Meaning of Persona) Selling Nature of Personal Selling Objectives of Personal Selling personal Selling in the Marketing _ importance of Persona} Selling Distinction between Advertising a Approaches to Selling Types of Personal Selling Situations ang Selling Jobs Characteristics of a Successful Salesman AIDAS Theory of Selling id Personal Sating Summary e Test Questions °Advertising and Person, al Under the traditional production-orientation approach, business nr, Products that could be made economically and easily. They engaged in Sellin, ear, as an afterthought. The focus was on the product which was conceived ang alg! in isolation from the market place. This traditional relationship between the Slant traffic as shown in Fig. 7.1. Produc! and the consumer was a one-way Personal poducer, ee a Prod Selling “yes Fig. 7.1. The Old Concept of Marketing. ” 7.4 Under the old concept of marketing the consumer was essentially the recipient of a producer's creation rather than an active participant in the Prowte Product development. Henry Ford of USA exemplified this concept by Tefusin® or offer his Model T car in any colour but black so as to ensure economies of eft Sales management in this concept plays a limited role of finding buyers a Produet. Selling was an auxiliary function to production. This concept mi Successed in a seller's market or when the firm enjoyed a virtual monopols ee a free market and competitive economy, customer-oriented marketing Cone hh became necessary. The focus shifted from the product to the satisfaction of consume needs and wants. er Under the new concept, the premium is on sales management's ability to fdent, sell and service prospects. Sales management became an active and Prominey. Participant in the firm's managerial decision-making process. Business firme now create products for markets not markets for-products. The sales function provides an organisation with its most vital link to the marke. place. It connects the marketing system with the customers the business servee and from which it derives its ability to survive and grow. “In a well-conceived and executed. sales management programme, both sides benefit in the long run. The sales function attunes the seller to the buyer’s needs and shows the buyer that the seller is able to and willing to satisfy them.”! Personal selling is the oldest form of selling, In good old days peddlers moved from door-to-door to sell their products. They used to carry the goods on their heads. Gradually, they started moving in carvans and began to sell goods on credit. These travelling merchants were later on replaced by local merchants, and fairs, But their main function was physical distribution not personal selling. With the introduction of the modern factory system goods began to be produced on a mass scale. Mass production necessitated mass distribution, Advertising gaincd significance. But personal selling continues to be necessary for a complete job of selling. 7.1 Meaning of Personal Selling Personal selling is the oldest and the most effective method of selling, It involves direct and personal contact of the seller or his representative with the buyer. It Practices and Cases, 1987, p. 4. Eugene M. Johnson, et al., Sales Management: Concepts,J production to Personal Selling ee e-to-face communicati, eans fac nication betw, re meat jons of personal selling are given pe buyer and the seller, So ‘ ‘ : . Some popul: sonal selling basically is Popular ai our ideas, and anes Jead taney Persuading somebody either to + i er personal selling is the science of Seer we desire. “— Cyn Huson : in mn , one customers 2 desire that only possession of your eee of your prospective satisfy. —D.D. Couch personal selling is the ability to persuade people to buy good: Is or services at a oft to the seller and benefit to the buyer. — National Associatio n of Marketi personal selling is the process whereby the ae ee eee aires needs or wants of the buyer and satisfies the ey oe mntinuous advantage of both the buyer and the seller. ce cL / —C.A. Pederson and M.D. Wri personal selling consists of wining the buyer's confidence for ei and goods, thereby winning a regular and permanent customer. — Garfield Blake Personal selling is the art of so presenting an offering that the prospect appreciates the need for it and that a mutually satisfactory sale follows. . —G.F Philips and D.J, Duncan Personal selling refers to conscious effort on the part of the seller to induce a prospective buyer to purchase something that he had not really decided to buy even if he had not thought of it favourably. — James Stephenson Personal selling is the oral presentation in a conversation with one or more prospective purchasers for the purpose of making sales; it is the ability to persuade the people to buy goods and services at a profit to the seller and benefit to the