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Chapter 13 The Promotion Strategy: Developing and Managing Sales

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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

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