PERSONAL SELLING LAB

Personal selling is a promotional method in which one party (e.g., salesperson) uses skills and techniques
for building personal relationships with another party (e.g., those involved in a purchase decision) that
results in both parties obtaining value. In most cases the “value” for the salesperson is realized through the
financial rewards of the sale while the customer’s “value” is realized from the benefits obtained by
consuming the product. However, getting a customer to purchase a product is not always the objective of
personal selling. For instance, selling may be used for the purpose of simply delivering information.
Because selling involves personal contact, this promotional method often occurs through face-to-face
meetings or via a telephone conversation, though newer technologies allow contact to take place over the
Internet including using video conferencing or text messaging (e.g., online chat).

Among marketing jobs, more are employed in sales positions than any other marketing-related occupation.
In the U.S. alone, the U.S. Department of Labor estimates that nearly 14 million or about 11% of the overall
labour force are directly involved in selling and sales-related positions. Worldwide this figure may be closer
to 100 million. Yet these figures vastly under-estimate the number of people who are actively engaged in
some aspect of selling as part of their normal job responsibilities. While millions of people can easily be
seen as holding sales jobs, the promotional techniques used in selling are also part of the day-to-day
activities of many who are usually not directly associated with selling. For instance, top corporate executives
whose job title is CEO or COO are continually selling their company to major customers, stock investors,
government officials and many other stakeholders. The techniques they employ to gain benefits for their
company are the same used by the front-line salesperson to sell to a small customer. Consequently, our
discussion of the promotional value of personal selling has implications beyond marketing and sales
departments.

OBJECTIVES OF PERSONAL SELLING:

Personal selling is used to meet the five objectives of promotion in the following ways:

 Building Product Awareness– A common task of salespeople, especially when selling in business
markets, is to educate customers on new product offerings. In fact, salespeople serve a major role at
industry trades shows where they discuss products with show attendees. But building awareness using
personal selling is also important in consumer markets. As we will discuss, the advent of controlled
 word-of-mouth marketing is leading to personal selling becoming a useful mechanism for introducing
consumers to new products.
 Creating Interest– The fact that personal selling involves person-to-person communication makes it
a natural method for getting customers to experience a product for the first time. In fact, creating interest
goes hand-in-hand with building product awareness as sales professionals can often accomplish both
objectives during the first encounter with a potential customer.
 Providing Information– When salespeople engage customers a large part of the conversation
focuses on product information. Marketing organizations provide their sales staff with large amounts of
sales support including brochures, research reports, computer programs and many other forms of
informational material.
 Stimulating Demand– By far, the most important objective of personal selling is to convince
customers to make a purchase.
 Reinforcing the Brand– Most personal selling is intended to build long-term relationships with
customers. A strong relationship can only be built over time and requires regular communication with a
customer. Meeting with customers on a regular basis allows salespeople to repeatedly discuss their
company’s products and by doing so helps strengthen customers’ knowledge of what the company has to
offer.
ADVANTAGES OF PERSONAL SELLING:
One key advantage personal selling has over other promotional methods is that it is a two-way form of
communication. In selling situations the message sender (e.g., salesperson) can adjust the message as they
gain feedback from message receivers (e.g., customer). So if a customer does not understand the initial
message (e.g., doesn’t fully understand how the product works) the salesperson can make adjustments to
address questions or concerns. Many non-personal forms of promotion, such as a radio advertisement, are
inflexible, at least in the short-term, and cannot be easily adjusted to address audience questions.

The interactive nature of personal selling also makes it the most effective promotional method for building
relationships with customers, particularly in the business-to-business market. This is especially important for
companies that either sell expensive products or sell lower cost but high volume products (i.e., buyer must
purchase in large quantities) that rely heavily on customers making repeat purchases. Because such
purchases may take a considerable amount of time to complete and may involve the input of many people at
the purchasing company (i.e., buying center), sales success often requires the marketer develop and maintain
strong relationships with members of the purchasing company.

Finally, personal selling is the most practical promotional option for reaching customers who are not easily
reached through other methods. The best example is in selling to the business market where, compared to
the consumer market, advertising, public relations and sales promotions are often not well received.

