This Document Contains Chapters 7 to 8 Chapter Seven—Sales Dialogue: Creating and Communicating Value Learning Outcomes After completing this chapter, you should be able to: 1. describe the key characteristics of effective sales dialogue. 2. explain how salespeople can generate feedback from buyers. 3. discuss how salespeople use confirmed benefits to create customer value. 4. describe how verbal support can be used to communicate value in an interesting and understandable manner. 5. discuss how sales aids can engage and involve buyers. 6. explain how salespeople can support product claims. 7. discuss the special considerations involved in sales dialogue with groups. Chapter Outline I. Introduction II. Effective Sales Dialogue III. Encouraging Buyer Feedback IV. Creating Customer Value V. Interesting and Understandable Sales Dialogue A. Voice Characteristics B. Examples and Anecdotes C. Comparisons and Analogies VI. Engaging and Involving the Buyer A. Types of Sales Aids B. Visual Materials C. Electronic Materials D. Product Demonstrations E. Using Sales Aids in the Presentation F. State the Selling Point and Introduce the Sales Aid G. Present the Sales Aid H. Explain the Sales Aid I. Summarize VII. Supporting Product Claims A. Statistics B. Testimonials C. Case Histories VIII. Group Sales Dialogue A. Sales Tactics for Selling to Groups B. Arrival Tactics C. Eye Contact D. Communications Tips E. Handling Questions in Group Dialogue Exercises Developing Professional Selling Knowledge 1. What are the key characteristics of effective sales dialogue? Answer: The key characteristics of effective sales dialogue include the following: • Are planned and practiced by salespeople • Encourage buyer feedback • Focus on creating value for the buyer • Present value in an interesting and understandable way • Engage and involve the buyer • Support customer value through objective claims 2. What are the advantages of using response-checks during a sales dialogue? Answer: Response-checks increase buyer interaction enable salespeople to understand what the buyer is thinking and what the buyer feels about the ideas being expressed. These questions advance the selling process when they are used to confirm needs, confirm benefits, gauge the buyer’s interest level, and confirm that objections have been addressed satisfactorily. 3. What is the relationship between confirmed benefits and customer value? Answer: Confirmed benefits are the benefits that the buyer indicates are important and represent value. The salesperson’s job is to present solutions that produce (or otherwise lead to) the confirmed benefits so that the customer perceives value in the solution. 4. How can salespeople make sales dialogue interesting and understandable to buyers? Answer: Salespeople can make sales dialogue interesting and understandable by developing and incorporating sales aids/tools that grab the buyer’s attention. Types of sales aids/tools include anecdotes, comparisons, analogies, visual materials, electronic materials, and product demonstrations. Sales tools and visual aids give the salesperson the capability to present information in a format best suited to the buyer’s communication and learning style. In addition, well-designed visual sales tools and aids maximize the effectiveness of a sales dialogue because they help salespeople capture and hold the buyer’s attention and boost the buyer’s involvement and understanding. Finally, these tools and aids enhance recall and may increase the credibility of the salesperson’s claims. 5. What are the advantages and disadvantages of the different types of sales aids? Answer: Students’ answers will vary, but they should include something similar to the examples below in their answers. Visual Materials • Advantages—easy to carry; can be left behind easily; and can present complex information in a simplified format. • Disadvantages—relatively expensive to produce for distribution; do not engage the buyer directly; and once developed are not customizable. Electronic Materials • Advantages—greater sensory presentation of materials; low costs involved in distribution and use; can help build a complete, graphic presentation customized for an individual prospect quickly. • Disadvantages—may be expensive to produce the original; requires access to a power source; requires equipment; and may fail to operate. Product Demonstrations • Advantages—engage the buyer directly; gives the buyer the opportunity to see the product in action (makes the concept real); and by focusing on the targeted solutions (i.e., features producing confirmed benefits), the salesperson can demonstrate the value creation. • Disadvantages—may be difficult to arrange; product failure is a potential deal-killer and hard to recover from. Advantages: 1. Visual aids (e.g., brochures, slides): They provide clear, engaging representations of information, making complex data easier to understand and remember. 2. Product samples: They allow buyers to experience the product firsthand, enhancing credibility and enabling a tangible evaluation. Disadvantages: 1. Visual aids: Can be overly simplistic or fail to address specific buyer needs, leading to potential miscommunication. 2. Product samples: Can be costly and logistically challenging to distribute, and may not be feasible for all types of products. 6. How can electronic materials be used as sales aids? Answer: Electronic materials include slides, videos, or other multimedia presentations. They can be presented via a computer; face-to-face; online in real-time; online on demand; to large groups using an LCD projector; or compressed into a format suitable for viewing on cell phones and personal media devices (e.g., iPhone, iPad, iPod, or iTouch). 