SALES & MARKETING - Virtual Enterprises International

SALES & MARKETING

TABLE OF CONTENTS

Sales/Marketing Tasks Covered in Orientation:

• Applying for a Job - Task 4

• Create Job Titles and Job Descriptions

• Create Department Workflow Diagrams

TASK 1: IDENTIFY CONSUMER NEED/WRITE A PRODUCT/SERVICE DESCRIPTION ....1

TASK 2: EVALUATE THE VE COMPETITION ......................................................................2

TASK 3: IDENTIFY AND ANALYZE TARGET MARKETS (E5)............................................ 4

TASK 4: ANALYZE ELEMENTS OF THE MARKETING MIX (E7).........................................6

TASK 5: WRITE A CUSTOMER PROFILE (E7).....................................................................8 TASK 6: DEVELOP A PROMOTIONAL STRATEGY...........................................................10

TASK 7: CREATE THE MARKETING STRATEGY OR PLAN (E7) .....................................12

TASK 8: DEVELOP A PROMOTIONAL STRATEGY...........................................................13

TASK 9: DEMONSTRATE PRIMARY PRINCIPLES OF SELLING......................................15

TASK 10: CREATE A SALES PRESENTATION ...................................................................17

TASK 11: USE ADVERTISING ..............................................................................................19

TASK 12: DEVELOP/REFINE PROCEDURES FOR PROCESSING SALES ........................20

TASK 13: CREATE AND/OR REVIEW INVOICE AND INVOICING PROCEDURES .............22

TASK 14: CREATE A SALES CATALOG & ORDER FORM.................................................24

TASK 15: CREATE AN INVENTORY REPORT.....................................................................25

TASK 16: CREATE A MONTHLY SALES REPORT (E12) ....................................................27

TASK 17: ADAPT SALES MATERIALS FOR FOREIGN MARKETS (E15)...........................28

TASK 18: PREPARE FOR TRADE FAIR ACTIVITIES ..........................................................30

TASK 19: PREPARE THE SALES AND MARKETING SECTION OF THE ANNUAL REPORT ..................................................................................32

TASK 20: PREPARE FOR TRANSITION...............................................................................33

VIRTUAL ENTERPRISES, INTERNATIONAL TASK-BASED CURRICULUM “You have to have your heart in the business and the business in your heart.” — Thomas J. Watson

SALES AND MARKETING, page 1 of 33 SALES & MARKETING / TASK 1:

IDENTIFYING CONSUMER NEEDS / WRITING A PRODUCT /

SERVICE DESCRIPTION

VE Departments Involved Sales & Marketing, Entire Staff

Time Frame/Month for Activity September

Outcomes Employees will be able to: Work with others to identify the customer and his/her need or want for our product or service.

Compile a list of all products or services the company sells, or plans to sell using an electronic spreadsheet. Include details about the product such as product description, color, cost, product number, etc.

Distinguish between goods and services. Understand marketing.

Activities/Strategies

Convene a meeting with members of the sales/marketing department: agenda will include: Identifying customers’ needs and wants for our product or service.

Identifying the products we sell, or intend to sell based on customers’ needs and wants. Developing a product description for each product we sell.

Have department members distinguish between goods and services. For new firms, brainstorm as a group the products or services to be offered by your company. For

existing firms, identify the products the company sells. Determine, too, whether the product line needs to be updated or modified.

For each product your company sells or plans to sell, have department members write a product description.

Online Follow-Up

Visit websites of similar companies and review their product descriptions. Direct marketing department employees to research the web for sample product descriptions.

Review and discuss product descriptions used for a similar business.

Materials/Resources

Marketing materials and textbooks Magazines, catalogs and related product materials for reference

Mastery and Assessment

Clearly written product description Listing of products/services Minutes of department meeting



EVALUATING THE VE COMPETITION

VE Departments Involved Sales & Marketing, Administration

Month for Activity/Time Frame October

Outcomes Employees will be able to: Use a company directory (listing all VE firms with competitive information) as a sales tool. Construct a company log based on real data and analysis, listing product offerings, product mix, and

services in a similar industry. Use various research techniques about other VE firms in both the national and international markets,

learn their offerings, product mix (all the different products that a company makes or sells), and services.

Understand the concept of “market share” and determine what market share competitors have with the product or service in a similar industry.

Explain the effects of competition on marketing decisions, especially pricing. Explain how the state of the economy affects marketing decisions. Understand the competitive advantage of the business. Activities/Strategies

Convene a department meeting to discuss the following: The VP will assign these tasks to groups of two in the department. After two days, the VP will reconvene the department to discuss results.

Have students research (through the VE website or through questionnaires via email to other VE firms) other VE firms in the network and assess how their business’ product/service is positioned in the market (positioning is how a business brands itself to consumers). Then have the employees write the strengths and weaknesses of each of the firms studied in the network, and determine how laws or government regulations affect the production and marketing of the product. Employees will then create a critical competitive evaluation form as shown below:

VE Firm Name Direct

Competitor: Yes/No

Special Characteristics

of Business Different from

Yours

Law and Government

Society Strengths /

Weaknesses of this Competitor

Beauty Inside and Out

Yes Sells only natural products/no dyes

in products.

Red dye #5 has been labeled

as possibly cancer causing.

People are more nature-conscious.


SALES AND MARKETING, page 3 of 33 Research real firms offering the same product as yours. Determine their market share (the firm’s

percentage of the total sales volume generated by all competitors in a given market). Businesses constantly study their market share to see how well they are doing with a given product in relation to their competitors.

Research the offerings of competing firms in the VE network. Research three to five other VE firms in the network. Employees will then brainstorm three ways in

which their company can offer a competitive advantage (a benefit that you can deliver to the consumers in your market better than any of your competitors) over the other one. Prepare a table like the one above to include the research results.

