Assessment 9.

1. What are the main advantages that personal selling has over most other forms of promotion?

Helps Build Personal Relationships. Personal selling involves contact by means of face-to-face meetings
and tele-phone calls. Videoconferences are another way to speak with customers. Many people
appreciate the opportunity to pro-vide feedback as well as receive information.

Allows for Customized Communication. Because personal selling is an interactive form of

communication, salespeople have the opportunity to adapt their message to each potential customer.
When someone has questions or objections regarding a product or service, the salesperson can address
them individually. Objections are the reasons that a customer may be reluctant or cautious about
buying.

Helps Reach Business Customers. Personal selling’s two-way method of communicating is especially
effective for selling to business customers. Often several people at a company are involved in making
purchasing decisions. By scheduling a group meeting, you can provide sales information to multiple
individuals at one time.

2. Name six characteristics of successful salespeople.

Positive Attitude. Successful salespeople focus on the positive, even when times are tough. When
salespeople are genuinely excited about the product or service they are selling, their enthusiasm shines
through in their conversation and actions.

Good Listener. Successful salespeople learn how to ask their customers quality questions and then listen
closely without interrupting. The salesperson can then offer a solution for the specific situation.

Persistent. Selling is not as easy as some people make it look. Salespeople often make many contacts
before making a sale. Patience and persistence are needed by all who wish to become successful.

Hard Worker. Salespeople who take responsibility for their own success make goals for themselves and
then form strategies to reach them. They work hard to produce positive results, instead of blaming their
company, the economy, or the competition for their problems.

Truthful. Some salespeople tell customers only what they think they want to hear. This approach can
lead to misunderstandings and deception. The result is often a breakdown in business/customer
relationships.

Consistent. To become successful, you need to be dependable. That means you don’t promise
something you cannot deliver within a reasonable timeframe. The customer may get annoyed and
decide to buy elsewhere. Another form of consistency is keeping in touch with your customers.

3. Describe the main steps in the selling process.

Finding and Qualifying Sales Leads - the selling process starts by finding sales leads. A sales lead is a
person or company that has some characteristics of your target market. Leads (as they are often called)
are obtained in several ways:
⦁ Promotional Responses.

⦁ Referrals.

⦁ Data Mining.

⦁ Cold Calls. 

Preparing for a Sales Call - before making a sales call, there are a number of things you should do to
prepare:

⦁ Set Up an Appointment. 

⦁ Learn About the Prospect.

⦁ Know Your Product or Service.

⦁ Develop an Overall Selling Strategy.

⦁ Write a Presentation Outline. 

Making a Sales Call - Giving a sales presentation does not mean you will take center stage and do all the
talking. The most effective presentations allow for plenty of give-and-take between the prospect and the
salesperson. Here are some suggestions for making your sales calls more successful:

Closing a Sale and Following Up - Technically, the final closing of a sale occurs after a product or service
is delivered or provided, the prospect is satisfied, and the payment is received. So, after an order is
taken, it is wise to follow up with the new customer to make sure that the entire process met his or her
expectations. A happy customer will lead to a good relationship and additional sales. Following up may
also include asking a customer for referrals and written testimonials for use in promotional materials.

4. What are the four types of documents or forms used in the selling process?

Sales Call Logs. You can use this form to record each telephone call you make to a prospect or to an
established customer. Many small entrepreneurs create their sales call logs by using an Excel
spreadsheet. 

Sales Proposals. Prospects that are businesses often issue a request for proposal (RFP) when they are
interested in buying a quantity of products or services or a customized order. An RFP is a formal way of
asking a company to make a bid for a sale. It includes details about what the prospect wants. 

Order Forms. Salespeople may use paper order forms to record orders when they do not have access to
the company’s computer. Frequently, an order form is made up of multiple identical pages. When the
salesperson fills out the form, duplicate or triplicate copies are automatically made. One of these copies
is usually given to the customer.

Sales Receipts. Most retail and service businesses use electronic cash registers for sales transactions. A
cash register totals the items being purchased, calculates sales tax, and produces a sales receipt for the
customer. In addition to sales figures, this receipt often lists short descriptions of items purchased, the
date, and how the items were paid for (cash or credit).
Sales Contracts. The seller or the buyer may draw up a contract when a sale involves many details or is
complex. Contracts are also used when a service or product is being delivered over a long period of time.
A sales contract provides legal protection for both the seller and buyer.

Assessment 9.2

1. Define three roles you are likely to find in a sales force.

⦁ Order Getting. A sales role in which the primary responsibilities are finding prospects, presenting the
product or service, and helping to close sales is called order getting. Larger companies may break down
order getting into more specialized groupings.  In a service business (such as a promotion company, ad
agency, Web design firm, lawn mowing company, baby sitter, disc jockey, hair cutter, and so on), order
getting is referred to as new business development.

⦁ Order Taking. A sales role in which the primary responsibility is recording and processing orders from
customers who seek out your product or service is called order taking. Retail clerks who stand
behind store counters, assist customers, and process purchases through a cash register are also
considered order takers.

⦁ Sales Support. Positions that mostly involve assisting others with selling activities are sometimes called
sales support. Sometimes sales support people are also assigned to do any follow-up needed after a sale
is made.

2. What cost-related factors do you need to include in your plan for a sales force?

There are three basic expenses related to a sales force:

⦁ Compensation

Salary Only.

Commission Only. 

Base Salary Plus Commission

⦁ Training

Most businesses that employ a sales force provide extensive training for new salespeople. Even newly
hired individuals with lots of selling experience need a great deal of information. Training does not end
after a new salesperson has completed your company’s initial training program. Most businesses
provide periodic meetings or seminars that help their salespeople stay current with the
latest information on the company, its products or services, and the competition.

⦁ Miscellaneous Costs / Sales Expenses

Most companies pay salespeople for travel expenses related to their work. These expenses usually
include airfare, rental cars, taxis, road and bridge tolls, hotels, and meals. Each salesperson must obtain
receipts when these items are paid for and create a report that lists each item. Then they turn in this
expense report with the receipts for repayment
3. Why is it important to make more than one type of sales forecast?

Sales forecasts for established companies are usually based on past sales performance. A forecast also
takes into account such factors as the cur-rent economy, sales trends, company goals and capabilities,
and what the competition is currently doing.

You are more versatile to adjust to shifting circumstances the more accurate your sales estimates are.
For a business to last, accurate sales estimates are essential. The future of the firm depends on you
having a rock-solid sales forecasting methodology in place.

There are many methods for estimating sales. Often, more than one technique is used to help make
predictions as accurate as possible. This is because most techniques cannot take into account all of the
factors that can impact sales.

If you plan to work with a bank to help finance your new business venture, you will probably want to
make multiple sales forecasts.