Transcript Chapter 13

The Promotion
Strategy:
Developing
and Managing
Sales
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Chapter 13
The Promotion Strategy:
Developing and Managing Sales
The Promotion Strategy:
Developing and Managing Sales
13.1
Organizing and Preparing a
Sales Force
13.2
Planning, Directing, and
Evaluating Sales
2
The Promotion Strategy:
Developing and Managing Sales
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
3
The Promotion Strategy:
Developing and Managing Sales
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
4
The Promotion Strategy:
Developing and Managing Sales
13.1
personal selling
prospect
sales force
order getting
order taking
rational buying motive
emotional buying motive
customer benefits
Section 13.1 Organizing and Preparing a Sales Force
buying process
prospecting
preapproach
approach
objections
suggestion selling
sales check
5
The Promotion Strategy:
Developing and Managing Sales
Personal Selling
Personal selling is
important because it
involves the human aspect
of promotion.
Section 13.1 Organizing and Preparing a Sales Force
personal selling
selling conducted by
direct communication
with a prospective
customer
6
The Promotion Strategy:
Developing and Managing Sales
Personal Selling
Personal selling relies on
direct contact with a
prospect, which is critical
to companies whose
customers need detailed
information.
Section 13.1 Organizing and Preparing a Sales Force
prospect a potential
customer
7
The Promotion Strategy:
Developing and Managing Sales
Staffing the Sales Force
Businesses use their sales
force to help customers
make buying decisions.
Section 13.1 Organizing and Preparing a Sales Force
sales force a group of
employees involved in
the selling process
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The Promotion Strategy:
Developing and Managing Sales
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
9
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
The Promotion Strategy:
Developing and Managing Sales
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
11
The Promotion Strategy:
Developing and Managing Sales
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
12
The Promotion Strategy:
Developing and Managing Sales
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.
Section 13.1 Organizing and Preparing a Sales Force
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
13
The Promotion Strategy:
Developing and Managing Sales
Preparing to Sell
There three levels of product knowledge:
1. benefits to the customer
2. details about the company and its products
3. Information about the competition’s products
Section 13.1 Organizing and Preparing a Sales Force
14
The Promotion Strategy:
Developing and Managing Sales
Preparing to Sell
Knowing a product’s
customer benefits is
essential for success in
selling because people buy
products for their benefits.
Section 13.1 Organizing and Preparing a Sales Force
customer benefits the
advantages of personal
satisfaction that a
customer will get from a
product
15
The Promotion Strategy:
Developing and Managing Sales
The Buying Process
In preparation for selling,
the sales trainee must also
understand the buying
process.
Section 13.1 Organizing and Preparing a Sales Force
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
Section 13.1 Organizing and Preparing a Sales Force
17
The Selling Process
The Ten Steps of the Selling Process
1
prospecting
6
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
The Promotion Strategy:
Developing and Managing Sales
The Selling Process
Prospecting is seeking out
new leads.
Section 13.1 Organizing and Preparing a Sales Force
prospecting a
systematic approach to
developing new sales
leads or customers, who
are identified through
referrals, public records,
or surveys
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The Promotion Strategy:
Developing and Managing Sales
The Selling Process
Prior to sales contact, the
salesperson should
prepare a preapproach
and gather information
about prospective
customers’ needs and
wants.
Section 13.1 Organizing and Preparing a Sales Force
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 Promotion Strategy:
Developing and Managing Sales
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.
Section 13.1 Organizing and Preparing a Sales Force
approach a
salesperson’s first
contact with a customer
21
The Promotion Strategy:
Developing and Managing Sales
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.
Section 13.1 Organizing and Preparing a Sales Force
objections any
concern, hesitation,
doubt, or other reason a
customer has for not
making a purchase
22
The Promotion Strategy:
Developing and Managing Sales
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.
Section 13.1 Organizing and Preparing a Sales Force
suggestion selling
selling additional goods
to a customer to go
along with a product or
products the customer
is purchasing
23
The Promotion Strategy:
Developing and Managing Sales
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
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The Promotion Strategy:
Developing and Managing Sales
The Selling Process
A sales check provides
valuable information to the
business, such as the date,
items purchased, and
purchase price.
Section 13.1 Organizing and Preparing a Sales Force
sales check a written
record of a sales
transaction
25
The Promotion Strategy:
Developing and Managing Sales
13.1
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
26
The Promotion Strategy:
Developing and Managing Sales
13.1
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.
Section 13.1 Organizing and Preparing a Sales Force
27
The Promotion Strategy:
Developing and Managing Sales
13.1
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.
Section 13.1 Organizing and Preparing a Sales Force
28
The Promotion Strategy:
Developing and Managing Sales
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
29
The Promotion Strategy:
Developing and Managing Sales
13.2
Effective sales operations are developed through
careful planning, directing, and controlling.
