Assignment on Marketing Management

Assignment Topic: Evaluation & Measurement of Personal Selling & It`s Impact to the
Organization.
Introduction:

Personal selling uses in-person interaction to sell products and services. This type of

communication is carried out by sales representatives, who are the personal connection between
a buyer and a company or a company’s products or services. Salespeople not only inform
potential customers about a company’s product or services, they also use their power of
persuasion and remind customers of product characteristics, service agreements, prices, deals,
and much more. In addition to enhancing customer relationships, this type of marketing
communications tool can be a powerful source of customer feedback, as well. Later we’ll cover
marketing alignment with the sales process in greater detail. This section focuses on personal
selling as one possible tool in the promotional mix.

Effective personal selling addresses the buyer’s needs and preferences without making him or
her feel pressured. Good salespeople offer advice, information, and recommendations, and they
can help buyers save money and time during the decision process. The seller should give honest
responses to any questions or objections the buyer has and show that he cares more about
meeting the buyer’s needs than making the sale. Attending to these aspects of personal selling
contributes to a strong, trusting relationship between buyer and seller.

Not every product or service is a good fit for personal selling. It’s an expensive technique
because the proceeds of the person-to-person sales must cover the salary of the sales
representative—on top of all the other costs of doing business. Whether or not a company uses
personal selling as part of its marketing mix depends on its business model. Most often
companies use personal selling when their products or services are highly technical, specialized,
or costly—such as complex software systems, business consulting services, homes, and
automobiles.

Personal selling is also known as face-to-face selling in which one person who is the salesman
tries to convince the customer in buying a product. It is a promotional method by which the
salesperson uses his or her skills and abilities to make a sale.
Personal selling is a face-to-face selling technique by which a salesperson uses his or her
interpersonal skills to persuade a customer in buying a product. The salesperson tries to highlight
various features of the product to convince the customer that it will only add value. However,
getting a customer to buy a product is not the motive behind personal selling every time. Often
companies try to follow this approach with customers to make them aware of a new product.

The company wants to spread awareness about the product for which it adopts a person-to-
person approach. This is because selling involves personal touch, a salesperson knows better
how to pitch a product to the potential customer. Personal selling can take place through two
different channels – through retail and through direct-to-consumer channel. Under the retail
channel, a sales person interacts with potential customers who come on their own to enquire
about a product.

Procedure and Stages of Personal Selling:

The first text to outline the steps in the selling process was published in 1918 by Norval
Hawkins. The basic steps, which have changed only a little since
Watkins first proposed them are
prospecting, qualifying leads, pre approach, approach, need assessment, presentation,
meeting objections, closing the sale and following up.

 Prospecting–Identifying prospects or prospecting occurs when the sales person seeks to identify
leads or prospects (i.e., people who are likely to be in the market for the offer). To identify
prospects, sales representatives might use a variety of sources such as business directories (for
corporate clients), commercial databases or mailing lists or simply look at internal records such
as lists of lapsed customers. The aim of prospecting is to increase the likelihood that sales staff
spend time with potential clients who have an interest in the product or service.
 Qualifying leads–After identifying potential customers, the sales team must determine whether
prospects represent genuine potential customers. This part of the process is known as qualifying
leads or leads who are likely to buy. Qualified leads are those who have a need for the product,
a capacity to pay and a willingness to pay for the product and are willing to be contacted by the
salesperson.
 Pre-approach–Refers to the process of preparing for the presentation. This consists of customer
research, goal planning, scheduling an appointment and any other tasks necessary to prepare
for the sales presentation.
 Approach–Refers to the stage when the salesperson initially meets with the customer. Since first
contact leaves an impression on the buyer, professional conduct, including attire, a handshake,
and eye contact, is advised.
 Need assessment–An important component of the sales presentation is the assessment of the
customer's needs. Salespeople should evaluate the customer based on the need for the product.
Sales representatives typically ask questions designed to reveal the prospective client's current
situation, the source of any problems, the impact of the problems, the benefits of the solution,
the client's prior experience with the brand or the category, the prospect's general level of
interest and readiness to purchase. In the case of corporate clients, it may be necessary to
ascertain any limitations on the prospect's authority to make a purchase (e.g. financial
restrictions).
 Sales presentation–Once the salesperson knows the needs, he or she is ready for the
presentation. Sales representatives often follow the AIDA model, which allows them to lead the
prospect through the standard stages of the purchase decision process. The steps in the AIDA
process are to grab the customer’s Attention, ignite Interest, create Desire, and inspire Action
(AIDA).[21] The salesperson can do this through product demonstrations and presentations that
show the features, advantages and benefits of the product.
 Handling objections–After the presentation, the sales person must be ready to handle any
objections. Customers who are interested will voice their concerns, usually in one of four ways.
They might question the price or value of the product, dismiss the product/service as
inadequate, avoid making a commitment to buy, or refuse because of an unknown factor.
Salespeople should do their best to anticipate objections and respectfully respond to them.
  Closing–When the sales person feels that the prospect is ready, they will seek to gain
commitment and close the sale. If the sales person is unsure about the prospect's readiness to
buy, they might consider using a 'trial close.' The salesperson can use several different
techniques to close the sale; including the ‘alternative close’, the ‘assumptive close’, the
‘summary close’, or the ‘special-offer close’, among others.
 Follow-up–Finally, the salesperson must remember to follow up after the sale has been
concluded. Following up will ensure customer satisfaction and help establish a relationship with
the customer.

