9 Selling Your Product Section 9.1 Principles of Successful Selling Section 9.2 Estimating Sales

Principles of Successful Selling 9.1 Principles of Successful Selling Explain the importance of personal selling List the characteristics of successful salespeople Describe the main parts of the selling process Understand the key documents and forms used in selling Section 9.1: Principles of Successful Selling

The Importance of Personal Selling Personal selling is a promotional technique used by a company’s sales force. Personal selling has several advantages over other types of promotion: Helps Build Personal Relationships. Personal selling involves contact by means of face-to-face meetings, telephone calls, and videoconferences 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. Helps Reach Business Customers. Personal selling’s two-way method of communicating is especially effective for selling to business customers. Section 9.1: Principles of Successful Selling

Characteristics of Successful Salespeople Most successful salespeople have the following characteristics: Positive Attitude. Successful salespeople focus on the positive, even when times are tough. Good Listener. Successful salespeople learn how to ask their customers quality questions and then listen closely without interrupting. Persistent. Patience and persistence are needed by all salespeople who wish to become successful. Hard Worker. Salespeople must take responsibility for their own success, make goals for themselves, and form strategies to reach them. Truthful. Be honest with customers. Establish trust for a positive, long-term business relationship. Consistent. To become successful, you need to be dependable. Consistency builds trust, which leads to better customer relationships. Section 9.1: Principles of Successful Selling

The Selling Process The main steps in the selling process are: Finding and qualifying sales leads Preparing for a sales call Making the sales call Closing a sale and following up A sales lead is a person or company that has some characteristics of your target market. Leads are obtained in several ways: Promotional Responses Referrals Data Mining Cold Calls Section 9.1: Principles of Successful Selling

The Selling Process Before making a sales call, you should: Set Up an Appointment Learn About the Prospect Know Your Product or Service Develop an Overall Selling Strategy Write a Presentation Outline To make your sales calls more successful: Be on Time Try to Build Rapport Ask Questions and Take Notes Answer Objections Ask for a Commitment Follow up with new customers to make sure that process met their expectations. Section 9.1: Principles of Successful Selling

The Mechanics of Selling Commonly used sales forms include: Sales Call Logs Sales Proposals Order Forms Sales Receipts Sales Contracts Call Log Section 9.1: Principles of Successful Selling

Section 9.2: Estimating Sales Consider who may be needed in your sales force Identify costs related to a sales force Explore methods used to estimate sales Section 9.2: Estimating Sales

Sales Force Planning You need to plan for your sales force as you develop and refine your marketing plan. Your sales force planning should answer such questions as: What selling methods do you plan to use? Who do you need in your sales force? How much and what type of training do you need for your sales force? How large a sales budget do you need so you can pay your sales force? What estimated amount of sales can you expect the sales force to achieve over a specific time period? Section 9.2: Estimating Sales

Sales Force Planning External sales are obtained by hiring another company to do the selling for you. Internal sales are obtained by you or your employees who sell your products or services exclusively. Sales force roles include: Order Getting Order Taking Sales Support Section 9.2: Estimating Sales

Expenses Related to a Sales Force After you decide what selling methods you’d like to use and what kind of sales force you’ll need, the next step is to estimate the costs related to your sales plan. There are three basic expenses related to a sales force: Compensation Training Expenses Section 9.2: Estimating Sales

How Salespeople Are Paid There are three main options for compensating salespeople: Salary Only. A salary is a fixed amount of money that an employee is paid on a regular basis. Commission Only. A commission is an amount paid based on the volume of products or services that a salesperson sells. Base Salary Plus Commission. Most often, salespeople are paid with a combination of salary and commission. A sales quota is a target amount of sales per month or quarter that a salesperson is expected to achieve. A sales territory is the specified geographical area for which a salesperson is responsible. Section 9.2: Estimating Sales

Sales Training Most businesses that employ a sales force provide extensive training for new salespeople. Some subjects taught in company training programs are: Company Information Product or Service Knowledge Target Market Characteristics Information on the Competition General Selling Techniques and Mechanics Technology Skills Section 9.2: Estimating Sales

Sales Forecasting A sales forecast is a prediction of the amount of future sales your company expects to achieve over a certain period of time. There are four general steps in preparing a sales forecast: Analyzing current conditions Reviewing past sales Making educated predications about the future Estimating your future sales for a specific time period Section 9.2: Estimating Sales

Sales Forecasting Techniques Common forecasting techniques: Full Capacity Observational Data Industry Standards Industry/Seasonal Cycles Team Effort Number of Customers versus Distance Market Share Proportional Scaling Number of Number of Average Amount of Customers Purchases per Year Each Purchase x x Section 9.2: Estimating Sales