Explain the role of personal selling in businesses. Define the two types of selling situations.

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 forceto 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 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

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. 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. 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) AttentionGetting the prospective buyer’s attention InterestDeveloping an interest in the product DesireCreating a desire for the product ActionGetting the customer to buy 16

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 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 preapproachand 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. 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 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. sales quota a performance goal assigned to a salesperson for a specific period

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.