For the two companies that appear to be the strongest competitors to your product or service, employees will identify several significant changes in the consumer market that would influence the product planning of these goods.

For the two companies that appear to be the strongest competitor to your VE’s product or service, employees will obtain information about the product/service from sources such as advertising, salespeople, their website, and employees’ own observations about the product/service. Based on the information gathered, employees should be able to answer the following questions:

At what market is this product aimed? How was the product introduced and promoted to its customers? How does this company bring in new customers? What is the products’ relationship to the competition? Why, in your opinion, will this product be successful or unsuccessful? Employees will include all information in a created and maintained company directory to be used as a

sales tool. Students will formulate a system to update the directory. Determine the market share of your VE in relation to your competitors. Present this in a pie chart. Brainstorm what economic risks might affect competition (changes in overall business conditions, such

as the amount or type of competition, changing consumer lifestyles, population changes, limited usefulness or stylishness of some products, product obsolescence, government regulation, inflation or recession).

After all information about competitors is collected and analyzed, department members should make an oral presentation at the next staff meeting about this information.

Online Follow-Up

Go to www.veinternational.org to evaluate other VE firms’ websites and identify possible competitors.

Research offerings of similar businesses in the global business community.

Materials/Resources

VE website Virtual Enterprises U.S. and International directories Advertising and promotional materials of the network


Complete competitive evaluation table. Report on competition and market share. Develop a pie chart showing your market share. Directory of VEs with information about competitors (to be used for sales calls).

www.veinternational.org



IDENTIFYING AND ANALYZING TARGET MARKETS

VE Departments Involved Sales & Marketing


Outcomes Employees will be able to: Use a five-step problem-solving process in order to determine their target market through inquiry and

analysis. Identify their target market in terms of demographics. Identify their target market in terms of psychographics. Identify their target market geographically. Write a report on their findings. Verbally present their findings, and post them electronically.

Activities/Strategies Convene a department meeting to discuss the following points. The VP will assign tasks to members of the department. At a follow-up meeting, the results of findings will be discussed. A meeting agenda and minutes should be prepared for these meetings. Employees will conduct online focus groups with other virtual enterprise participants to generate

information regarding age, gender, shopping patterns, and reasons for buying your product/service. Explain that these items are referred to as demographics (statistics that describe a population in terms of personal characteristics. These include age, gender, income, ethnic background, education, and occupation).

Develop a survey to gather information about consumer buying preferences. (See “Internet Activities,” below, for web sites that have survey samples.)

Employees will conduct market research (send out surveys to other VE firms) in order to determine their target market (the particular group you want to reach) in terms of both demographics and psychographics (involves the study of consumers based on lifestyle and the attitudes and values that shape it), as well as geographics (involves determining the location of potential consumers.) Use the following steps to do so: 1) Identify the Problem, State the Goal

2) Collect the Data, using:

• Primary Resources (e.g., own surveys, panels, experiments, observation)

• Secondary Resources (e.g., company records, libraries, competitors, outside organizations, government reports)

3) Prepare and Analyze Information and Report Results

4) Apply Results to the Problem (e.g., company records, libraries, competitors, outside organizations, government reports).


SALES AND MARKETING, page 5 of 33 Employees will use the survey, along with general and statistical research to create a descriptive profile,

answering questions below regarding the company’s target market: • Why do consumers buy?

• What do consumers buy?

• Where do consumers buy?

• When do consumers buy?

• Who is your consumer?

Employees will present their market survey and survey results to members of the department and the staff. Explain the target market in terms of demographic, psychographic and geographic.

Online Follow-Up

Go to http://www.dobney.com/Research/MR_basics.htm for information about market surveys. Go to www.acnielsen.com or www.arbitron.com to view samples of focus groups and/or market

research surveys. Employees will send surveys to other Virtual Enterprise firms through email or snail mail. Employees will log onto www.bls.gov and then search for the U.S. Bureau of the Census, Current

Population Reports to obtain general demographic information for their report regarding U.S. Population and Projections, segmented by age and ethnic background.

Materials/Resources Marketing Essentials, (New York: Glencoe, 2012).


Market survey and results of survey Statement identifying your target market and why



ANALYZING ELEMENTS OF THE MARKETING MIX:

PRODUCT, PRICE, POSITION, PROMOTION AND PLACEMENT

VE Departments Involved Sales & Marketing, Purchasing, Accounting


Outcomes Employees will be able to: Identify and explain the concept of a “marketing mix” as it relates to their VE. Determine the most successful marketing mix for their product or service. Determine and apply the best method to price their products. Understand how pricing objectives are affected by changes in supply and demand.


Convene a department meeting. The facilitator will lead a discussion about FIVE basic marketing decisions—product, price,

promotion, placement, and position. These are called the “marketing mix.” 1. Product decisions involve what product to make, how to package it, what brand name to use,

and what image to project. (Note: If you are distributing existing named products in your VE, then you must research how products decisions were made by the actual company.)

2. Placement decisions determine how and where a product will be distributed—drugstores, superstores like Costco and Walmart, boutiques.

3. Price decisions should reflect what customers are willing and able to pay and the price of competitor’s products.

4. Positioning decisions determine where your business fits in the market. For example, are you a business designed to meet the needs of individuals on a budget, or a business with access to large sums of money?

5. Promotion decisions deal with how potential customers will be told about the new product: what the message will be, when and where it will be delivered, and what inducements to buy.

For each product that the VE sells, ask participants to determine the marketing mix. Research different pricing methods. Explain that a major factor in determining profitability is any

product is price. You need to find the right price for your target market. • Cost-oriented pricing. Calculate the costs of acquiring or making a product and their expenses

of doing business. Add the projected profit margin to this to arrive at the price.