buyer. — American Marketing Association pr 7.2, Nature of Personal Selling These definitions reveal the following characteristic () Personal selling involves direct personal con buyer. (ii) It is face-to-face and oral communical (iii) It is the art of persuasion that conver (iv) Ibis the science of winning the buyer's confide ics of personal selling: tact between the seller and the ition. +s human needs into demand. mnce in the seller and his product. (v) It is both an art as well as science. eras (vi) Its real purpose is not to induce or trap people to buy fod mes on Fs not need or cannot afford. Itis rather to build upa es v permanent relationship between the seller ee the uyer. (vii) It involves contact with a limited puted ia pe act differently. iti’ és + ferent baa a sea lee ae salesmanshij personal selling, along Personal selling is a broader concept t HP. jementing marketing with other cece ‘of marketing mix, is @ means for implAdvertising and Personal g el 7.6 Hi programmes. Salcsmanship 1s one aspect of personal selling, It ts one of ing used In personal selling, Salesmanship Is the act of successfully Persuading cust Kill custome! to buy products or services from which thcy can derive suitable benefits, there” increasing the total satisfaction. Now the focus in salesmanship ts on creatty mutually beneficial long term relationships with customers. ‘Aling 7.3 Objectives of Personal Selling The main objectives of personal selling are as under = 1. Creation of Demand : The basic objective of personal selling is to crea, demand for a product or service. The salesman personally talks to the custome, and explains the utility of the product. He tries to convince the customer so:that the customer may buy the product. The salesman induces immediate buying action °n, the part of the customer. 2. Handling Objections : Customers express their doubts and objections abou the quality ofa product. The aim of salesman is to listen the grievances of customers patiently and to solve them so as to retain existing customers and to create ney, customers. ; i 3. Exploring Hidden Wants: A salesman studies the hidden desires or customers. He helps them appreciate their needs and take action oman them, Ih this way personal selling converts hidden wants into demand. A salesman demonstrates the product and explains its uses to increase sales. 4. Educating Customers : A salesman informs and educates customers about rs in the selection of suitable new products and their uses. He guides the custome! products. 5. Building Relationships: Salesman is aimed at developing permanent relationships with customers for the benefit of both the buyer and the seller. kk: Personal sellingare in direct touch with customers. 6. Providing Feedbac C They collect information about tastes, preferences and attitudes of customers. Such information helps the producers in improving product quality and distribution system. Objectives of Personal Selling Qualitative Objectives ‘Quantitative Objectives 1. To do the entire selling job. 1, To obtain a particular sales volume. . 2. To capture and retain a certain market share. 2. To service existing accounts. ‘To search out and obtain new customers. 3. To obtain a certain number of new accounts 3. of a given type. 4, To secure a target percentage of the business 4, To keep customers informed on changes in the of certain accounts. product line. 5 Fo) eee personal selling expenses within set 5, To secure and maintain cooperation of dealers. mits. 6. To assist dealers in selling the product line. 7. To provide technical advice and assistance to customers. 8. Toassist in the training of salesforce of dealers. 9. To collect and report market information.prospecting pre-approach The Approach Sales Presentation Demonstration Handling Objections Closing the Sale Customer Follow-up—Post Sale Actions « Summary « Test Questions83 Advertising and Personal sa, "e | The process of personal selling consists of the following stages : 1. Prospecting. | 2. Pre-approach. 3. Approach. 4. Presentation. 5. Demonstration. 6. Handling Objections. 7. Closing the sale. 8. Follow-up. rocess. The: Careful attention must be paid to each step in the selling P! ere are explained below. t Sale Action @. Follow-up—Pos! 7, Closing the Sale 6. Handling Objections 5. Demonstration 4, Presentation ‘3, Approach—Planning the Call 2. Pre-approach 1. Prospecting—Identify and Qualify Potential Customers Fig. 8.1. The Personal Selling Process. 