02. introduction to personal selling


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Introduction to Personal selling by Tharaka Dias

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02. introduction to personal selling

  2. 2. AOT - www.tharakadias.com 2
  3. 3. “Nothing happens until something is sold”Exchange processHistory of personal selling is dated back to 2000BC. Itorganized in Greece. Sales people that time referred to asorganized in Greece. Sales people that time referred to aspeddlers.The industrial revolution that began in the eighteenthcentury triggered the need of sales people for theexpansion of businessPersonal selling is an act of exchange of products or servicesbetween a buyer and a seller for a certain amount of moneyor its equivalent kind.AOT - www.tharakadias.com 3
  4. 4. The exchange warrant 5 types of flow between thebuyer and the seller.1. Product flow2. Ownership flow3. Information flow4. Money flow5. Feedback that flows from buyer to sellerThe sales person communicate information about all know howon the product to the customerAOT - www.tharakadias.com 4on the product to the customerThere for personal selling is two way form of communicationwhere both deal face to faceIts also a promotional technique whereby salesperson use theirknowledge and skills for engaging customer for a value drivendeal.The value obtained from this transaction is the monetary valuefor the sales people while the customer receive the benefit ofthe product
  5. 5. Personal Selling is not manipulation as the salespeoplecannot direct people to buy.This can only encourage, persuade, stimulate, influence,people to buy.Personal selling has bigger role to play in identifyingPersonal selling has bigger role to play in identifyingprospective customers, understand their needs,communicating with them,Also leads to disseminating the information at the pretransaction phase, following up after sales and after salesservices and building relationships with the customers forfuture business.Purpose of personal selling is to facilitate exchange to themutual advantages of both the buyer and the seller.AOT - www.tharakadias.com 5
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  7. 7. Personal selling is a personal presentation by the firms salesforce for the purpose of making sales and building customersrelationship – KotlerIt’s a part of promotion that involves an oral presentation in aconversation with one or more prospective buyers for theconversation with one or more prospective buyers for thepurpose of making sale. – Evans Berman(1988)Personal sales is the aspect of promotion that brings humanelements into marketing transactions. – Johnson et al.(1994)Personal selling as two way flow of communication betweena buyer and a seller , often in a face-to-face face encounter,designed to fulfill the purchase decision of a person or agroup. Kerin et al.(2007)AOT - www.tharakadias.com 7
  8. 8. It describes the combination of fouringredients that constitute the core acompany’s marketing system.company’s marketing system.Four Ingredients:ProductDistributionPricePromotion8AOT - www.tharakadias.com
  9. 9. Marketing MixPlace/DistributionPromotionPricesProductAdvertising PublicRelationsPersonalSellingSalesPromotionInternetRelations Selling PromotionInternetSales ManagementPlanning MotivatingBudgeting CompensatingRecruiting & Selecting Designing TerritoriesTraining Evaluating PerformancePositions of Personal Selling and Sales Management in the Marketing MixPositions of Personal Selling and Sales Management in the Marketing MixPositions of Personal Selling and Sales Management in the Marketing MixPositions of Personal Selling and Sales Management in the Marketing Mix9AOT - www.tharakadias.com
  10. 10. Promotional activities form a separate sub mixthat we call the Promotional Mix.Major Elements:Company’sAdvertisingSales PromotionPersonal Selling Effort10AOT - www.tharakadias.com
  11. 11. Sales People mustunderstand theircustomers needsCompanies mustfocus onstrengthening thecustomers needsand be able todiscover or helpcustomers solvetheir problemsstrengthening thevalue addedcomponents oftheir offerings11AOT - www.tharakadias.com
  12. 12. CHARACTERISTICS ADVERTISING PERSONALSELLINGSLAESPROMOTIONPUBLICITYDEFINITION Paid but non personalcommunication,through media by asponsorA face to faceconversation betweenseller and buyer toexchange somethingShort term incentive toencourage purchase orsale of anythingNon personalstimulation of demandfor products or servicesSPONSOR Company Company Company No formal sponsorMAJOR GOALS AIDA Target and create ademand in aprospective customerTo stimulate a shortterm salesTo reach mass withindependent massageCOST Low per audience High per customer Moderate per customer None for media spaceAOT - www.tharakadias.com 12COST Low per audience High per customer Moderate per customer None for media spaceand timeFLEXIBILITY Low High Moderate LowCREDIBILITY Moderate to high Moderate to high Moderate to low Very highEFFECTIVENESS Effective in pre and posttransactional periodsEffective intransactional periodEffective intransactional periodMore in enhancingcompany imageMANAGERIALPERSPECTIVESBoth long and shortterm, it builds theimage of the companyand short term itstimulate customerLong term- emphasison long-termrelationshipsShort term Long term