• Mark-up pricing is used by wholesalers and retailers who are involved in acquiring goods for resale (which is the way VE typically operates). A mark-up is the difference between the price of an item and its cost. It is generally expressed as a percentage. Mark-up must be high enough to cover the expenses of running the business and must include the intended profit.

• Cost-plus pricing. Calculate all costs and expenses, then add the desired profit to arrive at a price. This pricing method is used primarily by manufacturers and service companies.


SALES AND MARKETING, page 7 of 33

• Demand-oriented pricing. Calculates the costs by determining what present consumers are willing to pay for goods and services. Consumers are willing to pay higher prices because they believe an item is different from its competitors.

• Competition-oriented pricing. Calculate the price based on the competitors’ price. Choose a pricing method and determine the prices of the products in the VE.

Use the breakeven point analysis to help determine the price. (You must analyze your costs and expenses in relation to unit and dollar sales in order to determine a price. The break-even point is the point at which revenue equals the costs and expenses of making and distributing a product. After this point is reached, businesses begin to make a profit on the product. To determine the breakeven point, divide the total amount of costs and expenses by the selling price. For example, if a company plans to make 100,000 lamps at $6 each, and the cost of making the lamp is $4.50 per unit or $450,000 for the 100,000 lamps, the formula is: $450,000/$6 = 75,000. The firm must sell 75,000 lamps to break even.)

Prepare price lists. Direct several members of the Sales & Marketing Department to summarize the marketing mix for your

products in a report (which will be used as part of the business plan). Distribute to the entire company.

Online Update Research competitors’ prices (in the VE market and actual companies making your product)

Materials/Resources

International VE directory for international companies found on the VE website VE website to check national competition Marketing Essentials, (New York: Glencoe, 2012)


Marketing mix strategy report (to be used in the business plan) Price lists Agenda and minutes of meeting



WRITING A CUSTOMER PROFILE (BASED ON THE MARKETING MIX)



Outcomes Employees will be able to: Apply the use of the 5Ps of the “marketing mix” for their product or service in relation to their

customer. Analyze how other companies manipulate the 5Ps of the marketing mix to target a different market. Write a descriptive customer profile, using the 5Ps, general and statistical research.


Convene a department meeting to discuss the following: A customer profile provides you with a complete picture of your customer. It includes a customer’s demographic, geographic and psychographic information. Discuss why this information is so important when marketing/selling a product. As a review, brainstorm the type of customer who will be buying your product in terms of demographics (age, salary level, education level, ethnicity, etc.).

The VP of the department will assign the following tasks to department members, then reconvene the group to discuss the findings.

• Compare two competitor VE companies in terms of how each company utilizes the 5Ps of the marketing mix (product, placement, price, positioning and promotion). When the group reconvenes, discuss how the variables of a marketing mix are manipulated to target different markets.

• How does your VE utilize the 5 Ps of the marketing mix? Formulate a descriptive customer profile for your company’s target market. One member of the department will prepare a double-spaced draft report in Word, which summarizes your customer’s profile for each product you sell. (This will be used as part of your marketing plan.) When the group reconvenes, discuss the draft customer profile and elicit suggestions for revision.

• Compare your customer profile with a real company’s customer profile that sells your products. Discuss similarities and differences.

• The Coordinator should emphasize that the success of a business depends on a company satisfying the needs and wants of the customer. Direct the department to brainstorm how each of the products you sell satisfies a person’s needs regarding the various forms of utility (form, time, place, possession, information).

• Brainstorm the threats that are posed by competition, as well as what is missing that may provide a marketing opportunity for your company. Employees then discuss the importance of business ethics, while discussing the importance of gaining competitor intelligence. Explain that threats to your business are considered a business risk, which will be indicated in your business plan.



Online Follow-Up

Go to www.veinternational.org to view competitors’ websites and get information related on how competitors use the “Five Ps” of the marketing mix.

Employees will log onto www.ama.org or www.acnielsen.com to search for a sample marketing plan and note how the customer profile is used in the plan.

Employees can log onto www.ama.org (American Marketing Association) in order to get tips on conducting surveys, market research reports, and presentations.

Materials/Resources

Samples of market surveys Corporate sponsors’ market analysis tools Websites of real companies mirroring the VE Sample marketing plans

Mastery and Assessment Have students complete a final version of a descriptive customer profile for their target customer, based on research using primary and secondary data.


SALES AND MARKETING, page 10 of 33 SALES & MARKETING/TASK 6:

DEVELOPING A PROMOTIONAL STRATEGY

VE Departments Involved Sales & Marketing, Graphics/IT


Outcomes Employees will be able to: Identify various forms of promotion. Develop a promotional strategy or plan (which will become part of the marketing section of the business

plan). Write a press release. Convey their promotional ideas to the Graphics/IT Department.


Employees will conduct a meeting to discuss the role of promotional strategies and promotional activities. • Explain that promotion is any form of communication a business uses to inform, persuade, or

remind people about its products and improve its public image. There are four types of promotion: advertising, publicity, sales promotion, and personal selling.

• Explain the distinction among the different forms of promotion: 1. Advertising is any paid form promotion of ideas, goods, or services by an identified sponsor

or company. See Task 11 for details on using Advertising. 2. Publicity involves placing newsworthy information about a company, product, or person in

the media. The focus of publicity is building an image. Publicity is free; advertising is not. This is done through a press release, a featured article, a captioned photograph, or a press conference.

3. Sales promotion represents all marketing activities other than personal selling, advertising, and publicity that are used to stimulate consumer purchasing and sales effectiveness. It involves short-term activities, incentives to make a purchase, and it can be used with manufacturers, retailers, wholesalers and consumers. Sales promotions can be either consumer oriented or trade (business to business).