7. What are the four stages of the SPES Sequence for using sales aids effectively? Answer: Following are the four stages of the SPES Sequence for using sales aids effectively: • State the selling point and introduce the sales aid • Present the sales aid • Explain the sales aid • Summarize The SPES Sequence is designed to facilitate the effectiveness of sales tools and aids by providing a clear structure for introducing, presenting, explaining, and summarizing the sales aid. The first step is to state the selling point and introduce the sales aid (S); the goal is to prepare the buyer for the visual aid and inform him or her that attention is required. The second step is to present the sales aid (P), which involves showing the aid and allowing a few moments for the customer to examine the aid and familiarize him or herself with it before using it. The third step, explain the sales aid (E), is the step in which the salesperson points out the material information and explains how it supports his or her points. The final step is to summarize (S), during which the salesperson reviews the aid’s contributions and then removes the sales aid so as to prevent its serving as a distraction. 8. How can testimonials be used to support product claims? Answer: Salespeople use testimonials to support product claims when the testimonials are relevant to the product claim and when the prospect can identify with the source of the testimonial (e.g. a customer with similar needs). Testimonials add credibility to the salesperson’s claims, making it easier for the buyer to believe that he/she will realize (after purchase) the particular benefit and associated value. Testimonials serve to reduce the prospect’s perceived risk in making a purchase decision. 9. What are the key challenges of selling to groups versus individuals? Answer: Selling to a group is more challenging than selling to an individual because the salesperson is working simultaneously with people possessing different personalities, communication styles, needs, expertise, and responsibilities. The salesperson must be able to deliver a sales presentation that accommodates all the different members of the buying group. This means that the salesperson must be able to adapt on the spot to each member and be prepared to present information in a variety of ways. In addition, because each member of the buying group is likely to have his or her own areas of expertise related to needs or possible solutions, the salesperson should be prepared to field difficult questions from the buying group. 10. How should salespeople handle questions during a group dialogue? Answer: The best way for a salesperson to handle questions from the audience is to listen carefully, maintain eye contact with the person asking the question, restate or rephrase the question to ensure understanding, and then provide a clear, concise, and convincing answer. Group Activity Divide the class into groups of three to five. Each group assumes the role of a salesperson for the CanDo Laptop Company selling laptops to a small firm that wants to equip its salesforce with laptop computers. Previous meetings with the buyer indicate that its salespeople need laptops that are easy to transport and allow salespeople to show multimedia segments during a sales dialogue. CanDo laptops excel in each of these areas. Each group should identify one sales aid to use for each confirmed benefit and explain how the sales aid would be used during a sales dialogue. Experiential Exercises 1. Interesting and Understandable Sales Dialogue Objective: To help students understand how examples, anecdotes, comparisons, and analogies can be used effectively to make sales dialogue more interesting and understandable for the buyer. Time Required: 30 to 40 minutes Teaching Tip: Provide the class with a benefit statement such as: “XYZ copiers are the most dependable copiers on the market.” Ask students to create examples, anecdotes, comparisons, and analogies to make this statement more interesting and understandable. Then, have 2–3 students present their ideas for each element and discuss these in class. You can then compare the different elements and have the class determine the best example, anecdote, comparison, and analogy presented during the class session and why it was effective. 2. Individual or Group Sales Dialogue for Getting a Job Objective: To help students understand the key differences between individual and group sales dialogue. Time Required: 20 to 30 minutes Teaching Tip: This exercise works best if it is assigned during the prior class. Ask each student to come to class with an outline of a sales dialogue to be used in an individual job interview. During the beginning of class, have 2-3 students present their individual sales dialogue outline to the class. Sometimes companies conduct group job interviews. Instruct the students to assume that they have a group job interview tomorrow and have them suggest the key things they need to do to make this group job interview successful. End the class with a summary of the most important points presented. Chapter 7 Case Office Furniture Company Background The Office Furniture Company specializes in providing customer with office furniture solutions that are customized and designed to address productivity and aesthetic needs. It sells office furniture from the leading manufacturers, but creates value by analyzing the specific needs of each customer and then developing a customized design to meet these needs. There are several competitors in the office furniture industry, but most of them focus on low prices. Customers usually pay more for an Office Furniture Company solution, but receive more value in terms of increased productivity and business effectiveness. Current Situation Naiser & Associates is a small, but growing accounting firm. The company plans to add more