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  14. 14. Salesmanship is the ability of the salesperson to persuadeprospective buyers to buy goods or services of a company.It encompasses all those efforts that are needed to convert asuspect to a prospectAnd a prospect to a buyerAnd a prospect to a buyerBoth parties will reap the benefits from this relationshipbetween the organization and the salespersonE.gWashing Machine/ food processor .AOT - www.tharakadias.com 14
  15. 15. Informative objectivesPersuasive objectivesRelational objectivesImage buildingImage buildingAOT - www.tharakadias.com 15
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  17. 17. Informational1. Provide product or service attribute, features, benefits,values and answer all the queries of the customers.Persuasive1. Persuasive communication to stimulate target customers1. Persuasive communication to stimulate target customersto move in to trial purchase of products or services2. Motivate potential buyers to seek more information3. It improve sales people to support the push strategy toencourage the intermediaries to buy and distribute theproducts to the customers.AOT - www.tharakadias.com 17
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  19. 19. Relational objectives1. It catalyses order getting , order taking, order influencing,order delivering and follow ups2. It aids the company to retain old customers, creating newcustomers and position the company in the societycustomers and position the company in the society3. It helps to reinforce the brand image and the reputation4. Personal selling can be intelligently use for new businessdevelopmentAOT - www.tharakadias.com 19
  20. 20. Image building objectives1. Spread the companies concern for socialwell being2. Consolidate the confidence and trust the2. Consolidate the confidence and trust thestakeholders of the company3. It becomes a vital promotional tool forsalesperson to deal with customersAOT - www.tharakadias.com 20
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  22. 22. ThankyouThankyouAOT - www.tharakadias.com 22
  23. 23. 1. Knowing the company2. Knowledge of competition3. Knowledge of selling process4. Selling skills4. Selling skills5. Sales motivationAOT - www.tharakadias.com 23
  24. 24. 1. A one to one interactive platform unable communicatinginformation and getting immediate feedback happensalmost simultaneously.2. Flexibility it offers adjusting the message by individualprospect, depends on the situation and mental mapping ofprospect, depends on the situation and mental mapping ofthe customer.3. Demonstrating the product and handling objections on thespot is a genuine advantage4. Person to person interaction assists in creating a personalrelationship which will benefit in long term5. This will often undertaken in a team or group where eachmember has a specific task to handle.AOT - www.tharakadias.com 24
  25. 25. 1. Too expensive, cost per prospect is high2. No assurance for the sale so risk of selling is very high3. Recruiting, selecting, training and development costs forsalespeople are of extremely high order.4. Risk of turnover of a good salesperson is a serious threat to4. Risk of turnover of a good salesperson is a serious threat topersonal selling5. Good and competent salespeople are difficult to findAOT - www.tharakadias.com 25
  26. 26. Selling has a crucial role in marketingSelling objectives are crucial in marketing and it’s a part ofthe whole marketing planPersonal selling is an important part in marketing strategySelling in todays business environment has assume a muchSelling in todays business environment has assume a muchbigger role just a transaction with customerSales need to understand the needs of the customers andsensing the degree of competitionSales managers today carry out the marketing researchbecause they have a better understanding about the marketOrganization can gauge the pulse of the market from thesalespeople as a source of informationAOT - www.tharakadias.com 26
  27. 27. Personal selling occupies and important position in marketing mixMarketing become inconsequential in the absence of personal sellingskills.Sales people provide valuable information to marketing to takenecessary measures and remain competitive and customer orientedBoth tangible and intangible features become crucial between theBoth tangible and intangible features become crucial between thesalespeople and the prospects.Selling becomes so important at the transactional phase with customersif advertising of publicity is meaningful to lead potential customers.They play a major role in supply chain management to make the productavailable at the right time at the right place.AOT - www.tharakadias.com 27
  28. 28. Canned Sales Presentation it is prepared structured sales scriptmemorized by Sales Man to present the product, It is widely used bytelemarketers for different products as its easy way to describe featuresand benefits of products which also know as door to door sellingStimulus-ResponseTheory it is that potential customer will buy theproduct only if hear certain statements which should be presented inproduct only if hear certain statements which should be presented incorrect mannerSelling FormulaA sales approach used to lead the potential customerthrough different stages of buying process in persuasive manners, Itsformula AIDR(attentition, interest, desire, resolve) was published in 1902which was revised byAIDA (attentition, interest, desire, action), ifprospect is correctly taken through these 4 different stages it will surelybe a successful sales.AOT - www.tharakadias.com 28
