Effective Selling

and Sales Promotion

 Course Objectives

• Develop a sales strategy for your

company
• Learn key elements in the sales
process
• Explore efficient sales methodologies
• Gain tips for building a successful sales
team
• Discuss the importance of having an
experienced sales team
 Personal Selling

The personal communication of

information to persuade a
prospective customer to buy
something --- a good, service, idea or
something else --- which satisfies
that individual’s needs.
What Does a Salesperson Do?
• Creates new customers
• Sells more to present customers
• Builds long-term relationships with customers
• Provides solutions to customer’s problems
• Provides service to customers
• Helps customers resell products to their
customers
• Helps customers use products after purchase
• Builds goodwill with customers
• Provides company with market information
 Recent Trends
• Relationship Selling
– Mutually beneficial relationship on a long-term
basis
– Partnering
• Consultative Selling
– Act as “consultant”
• Team Selling
– Involve specialists from other functional areas
• Sales Force Automation (SFA)
– Use of computers, wireless communications,
multimedia
 Relationship Selling

• Non-adversarial
• Non-manipulative
• Consultative
• Partnering
• Problem-solving
• Goal: long-term relationship
 Types of Sales Jobs
• The complexity and difficulty of each
category increases from left to right.

Entry-
Inside Outside Sales Creative Creative
level Missionary
retail delivery Engineers sales of sales of
consumer
sales tangibles intangibles
goods

Order- Order-
Takers Getters
 The Sales Process
Move at Least One Step Forward
1. Prospecting
2. Preapproach
3. Approach
4. Presentation
5. Trial close
6. Uncover Objections
7. Meet Objections
8. Trial Close
9. Close
10. Follow-up and Service
 ABC’s Of Selling

•Always
•Be
•Closing
 The Prospect’s Mental Steps

• Attention
• Interest
• Desire
• Action
Understanding Consumer and Business Buyer Behavior

Fulfilledthrough:

Managerial actions:

Fulfilled through:
Managerial actions:

Fulfilled through:
Managerial actions:

Fulfilled through:
Managerial actions:

Fulfilled through:
Managerial actions:
Key Messages to Use in Advertising Campaigns
Features - Benefits-Advantages
 The "International” Pencil
Attribute
Wood Shaft
Lead (combination of graphite
and clay and waxes)
Ferrule (aluminum or tin)
Eraser (Synthetic rubber
blended with pumice or vinyl)
Yellow Paint
Source
- Incense Cedar from CA, NV,
OR - - Red Cedar from Kenya
- White Pine from USSR
- Basswood from China
- Graphite from England, Asia
Sri Lanka, Madagascar, Mexico
- Clay from Bavaria and Georgia
- Waxes from Brazil and Mexico
- Canada and the United States
- Gum from Asia
- United States
 Selling a Pencil
Feature Benefit Advantage
Graphite from Dark lead makes it Needs less pressure
Borrowdale, easy to write than competitors’
England where pencils.
graphite was first
discovered
Shaft is Incense- Incense-Cedar is More ecological-
Cedar from Sierra considered a friendly compared to
Nevada Mountains sustainable wood competitors’
Shaft is cut with six- Provides secure More accurate writing
sides hold on pencil over slippery rounded
shafted pencils
Eraser is made from Durable material Has longer usage/life
rubber found in than next closest
South America competitor
6 Major Categories of Objections

1. The hidden objection

2. The stalling objection
3. The no-need objection
4. The money objection
5. The product objection
6. The source objection
 Overcoming Resistance to Price
• Do not make concessions too quickly
• Increase the “value” of the product
– Long term vs. short term benefits
– Talk about “quality”
– Feel, felt, found
• Eliminate some items
• Find some point of agreement
• “Take it or leave it”
• The best approach… anticipate resistance
 Basic Points to Consider in
Meeting Objections
 Plan for objections, anticipate and forestall
 Handle objections as the arise
- Postponement may cause a negative
mental picture or reaction
 Be positive
 Listen – Request more information
 Negotiation can overcome a condition
 Must uncover hidden objections and
eliminate them
 Answering a Prospect’s Buying Signal
Question with a Question
Buyer Says Salesperson Replies
What’s your price? In what quantity?

What kind of terms do you offer? What kind of terms do you want?

When can you make delivery? When do you want delivery?

What size copier should I buy? What size do you need?

