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Personal selling

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Nisha Jaiswal

Personal selling involves one-on-one communication to sell products or services. It plays a dominant role in industrial firms but a smaller role in other firms. Personal selling differs from other promotions in allowing immediate feedback. When determining the role of personal selling, firms examine alternatives and their effectiveness and cost. Personal selling has evolved from simply providing offerings to collaborating with customers to create customized solutions. It is an important part of relationship marketing and integrated marketing communications.

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Personal Selling
Personal Selling: Scope • Personal Selling involves selling through a person-to-person communications process. • The emphasis placed on personal selling varies from firm to firm depending on a variety of factors, including the nature of the product or service being marketed, size of the organization, and type of the industry. • Personal selling often plays a dominant role in industrial firms, while in other firms its role is minimized. • In an IMC program, personal selling is a partner with, not a substitute for, the other promotional mix elements.
Role of Personal Selling in the IMC Program • Personal selling differs from other forms of communication in that messages flow from a sender(s) to receiver (s) directly (usually face to face). • This direct and interpersonal communication lets the sender immediately receive and evaluate feedback from the receiver. • This communication process, known as dyadic communication, allows for more specific tailoring of the message and more personal communications than do many of the other media discussed.
Determining the role of Personal Selling relative to other promotional program 1. Determining the information to be exchanged. 2. Examining promotional mix alternatives 3. Evaluating the relative effectiveness of alternatives 4. Determining cost-effectiveness
The Nature of Personal Selling To integrate the PS effort into the overall promotional program, we must understand the nature of this tool. Wotruba has identified five distinct stages of personal selling evolution: 1. Provider Stage: Activities are limited to accepting orders for the suppliers available offering and conveying it to buyer. 2. Persuader Stage: Selling involves an attempt to persuade market members to buy the supplier’s offerings. 3. Prospector stage: Activities include seeking out selected buyers who are perceived to have a need for the offering as well as the resources and authority to buy it.
The Nature of Personal Selling: Contd. 4. Problem-solver stage: Selling involves obtaining the participation of buyers to identify their problems, which can be translated into needs, and then presenting a selection from the supplier’s offerings that corresponds with those needs and can solve those problems. 5. Procreator stage: Selling defines the buyer’s problems or needs and their solutions through active buyer-seller collaboration and then creates a market offering uniquely tailored to the customer.
The Stages in the Evolution of Selling Stages Customer Needs Type of Market Nature/Intensity Examples of Competition Provider Assumed to exist Sellers’ None Salespeople/drivers Persuader Created, awakened Buyers’ Undifferentiated; New car dealers, slight intensity Telemarketers Prospector Considered but Segmented Differentiated; Car insurance inferred growing salespeople calling new car buyers Problem Solver Diagnosed; with Participative Responsive & Architectural attention to counteractive with Services customer input increasing resources Procreator Mutually defined; Coactive Focused Salespeople who matched with design & sell a tailored offering system to fit a buyer’s manufacturing facility
Personal Selling Process 1. Locating prospective customers 2. Determining customers’ needs and wants that are not being satisfied 3. Recommending a way to satisfy these needs and wants 4. Demonstrating the capabilities of the firm and its products for providing this satisfaction 5. Closing the sale and taking the order 6. Following up and servicing the account.