DISADVANTAGES OF PERSONAL SELLING:

Possibly the biggest disadvantage of selling is the degree to which this promotional method is
misunderstood. Most people have had some bad experiences with salespeople who they perceived were
overly aggressive or even downright annoying. While there are certainly many salespeople who fall into this
category, the truth is salespeople are most successful when they focus their efforts on satisfying customers
over the long term and not focusing own their own selfish interests.

A second disadvantage of personal selling is the high cost in maintaining this type of promotional effort.
Costs incurred in personal selling include:
 High cost-per-action (CPA)– As noted in the Promotion Decisions tutorial, CPA can be an
important measure of the success of promotion spending. Since personal selling involves person-to-
person contact, the money spent to support a sales staff (i.e., sales force) can be steep. For instance, in
some industries it costs well over (US) $300 each time a salesperson contacts a potential customer. This
cost is incurred whether a sale is made or not! These costs include compensation (e.g., salary,
commission, bonus), providing sales support materials, allowances for entertainment spending, office
supplies, telecommunication and much more. With such high cost for maintaining a sales force, selling is
often not a practical option for selling products that do not generate a large amount of revenue.
 Training Costs– Most forms of personal selling require the sales staff be extensively trained on
product knowledge, industry information and selling skills. For companies that require their salespeople
attend formal training programs, the cost of training can be quite high and include such expenses as
travel, hotel, meals, and training equipment while also paying the trainees’ salaries while they attend.
A third disadvantage is that personal selling is not for everyone. Job turnover in sales is often much higher
than other marketing positions. For companies that assign salespeople to handle certain customer groups
(e.g., geographic territory), turnover may leave a company without representation in a customer group for an
extended period of time while the company recruits and trains a replacement.

TYPES OF PERSONAL SELLING ROLES:

As we noted above, worldwide millions of people have careers that fit in the personal selling category.
However, the actual functions carried out by someone in sales may be quite different. In general there are
four major types of selling roles:

 Order Getters
 Order Takers
 Order Influencers
 Sales Support
TRENDS IN SELLING:
While the basic premise of personal selling, building relationships, has not changed much in the last 50
years, there are a number of developments that are impacting this method of promotion including:

 Controlled Word of Mouth

 Customer Information Sharing
 Mobile and Web Computing
 Electronic Sales Presentations
 Electronic Sales Training
 Use of Customer Teams

THE 8 STEP PERSONAL SELLING PROCESS:

Personal selling is the most expensive form of advertising and to be effective one should use a step by step
process to gain the most benefit. Personal selling can adjust the manner in which facts are communicated
and can consider factors such as culture and behaviour in the approach. They can ask questions to discover
the specific need of the customer and can get feedback and adjust the presentation as it progresses.
The Personal Selling Process
The personal selling process is a consecutive series of activities conducted by the salesperson, the lead to a
prospect taking the desired action of buying a product or service and finish with a follow-up contact to
ensure purchase satisfaction.
Step One: Prospecting
Prospecting – the first step in the personal selling process
The process of looking for and checking leads is called prospecting or determining which firms or
individuals could become customers.
Up to 20% of a firm’s customer base can be lost for reasons such as transfer, death, retirement, takeovers,
dissatisfaction with the company and competition. A steadily growing list of qualified prospects is important
for reaching the sales targets.
Qualifying a prospect: A lead is a name on a list. It only becomes a prospect if it is determined that the
person or company can benefit from the service or product offered. A qualified prospect has a need, can
benefit from the product and has the authority to make the decision.

Step Two: The Pre-approach

This stage involves the collecting of as much relevant information as possible prior to the sales presentation.
The pre-approach investigation is carried out on new customers but also on regular customers. Systematic
collection of information requires a decision about applicability, usefulness and how to organise the
information for easy access and effective use.

Step Three: The Approach

The salesperson should always focus on the benefits for the customer. This is done by using the product’s
features and advantages. This is known as the FAB technique (Features, Advantages and Benefits).
* Features: Refers to the physical characteristics such as size, taste etc.
* Advantages: Refers to the performance provided by the physical characteristics e.g. it does not stain.
* Benefits: Refers to the benefits for the prospect. E.g. Saves you 20% on replacement cost.

Step Four: The Sales Presentation

After the prospects interest has been grasped, the sales presentation is delivered. This involves a “persuasive
vocal and visual explanation of a business proposition”. It should be done in a relaxed atmosphere to
encourage the prospect to share information in order to establish requirements. Some small talk may be
necessary to reduce tension but the purpose always remains business.

