Personal Selling

Dr. Poonam Madan

Personal Selling

• Objectives
• Functions
• Principles
• Process
 Personal Selling

The only business function that generates revenue.

 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?

 Personal Selling
• Occurs when a company representative
interacts directly with a prospect or
customer to communicate about a good or
service
– “Personal touch” helps develop
relationships
– Salespeople are the eyes and ears of the
firm
– Selling/sales management jobs provide
high mobility, especially for college grads
with marketing background
 PERSONAL SELLING

Personal communication
aimed at informing customers
and persuading them to buy a
firm’s products.
 Personal Selling

Personal presentation by the firm’s

sales force for the purpose of making
sales and building customer
relationships.
 Personal Selling – Defined

Personal selling refers to personal

communication with a an audience
through paid personnel of an
organization or its agents in
such a way that the audience
perceives the communicator’s
organization as being the source
of the message.
 PERSONAL SELLING

• Direct communications between paid

representatives and prospects that
lead to transactions, customer
satisfaction, account development,
and profitable relationships.
 Personal selling

• involves two-way communication with

prospects and customers that allows
the salesperson to address the special
needs of the customer.
• Perhaps the most important advantage
of personal selling is that it is
considerably more effective than
advertising, public relations, and sales
promotion in identifying opportunities
to create value for the customer and
gaining customer commitment.
 Evolution of Personal Selling

Peddlers selling door Selling function

to door . . . served became more
as intermediaries structured

1800s 1900s 2000s

st
As we begin Post-Industrial
the 21 century, selling continues toModern
develop,
Industrial War and
becomingRevolution
Revolution more professional and more relational
Depression Era

Selling function
Business organizations
became more
employed salespeople
professional
 Sales management: evolution
• Industrial Revolution – 1760
• Small home industries – Large scale
manufacturing –marketing – sales and
sales support
• Concept of hunters and farmers
• The modern day sales manager is
both an administrator in-charge of
personal selling activity and a
member of the group that makes
marketing decisions of all types.
 The Evolution of Personal Selling
• Today’s salesperson is usually a highly-
trained professional
• Sales professionals take a customer-oriented
approach employing truthful, non
manipulative tactics in order to satisfy the
long-term needs of both the customer and
the selling firm
• Today’s professional salespeople are problem
solvers who seek to develop long-term
relationships with customers
Stages of Personal Selling Evolution

Selling activity limited to

Provider
order-taking and delivery

Attempting to persuade customer

Persuader
to buy

Seeking out buyers perceived to

Prospector
have a need

Buyers identify problems to be

Problem-solver
met by goods

Seller determines buyer needs

Procreator
and fulfills them
Positions of Personal Selling in the Marketing Mix

Marketing
mix

Products Prices Promotion Distribution

Public Personal Sales

Advertising Internet
relations selling promotion
 Definition

• Salesperson
–An individual acting for a
company by performing one or
more of the following activities:
prospecting, communicating,
servicing, and information
gathering.
 Personal Selling

Salespeople Have Many Names

• Agents • Sales Engineers
• Sales consultants • District Managers
• Sales Representatives • Marketing Representatives
• Account • Account Development
Executives Representatives
 Personal Selling

The Nature of Personal Selling

Examples of people who do the selling include:

• Salespeople
• Sales representatives
• District managers
• Account executives
• Sales engineers
• Agents
• Account development reps
 Personal Selling

The Nature of Personal Selling

Salespeople can include an order taker such

as someone standing behind the counter or
an order getter whose position demands
more creative selling and relationship
building

16-5
 The Role of Personal Selling

• Personal selling is more important:

– When a firm uses a push strategy
– In business-to-business contexts
– With inexperienced consumers who need
hands-on assistance
– For products bought infrequently
– When goods/services are complex or
costly
• Cost per contact is very high
 Personal Selling

The Role of the Sales Force

Salespeople can be more effective than

advertising
• Learn about customer problems and adjust
the marketing offer and presentation
accordingly to meet the special needs of
each customer

16-7
 Personal Selling

The Role of the Sales Force

Salespeople are an effective link between the

company and its customers to produce
customer value and company profit by:
• Representing the company to customers
• Representing customers to the company

16-8
 Types of Sales Jobs

• Sales positions vary considerably:

– Order taker
– Technical specialist
– Missionary salesperson (stimulate clients
to buy)
– New-business salesperson and order
getter
– Team selling and cross-functional teams
 Types of Sales Jobs

Assesses situation, determines needs

Creative
Presents capability of satisfying needs
Selling
Gets order

This role is much more casual

Order
Taking
Often involves straight rebuying

Essentially a support role

Missionary
Sales May not actually take the order
Personal Selling Responsibilities

Locating prospective customers

Determining customers’ needs and wants

Recommending a way to satisfy them

Demonstrating product capabilities

Closing the sale

Following up and servicing the account

Sales People Have Many Duties
Traits of Effective Salespeople

1. Ego strength: a healthy self-esteem that

allows one to bounce back from rejection.
2. Sense of urgency: wanting to get it done
now.
3. Ego drive: a combination of
competitiveness and self esteem.
4. Assertiveness: the ability to be firm, lead
the sales process, and get one’s point
across confidently.
5. Risk-taking: willing to innovate and take a
chance.
Traits of Effective Salespeople

