Dire Dawa University

College of Business and Economics

Department of Marketing Managements
SALE MANAGEMENT ASSAYMENT
GROUP 5
1.1 Handling Objection

Objection handling is managing objections potential customers have before, during, or after a sales
pitch. These concerns can be related to pricing, timing, and product features. Objections become
obstacles to purchasing products from a specific company.

Objection handling is when a salesperson addresses a prospect’s concerns about the product or service
they are selling so the sale can move forward. It’s a natural part of the sales process and requires a sales
rep to respond in a way that eases concerns and fills customer knowledge gaps.

It is quite clear that when prospects are presented with products they come up with various questions,
queries, and objections. Objection handling is the step when the seller attempts to handle different
objections of the prospects that are stopping him from closing sales.

The main goal of the seller here is to clearly understand what are the customer’s objections, why they
have objections, and genuinely step to handle such objections to convince them of his offer.

1.1.1 Reasons For Customer Objections In Selling

Customer objections are the voices that are raised due to some reasons customers are not ready to buy
a product/service a salesperson is selling. The reasons for customer objections might be because of
(both) the seller and prospective buyers.

Customers’ objections are common in the selling process, such objections should be overcome in order
to close a sale. It is the part of the handling objection that a seller experience in his selling journey.

Customers objections may take place due to various reasons, some of the reasons are mentioned below,

Negative Psychological Factors

Many objections are expressed by the prospects/customer due to negative psychological factors rooted
in their minds. Some prospects may say that by buying a particular product/ service they would feel
insecure. Others may say that they fear punishment, loss, or disapproval.

Examples.

Products Psychological Feelings

A match-lit gas table Insecurity

A gas cylinder Insecurity

A TV set Fear of punishment in terms of cost

Fragile goods Fear of loss from breakage or wear and tear

A new model car Fear of disappointment by any/many of the family member/

members, friends, etc.

Objections due to psychological factors arise when buyers possess some degree of resistance, or a
negative attitude of mind, or are highly emotional. As human beings, these conditions are natural among
some buyers. Negative psychological feelings also arise among some buyers when they have to buy from
a new seller.

Sometimes, salespeople too may be cause for bias or irrational dislike of,

Tall people

Short people

Conservative people

Loud talking people, etc.

Sometimes, negative feelings also arise due to unmatched ego states between a buyer and a seller (child
ego, parent ego, and adult ego.)

The Desire to Get Rid of the Salesperson

When a prospect/ customer does not have enough time to talk to a salesperson, he/she will not take
interest in the sales presentation. He/she wants to escape from that situation by dismissing the
salesperson. He may object to listening to even a word from the salesperson.

The next reason to get rid of a salesperson may be his/her over-aggressiveness, rudeness, impolite
manner, etc. which the customer had experienced earlier.

The No Money Situation

It is obvious that each suspect cannot be a prospect. To be a good prospect, the person must be capable
of making payment. But some prospects may take part in sales talk even if they have no money to pay.
They unnecessarily waste the time of a salesperson by asking about various products or services.

At last, they raise some serious objections. If the salesperson had suspected this situation earlier, he/she
would have moved on to the next presentation.

No Need for Product or Service

When a prospect does not have the need for a product or service, he/she cannot be regarded as a
prospect. And in this situation, the sales talk will prove a waste of time. The supposed prospect will
come up with several reservations about the product or service.

Genuine prospects at times, do try to find out the product features that will satisfy their needs. And,
they talk to the salesperson about several details. After a long talk, if the prospect finds that the goods
or service can not meet what they need, they come up with objections. These objections would be valid
in some way or the other.

No Need of Recognition

When a salesperson fails to convince a prospect by bringing out what needs the satisfaction the product
or service gives, the prospect will not be willing to buy the product/service. As a result, the prospect may
objections, like,
“No use for your product or service”, I am engaged in another business”, “Is there any use?”, “I don’t
want to waste my time”

Need For More Information

Some buyers buy a product or service only after getting more information although they feel the need
for the product or service, they have the money to pay, they are also willing to spend, or they have
positive psychology made satisfy up in their mind to buy. They only want to satisfy themselves with
logical reasons they can use to justify their purchase to others.

In this situation, the objections may be as follows:

“Please show me other colors” “May I see another model?” “Sorry, should I go to the next store?”
“Please, may I try other stores?” “I’ll come back later”.

