Personal selling byjb

PRINCIPLES OF MARKETING

SellingGROUP 1 ON MKTG.

301

LPE r s naO

Promotional Mix: Personal Selling 2

INTRODUCTION

A product that is well conceived and produced through the Combination of the most modern technologies and the best of inputs cannot

sell itself.

There is the need for the existence of such product to be made known to the target market.

A good or service should respond favorably to the marketing mix which will result to the full performance of any good or service in the market. However, an important element of the marketing mix is promotion,

otherwise known as marketing communication.

This is the element that brings the existence of product or service

to the awareness of consumers or clients. It further educates potential

and actual buyer of a product on the usage, benefits, availability, price and

other features of the product.9/24/2012


Personal Selling Defined… Personal Presentation by the firms’ sales force for

the purpose of making sale and building customer relationship.

Personal selling consists of interpersonalinteractions with customers and prospects to make sales and maintain customer relationships.

(Marketing management, 12th edition)By P. Kotler and Armstrong

Personal selling is a promotion via sales pitch by a sales representation to aprospect or by a retail assistant to a customer, guaranteeing exposure to self-selected member of a target market.

Marketing By Crosier, 1994)

9/24/2012

Promotional Mix: Personal Selling 49/24/2012

Personal selling is oral communication with potential buyers of a product with the intention of making a sale.

The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale".

PERSONAL SELLING


Personal selling is one of the oldest forms of promotion. It involves the use of a sales force to support a push strategy (encouraging intermediaries to buy the product) or a pull strategy (where the role of the sales force may be limited to supporting retailers and providing after-sales service).

Generally Insurance Companies and Direct Sale Markers use personal selling to promote their products and services by the help of his commissioned based individual distributors.


Kotler and Armstrong, (2008) posits that personal selling is the personal communication between a firm’s sales force and customers for the purpose of making sales and building customer relationship.


Personal Selling Defined…

Is the interpersonal part of the promotion mix that can include:

FACE- TO- FACE COMMUNICATION

TELEPHONE COMMUNICATION

VIDEO OR WEB CONFERENCING9/24/2012


Personal Selling: Scope

Personal Selling involves selling through a person-to-person communications process.

The emphasis placed on personal selling varies from firm to firm depending on a variety of factors, including the nature of the product or service being marketed, size of the organization, and type of the industry.

9/24/2012


The Nature of Personal Selling

Wotruba has identified five distinct stages of personal selling evolution:1. Provider Stage: Activities are limited to accepting orders

for the suppliers available offering and conveying it to buyer.

2. Persuader Stage: Selling involves an attempt to persuade market members to buy the supplier’s offerings.

3. Prospector stage: Activities include seeking out selected buyers who are perceived to have a need for the offering as well as the resources and authority to buy it.

9/24/2012


The Nature of Personal Selling4. Problem-solver stage: Selling involves obtaining

the participation of buyers to identify their problems, which can be translated into needs, and then presenting a selection from the supplier’s offerings that corresponds with those needs and can solve those problems.

5. Procreator stage: Selling defines the buyer’s problems or needs and their solutions through active buyer-seller collaboration and then creates a market offering uniquely tailored to the customer.

9/24/2012


Types of Personal Selling

The four types of personal selling are:

1. trade selling, 2.missionary

selling 3.selling, technical

selling 4.new business

selling

TRADE SELLING involves the increase in the volumeof the company’s sales byproviding promotional assistance to the intermediaries. Trade Selling isselling products to wholesalersand retailers for resale purposes.Ex. Organic food, natural products,

fertilizers, etc.

Trade Show - an exhibition or fair atwhich manufacturers display their products for the benefit of visiting wholesalers and retailers.

9/24/2012

http://en.mimi.hu/marketingweb/trade_show.html

http://en.mimi.hu/marketingweb/display.html

http://en.mimi.hu/marketingweb/benefit.html

http://en.mimi.hu/marketingweb/wholesaler.html

http://en.mimi.hu/marketingweb/retailers.html



MISSIONARY SELLINGA missionary type of sales job involves convincing someone who has never used a product to buy it. Ex. Selling financial planning or life insurance and other financial products typifies the missionary sales job. The missionary involves educating someone about an idea or concept and convincing them to have faith in that concept.

is used to obtain new accounts for the

producer. This involves the salesmen

looking for new opportunities or new

users for his company’s product in his

territory. Ex. Car shopping usually starts

with online research. Consumersperform research on makes,

models andcar prices. They also read

reviewswritten by model owners.

Positionyourself in the market to use theInternet not only as a reference

source,but also as a method for selling

cars.

9/24/2012

NEW BUSINESS SELLING



trying to highlight certain features of a product or service, in the hopes that it will connect with the buyer on that level. Here’s an example of Technical Selling. A computer programmer walks into COMPUSA and is approached by a salesperson. The programmer is not looking for assistance from the salesperson in the form of, “You probably want something black, easy to use, and that everyone on your block is probably using”. He is likely looking for something more technical, in the form of, “The RAM on this computer will speed up your applications allowing you to develop your programs with greater ease”. This technique focuses on the intellect of the other person.

