UNIT I1
Introduction to Personal Selling
Personal selling is a distinctive communication form because it is a two-waycommunication that involves social interaction with prospective buyers. It hasbeen the oldest form of marketing that started when peddlers moved from doorto door to sell their products. Personal selling declined during the first quarter of the twentieth century because of heavy demand by the public.
2
Objectives
This unit‘s objectives are to cover the following titles.
1.
Introduction to personal selling 2. Types of selling4. Alternative sales structure 5. Direct marketers6. Mail order selling 7. The selling process8. Selling strategies and styles 9. Formulating sales objectives10. Sales forecasting 11. Estimating market sales potentialsThese titles will enrich
MBA
-Marketing students to be well versed with the twopromotional mix tools personal-selling and direct marketing.
2.1
Definitions of personal selling
1.
Philip Kotler defines personal selling as ―a face
-to-face interaction
with prospective purchasers for the purpose of making sales‖.
2.
Irving J.Shaprio defines personal selling as ―an art of successfully
persuading prospects or customers to buy products or services fromwhich they can derive suitable benefits, thereby increasing their total
satisfaction‖.
3.
―Personal selling is an oral presentation of goods to one or more prospective customers to promote sales‖.
It helps in the transfer of the title a face-to-face interaction between the salesperson and the buyers. The sales people become aware of the problems of thebuyers and suggest suitable products or services to satisfy their wants.
Significance of personal selling
The significance of personal selling are as follows.a)
Personal selling is an important ingredient in the promotion mix.
b)
It has been observed that twenty percent of the sales are affectedthrough personal selling.c)
By personal selling the salesman reaches the prospective buyerswhom other promotional measures cannot reach.d)
Personal selling is flexible, as it can adjust to the immediatereactions of the potential buyers.e)
Feed back of sales efforts is possible in personal selling.f)
Personal selling is the easy way to find the target consumer.
Limitations of personal selling
The limitations of personal selling are as followsa)
Personal selling involves substantial costs of travel, literaturepublication, samples, surveys, management and control.b)
It is less attractive for small companies.c)
Sales people do not take much interest in sales promotion, theywaste their time and shift to otherd)
Personal selling cannot become effective without proper trainingand adequate motivation of sales persons.
Personal selling tools
The common tools used in personal selling are1.
Sales presentations 2. Sales meetings3. Incentive programs 4. Samples5. Fairs and trade shows
Qualities of sales force for personal selling job
Personal selling is not a routine job. It requires special qualities and capabilitiesthose qualities area)
Hard work b) Initiativeb)
Sales techniques and Knowledge
Personal selling process
Pre-salePreparationProspectingand QualifyingPre approach ApproachFollow up andMaintenanceClosing HandlingObjectionsPresentationanddemonstration
a)
Pre-Sale preparation
It involves all the preparations for getting ready for the selling process by thesalesmen. The salesman has to be familiar with the product, the market, thetechniques of selling and organization. He would be successful if he is aware of the unsatisfied needs and problems of the customers. He should prepare himself by knowing himself and his company, competition and market environment.
b)
Prospecting and qualifying
The potential customer is known as a prospect and the method of finding hepotential customer is known as prospecting. Prospecting involves a significantamount of time, effort and money. Although the company will give the leads,the salesmen have to develop their own leads. Leads can be developed in thefollowing ways1.
By analyzing telephone directory.2.
Cold canvassing (Dropping Un Announced).3.
Asking current customers for the names of prospects.4.
Cultivating referral sources such as suppliers, dealers, bankers, noncompeting sales representatives and trade association executives.5.
Joining the organizations to which prospects belong.E.g.:- Lions club, Rotary club etc.6.
Engaging in speaking and writing activities that draw attention.7.
Examining data sources (Newspapers, Directories) in search of names.
c)
Pre approach
It involves finding out the needs, problems, preferences habits, attitudes, natureand interests of the prospects. The salesman can consult standard sources such
as Moody‘s, standard and poor, Dun and Brad sheet etc. The salesman should
set best approach, which might be a personal visit, a phone call, or a letter. Thebest timing should be thought out because many prospects are busy at certaintimes and finally the sales presentation strategies are planned.
d)
Approach
The initial few minutes
of the sales talk are known as the ‗approach‘ to the prospect. The purpose of the talk is to arouse and sustain the customer‘s
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