6. Sociable: outgoing, friendly, talkative, and

interested in others.
7. Abstract reasoning: ability to understand
concepts and ideas.
8. Skepticism: a slight lack of trust and
suspicion of others.
9. Creativity: the ability to think differently.
10. Empathy: the ability to place oneself in
someone else’s shoes.
 Traits Buyers Like and Dislike

Desirable Traits Objectionable Traits

1. Unprepared
1. Knowledgeable
2. Uninformed
2. Empathizes
3. Aggressive
3. Well organized
4. Undependable
4. Prompt
5. No follow through
5. Follows through
6. Presumptive
6. Has solutions
7. Walk-ins
7. Punctual
8. Gabbers
8. Hard working
9. Problem avoiders
9. Energetic
10. No personal respect
10. Honest
 Pros and Cons of Personal Selling

Advantages Disadvantages
Two-way interaction Messages may be
with prospect inconsistent

Message can be Possible management-

tailored to recipient sales force conflict

Prospect isn't likely Cost is often

to be distracted extremely high

Seller involved in purchase Reach may be

decision very limited

Source of research
Potential ethical problems
information
 Personal Selling
Pros
• Direct contact with the
customer gives the
salesperson the opportunity to
be flexible and modify the
sales message to coincide with
the customer’s needs
•The salesperson can get
immediate feedback from the
customer
Cons
• High cost per contact with
customer
•Difficult to ensure
consistency of message when
delivered by different
salespersons
•The credibility of sales
people often depends on the
quality of the company’s
image
 Four Sales Channels

• Over-the-counter selling: personal

selling conducted in retail and some
wholesale locations in which
customers come to the seller’ place of
business

• Field selling: sales presentations

made at prospective customers’
homes or businesses on a face-to-face
basis
 Four Sales Channels

• Telemarketing: promotional presentation

involving the use of the telephone on an
outbound basis by salespeople or on an
inbound basis by customers who initiate
calls to obtain information and place orders

• Inside selling: performing the functions

of field selling but avoiding travel-related
expenses by relying on phone, mail, and
electronic commerce to provide sales and
product service for customers on a
continuing basis
 PURPOSES OF SELLING

• Introducing Innovation to Markets

• Conveying Information
• Acting as Intelligence Agent
• Solving Customer Problems
 ATTITUDES ABOUT SELLING

• “Sales people are born and not

made.”
• “Sales people must be good
talkers.”
• “Selling is a matter of knowing the
right techniques or tricks.”
• “A good salesperson can sell ice to
an Eskimo.”
• “People generally do not want to
buy.”
TRAITS OF “WINNING SALES PEOPLE”

• Desire to succeed
• Continually seek self-improvement
• Accept responsibility
• Have mental toughness
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

 Objectives of Personal Selling

3 general underlying objectives:

1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales – cost of sales = gross margin.

Gross margin – expenses =net profit.

What Creates Satisfied Customers?

21% A Total
Customer
Solution
37%
Competence
of the
Salesperson

25% Quality
of Product
or Service
17%
Competitive Price
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”
 PERSONAL SELLING

• Most adaptive promotional

method.
• Also most expensive method.
• Communicate one on one.
• In-depth knowledge of the
product is vital.
Contributions of Personal Selling:
Salespeople and Society

• Salespeople help
stimulate the economy

• Salespeople help with

the diffusion of
innovation
 Contributions of Personal Selling:
Salespeople and the Employing Firm

• Salespeople generate
revenue
• Salespeople provide
market research and
customer feedback
• Salespeople become
future leaders in the
organization
 Contributions of Personal Selling:
Salespeople and the Customer

• Salespeople provide solutions to

problems
• Salespeople provide expertise
and serve as information
resources
• Salespeople serve as advocates
for the customer when dealing
with the selling organization
 Transaction-Focused vs.
Relationship Focused

Transaction-Focused Relationship-Focused
• Short term thinking • Long term thinking
• Making the sale has • Developing the
priority over most relationship takes
other considerations priority over getting
• Interaction between the sale
buyer and seller is • Interaction between
competitive buyer and seller is
• Salesperson is self- collaborative.
interest oriented • Salesperson is
customer-oriented
 Classification of
Personal Selling Approaches

• Stimulus Response Selling

• Mental States Selling
• Need Satisfaction Selling
• Problem Solving Selling
 Stimulus Response Selling

Continue
Salesperson Buyer
Process until
Provides Responses
Purchase
Stimuli Sought
Decision
 Mental States Selling

Attention Interest Conviction Desire Action

 Need Satisfaction Selling

Present Continue
Uncover and
Offering to Selling until
Confirm
Satisfy Purchase
Buyer Needs
Buyer Needs Decision
 Problem Solving Selling

Continue
Generate Evaluate Selling
Define
Alternative Alternative until
Problem
Solutions Solutions Purchase
Decision
 Consultative Selling