Step Five: The Trial Close

The trial close is a part of the presentation and is an important step in the selling process. Known as a
temperature question – technique to establish the attitude of the prospect towards the presentation and the
product.

Step Six: Handling Objections

Objections are often indications of interest by the prospect and should not be viewed with misgiving by
salespeople. The prospect is in fact requesting additional information to help him to justify a decision to buy.
The prospect may not be fully convinced and the issues raised are thus very important. It also assists the
salesperson to establish exactly what is on the prospect’s mind.
Step Seven: Closing the Sale
This is the last part of the presentation. Many salespeople fear the closing of a sale. Closing a sale is only the
confirmation of an understanding. Fear will disappear if the salesperson truly believes that the prospect will
enjoy benefits after the purchase of the product.

Step Eight: The Follow-up

The sale does not complete the selling process. Follow-up activities are very important and are useful for the
establishment of long-term business relationships. It is important to check if the products have been received
in good condition, to establish the customer is satisfied etc.

AIDA COMMUNICATION MODEL:

ATTENTION, INTEREST, DESIRE & ACTION
AIDA is a communication model used by firms to help them sell their products and services. AIDA is an
acronym for Attention, Interest, Desire, Action.

Attention
When a product is launched the
first goal is to grab attention.
Firms spend millions thinking
about how to grab attention for
their product. The method used
to gain attention will depend on
the product, options include
sponsorship, hospitality events
and large promotion campaigns.
If the product is a gadget or
technology a firm may decide to
showcase it at a technology
exhibition for example E3 the
annual video game conference
show which is visited by
journalists and technology industry professionals. If the product is trendy and fashionable the firm may ask a
celebrity who will appeal to the target market to endorse it.

Interest
Once you have secured people’s attention, the next job is to hold their interest. This is done by promoting
product features and clearly stating the benefit the product has to offer. The aim at this stage is to provide
the customer with information that will move them to the next stage of the process, desire.

Desire
The third stage is desire; at this point you want the information (interest) customers have about your product
to create a desire to have your product. A unique selling point will help customers desire it over competitor
products. If your product is a trend setter, the latest “must have” product, buzz marketing will help create a
strong desire.

Action
The final stage is the purchase action, if a company has been successful with its AIDA strategy then
customers will purchase its products. The task at this stage is to help the purchase action by making it as
simple as possible. For example by offering a range of payment options and avenues e.g. Credit card,
cheque, via high street shops and through the internet.
Ex.: AIDA MODEL FOR
ADVERTISING:

ADDITIONAL “S-
SATISFACTION” IN THE AIDA
MODEL:

THE 15 CHARACTERISTICS
OF SUCCESSFUL
SALESPEOPLE:
 

If you’ve ever been involved with

sales, then you know that it’s not for
the faint of heart. Whether it’s
selling a pair of sneakers at a store, a
new heating system to homeowners
or pitching a start-up to investors,
making that sale depends on the
appearance, knowledge and enthusiasm of the salesperson. Quite frankly, not all of us have those
characteristics in us. There is a saying that salesmen are born,
not taught. Well, not exactly. Undoubtedly, there is natural
talent, but can you can learn these characteristics and be just as
successful? Yes!

A true salesperson has the following characteristics that they

use consistently to succeed in making those important sales.
1. Conscientiousness   
In 1993, the American Psychological Association published a report that found the most successful sales
reps were “conscientious.” This trait is found in people who take great pride in their work, are organized and
efficient. But, if you are not organized and efficient, you can learn to be. Conscientious also means you keep
going in your job, no matter what.

2. Respectful
Founder of Searchmetrics, Marcus Tober, states that “our top sales reps respect our customers’ time above
all else. You have to make sure that your customers and potential customers are treated like gold.” Part of
doing this is making sure that they have time and you schedule time for work. People want the bottom line.
Old tactics don’t work. People are busy, respect their time above all.

3. Initiative
Sales reps don’t wait for orders. They’re go-getters and take matters into their own hands. Being disciplined
like this helps salesmen to stay on track. If something has to be sold, there is a way to do it. The salesman
will do what it takes to sell the product. Learn to like the product better, compliment where appropriate
(even if they hate it at first), learn how to mirror to connect, then actually care about the connection.