Understanding the Abilities of Sales People:

Many agree on a few indispensable skills but otherwise recommend disparate skill sets and
desirable qualities.
While we have some generalized notion of “selling,” contemporary sales organizations have
grown in complexity and have evolved into a roster of functions — such as business
development, closing, account management, and customer success — that require different
specialized skill sets for their respective teams.

To set the tone for the forthcoming ultimate list of sales skills, check out this pro tip from Jeffrey
Gitomer:

The Complete List of Sales Skills & Traits (Over 30+ Examples)

 Relationship-building

The ability to positively engage other people, build long-term relationships, and form mutually
beneficial networks will find frequent use in any salesperson’s workflow. From meeting clients
and gathering referrals to soliciting advice and achieving team objectives, relationship-building
skills enable a salesperson to accomplish tasks easier and make better-informed decisions.
Relationship-building involves trust, rapport, and a genuine desire to help other people.
Relationship-building leads to relationship selling, so don’t think it’s just a bunch of fluff. This
creates opportunities if you play your cards right!     

 Knowing When to Shut Up

That’s right. Shut up and listen! Listening is the best method to understand where clients are
coming from, what their pain points are, and how you can effectively provide solutions for their
challenges. Without listening skills, a sales professional risks compromising other stages in the
sales process such as lead qualification and customer-solution matching.

 Time Management

While selling involves money, something a lot more precious gets exchanged and utilized along
the way — time. Your client’s time is important. So is yours. A salesperson’s ability to optimize
time improves productivity and cost efficiency, creating the environment needed for high
performance. This soft skill coupled with software automation, analytics and other technologies
delivers significant ROI for any business.   

Pro Tip: Become a Google Chrome powerhouse by learning how to use these Chrome

Extensions to maximize sales productivity and efficiency.

 Storytelling

Selling not only requires showing the features of your product but also convincing customers that
these features will solve their problems or will benefit them in some significant way. In most
cases, you need to articulate your message by telling a story that deeply resonates with your
target audience. A lack of baseline communication skills is a glaring red flag for anyone planning
to enter the world of sales.        

 Research/Information Gathering
Accurate information about clients, market trends, rival solutions and other business intelligence
enables a salesperson to make better decisions, engage the right customers better, and close high
value deals while shortening the sales cycle. Your CRM, competitive analysis tools, rival
websites, and social media are great places where you can start your research.

 Critical Thinking/Problem Solving

Having an ocean of data is hardly enough to get you anywhere, however. You still need critical
thinking skills to process information, analyze disparate data, and sift through the heap for
relevant bits of information that will help you formulate solutions for problems your prospects or
your team are experiencing.     