Habit or Custom of salesperson

Once a habit of buying and using a product or service is formed and if such a habit has persisted for long,
it becomes difficult to change that habit. Later on, this habit makes a buyer ‘product loyal’. In this
situation, even if a product is of better quality and is more beneficial, the prospect will not choose to
that the new product. This is indicated when a prospect shows no interest in obtaining new product or
service information.

Some prospects are bound to their traditional customs especially in societies like Nepal. These prospects
appear to be strictly found to their cultural and religious bonds. As a result, they will never even talk
about a product or service which unusable according to their custom. Objections may then be raised
against the product/ service on offer.

Higher Cost Against Product/Service Value:

In marketing terms, what a buyer sacrifice is a price or cost, and what he/she gets in return for such
sacrifice is product/ service value. This value can only satisfy his/her real needs.
That is why while buying, the buyer tries to compare the cost of his/her sacrifice and the value of the
product or service. When a prospect or a buyer finds the cost to be higher compared to the value
satisfaction that he/she will get, he/she will show strong objections to the product or service.

Able to handle customer objections mean the seller able is to close sales. Objections are just the seller is
one step away from closing sales. The seller can make him prepared for handling objections effectively
by following ways,

Develop a Positive Attitude

Anticipate Objections

Forestall Objections

Evaluate Objections

Time the Answer

Build Countering Skill

1.1.2 Methods For Handling Customer’s Objections Effectively

Relax and Listen

This method allows a salesperson to be patient in listening to the position of the customer who has
come up with certain objections. There should be no interruption when the objections are being put up.
Such interruptions may cause a quick end to the interview and the seller may be losing a sale.

Hence, the seller must follow the following steps with caution:

Welcome the prospect’s objections

Listen to all the points of objection in a relaxed manner

Ask some appropriate questions to further clarify the objections

Never interrupt a prospect when he/she is presenting his/her objections o Answer the objections
tactfully and intelligently.

Agree and Counter

Under this method, the salesperson agrees to the objections but tries to counter them with logical
answers, this is also known as the “Yes, but” method of handling objections. This method has some
psychological basis. In it, a salesperson needs to follow two steps, listen to and agree with the
customer’s objections, and, proceed to remind some of the points that the prospect might have missed
forgotten.

In the first step, the salesperson listens patiently and completely to the prospect’s objections. He/she
nods while listening. This nodding has a positive psychological effect. While coming up with his/her
objections, the prospect might have expected some argument from the salesperson, but, in fact, he/she
finds a reverse situation. This behavior of the salesperson makes the prospect think that he/she has
been given due respect. This feeling removes direct confrontation between the two parties.

Examples,

The prospect: I don’t like such a multi-functional and complex ‘remote’ for operating TV.

The seller: Mr. Y, I know exactly what sort of trouble you get while operating with this kind of remote
control but in this modern age, we have to accept some initial problems when we are using the latest
technology, don’ we?

The prospect: I want to replace it with a simpler one.

The seller: It’s ok. but I am afraid your children will prefer the multi-functional one. You know, children
are more curious about new gadgets.

Turn Objections into Reasons for Buying

This method is guided by the principle of the boomerang. A boomerang is a curved stick of hardwood
that is used to hit something by throwing; if it fails to hit the target, it returns back to the thrower. In the
same way, some intelligent and striking answers are used by the seller to persuade the prospect to buy
the product forgetting what he/she had objected to. If the seller succeeds in doing so, it is said that the
prospect’s objections have been turned into reasons for buying. If not, there is no loss for the
salesperson, because he/she had already assumed that the prospect was giving an excuse for not
buying.

Example 1,

The Prospect: I am too busy to meet you.

The Seller: I know you are a busy person, Mr. Y, and that’s the reason I want to consult you. The service
that I want to provide is for busy executives like you.

Ask Specific Questions

Although this method is widely used in evaluating real objections and excuses, it is particularly used in
handling price objections and in closing a sale.

In the course of separating and evaluating real objections and excuses, a salesperson may ask the
following questions when the prospect says, “I don’t like to deal with you.”

What makes you think so?

Why do you object to buying from our firm?

Would you mind saying what is in your mind more specifically so that we could make it clear?

Admit Valid Objections and Counter

Although this method resembles the boomerang method, a typical difference can be observed. In using
this method, two steps are followed by the salesperson.

In the first step, the valid objection raised by the prospects is admitted for answering. In the second
step, the seller proceeds to show the compensating advantages of the product. This may be illustrated
as follows: first,

Proposition: Selling a six-cylinder car

The Objection: I am looking for only a four-cylinder car as the six-cylinder car uses too much gasoline.

