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.
2.
3.
4.
Determining the information to be exchanged.
Examining promotional mix alternatives
Evaluating the relative effectiveness of alternatives
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 suppliers 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 suppliers offerings that corresponds with those
needs and can solve those problems.
5. Procreator stage: Selling defines the buyers 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
of Competition
Examples
Provider
Assumed to exist
Sellers
None
Salespeople/drivers
Persuader
Created, awakened
Buyers
Undifferentiated;
slight intensity
New car dealers,
Telemarketers
Prospector
Considered but
inferred
Segmented
Differentiated;
growing
Car insurance
salespeople calling
new car buyers
Problem Solver
Diagnosed; with
attention to
customer input
Participative
Responsive &
counteractive with
increasing
resources
Architectural
Services
Procreator
Mutually defined;
matched with
tailored offering
Coactive
Focused
Salespeople who
design & sell a
system to fit a
buyers
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 organizations effort to develop a longterm, 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
companys order taker or by a distributor representing the
companys 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.
2.
3.
4.
5.
Allowing for two-way interaction
Tailoring of the message
Lack of distraction
Involvement in the decision-process
Source of research information
Disadvantages:
1.
2.
3.
4.
5.
Inconsistent messages
Sales force/management conflict
High cost
Poor reach
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 firms 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.
2.
3.
4.
5.
6.
7.
Review of all target accounts
Review of all cross-functional selling activities or the lack of
them
Review of specific territory objectives including sales to plan
and gross profit to plan, and assigned account objectives.
Knowledge of products, customers, and customer
organizations.
Ability to apply this market knowledge.
Development of favorable attitude as it pertains to that
knowledge and those applied skills.
Required course corrections.