 Affinity with Technology

Tomorrow’s sales professionals must at least be comfortable around digital devices. This makes
it easier to adapt to emerging technological advances in AI, big data, and other fields that will
transform the way organizations run businesses and the way brands engage audiences.

 Collaboration

Sales teams rarely operate as a one-person army. Hence, the ability to align one’s personal goals,
workflows, and schedule with those of others is an important skill for sales professionals. Sales
teams follow a game plan that assigns different roles and requires different outcomes from
members. Most of these roles and outcomes are dependent on each other for collective success.
That means the lack of teamwork and flat leadership will likely lead to unwanted outcomes and
missed objectives.

 Product Knowledge
Inadequate product knowledge is unacceptable in the world of selling. Any sales professional
who goes to the field without having an intimate knowledge of the features, benefits, and
weaknesses of their product will have a hard time creating effective pitches and connecting
customer needs to the best solutions available. Deep and extensive product knowledge is a
prerequisite to high sales performance. In addition, demonstrating that you are a subject matter
expert generates trust among your customers.     

 Strong Knowledge of Common Business Software & Sales Enablement Solutions

Sales ops and sales enablement technology — through products such as CRMs, document

management software, and workplace productivity apps — makes selling easier and more
profitable. Sales professionals should learn how to use the software, platforms and other tools
their organizations use to run operations and engage customers.  

 Business Communication

Your talent at engaging prospects during the sales conversation or articulating a concept can still
be honed for the business landscape. It is imperative that sales professionals learn the best
practices in both oral (e.g., phone calls, presentations, pitches, etc.) and written (e.g., proposals,
memos, referral requests, etc) communications. This will help you become more effective at
connecting with clients and making a positive impact in how they perceive your brand.     

 Client Engagement

Getting along with people and having good communication skills are baseline traits. For high-
performing sales professionals, there is a science and a method for establishing and maintaining
excellent client engagement. For example, there are sales call techniques that can help you build
rapport with a prospect, research methods that will help you glean valuable information about a
customer, and communication techniques that will allow you to nurture long term relationships
with clients.

 Active Listening

There are different levels of listening, but you need to operate at full throttle when it comes to
your customers. Active listening in sales requires focus as well as occasional/follow-up queries.
These allow you not only to glean complete and clear information from your clients but also to
build rapport and demonstrate that you genuinely care about their concerns.

 Conflict Management and Resolution

In sales, expect to encounter regular episodes of complaints, conflicts, and rejections. These
incidents may involve just about anyone, including clients, peers, management and other parties.
Because these can occur at any time, sales professionals need to learn and practice how to
proactively handle objections and manage conflicts. High-performing salespeople have been
known to use these incidents as a platform for converting new leads or an avenue for
demonstrating a workplace solution to management.

 Sales Presentations & Sales Demos

In the beginning, there was PowerPoint. Now you have Prezi, Keynote, and other presentation
software. Whatever tool you use, being good at presenting and public speaking is a great skill to
have in the world of selling. Excellent sales demos & presentations convey subject mastery and
build trust around your brand. For B2B sellers, conducting a lively and compelling demo is also
a requisite skill.
  Social Media & Social Selling

Because social has become a major part of our digital lives, many companies now employ social
media managers to oversee their brand’s online presence. You need not be as technically adept as
these specialists but you need to know your way around social media. For B2B sellers, knowing
the best practices and tricks for engaging prospects on LinkedIn, Twitter, Instagram, and other
networks will help bolster your lead generation and conversion efforts. Role-Critical Skills for
Sales Professionals

 Prospecting
Prospecting helps you fill your customer pipeline with entities that may be interested in your
product. The selling process practically starts at this stage. This skill is a staple across all roles
but is critically important for sales reps.

 Lead Qualification
This skill allows sellers to gather and analyze information about a prospect that will show them
which available solutions or product features directly addresses a prospect’s pain points. It may
also indicate whether there’s a mismatch between your product and the prospect, allowing sellers
to save time by referring the prospect to other solutions providers and focusing on the next lead.