9/24/2012

TECHNICAL SELLING


The Personal Selling Process

Personal selling process

consists of several steps that

(Kotler and Armstrong, 2008).

The objective of these steps is to get new customers and

obtain orders from them.

The 7 steps include;Prospecting 1. Pre-Approach2. Approach3. Presentation and

Demonstration4. Handling

objections 5. Closing the Sale 6. Follow-Up

9/24/2012


The Personal Selling Process

9/24/2012

1. Prospecting: The salesperson identifies qualified potential customers.

2. Preapproach: The salesperson learns as much as possible about a prospective customer before making a sales call.

3. Approach: The salesperson meets the customer for the first time.

4. Presentation: The salesperson tells the “product story” to the buyer, highlighting customer benefits.

5. Handling Objections: The salesperson seeks out, clarifies, and overcomes customer objections to buying.

6. Closing: The salesperson asks the customer for an order.

7. Follow-up: The salesperson follows up after the sale to ensure customer satisfaction and repeat business.


Personal Selling ResponsibilitiesOr Types of Sales Jobs The responsibilities of a salesperson are categorized under

different head by different authors. One classification divides this responsibilities into two groups- Service Selling & Developmental Selling. However, the most widely accepted is the one suggested by Anderson, which is as follows:

1. Order Taking Once the initial sale has taken place, the creative seller may

be replaced by an order taker, whose role is much more casual.

2. Creative Selling/ Order Getting Creative selling jobs may require the most skill and

preparation. In addition to prospecting, the salesperson must assess the situation, determine the needs to be met, present the capabilities for satisfying these needs, and get an order.

9/24/2012


Personal Selling ResponsibilitiesOr Types of Sales Jobs

3. Order Supporting They are not directly involved in selling products but acts as a

support staff for the front-line sales personnel. They are of two types:▪ Missionary Salespeople▪ Technical Specialists

The missionary reps introduces new products, new promotions and/or new programs, with the actual order to be taken by the company’s order taker or by a distributor representing the company’s goods. e.g. Medical Sales Representatives

Technical Specialists assists the order-oriented salespeople in selling products by providing technical information about the product and technical assistance for installation, design of the product etc.

9/24/2012


Buyers’ Likes and Dislikes about Salespeople

Likes DislikesKnowledgeable Unprepared

Empathy UninformedWell-organized Aggressive

Promptness UndependabilityFollow-through Poor follow-through

Solutions Presumptuousness (Going beyond what is right or proper)

Punctuality Walk-insHard-work Compulsive talkersEnergetic Problem-avoidersHonesty Lack of personal respect

9/24/2012


Advantages & Disadvantages of Personal Selling ADVANTAGES:1. Allowing for two-way interaction- In selling situations the

message sender (e.g., salesperson) can adjust the message as they gain feedback from message receivers (e.g., customer).

2. Tailoring of the message- It is Flexible . 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.

3. Lack of distraction4. Involvement in the decision-process5. Source of research information6. Has an interactive nature of personal selling that makes it

the most effective promotional method for building relationships with customers, particularly in the business-to-business market.

7. Personal selling is the most practical promotional option for reachingcustomers who are not easily reached through other methods.

9/24/2012


Advantages & Disadvantages of Personal Selling

1. Inconsistent messages2. High cost - It is expensive maintaining this type of promotional

effort due to the high per-contact cost involved. Costs incurred in personal selling include high cost-per-action and training costs.

3. Poor reach- Can not reach mass audience4. Potential ethical problems/Intruding nature of the

method/ Conflict - 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.

5. Job turnover in sales is often much higher than other marketing positions

6. Labour intensive/Numerous calls or salestalking needed to generate sale

DISADVANTAGES

9/24/2012


Qualities of Sales-person Engaged In Personal Selling

1. Physical Quality 2. Mental Quality 3. Integrity of character 4. Knowledge of the product and

the company 5. Good behavior 6. Ability to persuade

9/24/2012


It is said that selling makes the World go around .For it is somebody who sold some thing to someone else

who in turn sold it to us .

Let us consider the case of food products .The fertilizer company sells urea to the farmer who sells his produce to the food processing firm like Pepsi or Britannia; who after processing the agricultural produce , sells it to the wholesaler who in turn sells to the retailers and they

sell the same to us .Had it not been for the salesperson, the standard of living of an average person would have been

much lower.

Selling is crucial to economic growth, political systems and an individual’s and

family ‘s life-styles .It is so fundamental that every time we try to convince others, we

sell. In such cases we sell ideas. Politicians sells ideologies .Research scientists sell

researchers Any time weAdvocate an idea, a cause or a product , we

sell.


>>> end.Editsbyjbluberas.

Business

Personal selling byjb