  29. 29. Partnering Salespeople Understands and shares values withcustomer and solve their problem through possible meansthey can,They understand as they are partners (Life,Business etc), they perform supporting role for customers, insimplest words it can be defined as Sharing ofValuessimplest words it can be defined as Sharing ofValuesbetween Supplier and BuyerRelationship Selling Sales people dont only sell productsbut also maintain long-term relations with customersbecause by this they can easily understand and satisfy newneeds of customer by giving them new services or products,as much as relation grows - more easy the selling becomesAOT - www.tharakadias.com 29
  30. 30. Team SellingWhen there are some critical buyers or buyerwhich have some complex needs different personnel effortto sell, Sales people in this work with other companies teamto provide set of benefitsValue-added Selling Value-addition simply means givingValue-added Selling Value-addition simply means givingextra to customer as they have expected or perceived, Staffusually brings some offers like Deskjet Printer is free if youbuy Laptop, (Cost of printer is mostly bore by Company andrarely price of printer is included in price of laptop)AOT - www.tharakadias.com 30
  31. 31. Consultative Selling It is most easy way to sell the productthat Sales Person holds information of all competing brandsand products and play a role like problem solver orconsultants, they clearly understand need of customer thansuggest the product which meets the requirement of bothsuggest the product which meets the requirement of bothseller and buyer, it is alike discussed above Partnering butthe different in both that in Partnering Seller dont comparedifferent products with its own but in this seller comparesproducts and try to prove that their product is best ones.AOT - www.tharakadias.com 31
  32. 32. Industry sellingService sellingRetail sellingAOT - www.tharakadias.com 32
  33. 33. Under this marketing transaction take placebetween at least two companies, both ofwhich seek to generate favors from thebusiness. thats why this also call as businessbusiness. thats why this also call as businessto business selling .AOT - www.tharakadias.com 33
  34. 34. 34AOT - www.tharakadias.com
  35. 35. More than one person involvedBuying process follows certain rulesPrice comparison, standardisation, tenders =Ausschreibungen)35Ausschreibungen)AOT - www.tharakadias.com
  36. 36. involve more capabilities and greaterworkloadsFrom the buyer‘s and the supplier‘s sidedecision has more extensive consequences36decision has more extensive consequencesAOT - www.tharakadias.com
  37. 37. Industrial plantsManufacturing installationsOffice buildings37AOT - www.tharakadias.com
  38. 38. Straigtht rebuy – routine decision, repetitive process(energy, office supplies, raw materials, wood, cigarettes),component suppliers for the automotive industry – little orno new informationModified rebuy – more complicated but less sophisticated:cars, trucks, computers, consulting – modified rebuys are38cars, trucks, computers, consulting – modified rebuys areoften treated too uncautiousNew task – calls for thorough research – industrial plant –highest level of uncertainty. Strategic new tasks are ofextreme strategic and financial importance (aircrafts,military equipment, infrastructure) – re-evaluation ofalternatives and search for new information and newalternativesAOT - www.tharakadias.com
  39. 39. Problem recognitionGeneral need descriptionProduct specificationSupplier searchProposal solicitation39Supplier searchProposal solicitationSupplier selectionOrder routine specificationPerformance reviewAOT - www.tharakadias.com
  40. 40. Role keepers have different tasks – notmandatoryBuyerUser40BuyerUserInitiatorGatekeeperInfluencerAOT - www.tharakadias.com
  41. 41. Formal authority to sign contractsMember of purchasing departmentInfluences the vendor selectionNot in technical details41Not in technical detailsMain criteria: price + terms and conditions ofthe contractAOT - www.tharakadias.com
  42. 42. Person working with the productInterested in benefits and unobstructedfunction of the product to buyLarge knowhow and preconceived opinion42Large knowhow and preconceived opinionAOT - www.tharakadias.com
  43. 43. A person with high technical knowledge andpractical experiencedefinition of minimum requirements on43definition of minimum requirements ontechnical or company standardsAOT - www.tharakadias.com
  44. 44. Controls the flow of information within thebuying centerAssistant of decision makerInfluence by preparing the decision and the44Influence by preparing the decision and therelevant documentsAOT - www.tharakadias.com
  45. 45. Right to say yes or noMightiest person45AOT - www.tharakadias.com
  46. 46. Person who brings new ideas and solutionsinto the company46AOT - www.tharakadias.com
