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Personal Selling
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.
• Personal selling often plays a dominant role in industrial firms,
  while in other firms its role is minimized.
• In an IMC program, personal selling is a partner with, not a
  substitute for, the other promotional mix elements.
Role of Personal Selling in the IMC Program

• Personal selling differs from other forms of communication in
  that messages flow from a sender(s) to receiver (s) directly
  (usually face to face).
• This direct and interpersonal communication lets the sender
  immediately receive and evaluate feedback from the receiver.
• This    communication        process,   known    as   dyadic
  communication, allows for more specific tailoring of the
  message and more personal communications than do many of
  the other media discussed.
Determining the role of Personal Selling relative
       to other promotional program

1.   Determining the information to be exchanged.
2.   Examining promotional mix alternatives
3.   Evaluating the relative effectiveness of alternatives
4.   Determining cost-effectiveness
The Nature of Personal Selling
To integrate the PS effort into the overall promotional program,
    we must understand the nature of this tool.
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.
The Nature of Personal Selling: Contd.

4. 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.
The Stages in the Evolution of Selling
   Stages        Customer Needs      Type of Market    Nature/Intensity         Examples
                                                        of Competition
   Provider      Assumed to exist        Sellers’            None           Salespeople/drivers

  Persuader      Created, awakened       Buyers’       Undifferentiated;     New car dealers,
                                                        slight intensity      Telemarketers
 Prospector       Considered but       Segmented        Differentiated;        Car insurance
                     inferred                               growing         salespeople calling
                                                                              new car buyers
Problem Solver    Diagnosed; with      Participative     Responsive &          Architectural
                    attention to                       counteractive with        Services
                  customer input                           increasing
                                                           resources
  Procreator     Mutually defined;       Coactive           Focused          Salespeople who
                  matched with                                                design & sell a
                 tailored offering                                            system to fit a
                                                                                  buyer’s
                                                                              manufacturing
                                                                                  facility
Personal Selling Process
1. Locating prospective customers
2. Determining customers’ needs and wants that
   are not being satisfied
3. Recommending a way to satisfy these needs and
   wants
4. Demonstrating the capabilities of the firm and
   its products for providing this satisfaction
5. Closing the sale and taking the order
6. Following up and servicing the account.
Relationship Marketing

• It is defined as “an organization’s effort to develop a long-
  term, cost-effective link with individual customers for mutual
  benefit.”
• Rather than focusing on a short-term sale, the sales rep tries
  to establish a long-term bond.
• Customer Relationship Management (CRM) tools should be
  used.
Personal Selling Responsibilities
                           Or
                  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 (not physically!) 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.
Personal Selling Responsibilities
                          Or
             Types of Sales Jobs : Contd.
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.
Buyers’ Likes and Dislikes about Salespeople
     Likes                                Dislikes
 Knowledgeable                          Unprepared
   Empathy                              Uninformed
 Well-organised                         Aggressive
  Promptness                         Undependability
 Follow-through                    Poor follow-through
   Solutions      Presumptuousness (Going beyond what is right or proper)
  Punctuality                            Walk-ins
   Hard-work                        Compulsive talkers
   Energetic                         Problem-avoiders
    Honesty                       Lack of personal respect
Advantages & Disadvantages of Personal Selling

• Advantages:
   1.   Allowing for two-way interaction
   2.   Tailoring of the message
   3.   Lack of distraction
   4.   Involvement in the decision-process
   5.   Source of research information
• Disadvantages:
   1.   Inconsistent messages
   2.   Sales force/management conflict
   3.   High cost
   4.   Poor reach
   5.   Potential ethical problems
Combining Personal Selling With other
               Promotional Tools
• Combining Personal Selling & Advertising
   – With specific market situations & communications objectives,
     the       advantages of advertising make it more effective in the
     early stages of the response       hierarchy (e.g. in creating
     awareness and interest), whereas personal selling is more likely
     to be used in the later stages (e.g. stimulating trial and getting
     the order)
• Combining Personal Selling & Public Relations
   – The personal selling agent is often the firm’s best source of
     public relations. Their personalities, servicing of the account,
     cooperation, and empathy not only influence sales potential but
     also reflect on the organizations they represent.
Combining Personal Selling With other
            Promotional Tools: Contd.
• Combining Personal Selling & Direct Marketing
   – Companies have found that integrating direct marketing,
     specifically telemarketing, into their field sales operations
     makes their sales efforts more effective. Many marketers have
     reduced the cost of sales call and cost of closing the sales by
     combining telemarketing and sales efforts.
• Combining Personal Selling & Sales Promotion
   – The program elements of sales promotion and personal selling
     also supports each other. e.g. many of the sales promotions
     targeted to resellers are presented by the sales force, who will
     ultimately be responsible for removing or replacing them as
     well.
Evaluating the Personal Selling Effort
• According to Steve Deist and Rick Jhonson, factors to be
  considered in the Sales-Review process are:
   1.   Review of all target accounts
   2.   Review of all cross-functional selling activities or the lack of
        them
   3.   Review of specific territory objectives including sales to plan
        and gross profit to plan, and assigned account objectives.
   4.   Knowledge of products, customers, and customer
        organizations.
   5.   Ability to apply this market knowledge.
   6.   Development of favorable attitude as it pertains to that
        knowledge and those applied skills.
   7.   Required course corrections.