 Contract Negotiation

Selling is easily the art of negotiation. Because of its relevance to any field, negotiation skills
may as well be classified in any of the categories we listed. However, contract negotiation is
especially important for closers, account executives and managers. Contract negotiation involves
establishing a climate where your company and your prospect can set mutual expectations and
benefits.

 Policy Knowledge

Sales directors, managers and other leaders are required to be extensively aware of their
organization’s governance and policy issues. Policies are tied with a company’s vision and its
strategic goals, serving as standards within which sales teams operate.     

 Referral Marketing

Collecting qualified referrals is one excellent way of keeping your pipeline humming with new
leads. This skill is especially important for sales reps.

 Closing Skills
This skill may well represent the essence of selling, encapsulating the moment when a prospect
finally realizes, accepts and buys (literally) the rationale behind your product. Closing sales
deals should be a staple across the sales organization but the task of closing is often assigned to
more senior sales reps and account executives in larger companies.

 Client Nurturing AKA Customer Success

Many businesses realize that making a sale doesn’t necessarily terminate the buyer journey.
Depending on your product or service, you can still offer additional value and generate more
business with existing customers. The trick is to provide VIP treatment and excellent customer
service to your paying customers. While separate customer success departments handle much of
the heavy lifting, some smart sales organizations assign post-sale relationship management tasks
to account managers or customer success leaders.

Top Traits for Sales Professionals

 Self-Motivated/Ambitious
Call it grit or toughness, self-motivated and ambitious sellers can work under pressure, take
rejections gracefully, then bounce back and still beat expectations compared to less motivated
peers.

 Trainable, Coachable, Open to New Ideas

Sales is evolving and sellers who refuse to relinquish outmoded practices will fall by the
wayside. Salespeople must embrace change and be willing to learn new ways of doing things in
order to succeed in the business landscapes of tomorrow.

 Adaptable

Adaptability is a survival mechanism not only in nature but also in the world of sales. Tools have
changed and so have customer demographics. There are new engagement channels to explore.
Smart sales professionals know they need to sail the currents of change to get to their
destinations.

 Sociable

Gone are the days when lone wolves ruled. The workplaces and the sales deals of tomorrow will
be driven by teamwork and collaboration. Smart sellers need to be sociable at all levels.

 Responsible
Top sellers own their mistakes and hold themselves responsible for their performance. They
never make excuses nor point fingers when things don’t happen as expected.

 Goal-Oriented
Excellent sales professionals are motivated by the notion that:

 There’s an ambitious goal to be reached.

 It is an attainable goal.
 Achieving it feels incredible.
 There’s a reward at the finish line.

Given this mindset, these sellers will exert all effort to meet or surpass targets.

Top-notch sales leadership is the driving force behind building highly motivated, goal-oriented
sales reps.

 Empathetic

Successful sellers are almost always buyer-centric. They might be proud of their products but
they’re more concerned about helping customers solve problems. These sellers have well-
developed empathy that enables them to understand where clients are coming from and
determine their pain points.

Issues in Evaluations of Performance:

Performance evaluation means many things to many people. It is a measurement process; it is an
exercise in observation and judgment; it is a feedback process.

It is a control device, which is used by the organization to accomplish its predetermined goals.
Performance refers to an employee’s accomplishment of assigned tasks. Performance means
doing a job effectively and efficiently.

 Job Analysis

The first step in the process of performance appraisal is job analysis.

Defining the job and analyze for making sure that employer and subordinates agree on his or her
duties and job standards.

 Establishing performance standards

The second step in the process of performance appraisal is the setting up of the standards which
will be used to as the base to compare the actual performance of the employees.

This step requires setting the criteria to judge the performance of the employees as successful or
unsuccessful and the degrees of their contribution to the organizational goals and objectives.

The standards set should be clear, easily comprehensible and in measurable terms. In case the
performance of the employee cannot be measured, great care should be taken to describe the
standards.

 Communicating the standards

Once set, it is the responsibility of the management to communicate the standards to all the
employees of the organization.

The employees should be informed, and the standards should be clearly explained to them. This
will help them to understand their roles and to know what exactly is expected from them.

The standards should also be communicated to the appraisers or the evaluators and if required,
the standards can also be modified at this stage itself rendering to the relevant feedback from the
employee or the evaluators.

