SELL6 IM Ch08

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Chapter Eight—Addressing Concerns and

Earning Commitment

Learning Outcomes

After completing this chapter, students should be able to accomplish the following objectives:
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

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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?

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)?

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?

Usage of the direct denial method might be risky as it may create a sense of anger or make
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 saying, “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
statement?

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

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are typically uninterested and rarely make any affirmative commitment.

5. Under what circumstances does a salesperson want sales resistance?

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?

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?

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 the 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.

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

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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.

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 that the technique is not useful in situations
where the buyer is not willing to talk with the salesperson or the resistance from the buyer
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 this resistance.

10. What is the best method to handle sales resistance?

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 do the following tasks:
 List the 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

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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 that the salesperson might not makes an 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:
 Fear of the word “NO”
 Lack of conviction that product features/advantages/benefits meet customers’ needs
 Waiting until the end of the presentation to gain commitment when the customer is
ready to make a decision earlier
 Simply not asking for the order
 Failure to generate agreement on key points during the presentation
 Prospect has objections

Chapter 8 Case

Mid-East Metals

Background

Jesse Parker sells for Mid-East Metals. He has been calling on Richmond Distributors for close
to two years. Over the course of 15 calls, he has sold nothing to date. During an early call, Parker
had Richmond’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.
Parker knows that Richmond is happy with its present supplier, but he is aware that they have
received some late deliveries. Terry Kitchel, Richmond’s senior buyer, has given every
indication that he likes Parker’s products and Parker.

Current Situation

During Parker’s most recent call, Kitchel told him that he’d need a couple of weeks to go over
Parker’s proposal. Kitchel really didn’t have any major objections during the presentation. Parker

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knows his price, quality, and service are equal to or exceed Richmond’s present supplier.

Questions

1. Kitchel told Parker that he needed a couple of weeks to think about his proposal. How
should Parker handle this?

Students’ answers will vary. Houston should probe to find out why Kitchel needs a couple
of weeks’ time to think about the proposal. Parker should be assertive but not aggressive
with his request. Parker should be prepared to handle whatever concern emerges from the
discussion. If the buyer demands more time, Parker should agree and schedule a follow-up
meeting.

2. What should Parker have done during the sales presentation when Kitchel told him that he
needed to think it over?

Students’ answers will vary but should include some discussion that aims at probing to
learn more about the concern. If appropriate, Parker could ask Kitchel to reconsider the
impact of the problems he is having currently with his supplier in an effort to motivate
Kitchel to act sooner.

3. What techniques should Parker have used to overcome the forestalling tactic?

Parker should continue to probe in order to learn the true cause of the resistance.

Role Play

Situation: Read Case 8; Mid-East Metals

Characters: Jesse Parker, sales representative; Terry Kitchel, senior buyer

Scene 1:
Location—Kitchel’s office

Action—Kitchel has just stated that he needs a couple of weeks to go over Parker’s proposal.

Role play how Parker should respond to Kitchel’s needing two weeks to think it over.

Scene 2:
Location— Kitchel’s office
Action—Parker is summarizing his product’s advantages (i.e., price, quality, service).

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Role play Parker’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?
2. How hard should Parker press to get Kitchel to act now?

Chapter 8 Role Play

Ross Electric

Background

Bob Moler has been selling for Ross Electric for six months. Most of the first four months were
spent in training learning Ross’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. Bob was given a hot lead the first day in the field (Grant
Distributors), and the past four weeks he has made seven calls on Grant. Moler feels he is close
to getting an order from Grant. Bob knows Parker is fairly happy with their present supplier, but
he is aware that they have received several late deliveries. Martha Gregory, Grant’s senior buyer,
has given every indication that she likes Ross’s products and Moler.

During Moler’s most recent call, Gregory told him she’d have to have a couple of weeks to go
over his proposal. Gregory really didn’t have any major objections during his presentation.
Moler knows his price, quality, and service are equal to or exceeds Gregory’s present supplier.
Gregory did say she wasn’t looking forward to calling their present supplier to tell them about
doing business with Ross Electric if she decided to change.

Role Play

Location: Martha Gregory’s office

Action: Role play Martha Gregory telling Bob Moler she needs a couple of weeks to think over
his proposal. Discuss the sales resistance of forestalling Gregory is using and how Moler is going
to overcome the objection (use LAARC). Also, role play Gregory’s concern telling her present
supplier they are switching suppliers.

Chapter 8 Continuing Case

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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?

Students’ answers will vary. 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.

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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.

Students’ answers will vary but should focus on the use of the compensation method for
utilizing the advantages.

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.

Students’ answers will vary. A sample answer is given below.

Listen: She will have to listen as the buyer says, “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
percent lower than those of our competitors. Within 12 months, you will make up for the
difference, and within 2 years, you will have saved hundreds of dollars. Also, the average
life of a copier is 8 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?

Students’ answers will vary. 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 questioning skills, she may need to
work on integrating the information she gleans during need discovery into the presentation
of solutions stage. 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.

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