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Personal Selling: Scope, Role, Process & Evaluation

  • 2. 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. • Personal selling often plays a dominant role in industrial firms, while in other firms its role is minimized. • In an IMC program, personal selling is a partner with, not a substitute for, the other promotional mix elements.
  • 3. Role of Personal Selling in the IMC Program • Personal selling differs from other forms of communication in that messages flow from a sender(s) to receiver (s) directly (usually face to face). • This direct and interpersonal communication lets the sender immediately receive and evaluate feedback from the receiver. • This communication process, known as dyadic communication, allows for more specific tailoring of the message and more personal communications than do many of the other media discussed.
  • 4. Determining the role of Personal Selling relative to other promotional program 1. Determining the information to be exchanged. 2. Examining promotional mix alternatives 3. Evaluating the relative effectiveness of alternatives 4. Determining cost-effectiveness
  • 5. The Nature of Personal Selling To integrate the PS effort into the overall promotional program, we must understand the nature of this tool. 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.
  • 6. The Nature of Personal Selling: Contd. 4. 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.
  • 7. The Stages in the Evolution of Selling Stages Customer Needs Type of Market Nature/Intensity Examples of Competition Provider Assumed to exist Sellers’ None Salespeople/drivers Persuader Created, awakened Buyers’ Undifferentiated; New car dealers, slight intensity Telemarketers Prospector Considered but Segmented Differentiated; Car insurance inferred growing salespeople calling new car buyers Problem Solver Diagnosed; with Participative Responsive & Architectural attention to counteractive with Services customer input increasing resources Procreator Mutually defined; Coactive Focused Salespeople who matched with design & sell a tailored offering system to fit a buyer’s manufacturing facility
  • 8. Personal Selling Process 1. Locating prospective customers 2. Determining customers’ needs and wants that are not being satisfied 3. Recommending a way to satisfy these needs and wants 4. Demonstrating the capabilities of the firm and its products for providing this satisfaction 5. Closing the sale and taking the order 6. Following up and servicing the account.
  • 9. Relationship Marketing • It is defined as “an organization’s effort to develop a long- term, cost-effective link with individual customers for mutual benefit.” • Rather than focusing on a short-term sale, the sales rep tries to establish a long-term bond. • Customer Relationship Management (CRM) tools should be used.
  • 10. Personal Selling Responsibilities Or 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 (not physically!) 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.
  • 11. Personal Selling Responsibilities Or Types of Sales Jobs : Contd. 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.
  • 12. Buyers’ Likes and Dislikes about Salespeople Likes Dislikes Knowledgeable Unprepared Empathy Uninformed Well-organised Aggressive Promptness Undependability Follow-through Poor follow-through Solutions Presumptuousness (Going beyond what is right or proper) Punctuality Walk-ins Hard-work Compulsive talkers Energetic Problem-avoiders Honesty Lack of personal respect
  • 13. Advantages & Disadvantages of Personal Selling • Advantages: 1. Allowing for two-way interaction 2. Tailoring of the message 3. Lack of distraction 4. Involvement in the decision-process 5. Source of research information • Disadvantages: 1. Inconsistent messages 2. Sales force/management conflict 3. High cost 4. Poor reach 5. Potential ethical problems
  • 14. Combining Personal Selling With other Promotional Tools • Combining Personal Selling & Advertising – With specific market situations & communications objectives, the advantages of advertising make it more effective in the early stages of the response hierarchy (e.g. in creating awareness and interest), whereas personal selling is more likely to be used in the later stages (e.g. stimulating trial and getting the order) • Combining Personal Selling & Public Relations – The personal selling agent is often the firm’s best source of public relations. Their personalities, servicing of the account, cooperation, and empathy not only influence sales potential but also reflect on the organizations they represent.
  • 15. Combining Personal Selling With other Promotional Tools: Contd. • Combining Personal Selling & Direct Marketing – Companies have found that integrating direct marketing, specifically telemarketing, into their field sales operations makes their sales efforts more effective. Many marketers have reduced the cost of sales call and cost of closing the sales by combining telemarketing and sales efforts. • Combining Personal Selling & Sales Promotion – The program elements of sales promotion and personal selling also supports each other. e.g. many of the sales promotions targeted to resellers are presented by the sales force, who will ultimately be responsible for removing or replacing them as well.
  • 16. Evaluating the Personal Selling Effort • According to Steve Deist and Rick Jhonson, factors to be considered in the Sales-Review process are: 1. Review of all target accounts 2. Review of all cross-functional selling activities or the lack of them 3. Review of specific territory objectives including sales to plan and gross profit to plan, and assigned account objectives. 4. Knowledge of products, customers, and customer organizations. 5. Ability to apply this market knowledge. 6. Development of favorable attitude as it pertains to that knowledge and those applied skills. 7. Required course corrections.