making trial closesthroughout your interaction with the prospect. One of the moststraightforwardclosing

approaches, when the salesperson and the prospect seem to be in agreement, is simply to ask,

Shall we write up the order? But the close need not be that blatant. Often, the salesperson can

accomplish the same result with a more subtle assumptive close question, such as When do you

need the product delivered? Another concern for many new salespeople is determining when to

try to close the sale. Theres no single best time. The close can happen at any time during the sales

processin the first few minutes of the first sales call, or in the last few seconds of the sixth. Trial


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closes are simply attempts to test the prospects readiness to buy. Examples include statements

like Do you think this product will meet your needs? or So, what do you think? Closing

attempts, though, are especially appropriate in three situations:

When a presentation has been completed without any objections being raised by the

prospect, try to close. Doing so may elicit objections from the prospect.

When the sales presentation has been completed and all questions and objections have beenaddressed, closing is logical.

If the buyer indicates an interest in buying the product by giving a closing signal, the time

is appropriate to close.

9. Name and explain as many closing strategies as you can. [LO 7]

a. Clarification closes

Assumptive close. Assume that the purchase decision has already been made so that the

prospect feels compelled to buy.

Choice close. Offer the prospect alternative products from which to choose.

Success story close. Tell a story about a customer with a similar problem who solved itby buying the product.

Counterbalance close. Offset an objection that cannot be denied by balancing it with

an important buying benefit.

Contingent close. Get the prospect to agree to buy if the salesperson can demonstrate

the benefits promised.

Boomerang close. Turn an objection around so that it becomes a reason for buying.

Future order close. If a prospect does not have a current need, but may have one in the

future, the salesperson can ask for a commitment from the prospect to purchase at a

future time.

If-when close. Asking the prospect to provide a clarification as to when an order will

be placed, as opposed to if an order will be placed.

Probability close. Although seemingly comparable to the if-when close described

above, the probability closing technique asks the prospect to assign a quantified

likelihood of signing a sales contract in the near future.

Suggestion close. Gets the prospect to accept the advice offered without giving it a

great deal of thought. A salesperson could suggest that many customers who have

purchased the product have reported high levels of satisfaction, thereby suggesting that

the prospect should also purchase it.

b. Psychologically oriented closes

Stimulus-response close. Use a sequence of leading questions to make it easier for the

prospect to say yes when finally asked for the order.

Minor points close. Obtain favorable decisions on several minor points leading to

eventual purchase decision.

Standing-room-only (SRO) close. Suggest that the opportunity to buy is brief because

demand is great and the product is in short supply.


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Impending event close. Warn the prospect about some upcoming event that makes it

more advantageous to buy now.

Advantage close. This variation of the impending event close emphasizes the specific

advantages of making a timely decision, while still stressing a sense of immediacy.

Puppy dog close. Let the prospect take the product home for a while and, as with a

puppy, an emotional attachment may develop, leading to purchase.

Compliment close. Commend prospects for raising interesting and intelligent questions

to subtly flatter their egos and make them more receptive to making the purchase.

Reserve advantage close. In this slight variation of the advantage close described

above, salespeople identify a number of merits for purchasing a product, but save a few

to use if the prospect exhibits resistance yet again.

Dependency close. Used to break the choke-hold that a competing firm has over a

prospects business by suggesting that the prospect have an alternative supplier to

reduce the risk of being dependent on one supplier.

c. Straightforward closes

Ask for the order close. Ask for the order directly or indirectly.

Order form close. While asking the prospect a series of questions, start filling out basic

information on the contract or order blank. Or hand the order form and a pen to the

prospect.

Summary close. Summarize the advantages and disadvantages of buying the product

before asking for the order.

Repeated-yes close. This variation of the summary close requires a salesperson to pose

several leading questions to which the prospect has little choice but to respond in an

affirmative manner.

Benefits close. Also a variation of the summary close, it requires the salesperson toidentify and present a synopsis of the various salient benefits that the sales solution

offers.

Action close. The salesperson simply hands the prospect a pen along with the contract,

and frequently the prospect, almost by reflex, will sign.

Negotiation close. Both the buyer and the salesperson negotiate a compromise, thus

ensuring a win-win agreement.

Technology close. The salesperson more effectively summarizes key value-added

benefits for the prospect by using technologies such as PowerPoint, Excel, or other

multimedia tools.

d. Lost sale closes

Turnover close. Turn the prospect over to another salesperson with a fresh approach or

better chance to make the sale.

Pretend-to-leave close. Start to walk away, then remember another benefit or special

offer after the prospect has relaxed his or her sales defenses.

Ask for help close. When the sale seems lost, apologize for not being able to satisfy the

prospect and ask what it would have taken to get him or her to buy; then offer that.


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e. Concession closes

Special-deal close. Offer a special incentive to encourage the prospect to buy now.

No-risk close. Agree to take the product back and refund the customers money if the

product doesnt prove satisfactory.

Management close. When salespeople do not have the authority to make the prospectsrequested commitments or concessions, they can elicit the assistance of a senior sales

manager who has the authority to make the necessary decisions to close the sale.

Takeaway close. Used as an emotional fear appeal to cause anxiety that the prospect

may lose out on a special deal or incentive. A salesperson could suggest that the

special offer to provide an ancillary product or service free of charge is available only

for another week, thereby evoking an immediate purchase.

10. Why should salespeople be empowered in their dealings with prospects and customers? [LO 8]

In recent years, their roles have shifted from merely selling goods and services to building and

maintaining long-term, mutually profitable relationships with valued customers. As their

companies front-line representatives, salespeople are the ultimate customer relationship builders.

CRM has been called an inevitableliterally relentlessmovement because it represents the way

customers want to be served, and offers a more effective and efficient way of conducting business.

Kotler and Armstrong define CRM as the overall process of building and maintaining profitable

customer relationships by delivering superior customer value and satisfaction.

It is critical for sales managers to empower salespeople by enabling them to promptly address

customer needs and negotiate mutually satisfying agreements with them.In practice,

empowerment should seek to strengthen the flexibility, self-confidence, authority, and

effectiveness of salespeople as they try to fully satisfy customers and achieve CRM objectives.One important way to empower salespeople is to give them more financial flexibility to commit

company resources in serving customersapproving reimbursements for unsatisfactory products,

negotiating price discounts, providing purchase incentives, and resolving customer complaints. By

being able to make on-the-spot decisions, salespeople can enhance their image and competencewith customers and thereby feel more psychologically empowered and motivated for CRM.

INTERNET EXERCISE

1. You have been appointed to work as a U.S. sales representative for Airbus Industrie, which has

just developed the Airbus 380a state-of-the-art, double-decker aircraft that carries from 550 to900 passengers. Using the websites provided in Table 4.4, conduct a Web-based search for

detailed information about the airline industry. More specifically, to help you plan the sales call

and make your approach successful, find the following information:

Addresses and locations of the headquarters of major players in the airline industry

(passenger airlines and cargo carriers) Sales, market share, profits, and size of each major competitor Regions of the United States, and of the world, where each airline operates Type of aircraft the airline currently uses Names, addresses, e-mail addresses, and telephone numbers of purchasing managers for all

of the airlines and cargo carriers

Documents

2 Personal Selling Process-Notes