 Determining the actual performance

The most difficult part of the Performance appraisal process is determining the actual
performance of the employees that is the work done by the employees during the specified
period.

It is a continuous process which involves monitoring the performance throughout the year.

This stage requires the careful selection of the appropriate techniques of measurement, taking
care that personal bias does not affect the outcome of the process and providing assistance rather
than interfering in employees work.

 Matching the actual with the desired performance

The actual performance is matched with the desired or the standard performance. The
comparison tells the deviations in the performance of the employees from the standards set.

The result can show the actual performance being more than the desired performance or, the
actual performance being less than the desired performance depicting a negative deviation in the
organizational performance.

It includes recalling, evaluating and analysis of data related to the employees’ performance.

 Discussing results

The result of the appraisal is communicated and discussed with the employees on a one-to-one
basis. The focus of this discussion is on communication and listening. The results, the problems,
and the possible solutions are discussed with the aim of problem-solving and reaching consensus.

The feedback should be given with a positive attitude as this can have an effect on the
employees’ future performance. The purpose of the meeting should be to solve the problems
faced and motivate the employees to perform better.

 Decision making

The last step of the process is to take decisions which can be taken either to improve the
performance of the employees, take the required corrective actions, or the related HR decisions
like rewards, promotions, demotions, transfers, etc.

Factors Impacting the Performance Evaluation:

Performance appraisal is one business activity that most of employees look forward to. After all,
this is one of the most important factors that drives employees to put in that extra effort in their
job’s day-in and day-out. Performance appraisals are conducted to review the performance of the
employee and decide his/her compensation package according to his/her achievements.
Performance appraisal may not be a very exciting proposition for those employees who have not
performed as per the expectations, but it is nevertheless important as apart from revising the
salary; performance appraisals also help in setting core competencies and future goals for the
employees.

 Performance
The appraisal of an employee is directly dependent on the performance that he has shown over a
period. Every business wants to maximize its profits and depends upon the collective effort of its
employees to achieve it. If certain employees perform up and above the expectations and help the
company to achieve better results, the organization would appreciate their efforts and give them
a raise in their salary. However, employees who have not performed to their full potential and
have not led to any major contribution to the company may not find any such favors from the
organization.
 Teamwork
The way you behave in your office also has a huge impact on the appraisal process. If you are
known as a team player and help your colleagues to improve their performance, it is highly likely
that the organization would recognize your efforts and reward you handsomely. This is one of
the prime reasons that some employees whose performance has not been exceptional still
manage to have a healthy raise in their appraisals. On the other hand, if you are someone who
spreads rumors and negativity in the workplace, there is a possibility that you would have a
tough time during your appraisals.
 Attendance and Punctuality
While it is OK to take a day off occasionally, but frequent absenteeism can hamper your
appraisal. Once you start calling in sick, your managers develop a negative perception which is
hard to shed. Tardiness on your part can also affect your appraisal as an organization put this to
intense scrutiny. Various surveys have found that 'average' employees who have lesser
absenteeism and are punctual get more favors from the managers, and this is one of the important
factors that plays a part during your appraisal.

 Assertiveness/Motivation
Assertiveness and motivation are important characteristics that every organization looks forward
to in their employees. Employees who go about their jobs with vigor and excitement, take
initiatives and show a desire to perform exceptionally are looked upon highly by the managers.
Employees with a positive attitude and self-belief are respected by the organization and are likely
to be rewarded for their efforts.
 Process Knowledge
A friend of mine was disappointed when she came to know that her colleague had been awarded
a higher rating than her, even though she had generated more sales. She was in a dilemma for a
few days before her manager sensed the situation and decided to have a word with her so that
there is no ambiguity. He told her that, the reason she was not able to get a very good rating was
because she lacked process knowledge. Ignorance about your products can hamper your
customer experience besides marring the reputation of your company. When you do not know
enough about your products, it is difficult to convince the customers about the benefits that they
will derive from it.
 Organizational Skills
Organizational skills reflect to your managers that you know how to prioritize your more
important tasks. A well-organized employee is always ready for any additional responsibilities
and the managers can trust him for his ability to get something done. Organizational skill is an
important attribute and plays an important part in the appraisal process.
 Customer Service
If you are someone who has generated a lot of revenue for your company at the cost of your
customer service, then there is a likelihood that your managers would not be able to rely on you,
and your relationship with them would be marked by a trust-deficit. Customer complaints are
crucial for an organization and can also result in a possible disciplinary action being taken
against you.