8.1 Prospecting , ‘t means the potential customer The selling process begins with prospecting. Prospect! e who has See rce need, the ability to buy, the ee ome ead the i the product. Prospecting refers to finding the potential customers, FE nee oe the money to buy it, the authority It is the hunt for people who need the product, have to buy, and are willing to spend the money on the product. It is not a wild goose chase. But a systematic search for the customer through proper scanning of the sales territory. Except for retail selling, customers are unlikely to come to the salesperson. Therefore, sales people must seek out potential customers. Prospecting involves two steps : (a) identifying leads or generating potential customers, and (b) qualifying leads according to who is most likely to buy. They are the persons who can be converted into buyers. There are three important questions which need to be answered at the prospecting stage. These questions are as follows : 1. Why Prospecting: The need for prospecting arises due to the following reasons : (a) No salesman can hope to sell without locating a prospective buyer. The supply of customers would dry up in the absence of prospecting.give Selling 8.3 jast few decades remark: able chan} jation. purchasin} . ges have span, nga company ke rs faen place ne hit et scenario. ikely to find itself out a tine babes the w the g markt angin’ |g enables a sal ecting : les person to concentrate sales eff sales efforts on a s elect 081 up of people: ng brings orderliness in the saleman's efforts. Hi 's. He comes to kn‘ ow t to be and this creates a favo ble impression on the his crea urable impre: or pspecting i Pere ne ough! easton 1 rs speciality products “we a y repeat sal . oo 20 Of Pe ales are not possible without potential customers is not : an easy task. I ve oes . It can be ote ple, But good prospecting separates suceesefl tification of ‘: oncs. The astute salesperson is ‘always on the lookout nl me 107 first time ~ ‘om mediocr! silts T epects: ois 8 Good Prospect: Everybody cannot be a prospect. An individual prospect only when the following conditions are satisfied a e must have 2 need which can be converted into awant and ultimately into purchase : we the ability to pay: Mere need or desi ve need. packed by the capacity to buy. ve the authority to buy. approachable. uy. Cer! hold a licence. 3, Ho s; The most commonly used sources and e as follows : methods for ! atisfied cust re is not enough. It must He must ha’ nly to He must be pe eligible to b' re major OT fenypraducts and sat ice aa sold 0 st source of ‘omer is the be: cts who may ers of ProsPe can give the @ Referrals from us’ es, addresses and p! taining more information about the nam' Jatives and family betheir friends. re reference of a satisfied customer to ™ references, Customer referrals 2° the (ii) Personal Observ Method: ey to discover prospects: Thes® salesm™ rein formation which can Iead tO 8 prospe eunestunties identify prospec tions, travelling, etc. te) Cold Calling : In this method, 2 salesman prepare intiiduale ion puy the product oP certain Pre amp ies computer oe any reference- fe makes aes ae ie 4 computer. aoe presumes that wherever ete rat iS . He prepares 2 list of all the office: TY Leer from eae them one by one and leaves his name ation84 advertising and Persona) Seng of these offices. This method involves random prospecting and 1s quite ti, consuming, (iv) Endless Chain Method: The salesman al! interviewed or each customer, the names and addres: oduct Or service. In this way or associates who have the need for the same Fr duccess of this method cept endless chain of “referred prospects" is create 7 thod has provi upon the satisfaction provided to the first pr ospecr Pe eatin auceen ee in case of services such as insurance, investmen'™ "1 ation of the endless chaiy {v) Centre of Influence Method: ‘This is a mo: be rs method. A ae Reraeaes is aperson who has information a’ out other people or {nent peopl reference from em! ple ane influence over them. The salesman obtalournalists, TV stars, teachers, bankers, society such as local politicians, pocts: an extende ee TM dtore, ete, He keeps in touch with Ce ot the io betlca of time. The references are likely to take the recommendation’ the eminent Pesnle seriously, Publishers, investment firms and compan! make use of this method. ntact prospective bu; and Telephone: A salesman can CO) ers ec cieer nail aaa telephone. he sends sales literature through mall informing them about the product range and its uses: Areply card is sen’ ‘sponse, yi Junior Sales Force: Junior salesmen (called spotters) are (vii) Leads from Jun’ ¢ brand of product used. An bout thi d lat every house and inquire a! See is ee to get ea appointment for an experienced salesman to explain the ectric or water meter readers Tatest model of the product. Sometimes, © as rd dogs] are given a payment to provide clues as to the kind of prospects residing in a particular area. On the basis of the lead given by them the salesman picks out certain per: ‘ts. This method is used for products such sons as his prospect as water purifiers, micro and other household appliances. oven, kitchenware, (viii) Present Customers : Existing customers 40° the best source of prospects. Its much easier to sell additional products and s ervices to existing customers than to attract new customers. A person who has purchased a TV set from the firm and is pleased with it is usually receptive to buying a refrigerator. Therefore, whenever new products and services are introduced, current tempts to get from cach pe, ses of two or three of his frien 8 tive tt customers should be notified. (ix) Former Customers : A list of inactive customers may be compiled from company records. After deleting names of those who have moved, the remainder can be enasidered as prospects. Former customers’ needs may have changed in such a way that they have once again become potential customers. 