office staff and to increase the number of its accountants. This planned growth means that the firm will have to find new office space, because it will have outgrown its current location. Because it plans continued growth in the future, it is looking for a new office that will accommodate current and future growth objectives. Naiser & Associates also wants to purchase new and better furniture for its new office. You are a sales representative for the Office Furniture Company and have been meeting with partner, Frank Naiser, as well as accountants and staff at Naiser & Associates. Based on these meetings, you have identified the following office furniture needs: 1. Naiser & Associates has typically met with clients at their offices. It would like to have most client meetings in the future at its new office. This means they desire furniture for these meetings that facilitates these meetings and communicates a professional and customer-friendly image. 2. Their current office furniture did not provide much storage for accountants or staff. Thus, important documents were stored at the end of a long hallway. Employees wasted a lot of time trying to retrieve important documents. Thus, they desire furniture that provides more storage for each employee. 3. Technology is changing at a rapid pace, so furniture that can be easily adapted to new technologies is very important. 4. As Naiser & Associates continues to grow, it will probably have to reorganize itself and is likely to need to adapt the physical office to different organizational arrangements. Office furniture that is adaptable to different configurations is important. You have created an office equipment design for Naiser & Associates that addresses each of the issues presented above and are preparing for a meeting with the partner, Frank Naiser, the office manager and a representative for the firm’s accountants. You know that a competitor has already made a presentation to the same group and their offer will cost less than what you will be able to charge. Questions 1. How will you try overcoming the lower price offer by a competitor? Answer: The Office Furniture Company creates value by analyzing the specific needs of each customer and then developing a customized design to meet these needs. Competitors may provide a low price offer but customers, by paying more to the Office Furniture Company, receive more value in terms of increased productivity and business effectiveness. 2. What specific value can you offer Naiser & Associates? Answer: As a sales representative of the Office Furniture Company, you could provide value by offering to create furniture that would help employees retrieve important documents quickly, without wasting much time. The company could also provide confirmed benefits by creating furniture that can be adapted to new technologies and different configurations. Students’ answers to this question will vary. However, they should address the points mentioned above. 3. How can you most effectively communicate the value of your proposed office equipment design? Answer: Effective communication can happen through an effective sales dialogue. The most effective sales dialogues: • Are planned and practiced by salespeople • Encourage buyer feedback • Focus on creating value for the buyer • Present value in an interesting and understandable way • Engage and involve the buyer • Support customer value through objective claims 4. What sales aids could you use to make your presentation more engaging and effective? Answer: Sales aids that can be used to make the presentation more engaging and effective are visual materials, electronic materials, and product demonstrations. Role Play Situation: Read the Office Equipment Company case Characters: Frank Naiser, partner; Jennifer Hamman, office manager; Jessica Attaway, accountant representative Scene: Location—Current Naiser & Associates office Action—Role play this meeting. Be sure to address the specific needs identified earlier, to communicate effectively with each person in the meeting, and to incorporate sales aids appropriately. Questions After completing the role plays, address the following questions: 1. How would you evaluate the role play in terms of interesting, understandable, and engaging sales dialogue? Answer: Evaluation of Sales Dialogue: The role play was effective if the dialogue was both engaging and clearly conveyed key benefits. It should address each individual's specific needs and concerns in a compelling way, making the information relevant and easy to understand. 2. How well did you involve each person in the meeting? What improvements would you recommend? Answer: Involvement of Each Person: Each participant should be actively engaged by addressing their specific concerns and preferences. If any individual felt overlooked, it’s crucial to ensure all voices are heard and their needs are met, perhaps by asking targeted questions or soliciting feedback from each person 3. Evaluate the effectiveness of each sales aid used? What improvements in the use of sales aids would you recommend? Answer: Effectiveness of Sales Aids: Sales aids should enhance understanding and retention of key points. If they were effective, they supported the dialogue well; if not, improvements might include using more relevant visuals, providing clearer data, or incorporating interactive elements to engage participants more fully. Chapter 7 Role Play All Risk Insurance and National Network Background The All Risk Insurance Company has 3,200 sales agents spread across five regions that cover the United States. They are moving toward the development of a national network that would tie each of the agent offices together with the regional offices and corporate headquarters. The improved communication capability will allow all company