Can I get this special price on orders Would you like to split your shipment?
placed now and next month?
Do you carry 8, 12, 36 and 54 foot Are those the size you commonly use?
pipe?
How large an order must I place to What size order do you have in mind?
receive your best price?
Do you have Model 6400 in stock? Is that the one you like best?
 12 Keys to a Successful Closing
• Think success! Be enthusiastic
• Plan your sales call
• Confirm your prospect’s needs in the approach
• Give a great presentation
• Use trial closes during and after your presentation
• Smoke out a prospect’s real objections
• Overcome real objections
• Use a trial close after overcoming each objection
• Summarize benefits as related to a buyer’s needs
• Use a trial close to confirm Step 9
• Ask for the order and then be quiet
• Leave the door open. Act as a professional
 Sales Strategy
• Mission Statement
• Strategy
• Objectives
– Market Potential
– Sales Forecast
• Tactics
– Organization
– Compensation
– Expenses
– Performance Review and Analysis
 Sales Forecasting Methods
Methods Advantages Disadvantages Best Used
Executive Quick, easy, and simple Subjective For new products
Opinion Lacks analytical rigor
Sales force Relatively simply Salespeople are sometimes When reps are of a high caliber
composite Usually fairly accurate overly optimistic When each rep has a small
Involves those people who are Salespeople may sandbag number of customers
responsible for the results (estimate low) to look better
Time consuming
Survey of Done by those who will buy the Time consuming For new products
buyers product, so accuracy should be High cost When there are a small number of
intentions good. customers
Customer may not cooperate
Trend Objective and inexpensive No consideration for major For established products
projections: Use historical data product or market changes When market factors are
-moving average
Require some statistical predictable
-exponential
smoothing analysis For aggregate company forecasts
-regression analysis

Analysis of Objective Unforeseen changes in the When market factors are stable
market Fairly accurate and simple market can lead to inaccuracy and predictable
factors
Test markets Very accurate Time consuming For new products which do not
Cost require large investments
 Organizational Structure
• Basic Types of Organizations
– Line
– Line and Staff
– Functional
– Horizontal
• Independent Sales Organizations
– Manufacturer’s Reps
– Brokers
– Wholesale Distributors
Buildup Method of Territorial Design
Determine:
2. Call patterns - frequency per account/year
3. Total calls needed in each control group
4. Workload capacity:
Total calls possible per rep per year =
number of daily calls x days selling
4. Tentatively set territorial boundary lines by
combining control units until total calls
needed = total calls possible
5. Modify territories as needed
Breakdown Method of Territorial Design
Determine:
2. Company sales potential
3. Sales potential in each control unit
4. Sales volume expected from each sales
person
4. Tentatively set territorial boundary lines by
combining control units total sales potential
= total sales volume expected
5. Modify territories as needed
Method Advantage Disadvantage Best Used
Straight Provides security and Direct incentive is easily lost if For products that require a lot of
salary stability for reps not administered properly presale and/or post-sale service
Better for directing and Represents a fixed cost For building long-term customer
controlling sales activities relationships
Requires supervision to direct,
Ensures proper treatment control, and evaluate When supervision is available for
of customers new recruits
For new territories
For missionary sales

Straight Provides a strong Difficult to direct and When a strong incentive is

commission incentive supervise sales people needed to attain sales
Sales people have more Customers’ best interests For products that require little
freedom may be ignored presale and/or post-sale service
Acts as a screening Sales people’s earnings may The sale is a one-time sale
method fluctuate widely
Adequate field supervision is not
available
Company is in a weak financial
position
Company uses part-time or
independent sales people

Bonus Added incentive Added cost To encourage above-normal

performance of specific
Can be used for specific May be seen as inequitable if activities
activities - flexible not administered properly
 Salesperson Expense Options
Method Reimbursement Advantages Disadvantages

Salespeople None Simple Reps may not

pay their own No Costs spend enough on
expenses customers
------------------------------------------------------------------------------------------------------------------------
Unlimited All legitimate Flexible and fair, Encourages
payment plan business expenses allows for territory excessive spending
differences
------------------------------------------------------------------------------------------------------------------------
Limited Specific amounts Limited and Inflexible
payment plan $80/Day - Lodging predictable Possibility of
$45/Day - Food switching expenses
$0.26/Mile - Transportation (Sales may resent)
------------------------------------------------------------------------------------------------------------------------
Flat allowance $700 per week Limited and Inflexible
predictable (Sales may resent)
 Output Factors Used as Evaluation Bases
• Sales volume
– In dollars and in units
– By products and customers (or customer groups)
– By mail, telephone, and personal sales calls
• Sales volume as a percentage of:
– Quota
– Market potential (i.e., market share)
• Gross margin by product line, customer group, and
order size
• Orders
– Number of orders
– Average size (dollar volume) of order
– Batting average (orders / calls)
– Number of canceled orders
• Accounts
– Percentage of accounts sold
– Number of new accounts
– Number of lost accounts
– Number of accounts with overdue payment
What is Networking?

NET (noun) WORKING (verb)

- Family - Developing
- Business Associates - Nurturing
- Prospects & Customers
- Relating
- Association Members- Contacting
 Why Networking?
• Grow Your Business
– Expand your number of contacts
– Move contacts to prospects to
customers
• Find a Job
– We are all just “temps”
– 19 of 20 jobs I obtained through
referrals
• Make New Friends
“Mining For Gold!”
(Resources)
 Where Can You
Network?
• Work
• Professional
Associations
• Clubs
• Church
• Theater
• Store
• Elevator?
• Basically anywhere!
 Who’s Out There?