1) Personal Contacts : Effective sales people are active in professional, civic and’service organisations. The people they mect in these organisations may themselves be prospects or may provide useful leads. A keen observer can identify many prospects through personal contacts. For example, the real estate salesperson whose friend asks about the price of a house that was just sold may be interested in buying a house, Helpful responses to such questions can lead to prospects. if te) Directories : A wide variety of directories are full of prospects. Telephon® rectory, trade directory, directory of residents in a locality or directory of # professional body are good sources of prospects. ify -tectve Seling 0 $8 prot? iting Lists: Specialised companies com; (ei) ons for direct mail advertising. These lists mar y be used , ss ‘these lists tend to be more current and more selective eae mae lories, otters: In some situations, salespersons use 8 ial te, Sales trainees are often used as spotters, They tele one ey pros ons. Spotters are also known as “bird dogs.” emai alesPer ices: s prospecting Services: Specialised Prospecting service companies can ie wide specific information on prospects. Advertising : Advertisements attract inquiries abo ok Companies often use reader cards in magazines eae eee inquiries OF lead must be quickly followed up while the prospect is int prestenl (xvi) Trade Shows and Exhibits: A firm can locate qualified prospects é onomically by participating in trade fairs and exhibitions, It costs a company only one-fourth the cost of an industrial sales call to meet a potential customer at a trade show. This is because potential customers spend money on travelling to a trade show. Trade shows have become an important source of sales leads due to rising costs of personal selling visits. (xvii) Other Sources: The service department of the company can also provide some leads. Retailers can give valuable leads as they are in touch with customers. 4, Qualifying Prospects: Once potential customers are identified, the salesperson must qualify them to determine if they are valid prospects. Unless this is done, time is wasted in selling to people who cannot or will not purchase the product or service. One approach to qualifying prospects is called MAN (money, authority and need) approach. (i) Money: The prospect must have the money to purchase the product or service, Therefore, the salesperson must be familiar with the financial resources of a prospect. (ii) Authority : The prospect must have the authority to make a commitment. Asalesperson must identify the key decision-maker early to make selling time more effective. {iii) Need: The prospect must have the need for the product or service. Unless the salesperson can establish that’ the customer will benefit from the product or service, there is no reason to waste a sales call. The prospect will either refuse the offer or will not be satisfied with the purchase. 85 pile lists of individuals and 8.2 Pre-approach After a prospect has been identified and qualified the salesperson prepares for the sale, The ultimate purpose of prospecting is to convert potential buyers into actual buyers. For this purpose, the prospect must be approached. But if an approach 1s made without preparation, the very objective of converting a prospect into a buyer may not be realised. Therefore, it is necessary to know something about the prospect pefore approaching him. This act of understanding the prospects and planning the approach is called pre-approach. $e8.6 Advertising and Personal Sei}, Need for Pre-approach : Pre-approach is necessary due to the following reason, . (i) After learning about the prospect, the salesman becomes confident that ms will be able to convert him into a buyer (ii) Pre-approach saves the time and energy Of the salesman. DHINE Pre. approach he can identify those prospects, Wh® Bre Eee necta aee them only. He can avoid waste of time and efforts on aay a - (itt) The salesman ean plan the right method of approach ee the mental process of the prospect. pre-approach HelPS re loose talk or mistake during sales tall (iv) On the basis of knowledge about the