personnel to have full access to customer records and form the core of a comprehensive customer relationship management system that is to be rolled out in 18 months. Current Situation Jim Roberts is a network account specialist for National Networks, a specialist in large corporate network solutions, and has been working with the technology-buying group at All Risk Insurance for several months now. Roberts has worked through several meetings with the buying group members and has a meeting scheduled for next Wednesday to present his recommendations and demonstrate why they should select National Networks as the supplier for this sizable project. Joyce Fields (director of information systems), John Harris (comptroller and CFO), Mike Davis (Director of Agent Services), and Dianne Sheffield (Director for Customer Services) will make the final decision. Roberts also knows that there is one other competitor who will be making a presentation in hopes of landing the project. The equipment both vendors are proposing is virtually identical due to the detailed specifications that All Risk Insurance had included in the RFP. Prices are also likely to be pretty similar. The decision will most likely come down to the services each competitor includes in their proposals. Based on the information that Roberts has collected from different sources, he has come up with a comparison of customer services of National Networks and the competitor (see the table on the following page) offer. Role Play Situation: Read “All Risk Insurance and National Networks” background and current situation. Characters: Jim Roberts—salesperson for National Networks; Joyce Fields—director of information systems for All Risk Insurance; John Harris—comptroller and CFO for All Risk Insurance; Mike Davis—director of agent services for All Risk Insurance; Dianne Sheffield—director for customer services for All Risk Insurance Scene: Location—A conference room at All Risk Insurance. Action—As described, Jim Roberts is presenting the National Networks proposal for a corporate computer network linking All Risk Insurance’s corporate offices with each of its five regional offices and 3,200 sales agents out in the field. Role play Roberts’s presentation of each of the feature-benefit sets incorporating sales aids suitable for use in the group presentation. Features Capability of National Networks Capability of Competitor Benefits Service and repair centers 175 affiliated service and repair centers across the United States 21 affiliated service and repair centers across the United States Ensures fast and reliable repairs for hardware and software Installation and testing Installation and testing done by National Networks employees Installation and testing outsourced to several different companies Knowledge that all installations will be done the right way Customer call center 24 hours, 7 days per week, and staffed by National Networks employees 24 hours, 7 days per week, and staffed by an outsource commercial provider Knowledgeable staff always available to assist All Risk Insurance employees with problems Chapter 7 Continuing Case Up for the Challenge Brenda has a meeting today with the office manager at the law firm Abercrombie and Wilson (A&L). A&L is a local law firm with five attorneys and one main office. During her initial telephone conversation, the office manager indicated that the firm was reasonably satisfied with their current copiers, but that he was always looking for ways to increase office productivity. He also mentioned that he was a little concerned that the firm was paying for many copier features that were not really used. The law firm needed to make a lot of legal-sized copies, and be able to collate and staple them. There was little need for other “bells and whistles.” It was also important that a copier was dependable, because the law firm made many copies each day. When the copier did break down, fast service was needed to get it repaired as soon as possible. The office manager had some familiarity with NCC products and was eager to talk to Brenda. However, he made it clear that any decision to switch to NCC copiers would require that Brenda also meet with the attorneys and office personnel to get their approval. If Brenda convinced him that NCC copiers would increase office productivity at the law firm, he would be glad to set up a meeting for her with the attorneys and office personnel. Brenda is excited about this opportunity. She knows that NCC copiers are very dependable and that NCC provides exceptional service. She can also offer the law firm a copier with the specific features A&L desires. Questions 1. Prepare the sales dialogue Brenda might employ to use as an example and an anecdote to communicate the dependability of NCC copiers to the office manager. Answer: Students’ answers will vary. Examples should be relatively short and should not refer to a real event. Anecdotes are short-stories that refer to a specific incident or occurrence. Below are sample answers. Example: Our copiers are extremely dependable, and they rarely break down. Eighty-five percent of our customers have had zero downtime over the last three years. Anecdote: Our copiers are extremely reliable. Wilson Corporation has been using 20 of our copiers in its offices for the past ten years. During that time, they have had only one copier break down and that was due to a coffee spill on the copier. We had the copier up and running within two hours of the service call without any charges. Brenda: “I understand dependability is crucial for you. One of our clients, a law firm similar to yours, saw a dramatic reduction in service calls after switching to NCC. They had just one service issue in a year, resolved within 24 hours. Our copiers are built for reliability, which minimizes downtime and keeps your office running smoothly.” 