The World = 6.5 Billion People

(2000 Census)
Close Encounters of the
3rd Kind
If you meet 250 people per week, you will
“encounter” nearly 1 million people over
your lifetime!

Types of
Encounters
1st – Sighting
2nd – Evidence10% = 100,000 Contacts
3rd – Contact Average 25 / week
 A Week in My Life
Self-Evaluation Over a Six Week
Period
Average 30 / Week
At Meetings
33%
Chance
Encounters
54%

At Work
13%
 Lessons Learned
• It was a “numbers game”
– I met most people through a “chance
encounter”
– The more people I met, the more
contacts I made
• I “actively” participated in the
process
– Engaged them in a meaningful
conversation
– Exchanged contact information
Case Study – Worst
Case
Tactic # 1 – Scenario
Find a Person
Standing Alone

YOU

Situation & Tactics

- Easy to meet
- They are typically happy to
meet you
- You say, “I see you’re alone
too?”
Case Study – Worst Case
Scenario
Tactic # 2 – Joining a Group

Bar, Buffet or Registration Table

YOU
YOU
YOU

Situation & Tactics

- Wait until they break up and get into a
line
- Get in line and start conversation with
Case Study – Worst Case
Scenario
Tactic # 3 – The Full Frontal
Assault!

Situation & Tactics

- Hard to break into
conversation
YOU
- Stand at perimeter and look
at one
person… get their attention

You say…
- “Hi, I wanted to introduce
myself”
 How to Introduce
Yourself
• Develop an “Elevator Speech”
– 1-2 sentence description of yourself
– A mini-resume vs. talking “benefits”
• Greet them with a hardy
handshake
• Business card etiquette
– Keep your cards in left pocket
– Keep their cards in your right pocket
– Don’t force your card on them
 What to Say Next
• Engage them in a meaningful
conversation
– Ask non-controversial questions
– Practice “active” listening
– Uncover opportunities to be a
“resource”
• Adjusting for different personality
types
– Myers-Briggs Type Indicator (MBTI)
– Four Behavioral Styles
Your “Doodle”
Personality
Boxe
s Triangle
s

Circle
s

Squiggles
 Myers-Briggs Type
Indicator
• Energy Consciousness
(E) Extroversion vs. (I) Introversion
• How people perceive or take in
information
(S) Sensing vs. (N) Intuition
• How people form judgments or
make decisions
(T) Thinking vs. (F) Feeling
• Life management orientation
(J) Judging vs. (P) Perceiving
Four Behavioral Styles
Control
Responsivene
ss
Analytic Driver
al Assertiveness
Ask Tell

Amiable Expressi
ve

Emote
 How to Remember
Names
• Make a conscious effort to
remember their name
– Slow down the process
– Repeat their name in the
conversation
• Use a visual or physical cue
• Play “host”
• Make a note on their business card
– Where you met them
 The Care and Feeding
• Create aof Contacts
contact database
– Microsoft Outlook or ACT, Gold Mine, Etc.
– Keep track of key important details
• Initial Follow-up
– Follow–up within 24 hours
– Mention something unique that you
discussed
• Ask for a Referral – “Continuous
Chain”
• Staying in Touch
– Contact them on a regular basis --- add
“value”
–
 Let’s Network!
Introduce yourself to someone
you don’t know.
Find out the following
information…
1. Name?
2. Where are they from?
3. Favorite hobby?
4. What personality type
are
they (your best guess)?
5. Resources?
- What can they share with you?
- How can you benefit them?
 Key Points on
Networking
• Your success will depend on “who you
know” and “who knows you”
• Meet over 1 million people in your
lifetime, but you need to take an active
role to create meaningful relationships
• Develop networking skills and
techniques
– Attend meetings with a purpose and
strategy
– Develop an “elevator speech”
– Remember names
– Take on the role of “host”
Top 10 Networking “No
10. Nos”
Show up late and make lots of noise while finding a seat.
9. Give everyone a limp handshake.
3. Talk incessantly about yourself and your many accomplishments, and
drop names of important people that you know.
7. Drink excessively… especially shooters!
5. Look furtively around the room trying to locate more important people
to talk to than the person you are talking with at the moment.  
5. Wear inappropriate clothing. Over-dress or under-dress, it's your
choice.
7. Hand out your resume or product brochures and catalogs to everyone
you meet while reciting a deliberate, canned sales pitch.
3. Sit with your fellow employees so you don't have to meet anyone new.
2. Excuse yourself to go to the restroom just before the bill arrives.
And the number one networking "no no" is,
1. Keep calling the person you just met by the wrong name.
 Additional Resources
• New Mexico Directory of
Professional Associations &
Business Organizations
• Networking Opportunities
– Key organizations
– Newspaper “calendars”
• Directories and Lists
• Leads Groups
• Toastmasters
• Books, Articles, Websites, Etc.