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Definition of Personal Selling Personal selling

1) two-way flow of communication 2) between a buyer and seller 3) a face-to-face or real time encounter

Why are face to face and two-way important?

Advantages of Personal Selling

Provides a detailed explanation or demonstration of product Message can be varied to fit the needs of each prospective customer Can be directed to specific qualified prospects Instant feedback Personal persuasion can be used A good salesman can get you to buy ice in winter

When to Use Personal Selling

Product has a high value Product is custom made Product is technically complex

There are few customers

Customers are concentrated

Selling image, not product

Creating Value Through Salespeople Relationship Selling

building ties to the customer, based on a salespersons attention and commitment to customer needs over time.

Six stages of Personal Selling

1) Prospecting 2) Pre-approach 3) Approach 4) Presentation 5) Close 6) Follow-Up

Personal Selling: Prospecting

Prospect- possible customer Qualified Prospect-customer who has desire, means and power to decide Cold Canvassing- seller initiated contact of,potential customers without advance warning.

Personal Selling: Pre- Approach & Approach 2) Pre-approach-Gathering information (when to call, income level, risk tolerance) 3) Approach-First meeting (Physical impressions highly importantappearance, timeliness, confidence)

Personal Selling:Presentation
A) Stimulus-Response Format (suggestive selling)
keep suggesting items until the buyer responds, like the McDonalds order taker B) Formula Selling Format more formal and planned, like a telemarketer
Canned Selling Presentation Memorized, standardized message conveyed to every prospect. Works when seller is a novice or does not know the buyer well

Personal Selling: Presentation

Need-Satisfaction FormatLet the customer do the talkingSalesman probes, listens then suggests, like a financial planner
Adaptive Selling- pro-active but selective presentation of offerings, based on pre-approach data Consultative Selling re-active presentation for problem solution

Personal Selling: Presentation

Handling Objections
Acknowledge and Convert the Objectionuse the objection as a reason to buy (expensive) Postpone hold off answer because next info will convince buyer (complicated) Agree and Neutralize show the objections insignificance (side effects) Denial refute objection with clear facts

Personal Selling: Close

Trial Close-Can I put you down for blue or green? Assumptive Close-ask about delivery or warranty choices.

Urgency Close-Offer valid for today only.

Final Close-Buyer initiated acceptance of the sale.

Personal Selling: Follow-Up

Address concerns with delivery and installation, so todays customer becomes tomorrows qualified prospect or referral source

Sales Force Motivation Compensation

Straight Salary Compensation Plan Straight Commission Compensation Plan Combination Compensation Plan

Sales Force Evaluation

Quantitative Assessments sales quotas
easy but ignores selling environment

Qualitative Assessments behavioral evaluations

attitude attention product knowledge selling skills appearance and professionalism

Personal Selling

Personal selling involves the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a persons or groups purchase decision.

Personal Selling Process

The personal selling process consists of six stages: (1) prospecting, (2) preapproach, (3) approach, (4) presentation, (5) close, and (6) follow-up.

Adaptive Selling

Adaptive selling involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information.

Consultative Selling

Consultative selling focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution.