The Promotion Strategy: Developing and Managing Sales

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Chapter 13

The Promotion Strategy: Developing and Managing Sales

The Promotion Strategy: Developing and Managing Sales

13.1

Organizing and Preparing a Sales Force
Planning, Directing, and Evaluating Sales

13.2

2

The Promotion Strategy: Developing and Managing Sales

13.1

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

Section 13.1 Organizing and Preparing a Sales Force

3

The Promotion Strategy: Developing and Managing Sales

13.1

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.

Section 13.1 Organizing and Preparing a Sales Force

4

The Promotion Strategy: Developing and Managing Sales

13.1

personal selling prospect sales force order getting order taking rational buying motive emotional buying motive customer benefits

buying process prospecting preapproach approach objections suggestion selling sales check

Section 13.1 Organizing and Preparing a Sales Force

5

1 Organizing and Preparing a Sales Force 6 . personal selling selling conducted by direct communication with a prospective customer Section 13.The Promotion Strategy: Developing and Managing Sales Personal Selling Personal selling is important because it involves the human aspect of promotion.

1 Organizing and Preparing a Sales Force 7 . which is critical to companies whose customers need detailed information. prospect a potential customer Section 13.The Promotion Strategy: Developing and Managing Sales Personal Selling Personal selling relies on direct contact with a prospect.

The Promotion Strategy: Developing and Managing Sales Staffing the Sales Force Businesses use their sales force to help customers make buying decisions. sales force a group of employees involved in the selling process Section 13.1 Organizing and Preparing a Sales Force 8 .

The Promotion Strategy: Developing and Managing Sales Staffing the Sales Force Sales are classified into two groups: order getting and order taking.1 Organizing and Preparing a Sales Force 9 . sometimes referred to as “creative selling” order taking the completion of a sale to a customer who has sought out a product Section 13. order getting seeking out buyers and giving them a well-organized presentation.

1 Organizing and Preparing a Sales Force empathy promptness ability to solve problems willingness to work hard honesty 10 .Traits of Successful Salespeople knowledge organization follow-through punctuality energy Section 13.

1 Organizing and Preparing a Sales Force 11 . They must prepare them to sell the products or services. and teach or reteach the principles of selling. including the mechanics of selling. businesses must provide training. Section 13.The Promotion Strategy: Developing and Managing Sales Proving Sales Training When hiring new or experienced salespeople.

The Promotion Strategy: Developing and Managing Sales Preparing to Sell Before a salesperson is ready to sell. he or she must be trained in the following selling skills: company knowledge product knowledge customer knowledge foundational skills for selling Internet skills for selling Section 13.1 Organizing and Preparing a Sales Force 12 .

logical reason to make a purchase. such as convenience or comfort emotional buying motive a feeling a buyer associates with a product. such as recognition or prestige Section 13.1 Organizing and Preparing a Sales Force 13 .The Promotion Strategy: Developing and Managing Sales Preparing to Sell 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.

Information about the competition’s products Section 13. benefits to the customer 2.1 Organizing and Preparing a Sales Force 14 . details about the company and its products 3.The Promotion Strategy: Developing and Managing Sales Preparing to Sell There three levels of product knowledge: 1.

The Promotion Strategy: Developing and Managing Sales Preparing to Sell 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 Section 13.1 Organizing and Preparing a Sales Force 15 .

buying process a series of steps a customer goes through when making a purchase Section 13. the sales trainee must also understand the buying process.The Promotion Strategy: Developing and Managing Sales The Buying Process In preparation for selling.1 Organizing and Preparing a Sales Force 16 .

1 Organizing and Preparing a Sales Force 17 .The Buying Process The Stages of Selling (AIDA) Attention Getting 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 Section 13.

1 Organizing and Preparing a Sales Force .The Selling Process The Ten Steps of the Selling Process 1 2 3 4 5 prospecting preapproach approach determining needs presentation 6 7 8 9 10 overcoming objections closing the sale suggestion selling closing mechanics follow-up 18 Section 13.

or surveys Section 13.1 Organizing and Preparing a Sales Force 19 . public records. prospecting a systematic approach to developing new sales leads or customers.The Promotion Strategy: Developing and Managing Sales The Selling Process Prospecting is seeking out new leads. who are identified through referrals.

the salesperson should prepare a preapproach and gather information about prospective customers’ needs and wants. preapproach the marketing activities that precede a salesperson’s approach to a prospective customer that are intended to help achieve a successful sale Section 13.The Promotion Strategy: Developing and Managing Sales The Selling Process Prior to sales contact.1 Organizing and Preparing a Sales Force 20 .

