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

3. The Main Idea
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.

4. Content Vocabulary 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

5. 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

6. 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

7. 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

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

9. Traits of Successful Salespeople
knowledge
empathy
organization
promptness
follow-through
ability to solve problems
punctuality
willingness to work hard
energy
honesty 9

10. Proving Sales Training
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.

11. 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
readiness and disposition
foundational skills for selling
Internet skills for selling

12. 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.
emotional buying motive
a feeling a buyer associates with a product, such as recognition or prestige
rational buying motive
a conscious, logical reason to make a purchase, such as convenience or comfort

13. Preparing to Sell There are three levels of product knowledge:
benefits to the customer
details about the company and its products
information about the competition’s products

14. 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

15. 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

16. 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 16

17. 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 17

18. 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

19. 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

20. 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

21. 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

22. 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

23. Selling Mechanics
The basics of selling mechanics involve understanding:
order forms and proposals
cash register operation
sales checks
sales tax

24. 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

25. 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.

26. 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.

27. 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.

28. Section Objectives Identify the components of sales planning.
List the elements that are involved in directing sales.
Discuss the procedures used in evaluating sales performance.

29. The Main Idea
Effective sales operations are developed through careful planning, directing, and controlling.

30. Content Vocabulary sales planning sales forecast sales territory
sales quota
salary
commission
sales call reports
SWOT analysis
morale

31. 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, timing, and budgets of sales efforts

32. 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

33. market analysis and industry information
Forecasting Sales
There are several methods for forecasting sales:
market analysis and industry information
surveys
data analysis
operational analysis 33

34. Budgeting Sales
Three basic budgets are needed for sales activities:
sales budget $
selling expense budget $
administrative sales cost budget $ 34

35. 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

36. Setting Sales Quotas
sales quota
a performance goal assigned to a salesperson for a specific period
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.

37. Directing Sales Operations
You must direct your sales activities by providing:
motivation
incentives
a favorable environment
resources
leadership

38. Compensating Your Sales Staff
The following options are available as methods of payment for salespeople:
straight salary
straight commission
combination of salary and commission

39. Compensating Your Sales Staff
A salary ensures a regular, stable income for the employee.
salary
regular wages an employee receives from an employer

40. 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

41. Supervising Your Sales Force
You can supervise your sales staff using these techniques:
personal contact
sales reports
electronic communications
meetings

42. Supervising Your Sales Force
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

43. 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

44. 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

45. 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

46. 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.

47. 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.

48. 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.

49. 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.

50. 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.

51. Chapter 13 The Promotion Strategy: Developing and Managing Sales
End of
Chapter 13
The Promotion Strategy: Developing and Managing Sales