4. Personal selling refers to making an oral sales presentation to one or more potential buyers. This is the main responsibility of sales staff.

Note: A company website may cross all promotional platforms. Employees will decide which promotions they will use and in what proportion. Employees will then

write an outline detailing the appropriate promotional mix (the combination of different types of promotion) for the product/service of their business. They should consider the most effective ways of persuading customers or other businesses to purchase and support the businesses’ products and should taking into the account what is being promoted, the nature of the potential customers, the general market conditions, and the funds available.

Before completing this outline, employees should: • Brainstorm the advantages and disadvantages of each. • Research other VE companies within their network to determine what promotional strategies they

have used.


SALES AND MARKETING, page 11 of 33 Department members will develop a sales promotion report for their company. This will be used as part

of the business plan. Before they decide on which promotion to use, they should write their promotional goals.

Create a press release for one of the products in your company. Send it to one of the magazines in the VE network.

For any of the above activities, the marketing department will meet with the Graphics/IT Department to convey their ideas and to launch any or all of the promotional strategies.

Refer to Advertising Age’s website to get ideas of how companies are using promotional techniques. Develop a presentation to the Graphics/IT Department, which can also be delivered at the next staff

meeting. Employees will keep a work log, as well as a file for agendas and for minutes. It is important that

minutes for these meetings be detailed so that the Graphics/IT Department is clearly informed about the details of the discussions.

Online Follow-Up Visit Advertising Age’s website at www.adage.com get an idea of how companies are using promotions

for their products. Employees will explore either company websites within the VE network, or websites containing

information on promotion marketing and links to online new publications and associations related to promotion marketing.

Visit corporate websites (www.pepsi.com, www.cocacola.com, www.snapple.com) that sell products to note the current promotional strategies in use and their press releases. Employees will then report on their findings to the class, describing the techniques used to promote the item.

Materials/Resources Marketing Essentials, (New York: Glencoe, 2012)

Mastery and Assessment Employees will produce: A promotional strategy plan/report. A promotional strategy presentation using PowerPoint. A completed press release.



CREATING THE MARKETING STRATEGY OR PLAN

VE Departments Involved Sales & Marketing, Administration, Layout & Design


Outcomes Employees will be able to: Develop a successful marketing strategy and plan for their product or service. Use research conducted previously and incorporate results into the marketing plan.

Activities/Strategies Convene a meeting of the department to discuss developing a marketing strategy or plan. Distribute a marketing plan from a real company. Have students read it and highlight the main parts of the plan, which might include: A market summary: Review market share, leadership, players, market shifts, costs, pricing, and

competition. A description of the product/service being marketed Competition Packaging Promotion budget Advertising Other promotions International distribution Pricing policies Promotional activities Measuring Success

• Goals

• Measures of success/failure

• Requirements for success

The VP of the department will ask individual members of the department to write specific parts of the marketing plan. After all parts are completed, the VP will convene another meeting to discuss the draft plan, ask for changes, and delegate writing of the final plan. This final marketing plan will become part of the business plan due later this month.

The employees will brainstorm implementation of the plan and discuss with the Layout & Design Department. Employees will create a marketing plan for their VE, based on previously completed research and the items included in the marketing plan of the real company.



Online Follow-Up

Go to www.businessplans.org for sample business plans (which contain marketing plans). Go to www.sba.gov for sample business plans or for other resources needed to start a business.

Materials/Resources Sample marketing plan from similar VE company.


Completed marketing plan Minutes of meeting



WRITING THE SALES & MARKETING SECTION OF THE BUSINESS PLAN

VE Departments Involved Sales & Marketing, Administration (or representatives from the team of employees directing the business plan project)

Month for Activity/Time Frame October/Three Days

Outcomes Employees will prepare the following sections of the business plan: The market. The product or service. The marketing plan.

Activities/Strategies Direct the Sales & Marketing VP to convene a meeting of the department, joined by representatives of the team that will be spearheading the business plan project. Have the employees who are supervising the business plan project identify the sections of the business plan that Sales & Marketing employees must prepare. (The market, product, or service and the marketing plan.) Note: The information needed to prepare these sections of the business plan has already been discussed and identified. (Refer to Sales & Marketing/Tasks 1-7.) Have the VP assign each of the sections to an employee or group of employees. Provide a due date for the work that is consistent with the project leader’s timeline.

Online Follow-Up Go to www.businessplans.org for sample business plans. Go to www.sba.gov for sample business plans and other resources to assist writing these sections of the

business plan.

Materials/Resources

Sample business plan from a similar VE company. Business Plan rubric on VE website.

Mastery and Assessment Completed sections of the business plan.



DEMONSTRATING PRIMARY PRINCIPLES OF SELLING


Month for Activity / Time Frame November and ongoing

Outcomes Employees will be able to: Conduct all three kinds of selling tasks: creative selling, order taking, and sales support. Gather information about their potential customers, regarding their buying needs, earlier buying habits,

and price expectations. Develop personal selling techniques through role-playing.


Convene a department meeting to discuss the following: • What characteristics do you like in salespeople? • What characteristics of salespeople do you dislike? • In what specific ways can salespeople help their customers? • How do you feel about a company that has pleasant, helpful salespeople? • What are the characteristics of successful salespeople? Responses might include:

– Good communication skills – Good interpersonal skills – Solid technical skills – Positive attitude and self-confidence – Empathy – Honesty – Enthusiasm

Elicit what is meant by “selling.” Selling is helping customers make satisfying buying decisions—the kind they will be happy with after the sale. Salespeople accomplish this by communicating how products and their features match customers’ needs and wants.