prospect # right kind of buying appeal (v) Pre-approach helps the salesma the first meeting. i -stages : Pre-approach stage consists of two sub-st ; 1. cee the Prospect : In this step the salesman. San oe about a tion and other relevant aspe' relating to the the age, needs nc ee or Me obtained from both internal and oe ae ts, Information about Prospects cM eetemial sources. Sales records, Past ores calls, correspondence and the companys database are internal sources. Customers, Jocal newspapers, fellow salesmen, observation, special investigators, internet, ete. are the external sources. The purpose of customer research is to know as much about the prospect as possible before making the first call. Knowing the Prospect je salesman can plan the n to face the difficulties involved in securing 1. Who is the customer? Wn ho will make the actual decision to purchase the product or service? © Who will influence the decision? + who will actually be responsible for using the product or service? + With whom must the salesperson maintain a long lasting favourable relationship? 2, What are the customer's needs? ® ‘The major reason for buying the product or service, (-e.. the dominant buying motive. 3. What other information is required? «Family background. + Hobbies. ¢ Membership of clubs and professional organisations. * Business information in case of industrial/trade customers. bali a Planning ee Call: In this step the objective of the particular call is defined. Bias goat of cach c Beant be to complete the sale because several calls may be Pemuizen ta clase a sale. However, on each call the salesman wants to move the sa . The salesman should plan how he is going to approach the prospect and what at type of questions he wants to ask. On the basis of customer research salesmi 7 epteenel ee toe Fete heen ieee ee met spect. He can prepare a tentative plan for presenting the featuresy - fective selling o — of uch products. The i . The informati ation colle 87 me enol Sinan to modify bi ve gales! is tentati ete a gre OO outing ative objective ang nine th «eh tive SS ve and plans, Tet & fd Cc . This is krona! all Planning ‘own as cify the objective of the call, e.g. Gp get the purchase order . optain more information ab out the pros; pect. 12 obtain permission to make a fosettle a past billing dispute formal presentation on th 7 © product or service, qo introduce a new distributor, 1 ope . peeeets Sora sae the objective—The sal Fijernatives and predict Seren Sree strategy. ‘He aa ee - om) it mt i ee pant Sae n co i ie salesperson may obtain additional eens Socorro avallale: Moreover, the Scrrmation can be helpful in planning het conversation Sch 8.3 The Approach ae . Atthis stage the salesman comes in contact with the prospect face-to-face. Sal -to-face. Salesmen ‘ usually find it difficult to approach the prospects because they are generally busy or y may not be interested in buying ‘the product. There are different ways to gain access to the prospect and get an appointment : «A salesman may directly approach the prospec! In case the prospect does not show interest i jntroduction, the salesman may ‘state the benefits of his pr interest. * The salesman may seek an appointment after sendi the product and its penefits. * An appointment with the prosp' by the friend, relative or bu requesting for a appointment may be knows the prospect. A gift may be given to gift may be a diary, a calendar, a pcm eqoor openers” because they oper A sales letter may Be sen! ‘The sales letter describes ignificance of Approach: (i) A good approac and establishes ‘some rapport between the salesman and the Bee ect by providins information bes Bice eal the Ste: presentation. If the apP’ chance to make a present t and conduct an interview. in the salesman even after oduct to arouse ng a mailer that explains ect may be secured through & reference given siness associate of the prospect. A letter ‘written in case the salesman already intment. ‘The s are called an appou ation.88 Advertising and Persona, Se ly Once a salesman gets an appointment, he must make a favourable Xs impression on the prospect. A firm handshake, professional attire, good eye cont and a small talk are helpful. ace After introducing himself, the salesman has to secure favourable attention, the prospect. Anecdote, question, a request, exhibit, a reference, a gift, ete, used to gain attention and open the interview. Then the salesman should assess ae understand the needs and preferences of the prospect. id ‘The salesman can find out the needs and buying motives of the prospect throug, observation and by asking relevant questions. Methods of Making the Approach : The different methods of approaching prospect are given below : (i) Company's Reputation and Brand Name: In this method the salegm, uses his company's reputation or influence of his brand. He introduces himselr 