Section 9.1 Principles ofSuccessful Selling

Section 9.2 Estimating Sales

OBJECTIVES

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

2Section 9.1: Principles of Successful Selling

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 videoconferencesAllows 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.

3Section 9.1: Principles of Successful Selling

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.

4Section 9.1: Principles of Successful Selling

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

5Section 9.1: Principles of Successful Selling

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.

6Section 9.1: Principles of Successful Selling

Commonly used sales forms include:Sales Call LogsSales ProposalsOrder FormsSales ReceiptsSales Contracts

7Section 9.1: Principles of Successful Selling

Call Log

OBJECTIVES

Consider who may be needed in your sales force Identify costs related to a sales force Explore methods used to estimate sales

8Section 9.2: Estimating Sales

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?

9Section 9.2: Estimating Sales

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

10Section 9.2: Estimating Sales

There are three basic expenses related to a sales force:

Compensation Training Expenses

11Section 9.2: Estimating Sales

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.

12Section 9.2: Estimating Sales

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

13Section 9.2: Estimating Sales

There are four general steps in preparing a sales forecast:

1. Analyzing current conditions2. Reviewing past sales3. Making educated predications about the future4. Estimating your future sales for a specific time

period

14Section 9.2: Estimating Sales

Common forecasting techniques: Full Capacity Observational Data Industry Standards Industry/Seasonal Cycles Team Effort Number of Customers versus Distance Market Share

Proportional Scaling

15Section 9.2: Estimating Sales

Number of Number ofAverage Amount of

Customers Purchases per YearEach Purchase

x x