Explain that it is important for a salesperson to know a product’s features and how they will benefit the customer. Feature-benefit selling is convincing the customer how the product will benefit them—what the product will do for them and what benefits, and personal satisfaction they will derive from using the product.

Ask department members to share their last product purchase and why they bought the item. This will allow you to introduce customer buying motives and the distinction between rational and emotional motives.

At a subsequent meeting(s), direct employees to accomplish the following tasks: • View commercials, infomercials, and advertisements and identify sales techniques. Read a

biography about Mary Kay at http://www.biography.com/articles/Mary-Kay-Ash-197044. Have department members report on what selling techniques were used that helped make the company a success.



• Work in groups to present the eight steps of the selling of their product:

– Pre-approach: Looking for customers and getting ready for the sale.

– Approaching the customer: Actually greeting the customer face to face (or on the phone)

– Determining needs: Learning what the customer is looking for in a good or service in order to decide what products to show and which product features to present first in the next step of the sale.

– Presenting the product: Educating the customer about the product’s features and benefits

– Handling questions and objections: Learning why the customer is reluctant to buy, providing information to remove that uncertainty and helping the customer make a satisfying buying decision.

– Closing the sale: Getting the customer’s positive agreement to buy.

– Suggestion selling: Suggesting that the customer buy additional merchandise or services to save money or better enjoy the original purchase.

– Reassuring and follow-up: Helping a customer feel that he or she has made a wise purchase.

Role-play salesperson and potential customer. Practice overcoming objections in the situation. Practice closing sales.

Develop a sales presentation rating sheet. Employees will list the seven steps of the sale. Employees will rate each other’s role-playing techniques. Employees will write a sales letter, addressing the seven-step selling process.

Online Follow-Up Go to www.allbusiness.com/articles/content/SM_article02.asp or www.entrepreneur.com to learn about sales techniques and sales presentations.


Mastery and Assessment Evaluate role-playing and use evaluation sheet created to assess each member of the department selling technique.



CREATING A SALES PRESENTATION


Month for Activity/Time Frame November and ongoing

Outcomes Employees will be able to: Develop a sales presentation. Utilize selling techniques while giving a sales presentation.


Convene a department meeting to discuss creating a sales presentation slide show. Discuss the following: • What is the objective of the presentation? • Who is the audience?

• Where will it be shown? • When will it be shown?

• What information should be contained in the presentation? • What is the one thing you want your audience to remember most?

After brainstorming the answers to the questions above, write an outline of this presentation. Explain that while sales presentations must influence an audience to buy a product or service, its main objective is to sell. It can, however, also inform, persuade, and entertain.

Develop a script, which is a written narrative of the points listed below. Develop a sales presentation slide show by summarizing the points of information in your script. Use

the written script as notes pages in your presentation.

TIPS • Include a first slide that contains the name of your company, and the company’s logo. The title or first slide

should grab the audience’s attention. • End the presentation with a summary and lasting message. • Confirm the audience’s need for your product. • Include other slides that list a product/service in terms of features and benefits and how your product

addresses a specific need, or solves a specific problem. • Point out the financial benefits to the customer. Compare cost benefits between you and your competitors. • Use enhancements (such as clip art, charts, and graphs) to support the content of slides and the overall

objective of the presentation. • Include a picture, or pictures of the product you are selling, or be able to link to a web site that contains

pictures of the product. • Design your slides so that they are appropriate for your audience. • Develop slide content for selling your product from information found in sales materials and advertisements.


SALES AND MARKETING, page 18 of 33 The members of the department will deliver the slide show at the next staff meeting. This presentation

may be used when members of the department travel to other VEs. Also, slides in this show may be used as part of the business plan presentation.

Online Follow-Up Go to www.canyonranch.com to see a sample web site that can easily be turned into a slide show. Review the features and benefits of using the various services offered on this web site. Employees will also carefully examine how the seven steps of this selling process are used in this sales presentation.

Materials/Resources

Dale Carnegie’s How to Win Friends and Influence People. Employees will write a two-page report on their findings to the class, emphasizing how Carnegie’s concepts used in a sales presentation are beneficial to closing a sale.

Marketing Essentials, (New York: Glencoe, 2012)

Mastery and Assessment Have students create a sales presentation slide show. Use the rubric for Oral Report and Slide Presentation to evaluate the final show.



USING ADVERTISING


Month for Activity/Time Frame November and ongoing

Outcomes Employees will be able to: Identify various forms of advertising media. Develop an effective advertising campaign for their product or service using advertising media. Develop advertising copy for print, audio and visual advertisements in conjunction with an advertising

agency and/or radio advertising company in the VE network.

Activities/Strategies Convene a department meeting to discuss: The various forms of advertising media. Explain that media are agencies, means or instruments used to

convey messages. There are generally three general categories of advertising media: print media, broadcast media and specialty media. Ask employees to identify those they are familiar with. Responses should include: • Print media: magazines, newspaper, direct mail, outdoor • Broadcast: radio and television • Specialty: calendars, pens, pencils, key chains. Note: A company web site is another form of advertising.

Have department members research the cost of each form of media. (They can go to http://library.uww.edu/guides/mediarates.html for some of these rates. They can contact TV and radio networks to find out broadcast rates for TV and radio spots.)

Have department members research the limitations, reach, market penetration of each form of advertising. Have department members decide which form of media works best with your market, budget and

product or service and include this into the Sales & Marketing section of the business plan. Prepare advertising copy for audio, print, and visual advertisements. Work with the Graphics/IT

Department where possible. Use the services of the advertising agencies and/or web radio companies in the VE network to help develop advertising campaigns.

Online Follow-Up

Go to www.adage.com and www.adweek.com to learn how companies are using advertising for their products.

