), Creative Commons Attribution 4.0 International License. Personal selling offers several advantages over other forms of promotion: Selling is a process that can be learned. Achieving World-Class Operations Management, 82. Table 1.1 Strengths and weakness of personal selling 1 Interactive: questions can be answered and objectives overcome After the higher authority responds, often disapproving the agreement, the sale goes into round two or starts all over again. Perhaps the easiest way to close a sale is to ask for it: “Ms. Importance of Personal Selling to Businessmen. It occupies an important … Personal Selling. Threats and Opportunities in the Global Marketplace, 24. The sales message can be varied according to the motivations and interests of each prospective customer. So the selling agent can get instant feedback from the prospective buyer. Salesman provides information about the different features and advantages of his product as well as about market developments. Does the prospect have a need for our product? Records in the service department can identify people who already own equipment and might be prospects for new models. Making Ethical Decisions and Managing a Socially Responsible Business, 12. Using Supply Chain Management to Increase Efficiency and Customer Satisfaction, 110. Sales Dialogue. Managing Human Resources and Labor Relations, 62. The result is that that sales presentation turns out to be just a preliminary, nonbinding round. 83. The personal selling process is a seven step approach: prospecting, pre-approach, approach, presentation, meeting objections, closing the sale, and follow-up. At the same time, the salesperson tries to build interest in the coming meeting. Buying and Selling at Securities Exchanges, 144. Personal selling is an effective promotional tool in the hands of businessman for increasing sales. The following three questions help determine who is a real prospect and who is not: Approaching customers: After identifying a prospect, the salesperson explains the reason for wanting an appointment and sets a specific date and time. Personal Selling: People Power. Trends in the Business Environment and Competition, II. The step that follows that of lead generation is to further analyze your … Trends in Developing Products and Pricing, XII. A salesperson can gauge the customer’s reaction to a sales approach and immediately … The professional salesperson tries to anticipate objections so they can be countered quickly and with assurance. About 6.5 million people are engaged in personal selling in the United States. How Environmental Factors Determining Choice of Channels? The importance of personal selling to businessmen, customers, and society. Sales representatives attend such meetings to display and demonstrate their company’s products and to answer the questions of those attending. It may be a casual conversation, with the salesperson presenting product benefits and assisting the customer in solving his or her problems (like a partner on the client company’s team) in a way that might interest the potential buyer. This is the first importance of personal sellingand it means that the ultimate objective of personal selling activity is that all the sales activities right from prospecting, pre-approach, approach, presentation and demonstration, handling objections, closing, follow-up are attained in a synchronous manner and ultimate objective of revenue generation is possible. Personal selling plays a very important role in the marketing of goods and services. Developing Customer Relationships. Specialized Forms of Business Organization, V. Entrepreneurship: Starting and Managing Your Own Business, 36. Presenting and demonstrating the product: The presentation and demonstration can be fully automated, completely unstructured, or somewhere in between. Trends in Human Resource Management and Labor Relations, 79. Personal selling involves person in selling activity.Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships is called Personal selling. Leading, Guiding, and Motivating Others, 55. Salesman provides information about the different features and … Public Relations Helps Build Goodwill, XIII. Corporations: Limiting Your Liability, 30. This type of communication is carried out by sales representatives, who are the personal connection between a buyer and a company or a company’s products or services. © copyright 2020 QS Study. Trends in Production and Operations Management, XI. Jones, may I write up your order?” One of the best techniques is to act as though the deal has been concluded: “Mr. (v) Lasting Relationship: Personal selling helps to develop the lasting relationship between the sales persons and the customers, which is very important for achieving the objectives of business. Personal selling costs can be controlled by adjusting the size of the sales force (and resulting expenses) in one-person increments. This helps a business person in successfully completing the sale. Table 1.1 lists the strengths of personal selling and one weakness: compared to other communications media selling is costly. Understanding Economic Systems and Business, 3. This capability is especially desirable for complex or new goods and services. I. Location, Location, Location: Where Do We Make It? How Entrepreneur Contribution to Capital Formation? The sales presentation is adjusted according to the requirements of the customer. In many companies, personal selling is the Identifying Quality Leads. In the present competitive environment of business, effective selling of goods or services has become very difficult and challenging task for any business firm. Trends in Entrepreneurship and Small-Business Ownership, VI. Understanding Financial Management and Securities Markets, 137. Often employed in business, the “higher authority” objection is frequently used when one of the parties says, “This agreement looks good, but I’ll have to run it by my committee” (or wife or any other “higher authority”). It is a useful tool is helping the people in understanding the elements of product due to one to one conversation. Personal selling is especially important for business-to-business marketers since products and services are complex and expensive. Achieving High Performance through Human Resources Management, 70. Production and Operations Management—An Overview. In contrast, advertising and sales promotion can respond only to the objections the copywriter thinks are important to customers. the series of conversations between buyers and seller that take place over time, in an attempt to build relationships. The purchaser thinks himself as honorable person in whom the producer is interested. The situations or the conditions favouring personal selling can be lumped into four broad categories … 2. One good way to do this is to impart an interesting or important piece of information—for instance, “I think my product can cut your shipping and delivery time by two days.”