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

What makes a good salesperson?

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

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Personal selling has several advantages over other types of promotion:Helps Build Personal Relationships. Allows for Customized Communication.Helps Reach Business Customers.

4Section 9.1: Principles of Successful Selling

Positive Attitude Good Listener. Persistent. Hard Worker. Truthful. Consistent.

5Section 9.1: Principles of Successful Selling

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.

6Section 9.1: Principles of Successful Selling

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”.

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Partner A Partner B Round 1 Price Round 2 Price

John, Samar Lenny $10 (monthly for 20 months)

Charles Evans $25 (Charles, you’re fired)

Kerniesha Kevisha $71 (Kerniesha fired)

Jose Michael $165 (Michael fired)

Russell Darnell No Deal

Chris Rafael $101 (Rafael fired)

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”.

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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?

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OBJECTIVES

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

11Section 9.2: Estimating Sales

There are three basic costs related to a sales force: Compensation Training Expenses

12Section 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 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.

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: Capacity Observational Data Industry Standards Industry/Seasonal Cycles Market Share

15Section 9.2: Estimating Sales

Number of Number ofAverage Amount of

Customers Purchases per YearEach Purchase

X X

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.

16Section 9.2: Estimating Sales

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?

17Section 9.2: Estimating Sales