Relationship Marketing • It is defined as “an organization’s effort to develop a long- term, cost-effective link with individual customers for mutual benefit.” • Rather than focusing on a short-term sale, the sales rep tries to establish a long-term bond. • Customer Relationship Management (CRM) tools should be used.
Personal Selling Responsibilities Or Types of Sales Jobs • The responsibilities of a salesperson are categorized under different head by different authors. One classification divides this responsibilities into two groups- Service Selling & Developmental Selling. However, the most widely accepted is the one suggested by Anderson, which is as follows 1. Order Taking – Once the initial sale has taken place, the creative seller may be replaced (not physically!) by an order taker, whose role is much more casual. 2. Creative Selling/ Order Getting – Creative selling jobs may require the most skill and preparation. In addition to prospecting, the salesperson must assess the situation, determine the needs to be met, present the capabilities for satisfying these needs, and get an order.
Personal Selling Responsibilities Or Types of Sales Jobs : Contd. 3. Order Supporting – They are not directly involved in selling products but acts as a support staff for the front-line sales personnel. They are of two types: • Missionary Salespeople • Technical Specialists – The missionary reps introduces new products, new promotions and/or new programs, with the actual order to be taken by the company’s order taker or by a distributor representing the company’s goods. e.g. Medical Sales Representatives – Technical Specialists assists the order-oriented salespeople in selling products by providing technical information about the product and technical assistance for installation, design of the product etc.
Buyers’ Likes and Dislikes about Salespeople Likes Dislikes Knowledgeable Unprepared Empathy Uninformed Well-organised Aggressive Promptness Undependability Follow-through Poor follow-through Solutions Presumptuousness (Going beyond what is right or proper) Punctuality Walk-ins Hard-work Compulsive talkers Energetic Problem-avoiders Honesty Lack of personal respect
Advantages & Disadvantages of Personal Selling • Advantages: 1. Allowing for two-way interaction 2. Tailoring of the message 3. Lack of distraction 4. Involvement in the decision-process 5. Source of research information • Disadvantages: 1. Inconsistent messages 2. Sales force/management conflict 3. High cost 4. Poor reach 5. Potential ethical problems
Combining Personal Selling With other Promotional Tools • Combining Personal Selling & Advertising – With specific market situations & communications objectives, the advantages of advertising make it more effective in the early stages of the response hierarchy (e.g. in creating awareness and interest), whereas personal selling is more likely to be used in the later stages (e.g. stimulating trial and getting the order) • Combining Personal Selling & Public Relations – The personal selling agent is often the firm’s best source of public relations. Their personalities, servicing of the account, cooperation, and empathy not only influence sales potential but also reflect on the organizations they represent.
Combining Personal Selling With other Promotional Tools: Contd. • Combining Personal Selling & Direct Marketing – Companies have found that integrating direct marketing, specifically telemarketing, into their field sales operations makes their sales efforts more effective. Many marketers have reduced the cost of sales call and cost of closing the sales by combining telemarketing and sales efforts. • Combining Personal Selling & Sales Promotion – The program elements of sales promotion and personal selling also supports each other. e.g. many of the sales promotions targeted to resellers are presented by the sales force, who will ultimately be responsible for removing or replacing them as well.
Evaluating the Personal Selling Effort • According to Steve Deist and Rick Jhonson, factors to be considered in the Sales-Review process are: 1. Review of all target accounts 2. Review of all cross-functional selling activities or the lack of them 3. Review of specific territory objectives including sales to plan and gross profit to plan, and assigned account objectives. 4. Knowledge of products, customers, and customer organizations. 5. Ability to apply this market knowledge. 6. Development of favorable attitude as it pertains to that knowledge and those applied skills. 7. Required course corrections.

