Section Objectives Explain the role of personal selling in businesses

The PromotionThe PromotionStrategy: Developing Strategy: Developing and Managing Salesand Managing Sales

Glencoe Entrepreneurship: Building a Business

Organizing and Preparing a Sales ForceOrganizing and Preparing a Sales Force

Planning, Directing, and Evaluating Planning, Directing, and Evaluating SalesSales

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Organizing and Preparing a Sales Force

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Chapter 13 The Promotion Strategy: Developing and Managing Sales

• Explain the role of personal selling in businesses.• Define the two types of selling situations.• Describe the kinds of training needed by salespeople.

Section Objectives




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By thoroughly preparing the salespeople you hire, you can maximize their effectiveness.

This is true no matter what background and experience they bring to the job.

The Main Idea




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Content Vocabularypersonal sellingprospectsales forceorder gettingorder takingrational buying motiveemotional buying motivecustomer benefits

buying processprospectingpreapproachapproachobjectionssuggestion sellingsales check




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Personal selling is important because it involves the human aspect of promotion.

personal selling

selling conducted by direct communication with a prospective customer

Personal Selling




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Personal selling relies on direct contact with a prospect, which is critical to companies whose customers need detailed information.

prospect

a potential customer

Personal Selling




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Businesses use their sales force to help customers make buying decisions.

sales force

a group of employees involved in the selling process

Staffing the Sales Force




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Sales are classified into two groups: order getting and order taking.

order gettingseeking out buyers and giving them a well-organized presentation; sometimes referred to as “creative selling”

Staffing the Sales Force

order takingthe completion of a sale to a customer who has sought out a product


Traits of Successful Salespeople

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knowledge

organization

follow-through

punctuality

energy

empathy

promptness

ability to solve problems

willingness to work hard

honesty



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When hiring new or experienced salespeople, businesses must provide training. They must prepare their salespeople to sell their products or services, and teach or reteach the principles of selling, including the mechanics of selling.

Proving Sales Training




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Before a salesperson is ready to sell, he or she must be trained in the following selling skills:

• company knowledge• product knowledge• customer knowledge• readiness and disposition• foundational skills for selling• Internet skills for selling

Preparing to Sell




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Salespeople should be trained to interpret whether a customer has a rational buying motive for making a purchase or an emotional buying motive that prompts a purchase.

rational buying motive

a conscious, logical reason to make a purchase, such as convenience or comfort

Preparing to Sell

emotional buying motive

a feeling a buyer associates with a product, such as recognition or prestige




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There are three levels of product knowledge:

1. benefits to the customer2. details about the company and its products3. information about the competition’s products

Preparing to Sell




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Knowing a product’s customer benefits is essential for success in selling because people buy products for their benefits.

customer benefits

the advantages of personal satisfaction that a customer will get from a product

Preparing to Sell




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In preparation for selling, the sales trainee must also understand the buying process.

buying process

a series of steps a customer goes through when making a purchase

The Buying Process


The Buying Process

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The Stages of Selling (AIDA)

AttentionGetting the prospective buyer’s attention

Interest Developing an interest in the product

Desire Creating a desire for the product

Action Getting the customer to buy

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The Selling Process

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The Ten Steps of the Selling Process

prospecting

preapproach

approach

determining needs

presentation

overcoming objections

closing the sale

suggestion selling

closing mechanics

follow-up



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Prospecting is seeking out new leads.

prospectinga systematic approach to developing new sales leads or customers, who are identified through referrals, public records, or surveys

The Selling Process




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Prior to sales contact, the salesperson should prepare a preapproach and gather information about prospective customers’ needs and wants.

preapproachthe marketing activities that precede a salesperson’s approach to a prospective customer that are intended to help achieve a successful sale

The Selling Process




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The steps in a salesperson’s approach, such as establishing a friendly and professional relationship, should be carefully planned to get the customer’s attention and interest.

approach

a salesperson’s first contact with a customer

The Selling Process




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When customers voice objections during the presentation of the product, a good salesperson selects appropriate methods to respond to the customers’ worries.

objections

any concern, hesitation, doubt, or other reason a customer has for not making a purchase

The Selling Process




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If a customer is purchasing a dress shirt, for example, the salesperson may use suggestion selling and offer a tie to go with it.

suggestion sellingselling additional goods to a customer to go along with a product or products the customer is purchasing

The Selling Process




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The basics of selling mechanics involve understanding:

• order forms and proposals• cash register operation• sales checks• sales tax

Selling Mechanics




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A sales check provides valuable information to the business, such as the date, items purchased, and purchase price.

sales check

a written record of a sales transaction

The Selling Process




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After You Read

1. Explain the role of personal selling in businesses.

Personal selling, for many companies, is a key ingredient in their marketing mix. It is particularly important to companies that rely on direct contact with customers and to companies whose customers need detailed information.