Go to http://clearchanneloutdoor.com/rates/ to check advertising rates.



Research results on media costs Advertising copy Work log



DEVELOPING / REFINING PROCEDURES FOR PROCESSING SALES

VE Departments Involved Accounting and Administration

Month for Activity/Time Frame September/Two Days

Outcomes Employees will: Develop procedures to respond to customers' requests to place orders. Create a workflow diagram that depicts the activities that result when customers place orders.

Activities/Strategies Have the VP of Sales & Marketing convene a meeting of the department. The VPs of accounting and administration should be asked to attend. Direct the VP to have the employees brainstorm and elicit the various methods that customers may use to inform us that they would like to place an order. Possible methods are: e-mail, telephone, U.S. mail, fax. Have the VP elicit from the employees the company procedures to respond to e-mails, telephone calls,

letters and faxes. (Refer to Administration/Task 6.) • Any e-mail, telephone call, letter or fax from a customer should be directed to a sales employee,

in accordance with existing company procedures. • If the sales request is made by telephone, and a sales employee is not available, a message should

be taken, and the caller should be advised that a sales employee will return the call. Have the VP elicit suggestions to determine which sales employee will respond to the sales requests

that are received by the sales department. • How will sales be assigned to sales employees? • By geography (i.e., certain employees assigned to different boroughs, states, etc.)? • By product (i.e., certain products or categories of products are assigned to specific individuals)? • Or by other criteria (i.e., numerical order, randomly, to the person least busy, etc.)?

Have the VP elicit the conditions that must be met before an order can be characterized as a “bona fide” sale. • The customer has communicated his or her request in a method that is deemed acceptable. (Must

the request be in writing?) • Customer information is complete: name, address, U.S. Network Bank account number. • Order information is complete: product is specified, quantity indicated, price is correct. • Credit check: Does this customer owe the company for any past sales?

Have the VP ask the employees to identify the steps to follow if the order is accepted. They should include the following: • Identify who will prepare the invoice. (Refer to Sales & Marketing/Task 11.) • Ensure that the sale is listed in the sales journal. (Refer to Sales & Marketing/Task 14 and

Accounting & Finance/Task 8.) • Ensure that the inventory is available and that the inventory records are updated. (Refer to Sales

& Marketing/Task 13 and Accounting & Finance/Task 15.) If the company does not own the merchandise that the customer has ordered, then the merchandise must be ordered.



• Provide an acknowledgment to the customer. • Send an invoice. • Send a packing slip and “ship” the goods.

Direct the VP to request that the employees prepare a workflow diagram, or diagrams, that depict the procedures for processing sales.

Online Follow-Up Go to microsoft.com and download a packing slip and bill of lading template, which you can customize with your firm’s logo and contact information.

Materials/Resources Sales journal and inventory record. (Refer to the Guide to Keeping Financial Records.)


Procedures for processing sales have been developed. Workflow diagrams depicting the procedures for processing sales have been developed.

www.microsoft.com



CREATING AND / OR REVIEWING INVOICE AND INVOICING PROCEDURES

VE Departments Involved Sales & Marketing, Accounting & Finance, Graphics/IT

Month for Activity/Time Frame October/Two Days

Outcomes Employees will be able to: Create a company invoice. Identify procedures to follow when preparing customers’ invoices.


Have the VP of Sales & Marketing convene a meeting of the department, joined by the VPs of the Accounting & Graphics/IT Departments. • Existing Firms: Instruct the VP to have copies of invoices that were used last year available for

the meeting. • New Firms: Instruct the VP to obtain and provide copies of a sample invoice from the VE

website, an accounting textbook or another source. Ask the VP to elicit a definition of an invoice and to elicit the information that should be contained in

an invoice. An invoice, commonly referred to as a “bill,” is a business form that a supplier prepares when items are shipped to a buyer. An invoice lists the credit terms and the quantity, description, unit price, shipping charges, sales tax (if any) and the total cost of items shipped to the buyer. It may also list the buyer's purchase order number and the method of shipment.

Have the VP explain that once an order has been accepted (Refer to Sales & Marketing/Task 10), an invoice must be prepared and sent to the customer. The preparation of the invoices should be in accordance with a company policy that ensures that: • Only authorized employees prepare invoices. (Invoice templates can be password protected and

contain a field that requires the preparer to identify himself or herself.) • A suitable invoice form is used. (The invoice template has been prepared in collaboration with

Graphics/IT employees.) • An accurate record is maintained of all invoices that are prepared (i.e., all sales made). (After

each invoice is prepared, an entry is made in the monthly sales record.) • The information listed in each invoice is correct. (Someone, besides the preparer checks the

information. The invoice template can be used to calculate the totals, subtotals, sales tax, shipping charges, etc.)

• Each invoice, along with the merchandise and packing slip or bill of lading, is sent to the customer.

• Each department in the firm receives the information necessary to keep their records up to date after each sale. Accounts that are affected and must be updated after each sale include accounts receivable, sales, sales tax (payable), shipping, and inventory.

Direct the VP to have the employees brainstorm about ways to achieve these objectives and then create workflow diagrams that depict these procedures.



Online Follow-Up

• Use the Internet to transmit invoices by e-mail. Go to www.microsoft.com and download an invoice template from Excel. The Graphics/IT

department can customize it with company logo and firm contact information.

Materials/Resources MS Excel invoice templates


Develop a company invoice using an Excel Develop a work flow diagram for invoicing procedures

www.microsoft.com



CREATING A SALES CATALOG AND ORDER FORM

VE Departments Involved Sales & Marketing, Graphics/IT

Month for Activity/Time Frame November and ongoing for sales catalog updates

Outcomes Employees will develop a sales catalog and order form in collaboration with the Graphics/IT Department.