The Promotion Strategy: Developing and Managing Sales The Selling Process The steps in a salesperson’s approach.1 Organizing and Preparing a Sales Force 21 . 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 Section 13.

doubt. a good salesperson selects appropriate methods to respond to the customers’ worries.The Promotion Strategy: Developing and Managing Sales The Selling Process When customers voice objections during the presentation of the product.1 Organizing and Preparing a Sales Force 22 . or other reason a customer has for not making a purchase Section 13. objections any concern. hesitation.

the salesperson may use suggestion selling and offer a tie to go with it.1 Organizing and Preparing a Sales Force 23 .The Promotion Strategy: Developing and Managing Sales The Selling Process If a customer is purchasing a dress shirt. suggestion selling selling additional goods to a customer to go along with a product or products the customer is purchasing Section 13. for example.

The Promotion Strategy: Developing and Managing Sales Selling Mechanics The basics of selling mechanics involve understanding: order forms and proposals cash register operation sales checks sales tax Section 13.1 Organizing and Preparing a Sales Force 24 .

such as the date. sales check a written record of a sales transaction Section 13.1 Organizing and Preparing a Sales Force 25 .The Promotion Strategy: Developing and Managing Sales The Selling Process A sales check provides valuable information to the business. items purchased. and purchase price.

It is particularly important to companies that rely on direct contact with customers and to companies whose customers need detailed information.1 1. for many companies. Explain the role of personal selling in businesses.1 Organizing and Preparing a Sales Force 26 . is a key ingredient in their marketing mix.The Promotion Strategy: Developing and Managing Sales 13. Personal selling. Section 13.

Define the two types of selling situations.The Promotion Strategy: Developing and Managing Sales 13.1 Organizing and Preparing a Sales Force 27 . Section 13. 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.1 2.

Describe the kinds of training needed by salespeople.1 Organizing and Preparing a Sales Force 28 .1 3. the selling process. and the mechanics of selling. Section 13. the buying process.The Promotion Strategy: Developing and Managing Sales 13. Salespeople need training in preparation for selling.

The Promotion Strategy: Developing and Managing Sales 13. Directing.2 Identify the components of sales planning. Discuss the procedures used in evaluating sales performance. Section 13.2 Planning. and Evaluating Sales 29 . List the elements that are involved in directing sales.

The Promotion Strategy: Developing and Managing Sales 13. Directing. Section 13. and Evaluating Sales 30 .2 Planning. and controlling. directing.2 Effective sales operations are developed through careful planning.

The Promotion Strategy: Developing and Managing Sales 13.2 Planning.2 sales planning sales forecast sales territory sales quota salary commission sales call reports SWOT analysis morale Section 13. Directing. and Evaluating Sales 31 .

2 Planning. sales planning the process that involves determining the goals and timing of sales efforts Section 13. a business must complete its sales planning. and Evaluating Sales 32 .The Promotion Strategy: Developing and Managing Sales Planning Sales Before putting the sales force to work. Directing.

2 Planning. Directing. such as the next quarter Section 13. and Evaluating Sales 33 . sales forecast an estimate of sales for a given period.The Promotion Strategy: Developing and Managing Sales Forecasting Sales A company’s sales forecast is based on the estimated market share the company thinks it can obtain.

and Evaluating Sales 34 .2 Planning.Forecasting Sales There are several methods for forecasting sales: market analysis and industry information surveys data analysis operational analysis Section 13. Directing.

and Evaluating Sales 35 . Directing.2 Planning.Budgeting Sales Three basic budgets are needed for sales activities: sales budget $ $ $ selling expense budget administrative sales cost budget Section 13.

2 Planning. and Evaluating Sales 36 . and improve customer relations.The Promotion Strategy: Developing and Managing Sales Establishing Territories A business that covers a wide area should establish sales territories to ensure market coverage. reduce selling costs. Directing. sales territories geographical areas in which existing and potential customers are grouped Section 13.

sales quota a performance goal assigned to a salesperson for a specific period Section 13. provide incentives for the workforce. and improve effectiveness of compensation plans.2 Planning. Directing. and Evaluating Sales 37 .The Promotion Strategy: Developing and Managing Sales Settling Sales Quotas A sales quota can be used to indicate strong and weak areas in the sales operation.

2 Planning.The Promotion Strategy: Developing and Managing Sales Directing Sales Operations You must direct your sales activities by providing: motivation incentives a favorable environment resources leadership Section 13. Directing. and Evaluating Sales 38 .