. Personal selling is a face-to-face sales presentation to a prospective customer. Each detail must be carefully checked to ensure that the equipment is exactly what was ordered. The importance of personal selling to businessmen, customers and society. (ii) Flexible Tool: Personal selling is more flexible than other tools of promotion such as advertising and sales promotion. Developing Interpersonal Skills Is Key to Your Success, 148. The most important part of a sales person job is. The firm’s files and records can be another source of prospects. Personal selling is very useful for the businessman or the seller too. Using Teams to Enhance Motivation and Performance, 56. Personal selling is an important marketing tool for small businesses, particularly those that sell complex or high-value products and services to other businesses, rather than consumers. The importance of personal selling to businessmen, customers and society. Protecting Computers and Information, XIV. Importance to Businessmen. Even experienced salespeople sometimes find this part of the sales process awkward. Roles and importance of personal selling. Microeconomics: Zeroing in on Businesses and Consumers, 9. Definition: Personal selling is also known as face-to-face selling in which one person who is the salesman tries to convince the customer in buying a product.It is a promotional method by which the salesperson uses his or her skills and abilities in an attempt to make a sale. Managing a Socially Responsible Business, 15. Personal selling is a powerful tool for creating demand for a firm’s products and increasing their sale. Salesman provides information about the various features and advantages of his product as well as about market developments. Personal selling can be directed only to qualified prospects. Selling … Using Technology to Manage Information, 114. Selling is one element of marketing, which is the process of developing a product or service offering, communicating the benefits through promotions and managing the ongoing exchange of value with targeted customers. Slightly over 45 percent of them are women. Management and Leadership in Today's Organizations, 47. However, if the client says his uncle has to give the final approval because he will be loaning the money, the salesperson will try and set up an appointment when the uncle can be present. Personal selling provides a detailed explanation or demonstration of the product. Qualifying questions are used to separate prospects from those who do not have the potential to buy. Salesperson : Personal selling, a main tool in marketing communications, is used by retail associates, telemarketers and outside sales managers. Personal selling should be part of a wider sales mix, alongside telesales, email marketing, sales promotion, advertising, and public relations. Perhaps the most important advantage is that personal selling is considerably more effective than other forms of promotion in obtaining a sale and gaining a satisfied customer. Selling is generally one of the most persuasive forms of promotion a company has. Repeat sales over many years are the goal of professional salespeople. This is what delivers true value, along with very specific way to solve the problem. The sales message can be varied according to the motivations and interests of each prospective customer. After the product is delivered to the customer, the salesperson must make a routine visit to see that the customer is satisfied. Perhaps the most important advantage is that personal selling is considerably more effective than other forms of promotion in obtaining a sale and gaining a satisfied customer. Sales jobs range from salesclerks at clothing stores to engineers with MBAs who design large, complex systems for manufacturers. There are two main parts of this definition: The Importance of Personal Selling Lower Marketing Investment. For example, a visit to a business cus-tomer is far more expensive than sending an email. Meetings, such as professional conventions and trade shows, are another good source of leads. 84. The Impact of Multinational Corporations, 29. Feedback. Can the prospect make the buying decision? Selling is ultimately about collaboration, not your own personal chance to shine. From Motivation Theory to Application, X. For many companies, the inquiries generated by advertising and promotion are the most likely source of prospects. Importance of Personal Selling to Society, Road infrastructure and driver behavior can create complex road networks, Scientists develop Single Photons from a Silicon Chip for quantum light particles, Physicists use antiferromagnetic rust for Faster and Efficient Information Transfer, Crab armies can be a key issue in coral wall preservation, Beaches cannot be extinct if sea levels continue to rise. This activity is called prospecting. What are the advantages of personal selling. Building relationships is an absolute essential for the long-term success of a business strategy. (iii) Minimizes Wastage of Efforts: Personal selling involves minimum wastage of efforts as compared to other tools of promotion. Small Business: Driving America's Growth, 42. The Selling Importance of Marketing. The objectives are set for long-term, as it becomes the important element for qualitative personal selling objectives. An order for a complex piece of industrial equipment may include a hundred pages of detail. The salesperson must write up the order properly and turn it in promptly. Salespeople can tailor their presentations to fit the needs, motives, and behavior of individual customers. Detail Demonstration: Except television advertisements, demonstration is not possible. But personal selling must not be overlooked: it remains an extremely important part of a salesperson’s arsenal and is a skill every good salesperson must master. How Organizations Influence Ethical Conduct, 13. Correspondence with buyers can be helpful. Transforming the Factory Floor with Technology, 89. Professional salespeople are knowledgeable and creative. (vi) Personal Rapport: Development of personal rapport with customers increases the competitive strength of a business organization. Persuading prospects to... Interaction. Understanding Money and Financial Institutions, XVI. (iv) Consumer Attention: The level of customer attention and interest can easily be assessed under personal selling. There are certain marketing situations where personal selling is more relevant as it provides easy and effective answers to the multi-dimensional sales problems. One guideline is that not all prospects are “true” opportunities for a sale. Rarely does a customer say, “I’ll buy it,” without asking questions or voicing concerns. Just because someone has been referred or has made an inquiry does not mean that the person is a genuine prospect. Make Your Future Happen: Learn to Plan, 149. Moreover, when the prospect has questions or raises objections, the salesperson is there to provide explanations. The Production Process: How Do We Make It? 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