 Appearance
The way you dress up to office also plays an important part in determining the course of your
appraisal process. Employees who are presentable are more likely to create a positive image in
the minds of managers than employees who are disheveled and do not dress up poorly to office.
 Biased Managers
These factors are disadvantageous for an organization and promote ill-will and negativity in an
organization. Managers sometimes show bias towards employees with whom they have a
friendly relationship as compared to those who are just acquaintances. This creates nepotism and
negativity in the workplace and hampers the morale of hard-working employees.

Personal Selling Impact to the Organization:

Everything you need to know about the importance of personal selling. Personal selling plays a
vital role in promotion of goods and services of an organization.
The importance of the personal selling is three-fold, the benefits which it provides to business,
customer and society.

Personal selling is an important element of promotion mix and an effective promotional tool. The
ultimate objective of producing goods and services is to sell them to the consumers. Sales are the
major source of revenues to a business.

Personal selling helps to draw the attention of the customers quickly to the product design,
features, quality, uses, price, etc. Through their communication skills, the salespersons can
create personal rapport with the customers. This will improve the competitive strength of
the organisation.

 Personal selling offers several advantages over other forms of promotion:

 Personal selling provides a detailed explanation or demonstration of the product. This

capability is especially desirable for complex or new goods and services.
 The sales message can be varied according to the motivations and interests of each
prospective customer. Moreover, when the prospect has questions or raises objections,
the salesperson is there to provide explanations. In contrast, advertising and sales
promotion can respond only to the objections the copywriter thinks are important to
customers.
 Personal selling can be directed only to qualified prospects. Other forms of promotion
include some unavoidable waste because many people in the audience are not prospective
customers.
 Personal selling costs can be controlled by adjusting the size of the sales force (and
resulting expenses) in one-person increments. In contrast, advertising and sales
promotion must often be purchased in fairly large amounts.
 Perhaps the most important advantage is that personal selling is considerably more
effective than other forms of promotion in obtaining a sale and gaining a satisfied
customer.

Importance of Personal Selling:

Personal selling is equally important to the customer as it is for organization. However, the role
of personal selling becomes more important for the illiterate and rural customers, who do not
have many other means of getting product information.

The importance of personal selling to a business organization are:

 Effective Promotional Tool – Personal selling is the most effective tool, which helps in
influencing the prospects about the merits of the product and thereby increasing its sales.
 Flexible Tool – Personal selling is more flexible than other promotional tools such as
advertising and sales promotion. It helps a business personal to change their offer
technique in varying purchase situation.
 Minimizes Wastage of Efforts – Compared to tools of promotion, the possibilities of
wastage of resources in personal selling is minimum, as sales personal are focused on
single or small group of prospects. This helps the business persons in bringing economy
in their efforts.
 Consumer Attention – In case of personal selling, there is an opportunity to detect the
loss of consumer attention and interest during sales. This helps a business person in
successfully completing the sales.
 Personal Rapport – Sales through personal selling develops a rapport between
organization and customer. Development of personal rapport with customer increases the
competitive strength of a business organization.

Conclusions:
Personal selling enables a salesperson to demonstrate a product and tailor the message to the
prospect; it is effective in closing a sale. Professional salespeople are knowledgeable and
creative. They also are familiar with the selling process, which consists of prospecting and
qualifying, approaching customers, presenting and demonstrating the product, handling
objections, closing the sale, and following up on the sale.

Advertising acquaints potential customers with a product and thereby makes personal selling
easier. Personal selling is a face-to-face sales presentation to a prospective customer. Sales jobs
range from salesclerks at clothing stores to engineers with MBAs who design large, complex
systems for manufacturers.