Convene a department meeting to discuss the development (new firms) or redesign (existing firms) of the catalog.

Direct employees to bring in samples of catalogs they receive in the mail. Have department members point out similar elements. Elicit what they like or dislike about the catalog. Explain that a good catalog should include: • Product photos, captions, prices, and an order form. • Lots of color (which tends to increase selling power). • An inside page that describes the company. • Sometimes there is a letter from the president explaining the company’s philosophy. • Work with Graphics/IT Department to assist in the layout and preparation of the sales catalog. • Incorporate the price list and competitive edge data. • Determine the most effective format for the sales catalog and consider distribution costs to other

companies. • Prepare product graphics, data and other information to be included in the catalog and give it to

the Graphics/IT Department. • Decide what information should be contained on an order form. (Use samples as a guide to

developing your own.) Give this information to the Graphics/IT Department.

Online Follow-Up Research company catalog websites to note layouts, fonts, styles, etc. Gather graphics and photos for the sales catalog.

Materials/Resources

Corporate sales catalogs Sample order forms

Mastery/Assessment Finalized catalog with order form



CREATING AN INVENTORY REPORT

VE Departments Involved Sales & Marketing (those responsible for purchasing), Accounting & Finance

Month for Activity/Time Frame November/One Day

Outcomes

Employees will: Identify the procedures to maintain inventory records Prepare an inventory report


Direct the VP of Sales & Marketing to convene a meeting of the department, joined by the VPs of Accounting and those in the Sales and Marketing Department who are responsible for Purchasing. The Accounting VP should bring copies of the inventory records and inventory control form.

Explain to the VP that the company must first acquire the merchandise inventory before it can be shipped to customers. In order to be able to sell to customers, the company can: • Buy merchandise inventory in advance and then sell from inventory. • Buy merchandise inventory on an “as needed” basis (Just-in-Time Inventory System).

Have the VP lead a discussion about how to manage the firm's merchandise inventory. • Elicit the advantages and disadvantages of each method. (Buying inventory in advance ties up

cash. There is pressure on the buyer to know in advance what does and doesn’t sell. Just-in-Time Inventory Systems require that purchases be made more frequently. This method is more time-consuming for the company. Each time a sale is made, the inventory must be purchased first.)

Have the Accounting VP explain that the Accounting Department is responsible for the maintenance of the inventory records. (Refer to Accounting & Finance/Task 15.) He or she can distribute copies of the inventory records and inventory control form so that the employees will see what information is collected for each inventory item. Since the Sales & Marketing department needs up-to-date inventory information before they can complete a sale, they need to have access to inventory information. • Sales employees can obtain this information directly from the accounting department records.

Reports for monitoring purchasing and payment activities are available online by clicking the “Resources” link on your state’s website and selecting “Wholesale Marketplace.” All wholesale inventory purchases must be made on this link as well.

• Sales employees can develop and maintain their own inventory records. In order to do so, they will need to obtain details about the merchandise inventory that is purchased by the firm. These details can be obtained from the accounting department or those in the Sales and Marketing Department who are responsible for purchasing.



Online Follow-Up

Go to the Resources link of the your State’s website and click on the Wholesale Marketplace to purchase inventory.

Go to www.microsoft.com to download inventory record templates. Go to http://www.ehow.com/how_5171378_create-inventory-system.html and

http://www.ehow.com/how_7421869_create-inventory-tracking-system.html to learn more about setting up an inventory system.


Inventory records for each item the firm sells are prepared. An inventory report will be prepared at the appropriate time.

www.microsoft.com



CREATING A MONTHLY SALES REPORT

VE Departments Involved Sales & Marketing, Accounting & Finance

Month for Activity/Time Frame November/One Day

Outcomes

Employees will: Prepare a monthly sales report template. Prepare a monthly sales report.


Direct the VP of Sales & Marketing to convene a meeting of the department, joined by the VP of the accounting department. He or she should have copies of a company invoice available for each employee.

Have the VP explain that it is important to have access to information about company sales. The information must be timely, and provide all the information listed on each invoice, in one document (or report).

Have the VP elicit suggestions about what the report should contain and what software would be appropriate to use to create the report. The VP might ask a member of the department to research sales report templates available from Microsoft and discuss how the template can be modified for the firm.

Explain that Sales reports should be very detailed and include charts that illustrate sales by product, sales by salesperson, etc. See sample sales reports, which can be found below Online Follow Up.

Have the VP assign the preparation of a monthly sales report to an employee or employees and set a due date for each monthly report. A copy of the report should also be provided to the accounting VP.

Online Follow-Up

Go to www.microsoft.com to access a sales report template form, which can then be modified Go to http://www.ehow.com/how_5856357_write-sales-report.html to learn more about preparing a

sales report. Go to http://www.ljzsoft.com/samples.htm to view sample sales reports.

Materials/Resources A sample monthly sales report.


Prepare a monthly sales report form. Prepare a monthly sales report at the appropriate time.

www.microsoft.com



ADAPTING SALES MATERIALS FOR FOREIGN MARKETS


Month for Activity/Time Frame January-February, or prior to any foreign trade fair visitation

Outcomes Employees will be able to: Understand the cultural differences and marketing preferences in the foreign target markets. Adapt sales materials for foreign markets. (Translate ads, flyers and other communications that include

culturally appropriate translations and currency conversion tables.) Use the Orange Pages (the worldwide database of practice firms found on the Resources link of your

State’s website) to research the types of products that are sold in foreign practice firms.


Convene a department meeting to discuss adapting sales materials for foreign markets. Elicit the type of sales/marketing materials that will best appeal to your foreign target markets. Have members of the department obtain foreign ads. When a number of ads have been collected, select

one that the group likes the best. Then have members of the department research the culture of that country. Discuss how the product is featured (how are men and women portrayed, for example). How is the culture of that country reflected in the ad?