4. They listen
American Express’ OPEN Forum says that the best sales people ask their clients and customers “why they
want something done.” When you listen to your clients/customers, you find out what they want and need,
and how to make that happen. If you don’t know exactly how to make happen what your client has asked
for, be absolutely sure that there is a way. You just haven’t found it, yet.

5. Persistent
You have to have thick-skin to be a salesperson. Why? Because you’re going to become very familiar with
the word “no.” You have to be confident and persistent if you want to remain involved with sales. The
public is done with the hard sell. However, the average person is not done with extreme kindness, even if
you are irritating. “Hello, yes, I’m calling you back because I know you didn’t mean to hang up on me.”

6. Coachable
According to Mark Roberge from HubSpot, experience isn’t nearly as important as coachability for
predicting successful reps. Being energetic, willing to learn and having the ability to adapt are all a part of
being “coachable.” Coachable means an early adopter of the suggestion. If you are asked to do things in a
certain way, do it that way, even if it’s something you have always done a different way. Brainstorm in your
one-on-one with you coach.

7. Positive
Who would you rather make a purchase from? The upbeat go-getter or the depressed downer? Having a
positive attitude and being cheerful makes it easier to approach customers and keep their attention until after
you’ve made the sale. This positive attitude exudes from a person. If you’ve got a really bad scene going on
at home, stuff it! I mean, stuff it! Learn to compartmentalize the aspects of your life. Your work life is
positive. Try some psychology, smile, jump up and down, breathe, do what you have to, to be positive.

8. Resourceful
The true salesmen are able to shift gears if a sale isn’t going the way that they envisioned. Instead of just
taking “no” as an answer, they will attempt a different approach by using their creativity and imagination.
Remember though, you have to make it snappy and switch quickly. Learn to read faces. If your approach has
not worked within two minutes, change. Have your twists and turns ready. If you have to practice them at
home so that you are natural.

9. Passionate
A top-notch salesperson actually enjoys their job. If you hate it, change or get out. Most importantly,
the salesman will be passionate about the products or services that they’re selling. If they’re on board
with a brand’ message, they can excitedly share that vision with prospective clients and customers.
Happy, positive, love it, passionate.

10. Ask questions

Searcy states that there is data that has discovered “that the higher-performing sales representatives ask more
questions–often more than twice as many.” But, these salespeople don’t ask questions that focus solely on
data. They want to know what the implications are. I have personally found that the questions I ask are not
about the product. The client got what you are selling your first time around. Don’t drone on. This client has
something to say. What is it? They have a Zen garden at home? You learn to love the Zen garden quickly
and ask more.

11. Independent
Since most salespeople work on a commission, they have to be independent and will take the correct
measures in making this a reality. The boss doesn’t have to be there to make sure the work gets done. The
salesman is a self-motivator. The independent salesperson can build themselves up to do more. They can pat
themselves on the back and appreciate their own greatness. Most independent salespeople do not have to be
thanked for each call or sales, they know how to say, “Good job, me!”

12. Time managers

Here’s a simple equation: more selling time increases sales and compensation. The best salespeople manage
their time effectively, such as finding the best routes from location to location, so that they have more
opportunities and time to spend securing a sale. If one place or person takes too long, or longer than
expected, the time manager makes up for it somewhere else.
13. Overachieve
Author and sales expert Grant Cardone informed OPEN FORUM that salespeople should “over commit and
over-deliver.” You have to go above and beyond. True salespeople don’t know when to stop and typically
are pushing for more. More people, more clients, more work, more money… just more. The quality more.

14. Personable
A great salesperson has no problem getting along with others. And, most importantly, they enjoy meeting
new people and realize the power of networking. It’s not surprising to see salespeople involved with so
many local events and organizations. Most sales people love people, and it shows. They are energized by
people. They go home and can hardly sleep after an event.

15. Alertness
Salespeople are always prepared. They have to be ready for any situation that they’re thrown into and know
how to successfully break free. The salesperson is aware of herself and her body. If she is not alert, she has
felt it coming on and taken care of it. Caffeine up, run up and down the block or eat less, they do whatever it
takes. Alertness is key to so many of the principles of being a great salesperson.