Section 13.2 Planning, Directing, and Evaluating Sales
30
The Promotion Strategy:
Developing and Managing Sales
13.2
sales planning
sales forecast
sales territory
sales quota
salary
Section 13.2 Planning, Directing, and Evaluating Sales
commission
sales call reports
SWOT analysis
morale
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The Promotion Strategy:
Developing and Managing Sales
Planning Sales
Before putting the sales
force to work, a business
must complete its sales
planning.
Section 13.2 Planning, Directing, and Evaluating Sales
sales planning the
process that involves
determining the goals and
timing of sales efforts
32
The Promotion Strategy:
Developing and Managing Sales
Forecasting Sales
A company’s sales
forecast is based on the
estimated market share the
company thinks it can
obtain.
Section 13.2 Planning, Directing, and Evaluating Sales
sales forecast an
estimate of sales for a
given period, such as the
next quarter
33
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
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
The Promotion Strategy:
Developing and Managing Sales
Establishing Territories
A business that covers a
wide area should establish
sales territories to ensure
market coverage, reduce
selling costs, and improve
customer relations.
Section 13.2 Planning, Directing, and Evaluating Sales
sales territories
geographical areas in
which existing and
potential customers are
grouped
36
The Promotion Strategy:
Developing and Managing Sales
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.
Section 13.2 Planning, Directing, and Evaluating Sales
sales quota a
performance goal
assigned to a salesperson
for a specific period
37
The Promotion Strategy:
Developing and Managing Sales
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
38
The Promotion Strategy:
Developing and Managing Sales
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
39
The Promotion Strategy:
Developing and Managing Sales
Compensating Your
Sales Staff
A salary ensures a regular,
stable income for the
employee.
Section 13.2 Planning, Directing, and Evaluating Sales
salary regular wages an
employee receives from
an employer
40
The Promotion Strategy:
Developing and Managing Sales
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.
Section 13.2 Planning, Directing, and Evaluating Sales
commission a fee for
services rendered based
on a percentage of an
amount sold; payment is
based on sales alone
41
The Promotion Strategy:
Developing and Managing Sales
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
42
The Promotion Strategy:
Developing and Managing Sales
Compensating Your
Sales Staff
Some salespeople account
for their activities in a sales
call report.
Section 13.2 Planning, Directing, and Evaluating Sales
sales call report an
account of sales
activities, including such
items as number of calls
made, orders obtained,
and miles traveled
43
The Promotion Strategy:
Developing and Managing Sales
Adjusting to Sales
Environment Changes
By using a SWOT
analysis, a company can
assess its current situation.
Section 13.2 Planning, Directing, and Evaluating Sales
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
The Promotion Strategy:
Developing and Managing Sales
Maintaining Morale
To maintain high morale, a
business should foster a
positive work climate.
Section 13.2 Planning, Directing, and Evaluating Sales
morale a state of an
individual psychological
well-being based on a
sense of confidence,
usefulness, and purpose
45
The Promotion Strategy:
Developing and Managing Sales
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
46
The Promotion Strategy:
Developing and Managing Sales
Evaluating the Company’s
Sales Performance
To evaluate your company’s sales performance:
1. Compare your company’s sales volume with
its budgeted sales goals
2. Analyze your marketing costs to identify
unprofitable marketing efforts.
Section 13.2 Planning, Directing, and Evaluating Sales
47
The Promotion Strategy:
Developing and Managing Sales
Evaluating Individual
Sales Performance
There are five steps involved in evaluating sales
staff performance:
1.
2.
3.
4.
5.
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
48
The Promotion Strategy:
Developing and Managing Sales
13.2
1. 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
49
The Promotion Strategy:
Developing and Managing Sales
13.2
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
50
The Promotion Strategy:
Developing and Managing Sales
13.2
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
discus results with salespeople.
Section 13.2 Planning, Directing, and Evaluating Sales
51
The Promotion Strategy:
Developing and Managing Sales
Using E-Mail for Selling
E-mail can be an effective tool for marketing. Many
customers sign up for e-mail mailings lists.
There are many laws that apply to e-mail marketing, so it
is advisable to know the law before beginning an e-mail
marketing campaign.
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52
The Promotion Strategy:
Developing and Managing Sales
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 e-mail
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 e-mail by the mailing list owner
Section 13.2 Planning, Directing, and Evaluating Sales
53
The Promotion Strategy:
Developing and Managing Sales
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 e-mail if they
choose not to receive mailings
spam
unsolicited commercial e-mail
Section 13.2 Planning, Directing, and Evaluating Sales
54
End of
The Promotion
Strategy:
Developing
and Managing
Sales
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