2. Organizing and Preparing a Sales Force
Chapter 13
The Promotion Strategy: Developing and Managing Sales
Organizing and Preparing a
Sales Force
13.1
Planning, Directing, and
Evaluating Sales
13.2

3. Explain the role of personal selling in businesses.
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

4. 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

5. rational buying motive emotional buying motive customer benefits
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

6. Personal Selling
Personal selling is important because it involves the human aspect of promotion.
personal selling selling conducted by direct communication with a prospective customer
Section 13.1 Organizing and Preparing a Sales Force

7. Personal Selling
Personal selling relies on direct contact with a prospect, which is critical to companies whose customers need detailed information.
prospect a potential customer
Section 13.1 Organizing and Preparing a Sales Force

8. 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

9. Staffing the Sales Force
Sales are classified into two groups: order getting and order taking.
order getting seeking out buyers and giving them a well-organized presentation; sometimes referred to as “creative selling”
order taking the completion of a sale to a customer who has sought out a product
Section 13.1 Organizing and Preparing a Sales Force

10. Traits of Successful Salespeople
knowledge
empathy
organization
promptness
follow-through
ability to solve problems
punctuality
willingness to work hard
energy
honesty
Section 13.1 Organizing and Preparing a Sales Force 10

11. Proving Sales Training
When hiring new or experienced salespeople, businesses must provide training.
They must prepare them to sell the products or services, and teach or reteach the principles of selling, including the mechanics of selling.
Section 13.1 Organizing and Preparing a Sales Force

12. 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

13. 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, 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

14. Preparing to Sell There three levels of product knowledge:
benefits to the customer
details about the company and its products
Information about the competition’s products
Section 13.1 Organizing and Preparing a Sales Force

15. 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

16. The Buying Process
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
Section 13.1 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 17

18. The Selling Process The Ten Steps of the Selling Process 1 prospecting6
overcoming objections 2
preapproach 7
closing the sale 3
approach 8
suggestion selling 4
determining needs 9
closing mechanics 5
presentation 10
follow-up
Section 13.1 Organizing and Preparing a Sales Force 18

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

20. The Selling Process
Prior to sales contact, 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 13.1 Organizing and Preparing a Sales Force

21. The Selling Process
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
Section 13.1 Organizing and Preparing a Sales Force

22. The Selling Process
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
Section 13.1 Organizing and Preparing a Sales Force

23. The Selling Process
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 selling selling additional goods to a customer to go along with a product or products the customer is purchasing
Section 13.1 Organizing and Preparing a Sales Force

24. 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

25. The Selling Process
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
Section 13.1 Organizing and Preparing a Sales Force

26. Explain the role of personal selling in businesses.
13.1
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.
Section 13.1 Organizing and Preparing a Sales Force

27. Define the two types of selling situations.
13.1
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.
Section 13.1 Organizing and Preparing a Sales Force

28. Describe the kinds of training needed by salespeople.
13.1
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.
Section 13.1 Organizing and Preparing a Sales Force

29. Identify the components of sales planning.
13.2
Identify the components of sales planning.
List the elements that are involved in directing sales.
Discuss the procedures used in evaluating sales performance.
Section 13.2 Planning, Directing, and Evaluating Sales

30. 13.2
Effective sales operations are developed through careful planning, directing, and controlling.
Section 13.2 Planning, Directing, and Evaluating Sales

31. sales planning sales forecast sales territory sales quota salary
13.2
sales planning
sales forecast
sales territory
sales quota
salary
commission
sales call reports
SWOT analysis
morale
Section 13.2 Planning, Directing, and Evaluating Sales

32. Planning Sales
Before putting the sales force to work, a business must complete its sales planning.
sales planning the process that involves determining the goals and timing of sales efforts
Section 13.2 Planning, Directing, and Evaluating Sales

33. Forecasting Sales
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
Section 13.2 Planning, Directing, and Evaluating Sales

34. market analysis and industry information
Forecasting Sales
There are several methods for forecasting sales:
market analysis and industry information
surveys
data analysis
operational analysis
Section 13.2 Planning, Directing, and Evaluating Sales 34

35. Budgeting Sales
Three basic budgets are needed for sales activities:
sales budget $
selling expense budget $ $
administrative sales cost budget
Section 13.2 Planning, Directing, and Evaluating Sales 35

36. Establishing Territories
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
Section 13.2 Planning, Directing, and Evaluating Sales

37. Settling Sales Quotas
A sales quota can be used to indicate strong and weak areas in the sales operation, provide incentives for the workforce, and improve effectiveness of compensation plans.
sales quota a performance goal assigned to a salesperson for a specific period
Section 13.2 Planning, Directing, and Evaluating Sales

38. Directing Sales Operations
You must direct your sales activities by providing:
motivation
incentives
a favorable environment
resources
leadership
Section 13.2 Planning, Directing, and Evaluating Sales

39. 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 13.2 Planning, Directing, and Evaluating Sales

40. Compensating Your Sales Staff
A salary ensures a regular, stable income for the employee.
salary regular wages an employee receives from an employer
Section 13.2 Planning, Directing, and Evaluating Sales

41. 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.
commission a fee for services rendered based on a percentage of an amount sold; payment is based on sales alone
Section 13.2 Planning, Directing, and Evaluating Sales

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

43. Compensating Your Sales Staff
Some salespeople account for their activities in a sales call report.
sales call report an account of sales activities, including such items as number of calls made, orders obtained, and miles traveled
Section 13.2 Planning, Directing, and Evaluating Sales

44. Adjusting to Sales Environment Changes
By using a SWOT analysis, a company can assess its current situation.
SWOT analysis a strategic planning technique that analyzes a company’s internal strengths and weaknesses, and opportunities and threats in the external sales environment
Section 13.2 Planning, Directing, and Evaluating Sales

45. Maintaining Morale
To maintain high morale, a business should foster a positive work climate.
morale a state of an individual psychological well-being based on a sense of confidence, usefulness, and purpose
Section 13.2 Planning, Directing, and Evaluating Sales

46. 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 13.2 Planning, Directing, and Evaluating Sales

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

48. Evaluating Individual Sales Performance
There are five steps involved in evaluating sales staff performance:
Establish guidelines.
Identify factors to be measured.
Set standards for performance.
Compare performance to standards.
Discuss results with salespeople.
Section 13.2 Planning, Directing, and Evaluating Sales

49. Identify the components of sales planning.
13.2
Identify the components of sales planning.
The components of sales planning are forecasting sales, budgeting sales, establishing territories, and setting sales quotas.
Section 13.2 Planning, Directing, and Evaluating Sales

50. List the elements that are involved in directing sales.
13.2
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.
Section 13.2 Planning, Directing, and Evaluating Sales

51. Discuss the procedures used in evaluating sales performance.
13.2
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 discus results with salespeople.
Section 13.2 Planning, Directing, and Evaluating Sales

52. Using E-Mail for Selling
can be an effective tool for marketing. Many customers sign up for mailings lists.
There are many laws that apply to marketing, so it is advisable to know the law before beginning an marketing campaign.
Section 13.2 Planning, Directing, and Evaluating Sales 52

53. Tech Terms double opt-in list
an online opt-in mailing list with a two-step confirmation process; subscribers must confirm their registration by responding to an 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 by the mailing list owner
Section 13.2 Planning, Directing, and Evaluating Sales 53

54. 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 if they choose not to receive mailings
spam
unsolicited commercial
Section 13.2 Planning, Directing, and Evaluating Sales 54

55. End of