The Replies: Step 1: No doubt, it uses too much gasoline. Step 2: But are you aware of these advantages,

A large easy riding car body.

More reserve power.

More comfortable.

Quick, and safer ride.

You feel less fatigued on long trips.

Do you think these advantages are enough to compensate somewhat for the larger consumption of
gasoline?

Second,

Proposition: Selling a plot of land.

The objection: I am looking for a cheaper plot.

The Replies: Step 1: I know you are looking for a chapter plot. Step 2:But have you thought of these
advantages,

Convenient to reach

So wide road access

Electricity facility

Water supply lines

Residential area with doctors, professors, and engineers in the neighbouthood.

When a prospect is convinced, the objection is said to have been handled effectively.

Postpone the Answer

This method of handling objection can be used in two situations-when the objection occurs at the
beginning of the sales presentation or when the salesperson determines that the objection is an excuse
and not a valid one.

If the objection comes at the beginning of the sales presentation, the salesperson should postpone
responding to it saying that the objection will be answered later because he/she has not reached that
point of the sales presentation. He/she should convince that he/she will answer satisfactorily when the
point of objection conies up in the presentation. Then, he should proceed with the presentation.

Deny the Objection

The implementation of this method requires great skill and intelligence. Specifically, a direct denial could
be too harmful. Hence, the salesperson should use indirect denial. The indirect denial, here, denotes the
use of tactical words for answering. Politeness and’ diplomacy can help salespeople while expressing
denial in the course of handling an objection. It does not mean that the salesperson cannot use direct
denial. Of course, he may use direct denial in case ‘the prospect makes false accusations against the
company and the product.

1.2 Closing A Sale

Through completing the above steps – prospecting to handling objections we have come so far to close a
sale. It is the step of the selling process when a seller makes a sale.

Closing a sale occurs when the seller and buyer agree to the conditions of the sale and the buyer makes
a firm commitment to the transaction

It is considered the last step of the sales process, here the terms and conditions are agreed and the
purchase of goods/services is done.

As it is the last step, it is also the most important step in the sales process. The rate of closing a sale is
determined by the success of the above-mentioned steps, the mistakes of the seller in this step can also
cause the withdrawal of customers’ desire to buy from his prodcut.

Closing sales also need to take careful steps. While closing sales the seller may opt for gift close,
discount close, scarcity close, and other various techniques to close sales quickly listed below,

Gifts Close

Gifts are if considered a very effective way a salesperson can make ascertain from his buyers to accept
his offers. As the gifts are free of cost customers are found purchasing that have a better gift.
It depends upon how a seller presents gifts to the buyers. When the customers have the desire and
capability to pay and at the same time they are searching for products in the store it is the time the
seller has to offer attractive gifts along with the products customers are searching for.

direct close

is clear and simple technique; many sales persons feel that this is the best approach for closing,
especially if there are strong positive buying motives, the sales person will summaries the major
points that were made during presentation to the prospects prior to asking for the sale.

Acceptance Close

This is the technique seller starts questioning the prospects all along the selling process and receiving
the acceptance (answers) at the same time. This technique aims at getting a series of acceptance from
the prospects even the acceptance is small.By interacting with the prospects the seller tries to make
believe that he is offering a reasonable product, the value of the prodcut is fair with the price.

However, to make acceptances the seller has to present the questions in a way that the prospects will
not find any way to say “NO”.

Summary Close

In short, the summary close means closing the sales by summarizing key benefits of the products the
customer will get after the purchase.

You made a small contact with a prospect on your product. After a while, the prospect may have got
introduced to different products even from different sellers. With that, obviously, the prospect may
have forgotten most of the points you have explained to him.

It is the time seller has to summarize his products benefits, uses, quality, how it is different from the
competitors in order to convince the prospect. If summarizing such unique features of the products if
the prospect seems ready to buy now the seller has got the perfect time to close the deal.

Upcoming Events Close

The upcoming events close sales closing technique comes from the idea that if the customer is informed
about the future benefits as well as loss from buying a product it is better for him to make a good buying
decision.

This technique can be applied in mainly two ways if a product’s price is going to increase in the future, it
is the seller’s duty to inform the customer and persuade them to buy at the present. On the other hand,
if the price is going to decrease, he should stop them from buying today, and let them wait a
while.Informing about the future likelihood events to the customers, the seller builds strong
relationships with them, and in return, customers are ready to buy from him in later days also.

Trial Close

The trial close is not the final close it is the pre-close of closing a sale. In this trial close, the customers
are given products to use for a limited period of time, which is called the trial period for free of cost.