More Related Content

Personal selling

  • 2. Personal Selling: Scope • Personal Selling involves selling through a person-to-person communications process. • The emphasis placed on personal selling varies from firm to firm depending on a variety of factors, including the nature of the product or service being marketed, size of the organization, and type of the industry. • Personal selling often plays a dominant role in industrial firms, while in other firms its role is minimized. • In an IMC program, personal selling is a partner with, not a substitute for, the other promotional mix elements.
  • 3. Role of Personal Selling in the IMC Program • Personal selling differs from other forms of communication in that messages flow from a sender(s) to receiver (s) directly (usually face to face). • This direct and interpersonal communication lets the sender immediately receive and evaluate feedback from the receiver. • This communication process, known as dyadic communication, allows for more specific tailoring of the message and more personal communications than do many of the other media discussed.
  • 4. Determining the role of Personal Selling relative to other promotional program 1. Determining the information to be exchanged. 2. Examining promotional mix alternatives 3. Evaluating the relative effectiveness of alternatives 4. Determining cost-effectiveness
  • 5. The Nature of Personal Selling To integrate the PS effort into the overall promotional program, we must understand the nature of this tool. Wotruba has identified five distinct stages of personal selling evolution: 1. Provider Stage: Activities are limited to accepting orders for the suppliers available offering and conveying it to buyer. 2. Persuader Stage: Selling involves an attempt to persuade market members to buy the supplier’s offerings. 3. Prospector stage: Activities include seeking out selected buyers who are perceived to have a need for the offering as well as the resources and authority to buy it.
  • 6. The Nature of Personal Selling: Contd. 4. Problem-solver stage: Selling involves obtaining the participation of buyers to identify their problems, which can be translated into needs, and then presenting a selection from the supplier’s offerings that corresponds with those needs and can solve those problems. 5. Procreator stage: Selling defines the buyer’s problems or needs and their solutions through active buyer-seller collaboration and then creates a market offering uniquely tailored to the customer.
  • 7. The Stages in the Evolution of Selling Stages Customer Needs Type of Market Nature/Intensity Examples of Competition Provider Assumed to exist Sellers’ None Salespeople/drivers Persuader Created, awakened Buyers’ Undifferentiated; New car dealers, slight intensity Telemarketers Prospector Considered but Segmented Differentiated; Car insurance inferred growing salespeople calling new car buyers Problem Solver Diagnosed; with Participative Responsive & Architectural attention to counteractive with Services customer input increasing resources Procreator Mutually defined; Coactive Focused Salespeople who matched with design & sell a tailored offering system to fit a buyer’s manufacturing facility
  • 8. Personal Selling Process 1. Locating prospective customers 2. Determining customers’ needs and wants that are not being satisfied 3. Recommending a way to satisfy these needs and wants 4. Demonstrating the capabilities of the firm and its products for providing this satisfaction 5. Closing the sale and taking the order 6. Following up and servicing the account.
  • 9. Relationship Marketing • It is defined as “an organization’s effort to develop a long- term, cost-effective link with individual customers for mutual benefit.” • Rather than focusing on a short-term sale, the sales rep tries to establish a long-term bond. • Customer Relationship Management (CRM) tools should be used.
  • 10. Personal Selling Responsibilities Or Types of Sales Jobs • The responsibilities of a salesperson are categorized under different head by different authors. One classification divides this responsibilities into two groups- Service Selling & Developmental Selling. However, the most widely accepted is the one suggested by Anderson, which is as follows 1. Order Taking – Once the initial sale has taken place, the creative seller may be replaced (not physically!) by an order taker, whose role is much more casual. 2. Creative Selling/ Order Getting – Creative selling jobs may require the most skill and preparation. In addition to prospecting, the salesperson must assess the situation, determine the needs to be met, present the capabilities for satisfying these needs, and get an order.
  • 11. Personal Selling Responsibilities Or Types of Sales Jobs : Contd. 3. Order Supporting – They are not directly involved in selling products but acts as a support staff for the front-line sales personnel. They are of two types: • Missionary Salespeople • Technical Specialists – The missionary reps introduces new products, new promotions and/or new programs, with the actual order to be taken by the company’s order taker or by a distributor representing the company’s goods. e.g. Medical Sales Representatives – Technical Specialists assists the order-oriented salespeople in selling products by providing technical information about the product and technical assistance for installation, design of the product etc.
  • 12. Buyers’ Likes and Dislikes about Salespeople Likes Dislikes Knowledgeable Unprepared Empathy Uninformed Well-organised Aggressive Promptness Undependability Follow-through Poor follow-through Solutions Presumptuousness (Going beyond what is right or proper) Punctuality Walk-ins Hard-work Compulsive talkers Energetic Problem-avoiders Honesty Lack of personal respect
  • 13. Advantages & Disadvantages of Personal Selling • Advantages: 1. Allowing for two-way interaction 2. Tailoring of the message 3. Lack of distraction 4. Involvement in the decision-process 5. Source of research information • Disadvantages: 1. Inconsistent messages 2. Sales force/management conflict 3. High cost 4. Poor reach 5. Potential ethical problems
  • 14. Combining Personal Selling With other Promotional Tools • Combining Personal Selling & Advertising – With specific market situations & communications objectives, the advantages of advertising make it more effective in the early stages of the response hierarchy (e.g. in creating awareness and interest), whereas personal selling is more likely to be used in the later stages (e.g. stimulating trial and getting the order) • Combining Personal Selling & Public Relations – The personal selling agent is often the firm’s best source of public relations. Their personalities, servicing of the account, cooperation, and empathy not only influence sales potential but also reflect on the organizations they represent.
  • 15. Combining Personal Selling With other Promotional Tools: Contd. • Combining Personal Selling & Direct Marketing – Companies have found that integrating direct marketing, specifically telemarketing, into their field sales operations makes their sales efforts more effective. Many marketers have reduced the cost of sales call and cost of closing the sales by combining telemarketing and sales efforts. • Combining Personal Selling & Sales Promotion – The program elements of sales promotion and personal selling also supports each other. e.g. many of the sales promotions targeted to resellers are presented by the sales force, who will ultimately be responsible for removing or replacing them as well.
  • 16. Evaluating the Personal Selling Effort • According to Steve Deist and Rick Jhonson, factors to be considered in the Sales-Review process are: 1. Review of all target accounts 2. Review of all cross-functional selling activities or the lack of them 3. Review of specific territory objectives including sales to plan and gross profit to plan, and assigned account objectives. 4. Knowledge of products, customers, and customer organizations. 5. Ability to apply this market knowledge. 6. Development of favorable attitude as it pertains to that knowledge and those applied skills. 7. Required course corrections.