Notes: Personal selling is direct communication between a sales representative and prospective buyers in an attempt to influence each other in a purchase situation. Personal selling offers several advantages over other forms of promotion, such as those listed here.
Notes: Exhibit 12.9 compares the effectivity of personal selling and advertising/sales promotion based on certain customer and product characteristics. Personal selling is more important as the number of potential customers decrease, as the complexity of the product increases, and as the value of the product grows.
Definition of Personal SellingPersonal selling –1) two-way flow of communication2) between a buyer and seller3) a face-to-face or real time encounterWhy are “ face to face” and “two-way” important?
• Provides a detailed explanationor demonstration of product• Message can be varied to fit theneeds of each prospective customer• Can be directed to specificqualified prospects• Instant feedback• Personal persuasion can be used“A good salesman can getyou to buy ice in winter”Advantages of Personal Selling
When to Use Personal SellingCustomers are concentratedCustomers are concentratedThere are few customersThere are few customersProduct is technically complexProduct is technically complexProduct is custom madeProduct is custom madeProduct has a high valueProduct has a high valueSelling image, not productSelling image, not product
Creating Value Through SalespeopleRelationship Sellingbuilding ties to the customer, based on asalesperson’s attention and commitment tocustomer needs over time.
1) Prospecting2) Pre-approach3) Approach4) Presentation5) Close6) Follow-UpSix stages of Personal Selling
Personal Selling: Prospecting Prospect- possible customerQualified Prospect-customer who has desire,means and power to decideCold Canvassing- seller initiated contact of,potentialcustomers without advance warning.
3) Approach-First meeting(Physical impressions highly important-appearance, timeliness,confidence)2) Pre-approach-Gathering information(when to call, income level, risk tolerance)Personal Selling:Pre- Approach & Approach
Personal Selling:PresentationA) Stimulus-Response Format – (suggestive selling)keep suggesting items until the buyer responds, like theMcDonalds order takerB) Formula Selling Format – more formal and planned,like a telemarketerCanned Selling PresentationMemorized, standardized messageconveyed to every prospect.Works when seller is a novice ordoes not know the buyer well
Personal Selling: Presentation Need-Satisfaction Format-Let the customer do the talking-Salesman probes, listens then suggests,like a financial planner• Adaptive Selling- pro-active but selectivepresentation of offerings,based on pre-approach data• Consultative Selling – re-active presentationfor problem solution
Personal Selling: Presentation Handling Objections• Acknowledge and Convert the Objection-use the objection as a reason to buy (expensive)nswer because next info will convince buyerated)nd Neutralizehow the objection’s insignificance (side effects)Denialrefute objection with clear facts
Personal Selling: CloseTrial 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.
Address concerns with delivery and installation,so today’s customer becomes tomorrow’squalified prospect or referral sourcePersonal Selling: Follow-Up
Sales Force Motivation• Compensation• Straight Salary Compensation Plan• Straight Commission Compensation Plan• Combination Compensation Plan
Sales Force Evaluation Quantitative Assessments – sales quotaseasy but ignores selling environment•attitude•attention• product knowledge•selling skills•appearance and professionalism Qualitative Assessments – behavioral evaluations
Personal selling involves thetwo-way flow of communicationbetween a buyer and seller, often in aface-to-face encounter, designed toinfluence a person’s or group’spurchase decision.Personal selling involves thetwo-way flow of communicationbetween a buyer and seller, often in aface-to-face encounter, designed toinfluence a person’s or group’spurchase decision.Personal Selling
The personal selling process consistsof six stages: (1) prospecting,(2) preapproach, (3) approach,(4) presentation, (5) close, and(6) follow-up.The personal selling process consistsof six stages: (1) prospecting,(2) preapproach, (3) approach,(4) presentation, (5) close, and(6) follow-up.Personal Selling Process
Adaptive selling involves adjustingthe presentation to fit the sellingsituation, such as knowing when tooffer solutions and when to ask formore information.Adaptive selling involves adjustingthe presentation to fit the sellingsituation, such as knowing when tooffer solutions and when to ask formore information.Adaptive Selling
Consultative selling focuses onproblem identification, where thesalesperson serves as an expert onproblem recognition and resolution.Consultative selling focuses onproblem identification, where thesalesperson serves as an expert onproblem recognition and resolution.Consultative Selling