CHAPTER Section 9.1 Principles of Successful Selling Section 9.2 Estimating Sales Selling Your Product

SECTION 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 Principles of Successful Selling 2 Section 9.1: Principles of Successful Selling

Do Now What makes a good salesperson? Give an example of someone that you think is a good salesperson. What makes him or her effective? 3

The Importance of Personal Selling Personal selling has several advantages over other types of promotion: Helps Build Personal Relationships. Allows for Customized Communication. Helps Reach Business Customers. 4 Section 9.1: Principles of Successful Selling

Characteristics of Successful Salespeople Positive Attitude Good Listener. Persistent. Hard Worker. Truthful. Consistent. 5 Section 9.1: Principles of Successful Selling

The Selling Process The main steps in the selling process are:  Finding sales leads  Preparing for a sales call  Making the call  Closing a sale and following up A sales lead is a person or company that has some characteristics of your target market. 6 Section 9.1: Principles of Successful Selling

Negotiation Activity, Round 1 Select ONE partner to work with. Decide which of you will be A and which will be B. Round 1: Partner A is the seller. Partner B is the buyer. Please stand on opposite sides of the room and wait for further instructions. THINK OUTSIDE THE BOX. When you are finished negotiating, record the selling price on the Power Point. If you did not reach a deal, write “No Deal”. 7

Pd.1 Negotiation Activity Results 8 Partner APartner BRound 1 PriceRound 2 Price John, SamarLenny$10 (monthly for 20 months) CharlesEvans$25 (Charles, you’re fired) KernieshaKevisha$71 (Kerniesha fired) JoseMichael$165 (Michael fired) RussellDarnellNo Deal ChrisRafael$101 (Rafael fired)

Negotiation Activity, Round 2 Switch roles. Now, Partner A is the buyer and Partner B is the seller. Please stand on opposite sides of the room and wait for further instructions. When you are finished negotiating, record the selling price. If you did not reach a deal, write “No Deal”. 9

Negotiation Debrief How did Round 1 differ from Round 2? What were some successful negotiation strategies you used? What were some unsuccessful ones? How might your strategy have been different if you knew you were going to be buying/selling with your partner again in the future? What lessons can we take away from this activity when we are selling our own products? 10

SECTION OBJECTIVES Consider who may be needed in your sales force Identify costs related to a sales force Explore methods used to estimate sales Estimating Sales 11 Section 9.2: Estimating Sales

Costs Related to a Sales Force There are three basic costs related to a sales force: Compensation Training Expenses 12 Section 9.2: Estimating Sales

How Salespeople Are Paid 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 amount sold. Base Salary Plus 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. 13 Section 9.2: Estimating Sales

Sales Forecasting There are four general steps in preparing a sales forecast: 1. Analyzing current conditions 2. Reviewing past sales 3. Making educated predications about the future 4. Estimating your future sales for a specific time period 14 Section 9.2: Estimating Sales

Sales Forecasting Techniques Common forecasting techniques: Capacity Observational Data Industry Standards Industry/Seasonal Cycles Market Share 15 Section 9.2: Estimating Sales Number ofNumber ofAverage Amount of CustomersPurchases per YearEach Purchase XX

Sales Force Planning External sales are obtained by hiring another company to do the selling for you.  Example: Buying/selling a home. Internal sales are obtained by you or your employees who sell your products or services exclusively.  Example: Sales associates in a clothing store. 16 Section 9.2: Estimating Sales

Sales Force Planning 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? In pairs, plan out two different sales strategies for: A company that sells soft drinks, and A company that sells cars. How do your sales strategies differ for these two companies? 17 Section 9.2: Estimating Sales