2 Planning.The Promotion Strategy: Developing and Managing Sales Compensating Your Sales Staff The following options are available as methods of payment for salespeople: straight salary straight compensation combination of salary and commission Section 13. and Evaluating Sales 39 . Directing.

stable income for the employee.2 Planning. Directing.The Promotion Strategy: Developing and Managing Sales Compensating Your Sales Staff A salary ensures a regular. salary regular wages an employee receives from an employer Section 13. and Evaluating Sales 40 .

Directing. commission a fee for services rendered based on a percentage of an amount sold.The Promotion Strategy: Developing and Managing Sales Compensating Your Sales Staff A commission plan has an advantage in the incentive it provides for employees. but a disadvantage in the difficulty in directing commissioned salespeople. and Evaluating Sales 41 . payment is based on sales alone Section 13.2 Planning.

The Promotion Strategy: Developing and Managing Sales Supervising Your Sales Force You can supervise your sales staff using these techniques: personal contact sales reports electronic communications meetings Section 13.2 Planning. and Evaluating Sales 42 . Directing.

sales call report an account of sales activities.2 Planning. including such items as number of calls made. and Evaluating Sales 43 . Directing. orders obtained.The Promotion Strategy: Developing and Managing Sales Compensating Your Sales Staff Some salespeople account for their activities in a sales call report. and miles traveled Section 13.

2 Planning.The Promotion Strategy: Developing and Managing Sales Adjusting to Sales Environment Changes By using a SWOT analysis. SWOT analysis a strategic planning technique that analyzes a company’s internal strengths and weaknesses. Directing. and Evaluating Sales 44 . and opportunities and threats in the external sales environment Section 13. a company can assess its current situation.

morale a state of an individual psychological well-being based on a sense of confidence.2 Planning. Directing.The Promotion Strategy: Developing and Managing Sales Maintaining Morale To maintain high morale. and purpose Section 13. and Evaluating Sales 45 . a business should foster a positive work climate. usefulness.

The Promotion Strategy: Developing and Managing Sales Evaluating Sales Performance 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 Section 13. and Evaluating Sales 46 . Directing.2 Planning.

Analyze your marketing costs to identify unprofitable marketing efforts. Compare your company’s sales volume with its budgeted sales goals 2.The Promotion Strategy: Developing and Managing Sales Evaluating the Company’s Sales Performance To evaluate your company’s sales performance: 1. Directing. and Evaluating Sales 47 . Section 13.2 Planning.

2 Planning. and Evaluating Sales . 5. Compare performance to standards. Discuss results with salespeople. 2. Set standards for performance. 48 Section 13. 4. Establish guidelines. Identify factors to be measured.The Promotion Strategy: Developing and Managing Sales Evaluating Individual Sales Performance There are five steps involved in evaluating sales staff performance: 1. Directing. 3.

The components of sales planning are forecasting sales.2 Planning. Section 13. and setting sales quotas. and Evaluating Sales 49 . Identify the components of sales planning.The Promotion Strategy: Developing and Managing Sales 13. Directing. budgeting sales.2 1. establishing territories.

supervising the sales force. Directing. and maintaining morale. Section 13.2 Planning. The elements involved in directing sales are motivating salespeople. compensating the sales staff. handling expenses and transportation.2 2. adjusting to changes in the sales environment. and Evaluating Sales 50 . List the elements that are involved in directing sales.The Promotion Strategy: Developing and Managing Sales 13.

To evaluate a company’s sales performance. Section 13. Directing. set standards for performance. analyze sales volume and marketing costs. establish guidelines. identify factors to be measured.2 3. and discus results with salespeople.The Promotion Strategy: Developing and Managing Sales 13.2 Planning. and Evaluating Sales 51 . compare performance to standards. To evaluate individual sales performance. Discuss the procedures used in evaluating sales performance.

Directing. There are many laws that apply to e-mail marketing.2 Planning. Many customers sign up for e-mail mailings lists. and Evaluating Sales 52 . Section 13. so it is advisable to know the law before beginning an e-mail marketing campaign.The Promotion Strategy: Developing and Managing Sales Using E-Mail for Selling E-mail can be an effective tool for marketing.

subscribers must confirm their registration by responding to an e-mail message netiquette the code of conduct that governs online behavior opt-in list an online mailing list made up of subscribers who have given permission to be sent e-mail by the mailing list owner Section 13.2 Planning. and Evaluating Sales 53 .The Promotion Strategy: Developing and Managing Sales Tech Terms double opt-in list an online opt-in mailing list with a two-step confirmation process. Directing.

and Evaluating Sales 54 . Directing.The Promotion Strategy: Developing and Managing Sales Tech Terms opt-out list an online mailing list to which recipients do not choose to subscribe. recipients must complete an online form or send an e-mail if they choose not to receive mailings spam unsolicited commercial e-mail Section 13.2 Planning.

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