Effective Sales Force Organization and Preparation

2. Chapter 13 The Promotion Strategy: Developing and Managing Sales Organizing and Preparing a Sales Force 13.1 Planning, Directing, and Evaluating Sales 13.2

3. 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

4. 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

5. 13.1 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 Section 13.1 Organizing and Preparing a Sales Force

6. Personal Selling Personal selling is important because it involves the human aspect of promotion. personal sellingselling conducted by direct communication with a prospective customer Section 13.1 Organizing and Preparing a Sales Force

7. Personal Selling Personal selling relies on direct contact with a prospect, which is critical to companies whose customers need detailed information. prospecta potential customer Section 13.1 Organizing and Preparing a Sales Force

8. Staffing the Sales Force Businesses use their sales forceto help customers make buying decisions. sales forcea group of employees involved in the selling process Section 13.1 Organizing and Preparing a Sales Force

9. Staffing the Sales Force Sales are classified into two groups: order getting and order taking. order gettingseeking out buyers and giving them a well-organized presentation; sometimes referred to as “creative selling” order takingthe completion of a sale to a customer who has sought out a product Section 13.1 Organizing and Preparing a Sales Force

10. 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

11. 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

12. 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

13. 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 motivea conscious, logical reason to make a purchase, such as convenience or comfort emotional buying motivea feeling a buyer associates with a product, such as recognition or prestige Section 13.1 Organizing and Preparing a Sales Force

14. Preparing to Sell There three levels of product knowledge: • benefits to the customer • details about the company and its products • Information about the competition’s products Section 13.1 Organizing and Preparing a Sales Force

15. Preparing to Sell Knowing a product’s customer benefits is essential for success in selling because people buy products for their benefits. customer benefitsthe advantages of personal satisfaction that a customer will get from a product Section 13.1 Organizing and Preparing a Sales Force

16. The Buying Process In preparation for selling, the sales trainee must also understand the buying process. buying processa series of steps a customer goes through when making a purchase Section 13.1 Organizing and Preparing a Sales Force

17. 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 Section 13.1 Organizing and Preparing a Sales Force 17

18. 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

19. The Selling Process Prospecting is seeking out new leads. prospectinga systematic approach to developing new sales leads or customers, who are identified through referrals, public records, or surveys Section 13.1 Organizing and Preparing a Sales Force

20. The Selling Process Prior to sales contact, the salesperson should prepare a preapproachand gather information about prospective customers’ needs and wants. preapproachthe marketing activities that precede a salesperson’s approach to a prospective customer that are intended to help achieve a successful sale Section 13.1 Organizing and Preparing a Sales Force

21. 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. approacha salesperson’s first contact with a customer Section 13.1 Organizing and Preparing a Sales Force

22. 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. objectionsany concern, hesitation, doubt, or other reason a customer has for not making a purchase Section 13.1 Organizing and Preparing a Sales Force

23. 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 sellingselling additional goods to a customer to go along with a product or products the customer is purchasing Section 13.1 Organizing and Preparing a Sales Force

24. 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

25. The Selling Process A sales check provides valuable information to the business, such as the date, items purchased, and purchase price. sales checka written record of a sales transaction Section 13.1 Organizing and Preparing a Sales Force

26. 13.1 • 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

27. 13.1 • 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

28. 13.1 • 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

29. 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

30. 13.2 Effective sales operations are developed through careful planning, directing, and controlling. Section 13.2 Planning, Directing, and Evaluating Sales

31. 13.2 sales planning sales forecast sales territory sales quota salary commission sales call reports SWOT analysis morale Section 13.2 Planning, Directing, and Evaluating Sales

32. 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 and timing of sales efforts Section 13.2 Planning, Directing, and Evaluating Sales

33. 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 Section 13.2 Planning, Directing, and Evaluating Sales

34. 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

35. 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

36. 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 Section 13.2 Planning, Directing, and Evaluating Sales

37. 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. sales quota a performance goal assigned to a salesperson for a specific period Section 13.2 Planning, Directing, and Evaluating Sales

38. 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

39. 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

40. Compensating Your Sales Staff A salary ensures a regular, stable income for the employee. salary regular wages an employee receives from an employer Section 13.2 Planning, Directing, and Evaluating Sales

41. 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 Section 13.2 Planning, Directing, and Evaluating Sales

42. 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

43. Compensating Your Sales Staff 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 Section 13.2 Planning, Directing, and Evaluating Sales

44. 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 Section 13.2 Planning, Directing, and Evaluating Sales

45. 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 Section 13.2 Planning, Directing, and Evaluating Sales

46. 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

47. 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. Section 13.2 Planning, Directing, and Evaluating Sales

48. 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. Section 13.2 Planning, Directing, and Evaluating Sales

49. 13.2 • 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

50. 13.2 • 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