2. Brenda will not be able to demonstrate a copier during this sales call. So, describe the types of sales aids she should use to show the buyer an NCC copier with the exact features desired. Answer: Students’ answers will vary but should include some reference to using a model, a picture, a diagram, a video clip, or other multimedia tool. Brenda should use detailed product brochures and specifications sheets highlighting the specific features of the NCC copier, such as legal-sized copying, collating, and stapling. A video demonstration showcasing these features and their benefits can also be effective. Additionally, she should provide case studies or testimonials from similar clients to illustrate real-world performance and reliability. 3. How can Brenda best use statistics and testimonials to support the excellent service provided by NCC? Answer: Brenda can present service call response data incorporating the average time it took (historically) to get a repair technician on-site once a call was placed, and the average time it took to get the copier up-and-running again. This information could be placed in a line-graph if Brenda wants to show changes over time. Or, it could be placed in a bar graph to show how it compares with competitors’ response times. Brenda could also use testimonials from current customers. She would need to secure testimonials from current customers that address the issue of the quality of service provided by NCC. Ideally, these would be testimonials from customers with similar needs. 4. Brenda did a terrific job in her sales call with the office manager. He is interested in NCC copiers and has scheduled a meeting for Brenda with the five attorneys and the office personnel. Discuss the major things Brenda should do during her sales call to this group. Answer: First, Brenda should be prepared to work with and present to people with different needs, communication styles, and concerns. To help alleviate this issue, if possible and appropriate, Brenda should attempt to pre-sell the group by communicating with the members individually. If that’s not possible, Brenda needs to make sure she arrives early, sets up her materials (checking to make sure everything is in working order), and greets each member by name as they arrive. During the meeting, Brenda needs to make periodic eye contact with each member, invite participation from each member (by name), and be diplomatic should a disagreement between members arise. She should also expect and be prepared to handle difficult questions. That includes listening carefully, restating or rephrasing the question for clarity, answering it as thoroughly as possible, and finally checking to make sure the question was answered. Chapter Eight—Addressing Concerns and Earning Commitment Learning Outcomes After completing this chapter, you should be able to: 1. explain why it is important to anticipate and overcome buyer concerns and resistance. 2. understand why prospects raise objections. 3. describe the five major types of sales resistance. 4. explain how the LAARC method can be used to overcome buyer resistance. 5. describe the recommended approaches for responding to buyer objections. 6. list and explain the earning commitment techniques that secure commitment and closing. Chapter Outline I. Introduction A. Addressing Concerns II. Anticipate and Negotiate Concerns and Resistance III. Reasons Why Prospects Raise Objections IV. Types of Sales Resistance A. Need Objections B. Product or Service Objections C. Company or Source Objections D. Price Objections E. Time Objections V. Using LAARC: A Process for Negotiating Buyer Resistance VI. Recommended Approaches for Responding to Objections A. Forestalling B. Direct Denial C. Indirect Denial D. Translation or Boomerang E. Compensation F. Questioning or Assessing G. Third-Party Reinforcement Feel-Felt-Found H. Coming-to-that or Postpone Summarizing Solutions to Confirm Benefits VII. Securing Commitment and Closing A. Guidelines For Earning Commitment B. Techniques to Earn Commitment C. Probe to Earn Commitment D. Traditional Methods Exercises Developing Professional Selling Knowledge 1. Why is it important for a salesperson to anticipate a buyer’s concerns and objections? Answer: There are a couple of reasons why it is important for salespeople to anticipate a buyer’s concerns and objections. First, by anticipating a buyer’s concerns and objections, the salesperson is less likely to be “derailed” when he or she hears them. Second, anticipating concerns and objections gives the salesperson time to prepare and develop an appropriate response strategy. Finally, the process of anticipating a buyer’s concerns and objections may help the salesperson learn more about his or her market offer and customers. 2. Is one type of sales resistance (e.g. need, price) more difficult to handle than another (e.g. source, product, time)? Answer: Yes, some types of sales resistances are more difficult to handle than others. For example, company or source objections, such as loyalty to a current supplier, are typically more difficult to handle than a price objection. That being said, taking the time to adequately prepare for objections will help salespeople handle difficult objections. 3. Should the direct denial method ever be used? Answer: Usage of the direct denial method might be risky as it may create a sense of anger, or it might turn the buyers defensive toward the salesperson. However, it may be used when the salesperson has a good feel for the relationship he or she has with the buyer. 