Page 22 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management

Notes 1.6.5 Handling Objections

Prospects usually show resistance against buying products by pointing out real or imaginary
hurdles and by voicing objections. Objections, even if insincere, should be met with utmost
courtesy. Problems may arise if the customer’s needs are hidden. Thus, the sales person should
try to understand what the customer’s explicit needs are.

There are two major techniques of discovering hidden objectives. They are:
1. Keep the prospect talking
2. Use the insight gained by experience, i.e., the sales person should have extensive knowledge
of their own products as well as those of competitors.
Prospects can raise many kinds of objection and salesperson should handle them effectively.
Some ways to handle objections are given in Table 1.2.

Table 1.2: Customer Objections and Handling Techniques

Objection on Cheaper variations of the same products can be shown.
Price
Cash memos of bills of previous customers can be shown or some
discount can be offered as a last resort.
Objection on Reference of prominent customers may be given and the product be
quality supplied in the right size, color etc.
Prominent features of the product may be compared and elaborated with
other brands
Objection on Regular contact must be maintained with the customers after sales has
after sales occurred
service
Free service coupons can be given
Objection on The product can be offered on credit or on installments on verifying the
payment identity of the customer.
Offer him various options of making payment
Objections on The salesman should use his intelligence and tact to convince the
timings customer and persuade him to take a decision on the spot.
Offer incentives on ‘on-spot’ purchase

However the handling of objections is a very difficult job. If the customer is bent on postponing
his decision it is very difficult for a salesman to make effective sales. A customer can walk out of
the presentation or drop the call any time making excuses. Salesperson should try to avoid these
situations.

1.6.6 The Close

This is the last stage and the most crucial stage for a salesman. The whole exercise becomes
useless if the sale does not take place. The main aim of the close is to convince the prospect to
sign the order form or to place an order immediately rather than in the future.

Table 1.3: Types of Close

Type of Close
Action Close Here the sales person takes an action that will complete the sale like negotiating
for supplying financial assistance to the prospects.
Gift Close The sales person provides an added incentive on immediately buying the
product.
Contd...
Benefit Close Here the sales person restates the benefits of the product in order to elicit a
positive response from the prospect.
Direct Close It is a simple technique and is most appropriate if the buyer is showing strong
positive buying motives.
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The sales person gives a summary of the major points of the presentation and
directly asks for the order.
Alternative This technique provides the customer with alternatives with regard to the
Close product like a black or red colored one or payment on cash or credit basis.
Objection If an objection is the major hurdle in the way of making sales, the sales person
Close should try to gain a commitment from the buyer that if the objection is removed
he will buy the product.