Business
The process of helping Consultant
customers reach their
strategic goals by using
Strategic
the products, service,
Orchestrator
and expertise of the
selling organization.
Long-term
Ally
The Sales Process: Selling Foundations

In order to be successful in today’s global business

environment, salespeople must have a solid
relationship building foundation. They must:

Be Trustworthy

Behave Ethically

Understand Buyer Behavior

Possess Excellent Communication Skills

Major Steps in the Selling Process
THE SALES PROCESS
• Steps follow the AIDA concept.
Attention
Interest
Desire
Action
 The Personal Selling Process

• The goal of the personal selling process is to find new

customers and sell them something
• Most salespeople spend their time maintaining existing
accounts and building long-term customer relationships
• Not all steps required in every sale

Figure 17.3
 The Personal Selling Process (continued)

• Prospecting/qualifying:
– Identifying customers that may have a need for the
product or service being sold
– Only a small number of prospects become customers
– Prospecting requires effort, time, and commitment
– Cold calling, networking, advertising-generated leads
– Not required for all sales positions

Figure 17.3
 The Personal Selling Process (continued)

• Preapproach:
– Preparation to learn as much about the
prospective customer as possible, prior to
approaching them to ask for a meeting
– Major complaint about salespeople: lack of
preparation
– Use all resources to learn before meeting
– Setting call objectives is important to being
productive and not wasting the customer’s time

Figure 17.3
 The Personal Selling Process (continued)

• Approach:
– Meeting and greeting the customer for the first time
– Objective is to get in the door, not sell over the
telephone
– Different methods to use; telephone, letter, in-person
– General benefit statements may help; need to give the
prospective customer a reason to see you

Figure 17.3
 The Personal Selling Process (continued)

• Presentation and demonstration:

Telling the Product “Story” to the Buyer, and Showing the
Product Benefits.

– What happens during the sales call

– Purpose is to uncover needs and then attempt to satisfy them
– Questioning and listening skills are important
– Technology can help or get in the way
– Customers value empathy, honesty, punctuality, reliability,
thoroughness, and follow through

Figure 17.3
 The Personal Selling Process (continued)

• Handling objections:
– The salesperson seeks out, clarifies, and overcomes
customer objections to buying the product or service
– Customers object for different reasons: no need, lack
of information, product limitation, or as a negotiating
tactic
– Handling objections is important, but preventing
them is more effective; need to look at qualifying skills
and use of features, advantages, and benefits

Figure 17.3
 The Personal Selling Process (continued)

• Closing the sale:

– Asking the customer to buy (order) the product
– The only step that produces revenue; most important
– Fear of rejection makes this step the most difficult
– If all the previous steps done properly, should be
seamless
– Keep it simple, honest, and direct; different types of
closing techniques make assumptions that can be
dangerous if used improperly

Figure 17.3
 The Personal Selling Process (continued)

• Follow-up:
– What takes place after the sale
– Salespeople want to follow up:
• To keep the deal closed
• To ensure customer satisfaction
• To keep the door open for repeat business
• Ask for referrals

Figure 17.3
 Customer Relationship Management

• Most personal selling is transaction-oriented

• Companies want to encourage repeat purchasing
because it is more efficient than trying to replace
lost customers
• It takes different skills to build relationships with
customers
• Mutually profitable relationships are built on creating
value, offering packaged solutions to problems, and
improving products and processes
Figure 17.3
 PERSONAL SELLING IS
CUSTOMER ORIENTED SELLING
 The Personal Selling Process

Personal Selling and

Managing Customer Relationships
Personal selling is transaction-
oriented to close a specific sale with a
specific customer

• The long-term goal is to develop a

mutually profitable relationship
 Approaches to Personal Selling

• Relationship selling
Process of building long-term
customers by developing mutually
satisfying, win-win relationships with
customers
– Builds customer loyalty and satisfaction
Customer Relationship Management

Relationship Marketing:
The organization’s effort to
develop a long-term, cost-
effective link with individual
customers for mutual benefit.
How do technology and the Internet affect
personal selling?

• Technology in general and the Internet

in particular have caused fundamental
changes in the lives of professional
sales people. The ability to be in
constant contact with customers and
the home office enables sales people
to instantly make appointments;
answer questions; and get customer,
product, and shipping information.
Technology has also streamlined the
sales training process.
 Technology and Personal Selling

• Numerous technologies help enhance

the selling effort:
– Customer relationship management
(CRM) software and partner relationship
management (PRM)
– Teleconferencing, videoconferencing, and
improved corporate Web sites
– Voice-over Internet protocol
– Assorted wireless technologies
TRENDS IN PERSONAL SELLING
• Companies rely on three major personal selling approaches
to meet customer needs.
• Relationship selling Regular contacts between sales
representatives and customers over an extended period to
establish a sustained buyer-seller relationship.
• Consultative selling Meeting customer needs by listening
to them, understanding their problems, paying attention to
details, and following through after the sale.
• Team selling Selling situation in which several sales associates or other
members of the organization are recruited to help the lead sales
representative reach all those who influence the purchase decision.