Quiz 10: Responding to Objections
Price erosion: Price erosion refers to the negative price realization in market for a product because of any innovation, technical breakthrough or any other reasons. It causes a decline in the price of the product. It is the responsibility of the seller that any such changes should be conveyed to the client and buyer to maintain and promote cordial relationships and gain trust. The price erosion has led to 25% fall in the price of the product. It is the responsibility of a seller to empathize with the client and tell them about the price changes and offer the reduced price for further orders. This will help creating a positive image for the company and sales person in the mind of the buyer. It is noteworthy that the price erosion is a thing which can be easily discovered by client from other resources. If the client gets to know about it from other sources he/she might feel cheated and this will cause negative impact on the future sales. Ethically the seller should inform the clients about price erosion and charge them with the reduced price.
Objections are the vital part of the sales person's responsibilities and can arise at any stage during the sales process. The various types of objections are given below: a) The buyer objects to the seller stating that the competitors' products also offer the same features and at the same cost. This type of objection represents that the buyer is seeking more information about the product. The buyer wants to know how the product is better than the competition, what additional features will he/she get on purchasing the product. To handle such objection the seller must try to give additional information and best selling features of their product. b) Objection related to need of the product: Buyer has confusion in mind about the necessity of the product. Thus, the seller must give examples of how customers were benefitted with its usage. The seller must respond by creating a need of the product in buyers mind. c) In the objection the buyer has a concern for the price of the product as well as he is not satisfied with the product presentation. To buyer, it seems that the things which the seller told about the product are not feasible. Seller must create a presentation which can be believed by the buyer and provide the needed information which supports the working of product. d) High-price of the product: The customer believes that he/she can buy the same product online at a cheaper price. The seller might focus on the quality of the product and after sale service which will be offered by them to support the product operation. Thus the focus of the seller should be to justify that the price of the product is more than competition because of superior quality and after sale services.
Raising of objections and answering them in an efficient manner is an art of selling and has to be learned by the salespeople so as to make the sale to place efficiently and properly. In a class of selling, one of the students mentioned that learning to handle objections is a part of manipulating the buyers. This statement made by the student could be answered by the teacher by stating that sometimes the buyers are not fully informed about the benefits or use of a particular product or service and this is the reason why objections are raised by them related to any aspect of that product or service. In this situation, it is the duty and responsibility of the salesperson to soothe the objections and issues raised by the buyers and provide them with a satisfactorily response. This will not only soothe the buyers but will also make them buy the product and use it in a proper manner. This handling of objections is not called as manipulations but it is called as giving a response to an objection in an effective way.