If the customers experienced the same what they had expected during the trial period they are
definitely making a purchase.In fact, trial close believed that when customers are given a product to test
they attached to it after a little test and they can’t want to bear a part of it.

Now or Never Close

The now or never close is also called the scarcity or immediate close technique of sales closing. It
believes that building a sense of scarcity in customers’ minds of the products, creates an immediate
state of closing a sale.

When a customer arrives in your store you might say this is the last one you are searching for, it creates
a fear of missing out (FOMO) state to the customer. Also, you might say “You are the lucky customer,
you will get a 50% discount on your purchase as you are our 1111th customer.”

Such statements create great desires on the customer’s mind as he is getting exceptional benefits.
However, the scarcity close technique best works when the customer really wants to buy but needs a
small effort from the sell to say Yes.

action close

the sales person takes an action that will complete the sale e.g., in case of high-priced products
like Motorcar, photocopier or industrial product the salesperson may negotiate with the financial
institution for financial assistance for the prospects.

Sharp Angle Close

The sharp angle close is one of the most effective for sales closing. This technique comes to play when
the prospect is just one step back to close a deal. In fact, the prospect is much more likely to buy but
one objection is stopping him.
In addition, sometimes the prospect is just waiting for an answer to his question. Here, the sharp angle
best works when the seller is able to respond to the prospect the way the prospect has expected.

For example, the prospect may ask for free delivery, a small discount, and when the seller complies with
these requests of the prospect, the deal is done.

Objection Close

This technique comes to action when you made yourself believe that your customer has understood
every aspect of your offer and also he is ready to buy. Here, you try to close the deal by asking him for
any objections if he has left any.

This technique of closing a sale allows the seller to finalize (handle) any doubts or objections of the
customers they might want to express.

Options Close

It is obvious that a sale should be customer-focused not prodcut focused. The ultimate user is the
customer. Here, options close emphasizes that the customers should be given more product options
(choices) as far as possible.

We also are like that, we usually don’t visit the shop which does not have more product options rather
we want to visit shops with greater products choices.

Here, the options to choose products, customers make feel that they are getting the products of their
choices as they are free to choose.

1.3 Follow-Up

Most people think closing a sale is the last step of the sales/selling process but it is not a strategy for
successful salespersons. The modern last step of the selling process is the follow-up, in fact, it never
ends until the existence of the company.

Only closing a sale once may or may not influence the buyer to buy again from the same seller. The
Follow-up is an effort made by the seller after closing a sale to know the satisfaction of the buyer to
retain the customer and make future sales.

Follow-up is the best way to build a good relationship, short-long term with customers, increase the
level of satisfaction, in addition, it makes customers feel they are valued and in turn, they also refer their
ones to the seller, it increases the future sales and profit of the seller.

It is seen that the more effective sales follow-up is done, the more success it brings to the seller. It can
also be done effectively to get more sales and customers by following techniques.
1.3.1 Follow-Up Tips and Techniques

It is obvious that successful salespeople are those who do sales follow-up better. Doing follow-up is the
most crucial part of the selling process. Better the follow-up is done, the seller better understands how
exactly his prospects (customers) experienced about the prodcut he sold to them.

But a successful follow-up depends on what types of techniques and methods the seller has applied
while following up. All the sellers may not succeed in following up or may not get the expected results
from it.An effective follow-up requires consistent practices to effectively interact with the customers, for
it a salesperson may use different techniques, some techniques are mentioned here.

Follow-Up In Time

One of the finest techniques to do follow-up is getting customers’ feedback in time. But what is the right
time to make a first follow-up call to the customer?

It is found that within a period of seven days is the right time for following up. Not before the two days
and not after the seven days.

Within just one-to-two days of buying the product, the customers might do not have time to check out,
but between 3-7 days they surely have used the product. And, it is the time a seller should make an
effort to get to know whether his product met customers’ expectations or not.

Making Calls

Making calls is another best way to make follow-up successful. In fact, more than 60% of follow-ups are
done through phone calls.Making calls saying how are you and how are you are doing and ultimately
talking about the experience of the product after a small talk is an effective way to interact with the
customer. Since in phone calls, there is two-way interaction the seller can immediately get the answer to
his question and might come in a state to make a better decision for the next sales.

Messaging and Emailing

Messaging and emailing best work when you know that your prospect can not give immediate feedback
or have no time at present. Sending messages and emails with sincere and understandable language
with low-pressure words makes customers feel obliged to make a reply to it.
Ask Question and Listen

It is clear that when you make a call you will ask a question to the customer and after asking it is
important to sincerely listen to the words of the customer. The words of the customer are for what you
step in the follow-up call.