  47. 47. Long decision taking processHigh riskComplex buying centerThe specific competitive situation47The specific competitive situationAOT - www.tharakadias.com
  48. 48. Focuses on innovationHas to care for high flexibility in research anddevelopmentAnd manufacturing and assembling48And manufacturing and assemblingAOT - www.tharakadias.com
  49. 49. Strict bid and tender rulesHigh transparencyAdd value with service offering to achieve adifferentiating position49differentiating positionAnother aspect: financing and sourcingmodelsAOT - www.tharakadias.com
  50. 50. Focus on negotiation phaseProvide excellent people in the selling centerHigh technical knowledge50AOT - www.tharakadias.com
  51. 51. It is intangible.It does not result in ownership.It may or may not be attached with a physicalproductproduct51AOT - www.tharakadias.com
  52. 52. Physical goods Servicestangible intangiblehomogeneous heterogeneousProduction and distribution areseparated from consumptionProduction, distribution andconsumption are simultaneousseparated from consumption consumption are simultaneousprocessesA thing An activity or processCore value processed in factory Core value produced in the buyer-sellerinteractionCustomers do not participate in theproduction processCustomers participate in productionCan be kept in stock Cannot be kept in stockTransfer of ownership No transfer of ownership52AOT - www.tharakadias.com
  53. 53. They could beEquipment basedPeople based – varying skill levels53AOT - www.tharakadias.com
  54. 54. Personal needs – haircuts, tution, massageparloursBusiness needs – courier services, officecleaning services, delivering fresh flowerscleaning services, delivering fresh flowers54AOT - www.tharakadias.com
  55. 55. IntangibilityInseparabilityPerishabilityVariabilityVariability55AOT - www.tharakadias.com
  56. 56. PeoplePhysical evidenceProcess56AOT - www.tharakadias.com
  57. 57. 57Mr Bean - Bad Customer Service -- Schlechter Kundenservice - YouTube.flvAOT - www.tharakadias.com
  58. 58. Reliability – delivering on promisesResponsiveness – willing to helpAssurance – inspiring trust and confidenceEmpathy – individualising customersEmpathy – individualising customersTangibles- physical representation58AOT - www.tharakadias.com
  59. 59. It is the customer – service encounterEvery positive or negative experience of theconsumer would have fall-out on the overallservice experienceservice experience59AOT - www.tharakadias.com
  60. 60. 60AOT - www.tharakadias.com
  61. 61. Retail involves the sale of goods from a singlepoint (malls, markets, department stores etc)directly to the consumer in small quantities for hisend use. In a layman’s language, retailing is nothingend use. In a layman’s language, retailing is nothingbut transaction of goods between the seller and theend user as a single unit (piece) or in small quantitiesto satisfy the needs of the individual and for hisdirect consumption.AOT - www.tharakadias.com 61
  62. 62. 62AOT - www.tharakadias.com
  63. 63. The opportunity for rapid advancement intomanagement, new territories and accountsThe potential for extremely attractivecompensationcompensationThe development of personal satisfaction, feelingsof accomplishments, and increased self confidence.The independence that the salespeople haveincluding complete control over the time andactivityAOT - www.tharakadias.com 63
  64. 64. Ethics are the building blocks of a business that are based on moralprincipals and values.It lends honesty and transparency in dealing between buyer and sellers.TA buyer and seller responsibilities governed by economics relationships,legal procedures, and ethical principals .Responsible organizations feel it is imperative for them to cater to theResponsible organizations feel it is imperative for them to cater to thecustomers with the right combination of Marketing mixTerm right mean actual products which the consumer demands.Withother mix elements.AOT - www.tharakadias.com 64
  65. 65. Delivering inferior quality product that does not commensurate with theprice paidVariation between promised and actual specification levels of theproductPrice discrimination amongst buyersShowing wrong test reports and promoting false stories of productShowing wrong test reports and promoting false stories of productsuccess to certify product qualityUse of unsafe packaging materialsProviding wrong information on the labels of the productCondemning competitors harshly before customers willfully and wronglyFailing to supply the product at right time and place without any priorintimationDisregarding the complaints received from customers or earlier supply ofproductsAOT - www.tharakadias.com 65
  66. 66. Right to safety- to safeguard consumers from the hazardsand side effects of products that may endanger themRight to be informed – to protect consumer againstfraudulent, deceitful or grossly misleading information,advertising, labeling or other malpractices.advertising, labeling or other malpractices.Right to choose – to assure access to a variety of productsand services at competitive prices .Right to be heard – to assure full and sympatheticconsideration in the formulation of government policy and toprovide fair and expeditious treatment in the administrativetribunals in the interest of the customer.AOT - www.tharakadias.com 66
  67. 67. ThankyouThankyouAOT - www.tharakadias.com 67