4. Some trainers have been heard to say, “If a salesperson gets sales resistance, then he or she has not done a very good job during the sales presentation.” Do you agree with this? Answer: Generally speaking, people are naturally resistant to change. Therefore, it is only natural that buyers offer some resistance when considering a salesperson’s market offer. Moreover, buyer resistance is often an indicator that the buyer is interested in what the salesperson is presenting. Buyers expressing zero resistance through the sales presentation are typically uninterested and rarely make any affirmative commitment. 5. Under what circumstances does a salesperson want sales resistance? Answer: Overcoming sales resistance might strengthen the buyer’s reasons/motivation to purchase the salesperson’s product. In that case, a salesperson might want sales resistance. For example, if a buyer is not aware of recent technological innovations, he or she may not believe a salesperson’s proposal of a new high-tech product capable of delivering the desired benefits. Once convinced that such technology exists, the buyer’s resistance turns into a reason to buy the product. 6. Are there ever going to be situations where the salesperson can’t overcome sales resistance? Answer: Yes, there will be situations where the salesperson cannot overcome sales resistance. In these situations, the salesperson needs to move on. If the resistance is not significant, the salesperson should try to advance the sale. If the resistance is significant (deal killer), the salesperson should abandon the sales process, at least temporarily, making sure to avoid doing or saying anything that would damage the relationship with the buyer. The salesperson should then evaluate the resistance and subsequently develop a strategy for handling that type of resistance in the future. 7. Some trainers and sales experts think that closing is the most important stage of the sales process. Do you feel this way? Answer: Although some students may agree with this statement, closing is not consistent with relationship selling. If the salesperson successfully uncovers the buyer’s needs and can then show the buyer how his or her market offer will solve those needs, a successful close should follow naturally and with little difficulty. However, most salespeople will have tremendous difficulty closing, regardless of closing technique, if the buyer does not perceive any benefit resulting from making a purchase. 8. Why should salespeople have many closing techniques ready to use during a sales call? Explain. Answer: This question is somewhat misleading in that salespeople really shouldn’t worry about having many closing techniques ready to use during a sales call. While salespeople should anticipate and be prepared for the commitment stage, they should focus their efforts on uncovering and satisfying the buyer’s needs. The ability to provide a value-added solution will probably have the greatest influence on the buyer’s level of commitment. However, knowing a few methods for obtaining commitment should increase the probability that the salesperson will be able to do so successfully. Nevertheless, salespeople should not develop such reliance on closing (or objection handling) techniques that they lose focus on their ability to uncover and satisfy the buyer’s needs. 9. Can the LAARC method be used for all types of sales resistance? Explain. Answer: Students’ answers will vary depending upon how they interpret this question. The LAARC method is useful for all sales resistance situations in which the buyer is willing to talk to the salesperson. Some students may suggest the technique is not useful in situations where the buyer is not willing to talk with the salesperson or the resistance is too high. For example, a salesperson may use the LAARC method when buyers express resistance because they are completely satisfied with their current suppliers. However, it is unlikely that the salesperson will be successful in overcoming the resistance. The LAARC method (Listen, Acknowledge, Assess, Recommend, and Confirm) can be applied to many types of sales resistance as it systematically addresses and resolves objections. However, its effectiveness may vary depending on the nature and complexity of the resistance. For more complex or deeply-rooted objections, additional strategies or a more tailored approach may be required. 10. What is the best method to handle sales resistance? Answer: While there is probably no one best method to handle sales resistance, salespeople should stick to those methods that are relationship-oriented rather than traditional methods. However, the type of method that will be most effective varies depending upon the type and circumstances of the resistance. The best thing salespeople can do to handle resistance is to anticipate objections, ask good questions, and listen carefully. Group Activity Putting the Pieces Together: Creating a Job Search Strategic Plan and Preparation Guide In this section of the guide students should envision themselves in an interview situation and then: • List objections recruiters might raise during an interview and develop and describe strategies for overcoming each. • List at least two strategies for gaining the recruiters’ commitment (to either offering the job or a second interview). This section should be written in such a way that students may readily refer to it (and learn from it) when they are in their search for post-graduation employment. Experiential Exercises 1. Why Salespeople Fail to Gain Commitment Objective: Your students will be able to understand the issue of failure in gaining commitment. Time Required: 10 to 15 minutes. Teaching Tip: This exercise is excellent to use as a review following a lecture or class discussion on gaining commitment or fear of closing. Have the students complete this exercise individually or in small groups. Sample answers are provided below. One reason why sales are not completed is the salesperson makes no attempt to close the sale. Why, after investing all the time and effort in prospecting, qualifying, and making the presentation, would a salesperson not attempt to gain commitment? What are some other reasons why salespeople fail to gain commitment? Record your responses on the following lines. 