4° the representative of a reputed company to draw attention of the prospect ang generate curiosity. | (ii) Customer Benefit Method: Here the salesman highlights the benefits of the product to the prospect. For example, the salesman may say “would you like tg cut down your electricity bill by 40 per cent"? (iii) The Premium Method : In this method, the salesman offers small gifts to the prospect. This method is generally popular with housewives. (iv) The Shock Method : In this approach the salesman highlights the risks, e.g., rising thefts, so that the prospect is forced to think about the remedy. This method is used in case of safety equipment, health and fitness items, insurance, etc, (v) Reference : Acard or letter from the relatives, friends or colleagues of the prospect can be an effective method of approaching. ‘Approach—How? In this step the salesperson introduces himself, outlines the purpose of the visit, tries to establish rapport with the prospect, obtain his attention, and attempts to build interest in what will be presented. A favourable first impression is crucial to the success of a sales call. Before buying a product or service a prospect must first accept the seller. Salespersons fail not when they open their mouths but before they open them. Their appearances convey they are not likable, honest, sincere or trust worthy. Many small things such as sloppy clothing, poor grooming, a messy bag or a damaged business card can lead to poor first impression. Some suggestions for making a favourable first impression are to: from, * Wear neat, conservative cloths. * Be clean and carefully groomed. * Know the prospect's name and pronounce it correctly. * Be alert and pleasant. * Let the prospect offer to shake hands. + Forget about yourself and concentrate on the prospect. * Avoid smoking or chewing gum. Source : Eugene M. Johnson, et al., Op. cit., p. 70.of Effective Selling 89 cess sales Presentation stage, the features and benefits of thi av ehls of sales of the product ar purpose One ke: ferceentation is to ereate desire for eos Pee rae Etation yy to a successful sale. It is the main body the product. A good coess. 8 well-planned presentation or ain body of the personal sellin, cat ence to the S lesman and improves po penne sales talk gives necessary : c Ss gonfldehe aves the time of both the buyer and Pee ate ne oe sate tk and ensure ort ailtielrelevand pomestare pruillieles effective delivery jn order to a sales talk, the salesman shi F ti ould not b arrange them in a logical sequence, write down peas ee ae support pe ea Good ig ples, etc. to Essentials of a Good Presentation: An satis the following requirements : effective sales presentation should Keep It Simple: The prospect can . Ke : absorb only a limited information at any one time. Therefore, avoid the temptation to tell See presentation ‘should be brief, clear and concise. ie mme 2. Talk the ae of the Prospect : A sales talk is useless if the prospect does not understand it. ‘Avoid industry jargon and product model numbers. Speak in the language ‘which the prospect can understand. 3, Establish Friendly Relation: The salesman should establish a friendly the prospect. He and the prospect both should feel at home. 4, Stress Application : Adapt your presentation to the person and the situation. Focus on what the product or service can do for the prospect. Focus attention on the need or problem of the prospect. 5. Develop Credibility : A presentation can be successful only when it is pelieved. Each statement must be credible. Prove your points one by one. 6. Use Positive Suggestions : As far as possible use positive suggestions and comments. Avoid talking in a monotone and vary your pitch. A wise salesman anticipates the mental state of the prospect and adjusts his speech accordingly: Techniques for Good Presentation on can get the sales presentation started. The question should be related to the presentation. For example, an insurance agent who calls aie executive for a group life policy might ask “how many employees does your firm have?” A trite question like “how is business?” must be avoided. 2. Use a Referral : A salesperson might say “Dr. Mohan recently and suggested that you might be interested in it.’ 3, Offer a Benefit : This technique provides the pro: this car will cut your petrol consumption by 20 per cent.” 4, Offer a Service : Most people are receptive to an offer of service. 5. Compliment the Prospect: A compliment is a good way to establish rapport if the prospect has done something noteworthy. “Mr. Neeraj! oead in today's paper tat You are the new director of marketing.” 6. Give Something of Value : Accep' to listen for a few minutes. 7 eaana M Tohnson, et ale 1. Ask Questions: A good questi purchased this laptop spect a benefit, €.9-. “Mr Arora ting small gift can make the prospect feel obliged op. cit., p- 72+