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After You Read

2. Define the two types of selling situations.

Order getting is seeking out buyers and giving them a well-organized presentation. Order taking is completing a sale with a customer who has sought out a product.




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After You Read

3. Describe the kinds of training needed by salespeople.

Salespeople need training in preparation for selling, the buying process, the selling process, and the mechanics of selling.


Planning, Directing, and Evaluating Sales


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• Identify the components of sales planning.• List the elements that are involved in directing sales.• Discuss the procedures used in evaluating sales

performance.

Section Objectives




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Effective sales operations are developed through careful planning, directing, and controlling.

The Main Idea




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13.2

Content Vocabularysales planningsales forecastsales territorysales quotasalary

commissionsales call reportsSWOT analysismorale




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Before putting the sales force to work, a business must complete its sales planning.

sales planning

the process that involves determining the goals, timing, and budgets of sales efforts

Planning Sales




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A company’s sales forecast is based on the estimated market share the company thinks it can obtain.

sales forecast

an estimate of sales for a given period, such as the next quarter

Forecasting Sales


There are several methods for forecasting sales:Forecasting Sales

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market analysis and industry information

surveys

data analysis

operational analysis

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Three basic budgets are needed for sales activities:

Budgeting Sales

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sales budget

selling expense budget

administrative sales cost budget



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A business that covers a wide area should establish sales territories to ensure market coverage, reduce selling costs, and improve customer relations.

sales territories

geographical areas in which existing and potential customers are grouped

Establishing Territories




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A sales quota can be used to indicate strong and weak areas in the sales operation, provide incentives for the workforce, and improve the effectiveness of compensation plans.

sales quota

a performance goal assigned to a salesperson for a specific period

Setting Sales Quotas




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You must direct your sales activities by providing:• motivation• incentives • a favorable environment • resources • leadership

Directing Sales Operations




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The following options are available as methods of payment for salespeople:

• straight salary• straight commission• combination of salary and commission

Compensating Your Sales Staff




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A salary ensures a regular, stable income for the employee.

salary

regular wages an employee receives from an employer





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A commission plan has an advantage in the incentive it provides for employees, but a disadvantage in the difficulty in directing commissioned salespeople.

commissiona fee for services rendered based on a percentage of an amount sold; payment is based on sales alone





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You can supervise your sales staff using these techniques:

• personal contact• sales reports• electronic communications• meetings

Supervising Your Sales Force




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Some salespeople account for their activities in a sales call report.

sales call reportan account of sales activities, including such items as number of calls made, orders obtained, and miles traveled

Supervising Your Sales Force




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By using a SWOT analysis, a company can assess its current situation.

SWOT analysisa strategic planning technique that analyzes a company’s internal strengths and weaknesses, and opportunities and threats in the external sales environment

Adjusting to Sales Environment Changes




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To maintain high morale, a business should foster a positive work climate.

moralea state of an individual psychological well-being based on a sense of confidence, usefulness, and purpose

Maintaining Morale




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The final step in managing the sales operation is to evaluate sales performance.

Sales performance evaluation involves:

• evaluating company-wide sales• evaluating the sales of individual salespeople

Evaluating Sales Performance




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To evaluate your company’s sales performance:

1. Compare your company’s sales volume with its budgeted sales goals.

2. Analyze your marketing costs to identify unprofitable marketing efforts.

Evaluating the Company’s Sales Performance




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There are five steps involved in evaluating sales staff performance:

1. Establish guidelines.2. Identify factors to be measured.3. Set standards for performance.4. Compare performance to standards.5. Discuss results with salespeople.

Evaluating Individual Sales Performance




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13.2

After You Read

1. Identify the components of sales planning.

The components of sales planning are forecasting sales, budgeting sales, establishing territories, and setting sales quotas.




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After You Read

2. List the elements that are involved in directing sales.

The elements involved in directing sales are motivating salespeople, compensating the sales staff, handling expenses and transportation, supervising the sales force, adjusting to changes in the sales environment, and maintaining morale.




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After You Read

3. Discuss the procedures used in evaluating sales performance.

To evaluate a company’s sales performance, analyze sales volume and marketing costs. To evaluate individual sales performance, establish guidelines, identify factors to be measured, set standards for performance, compare performance to standards, and discuss results with salespeople.


The PromotionThe PromotionStrategy: Developing Strategy: Developing and Managing Salesand Managing Sales


Organizing and Preparing a Sales ForceOrganizing and Preparing a Sales Force

Planning, Directing, and Evaluating Planning, Directing, and Evaluating SalesSales

13.1Section

13.2Section

13

End of

Chapter 13The Promotion Strategy: Developing and Managing Sales



Documents

Section Objectives Explain the role of personal selling in businesses