1. Fear of the word “NO.” 2. Lack of conviction that product features/advantages/benefits meet customers’ needs. 3. Waiting until the end of the presentation to gain commitment when the customer is ready to make a decision earlier. 4. Simply not asking for the order. 5. Failure to generate agreement on key points during the presentation. 6. Prospect has objections. Chapter 8 Case Thompson Engineering Background Tyler Houston sells for Thompson Engineering. He has been calling on Hudson Distributors for close to two years. Over the course of 15 calls, he has sold nothing to date. During an early call, Houston had Hudson’s engineers in to look over and test the quality of his products. The tests and the engineer’s responses were positive. He thinks that he is extremely close to getting an order. Houston knows that Hudson is happy with its present supplier, but he is aware that they have received some late deliveries. Tom Harris, Hudson’s senior buyer, has given every indication that he likes Houston’s products and Houston. Current Situation During Houston’s most recent call, Harris told him that he’d need a couple of weeks to go over Houston’s proposal. Harris really didn’t have any major objections during the presentation. Houston knows his price, quality, and service are equal to or exceed Hudson’s present supplier. Questions 1. Harris told Houston that he needed a couple of weeks to think about his proposal. How should Houston handle this? Answer: Houston should probe to find out why Harris needs a couple of weeks’ time to think about the proposal. Houston should be assertive but not aggressive with his request. Houston should be prepared to handle whatever concern emerges from the discussion. If the buyer demands more time, Houston should agree and schedule a follow-up meeting. 2. What should Houston have done during the sales presentation when Harris told him that he needed to think it over? Answer: Students’ answers will vary but should include some discussion that aim at probing to learn more about the concern. If appropriate, Houston could ask Harris to reconsider the impact of the problems he is having currently with his supplier in an effort to motivate Harris to act sooner. When Harris said he needed to think it over, Houston should have acknowledged the need for reflection and offered to provide additional information or answer any remaining questions. He should have also set a clear follow-up action, such as scheduling a specific time to revisit the discussion or providing a summary of key points to aid in Harris's decision-making process. 3. What techniques should Houston have used to overcome the forestalling tactic? Answer: Houston should continue to probe in order to learn the true cause of the resistance. To overcome the forestalling tactic, Houston should have used techniques like: 1. Clarification Questions: Ask Harris specific questions to understand his concerns better and address them directly. 2. Reinforcement of Benefits: Emphasize how the product's benefits align with Harris's needs and concerns. 3. Proof of Value: Provide testimonials or case studies demonstrating the product's effectiveness. 4. Next Steps: Propose a trial or a demo to allow Harris to experience the product firsthand, making it harder for him to delay the decision. Role Play Situation: Read Case 8; Thompson Engineering Characters: Tyler Houston, sales representative; Tom Harris, senior buyer Scene 1: Location—Harris’ office Action—Harris has just stated that he needs a couple of weeks to go over Houston’s proposal. Role play how Houston should respond to Harris’ needing two weeks to think it over. Scene 2: Location—Harris’ office Action—Houston is summarizing his product’s advantages (i.e., price, quality, service). Role play Houston’s summary and his asking for the order. Upon completion of the role plays, address the following questions: 1. Why do buyers hesitate and ask for more time to think over proposals? Answer: Buyers often request more time to consider proposals due to uncertainty, the need for further validation, or the desire to compare with other options. They might also be waiting for internal approvals or looking to ensure the decision aligns with long-term goals. 2. How hard should Houston press to get Harris to act now? Answer: Houston should balance persistence with respect for Harris’s decision-making process. He should emphasize the unique benefits and urgency of his proposal while offering to address any remaining concerns or questions. Pressing too hard may push Harris away, so a consultative approach with a focus on added value is key. Chapter 8 Role Play Allison Engineering Background Brett Johnson has been selling for Allison Engineering for six months. Most of the first four months were spent in training learning Allison’s products. He spent another two weeks learning their selling process and shadowed one of their senior reps for a couple of weeks. He has barely been in the field a month and is feeling frustrated. Brett was given a hot lead the first day in the field (Parker Distributors), and the past four weeks he has made seven calls on Parker. Johnson feels he is close to getting an order from Parker. Brett knows Parker is fairly happy with their present supplier, but he is aware that they have received several late deliveries. Mary Williams, Parker’s senior buyer, has given every indication that she likes Allison’s products and Johnson. During Johnson’s most recent call, Williams told him she’d have to have a