Lead a discussion as to why it is important to understand the cultural differences in your foreign target market. Have employees research the cultural differences in the country where materials will be sent. Emphasize the following:

• There is a significant difference among cultures in the treatment of first and last names. Have members of the department research appropriate salutations when corresponding with people from other countries. Employees can review the websites of the VE companies abroad. Note how addresses, phone and fax numbers are indicated.

• Certain cultures view American products differently. For example, Dove soap, which uses a white dove as its logo, is not purchased in Latin American countries because the white dove is a symbol for death.

Seek out individual translators (language teachers), and the Web to help translate ads, flyers, and communications. Advertising should contain few words—graphics and visuals should be heavily used to sell your product.

Demonstrate the use of the Orange Pages and explain how to reach a foreign company. Use currency conversion sites on the Web to translate product prices into foreign currencies. Research articles on global marketing and write a brief report on issues a company should consider

when marketing globally.



Online Follow-Up

Go to Resources link on your State’s website and select the International Directory, which will display the Orange Pages.

Go to http://moneycentral.msn.com/investor/market/currencyconverter.aspx to convert currency. Go to www.freetranslation.com for translation services. Go to www.google.com to research other conversion and translation services.

Materials/Resources Research articles on “Global Marketing.”


Translated sales materials that contain currency conversion tables. Report on issues that a company should consider when marketing globally.



PREPARING FOR TRADE FAIR ACTIVITIES

Note: This activity may be presented before the New York City International Trade Show, typically held in the spring, or it may be presented prior to sending a student to an international trade show in a foreign country.

VE Departments Involved Sales & Marketing, Accounting

Month for Activity/Time Frame February and/or March, or prior to any non-trade show visit

Outcomes Employees will be able to: Understand how to market products at a trade show. Develop pre-trade show strategies. Design a trade show booth.


Convene a meeting of the Sales & Marketing and Graphics/IT Departments to discuss the trade show. Then have members of Sales & Marketing and Graphics/IT give a presentation to the entire staff about the trade show.

Show the video of How to Prepare for a Trade Show (which can be accessed from www.veinternational.org, click on More News and scroll down to the video). Ask meeting participants whether they have attended a trade show (the car show, the flower show).

Discuss the following: • Who typically attends a trade show? • What is the purpose? (Trade shows and conventions are designed to reach wholesalers and

retailers. They provide businesses with opportunities to introduce new products, encourage increased sales of existing products and gain continued company and product support.)

• When do trade shows occur? • Where are trade shows located?

Discuss/brainstorm/review (if video was viewed) the following pre-trade show preparation items. • Identify the show’s objectives.

– Why are you exhibiting? • Determine the theme of your booth.

– Why does design matter? – What is the booth size? Check the National (www.veinternational.org) and New York

(www.veinternational.org/ny websites for trade show information including a floor plan layout of event, including an illustration of the booth with booth dimensions).

• Determine the marketing and promotion items you will need. – What message do you want to convey?

• What roles will each company member play at the show? • How will you measure your results?



www.veinternational.org/ny


SALES AND MARKETING, page 31 of 33 Research trade show booth designs. Then, in conjunction with the Graphics/IT Department, design the

booth. Things to consider: • Be sure your organization’s name is prominently presented. • Be sure graphics can be easily read from 10-20 feet away. • The exhibit theme should easily convey the type of business. • Keep the colors attractive.

Develop a budget for the show in conjunction with the Accounting and Finance Department. Discuss the following before preparing the budget: • Try to reach your market before, during and after the trade show. • The promotional items (giveaways) you will need. • The construction materials you will need. • The cost of the booth.

Online Follow-Up

Go to www.tsea.org for information about trade shows. Go to www.google.com and research trade show booth displays to get ideas for booth design.

Materials/Resources Trade show video.


Design for trade show booth Agenda and minutes

www.tsea.org

www.google.com


SALES AND MARKETING, page 32 of 33 SALES & MARKETING / TASK 19: PREPARING THE SALES & MARKETING

SECTION OF THE ANNUAL REPORT

VE Departments Involved Sales & Marketing, Administration (or representatives from the team of employees directing the annual report project)

Month for Activity/Time Frame May/Three Days

Outcomes Employees will prepare the Sales & Marketing part of the “Management Discussion and Analysis” section of the annual report.


Have the Sales & Marketing VP convene a meeting of the Department to discuss the preparation of the management discussion and analysis section of the annual report. • Have the VP explain that this section will describe the accomplishments of the Department

highlights of the Department’s achievements. Have the VP direct a brainstorming session where employees discuss the achievements of the

Department. These achievements are noteworthy insofar as they enable the company to fulfill its mission (as identified in the company mission statement).

Have the VP assign this task to a group of employees with a due date that is compatible with the timeframe for the annual report project as a whole.

Online Follow Up Employees can view annual reports of companies in similar lines of business. Go to http://www.corporatereport.com/#/casestudies

Materials/Resources

Company mission statement from the company business plan. Business Planning and Annual Report, prepared by Deloitte & Touche for Virtual Enterprises,

International which can be found on the VE website at www.veinternational.org. Click the Resources /Reference files link.

Mastery and Assessment Preparation of the Sales & Marketing “Management Discussion and Analysis” section of the annual report.



SALES AND MARKETING, page 33 of 33 SALES & MARKETING / TASK 20: PREPARE FOR TRANSITION

VE Departments Involved Sales/Marketing

Time Frame/Month for Activity June

Outcomes See Administrative Task 18 for Outcomes, Strategies, etc.

SALES & MARKETING - Virtual Enterprises International

Documents