While listening to customers’ words they might have some unsolved queries and it can be solved when
listening and responding effectively. Because customers want to feel that you care about them, you
make efforts to solve their problems.

Act On Commitment

Customers blindly believe in you when you do what you are committed to doing. Suppose, you had
decided to provide after-sales service to the customer when signing out and closing a sale. And, now the
sale has successfully closed. It is time to act on your commitment.

Acting on commitment shows that you are sincere about words, you work on your words, it makes feel
customer that they can believe in you.

Make An Appointment

Further, to know the satisfaction of the customer the seller can also opt for a meeting with the
customer. In such a meeting the seller is likely to get real-time feedback and possible he can also solve it
if any complaints & grievances arise at the same time, and the customer can also get immediate relief on
his query.

To make an appointment the seller may ask for a small meeting whether it is in a coffee shop, office, or
any place the customer feels comfortable.

Avoid Fear

A successful seller is not afraid of doing follow-ups. Just opposite of it, most of the salespeople or raw
salespeople are afraid that they may disturb the customer or even lose potential clients if they feel
annoying.
In fact, losing potential clients is when you do not do a follow-up. When it is done and the customer’s all
the queries are solved as they become satisfied they themselves are the means to bring new (potential
clients).

Talk of Next Steps

In the first follow-up call, you will ask about the close of the recent sale. After finishing it, it is also
necessary to talk about the next steps you are going to do either for the customer or on the prodcut.

You should tell the customer how your new product or offer will meet his needs, how he will be
benefited, etc. Make them informed about the upcoming events that the customers would love to
participate in.

Talk With Respect

Customers are not the subject to withdraw your anger on them. They are the main part of your sales
journey to make you a successful salesperson. As it is obvious everyone wants to be respected, you must
talk to the customers with honesty and respect. They should be felt they are respected.

Provide Value

Remember that following up is not about you or even your product it is about the customer. The
customers should feel you have value for them.

Simply remembering previous conversation points the customer had expressed and bringing them to
present conversation, the customer feels you have a sincere concern about him. He may also feel you
just do not have a profit motive, you are committed to solving the problem.

Refer Them To A New Place

This new place is not the store of the competitors. It is a place that you have in your company to explore
more about your prodcut. A new website may be.
Get updated about our products features, benefits, etc. writing like that and giving a link to the website
is also one of the great techniques for effective follow-up. In addition, you can also inform the customer
about the upcoming seminars.

Sends Personalized Emails

You can also send personalized emails to the customers. Such personalized emails are the best work for
the individual customer. Since you have made different types of customers, you also know the needs,
desire, capacity to pay, spending habits, etc. of the customers.

In that course, sending personalized email to a specific customer considering the products in his best
interests, in such case, the customers are more likely to make a purchase because you have presented
actually what they have desired.

Wish Them in Special Day

My bank every year wishes me on my birthday. It makes me feel that I am remembered, I am valued.
From here, I believed that wishing customers on their special days is also one of the best ways to do a
follow-up. The special day may be the birthday of the customer, his anniversary, special festival, son’s-
daughter’s birthday, job promotion day, etc.

Stay Reachable

In today’s day, you are not the only one doing the follow-up, customers are also actively doing their
follow-ups. Meaning that they are also by themselves trying to share experiences about the product
they had brought to use.It reduces the efforts of the seller but he has to be reachable by the customers.
If the calls are made he should pick up the phone and if they want a meeting he should also step in it,
and so forth.

Be Consistent

Don’t be upset when you did not get a response after the first follow-up call, message, or email. Wait for
2-3 days, still did not get a response, don’t give up. Again send the second email.Make sure that you
have positively with a good attitude stayed on your track even after not getting a response. Have
patience for a while, sometimes it will take time to get responses. Becoming a success in doing follow-up
takes time, patience, and consistency.But waiting long does not work always, might some customers are
not just a part of the follow-up.

Never Stop Follow Up

Follow-up is a continual activity its existence remains until you go off from the sales activity. The best
way to become a failure at follow-up is not doing follow-ups.Not doing follow-up is like losing future
sales and future customers thus follow-up should not be stopped as it is only the best means to
understand the performance of the product sold and through the feedback of different customers the
products are further improved to meet the new needs of the customers.This is the last of the techniques
to do a follow-up we have discussed so far and at last, I just want to say that the best way to do a follow-
up is just to start doing the follow-up andnever stop it doing.