couple of weeks to go over his proposal. Williams really didn’t have any major objections during his presentation. Johnson knows his price, quality, and service are equal to or exceeds Williams’ present supplier. Williams did say she wasn’t looking forward to calling their present supplier to tell them about doing business with Allison Engineering if she decided to change. Role Play Location: Mary William’s office Action: Role play Mary Williams telling Brett Johnson she needs a couple of weeks to think over his proposal. Discuss the sales resistance of forestalling Williams is using and how Johnson is going to overcome the objection (use LAARC). Also, role play Williams’ concern telling her present supplier they are switching suppliers. Chapter 8 Continuing Case Handling Sales Resistance Brenda recently returned from a two week training session that focused on how to handle sales resistance and how to earn commitment. Brenda has become quite familiar with the ADAPT questioning system and knows she must use assessment questions to allow the buyer to describe their present situation. She has also developed a pretty good set of discovery questions that helps her identify the buyer’s pain and problems. Her challenge has been what to do with this information. Whenever Brenda attempts to use features and benefits to make her case, she encounters a myriad of objections. Brenda knows she has great products and service, but she has not been able to communicate this effectively to her prospects. The objection she hears most often is: “I’ve never heard of your company, how long have you been in business?” If that is not bad enough, she heard the following objections in just one morning: “I’m not sure I am ready to buy at this time, I’ll need to think it over.” “Your company is pretty new; how do I know you’ll be around to take care of me in the future?” “Your price is a little higher than I thought it would be.” “Your company was recently in the news. Are you having problems?” and finally, “I think your company is too small to meet our needs.” Brenda hears most of these objections right after she attempts to earn a commitment. She is now getting a little gun shy about asking her prospects for the order. Brenda is sitting at her desk trying to figure out what to do next and she is not exactly sure how to proceed. Questions 1. What would you recommend Brenda do to handle the challenges she faces? Answer: First, Brenda needs to understand that objections are a natural part of the sales process and often indicate that the buyer has, at least, some interest. Next, Brenda needs to review the various methods for handling sales resistance, including the LAARC strategy. She should then review the objections she hears frequently and then develop and rehearse a response strategy. Doing so will help build her confidence and improve her ability to handle resistance. 2. Brenda appears to have an advantage with her products and services. Develop a plan for Brenda to overcome the sales resistance she is receiving. Answer: Students’ answers will vary but should focus on the use of the compensation method for utilizing the advantages. Brenda should first identify the specific reasons behind the sales resistance, such as concerns about cost or skepticism about product reliability. She can then address these concerns by demonstrating how her products offer superior value or resolving any misconceptions with concrete evidence. Additionally, she should leverage testimonials and case studies to build credibility and offer a tailored solution that directly meets the client's needs. Engaging the client with a follow-up plan and addressing objections proactively can further help in overcoming resistance. 3. Use the LAARC process to develop the suggested dialogue Brenda can use to address one of the major types of resistance she is receiving. Answer: Listen: She will have to listen as the buyer expresses “Your price is a little higher than I thought it would be.” Acknowledge: “Okay, so you are concerned that the price is too high?” Assess: “Is the price greater than what you were planning to spend, or do you think that the price is too high compared to our competitors’ prices?” Respond: “It’s true, the price of our copiers is about $200 higher than the prices of our competitors’ copiers. However, the operating and maintenance cost of our copiers is 50% lower than those of our competitors. Within 12 months you will make up for the difference and within two years you will have saved hundreds of dollars. Also, the average life of a copier is eight years, bringing your total savings to around $2000.” Confirm: “Given that information, do you still feel the price is too high?” 4. What can Brenda do in the future to encounter less sales resistance when she asks for the order? Answer: There are a variety of things Brenda can do to encounter less sales resistance. First, she may need to work on her prospecting skills (qualifying in particular). Next, while she feels confident about her questions skills, she may need to work on integrating the information she gleans during need discovery into her presentation of solutions. In particular, the answers to activation and projection questions should be useful. Next, she may need to work on presenting solutions. She needs to make sure her customers agree that the solutions she is presenting are important and viable in their respective organizations. Finally, she needs to include more response-checks to ensure her customers are “buying-in” to her solutions before asking for the order. Solution Manual for SELL: Trust Based Professional Selling Thomas N. Ingram, Raymond (Buddy) W. LaForge, Ramon A. Avila, Charles H. Schwepker, Michael R. Williams 9781305662094, 9781305662087
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