1. Chapter 13 The Promotion Strategy: Developing and Managing Sales
Business Management
Mrs. Deady

2. Objectives Explain the role of personal selling in business
Define the two types of selling situations
Describe the kinds of training needed by salespeople
Identify the components of sales planning
List the elements that are involved in direct sales
Discuss the procedures used in evaluating sales performance

3. Definitions 13.1: Organizing and Preparing a Sales Force
Personal selling – selling conducted by direct communication with the prospect
Prospect – potential customer
Sales force – group of employees involved in the selling process
Rational buying motive – conscious, logical reason to make a purchase (product dependability, time or money savings, convenience, comfort, health or safety issues, recreational value, service, quality)
Emotional buying motive – feelings a buyer associates with the product (social approval, recognition, power, affection, prestige)

4. Definitions, cont’d
Customer benefits – advantages of personal satisfaction a customer will get from the product
Prospecting – systematic approach to developing new sales leads or customers
Preapproach – prior to sales contact, gather information bout prospective customers needs and wants
Approach – first contact with the customer – be professional, friendly, build credibility
Objections – concerns, hesitations, doubts and other reasons customer has for not purchasing
Suggestion selling – selling additional goods or services to go with the purchase
Sales check – written record of a sales transactions, itemized receipt

5. Two Classifications of Sales
Order getting is seeking out buyers and giving them a well-organized presentation (creative selling)
Order taking is completing a sale to a customer who has sought out the product (retail clerk)

6. Four Steps of the Buying Process - AIDA
Attention – getting the prospective buyer’s attentions
Interest – developing an interest in the product
Desire – creating a desire to have the product
Action – getting the customer to take action to buy

7. Knowledge and Skills Required of Salespeople
Company knowledge
Product knowledge
Customer knowledge
Foundation skills for selling (time management, legal knowledge)
Internet skills

8. 10 Steps of the Selling Process
Prospecting
Preapproach
Approach
Determining Needs
Presentation
Overcoming objections
Closing the sale
Suggestion selling
Closing mechanics
Follow-up

9. Definitions 13.2: Planning, Directing, and Evaluating Sales
Sales Planning – determining the goals and timing of sales efforts
Sales forecast – estimate of sales for a given period, such as a quarter
Sales territory – geographical area in which existing and potential customers are grouped
Sales quota – performance goal assigned to a salesperson for a specific period of time
Salary – regular wages paid – a specific amount
Commission – payment based on sales alone

10. Definitions, cont’d
Sales call reports – calls made, miles traveled, orders obtained – way to monitor and evaluate sales activities
SWOT analysis – strategic study of a company’s strengths, weaknesses, opportunities and threats
Morale – state of individual psychological well-being based upon a sense of confidence, usefulness and purpose

11. 3 Basic Budgets for Sales Activities
Sales Budget from the sales forecast
Selling expense budget related to personal selling activities
Administrative sales costs budget of managing the sales operation

12. How to Pay Salespeople $$$$$
Straight salary
Straight commission
Combination of salary and commission

13. Steps to Evaluate Salespeople
Establish guidelines
Identify factors to be measured
Set standards for performance
Compare performance to standards
Discuss results with salespeople