Advertising and Sales Management

Definition of 'Personal Selling'

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 sale.
Personal selling is a face-to-face selling technique by which a salesperson uses his or
her interpersonal skills to persuade a customer in buying a particular product. The
salesperson tries to highlight various features of the product to convince the customer
that it will only add value. However, getting a customer to buy a product is not the
motive behind personal selling every time. Often companies try to follow this approach
withcustomers

The Company wants to spread awareness about the product for which it adopts a
person-to-person approach. This is because selling involves personal touch, a
salesperson knows better how to pitch a product to the potential customer. Personal
selling can take place through two different channels – through retail and through direct-
to-consumer channel. Under the retail channel, a sales person interacts with potential
customers who come on their own to enquire about a product. The job of the
salesperson is to make sure that he understands the need of the customers and
accordingly shows various products that he keeps under that category. Under the direct
channel, a salesperson visits potential customers in an attempt to make them aware
about a new product that the company is launching or it may have a new offer which the
customers may not get from the open market.Personal selling is the process of
communicating with a potential buyer (or buyers) face-to-face with the purpose of selling
a product or service. The main thing that sets personal selling apart from other methods
of selling is that the salesperson conducts business with the customer in person.
Though personal selling is more likely to be effective with certain types of products or
services, it has important applications for nearly all kinds of small businesses. In fact,
most of history's successful entrepreneurs have been skilled salespeople, able to
represent and promote their companies and products in the marketplace.Personal
selling is one part of a company's promotion mix, along with advertising, sales
promotion, and public relations. Advertising is any form of paid sales presentation that is
not done face-to-face. Television and radio commercials, newspaper and magazine
advertisements, and direct mail inserts are well-known forms of advertising. Sales
promotion is the use of incentives—such as coupons, discounts, rebates, contests, or
special displays—to entice a customer to buy a product or service. Public relations is
the act of building up a company's image in the eyes of the community in the hopes of
translating the feelings of goodwill into sales. An example of public relations might
include a company sponsoring a charity event.Personal selling offers entrepreneurs
both advantages and disadvantages in comparison with the other elements of the
promotion mix. On the positive side, personal selling allows the salesperson to target
the message specifically to the audience and receive immediate feedback. In this way, it
is more precise than other forms of promotion and often has a greater persuasive
impact. Conversely, personal selling cannot reach as many potential customers as
advertising, plus the cost of each contact is much higher. Another advantage is that
personal selling can be an important source of marketing information. Salespeople may
learn about competitors' products, for example, or about emerging customer needs that
may lead to the development of a new product. If the sales force is well trained—acting
as problem solvers and advisors for customers rather than using hard-sell tactics—
personal selling may help a small business build loyal, long-term relationships with
customers. A small business may choose to use any or all of the promotion mix
elements in selling its products. Deciding how to allocate resources for each component
involves a number of factors. Some of the things entrepreneurs should consider when
deciding on the ideal promotion mix include the type of product or service, the value of
the product or service, and the budget allotted for marketing.
.

What Is the Relationship Between Advertising &

Personal Selling?
Advertising and personal selling are closely related business processes that make up
the bulk of a company's activity within marketing and promotion. Advertising and
personal selling are both methods used by companies to convey the benefits of their
brand, products and services to the market. However, advertising and personal selling
are distinct approaches to marketing.

Marketing Mix Overview

The marketing mix, or the four P's of marketing, outlines the four common elements
that are used by companies to develop a thorough marketing plan. The NetMBA
website credits Neil H. Borden's 1964 article "The Concept of the Marketing Mix" with
making the marketing mix a popular business concept. Product, place (or distribution),
price and promotion are the four components of the marketing mix. Advertising and
personal selling are among the most pervasive components of the promotional
element.

Advertising Basics
Advertising is the use of mass media to deliver a persuasive message that is paid for
by the advertiser. Television, radio, newspapers, magazines and the Internet are
known as the traditional advertising media, though companies use a number of
support media and newer media to convey messages to their target markets.
Advertising typically involves dissemination of a prepared message that attempts to
improve the advertiser's position in the market.

Personal Selling Basics

Personal selling is typically a one-on-one process by which a company's sales
representatives personally work with prospects to recommend the best product or
service to match their needs. Salespeople ask questions of prospects to understand
their particular needs and then try to sell the benefits of the most appropriate solution
to meet those needs. Selling is face-to-face or direct communication with prospects,
which often leads to more immediate sales of the company's products.

Comparing Advertising and Selling

Though many companies utilize both advertising and selling in business operations,
they are usually complementary processes. Advertising is a more general
communication that attempts to build brand value over time. Selling is more direct,
personal contact that allows for interaction. Selling is a prime example of direct
marketing, an interactive system of advertising that requires immediate feedback from
the target prospect. In selling, the salesperson is the only channel of communication
with prospects. With advertising, advertisers use a variety of mass communication
methods to deliver messages to their markets.

Advantages of Advertising
Advertisements in the IMC mix are paid spots in media such as television, radio,
magazines, billboards and websites. Advertisements are good at informing and
persuading mass audiences. Advertising reaches consumers both before and after
their purchase, persuading them to buy and then reinforcing the purchase. This
before-and-after influence helps with valuable post-purchase word-of-mouth
advertising as consumers recall their experience with the product.
Advantages of Personal Selling
Personal selling involves salespeople who are paid to personally promote a product
face-to-face with the consumer. This type of marketing communication all but
eliminates noise and allows immediate feedback and response. Personal selling is
one of the most persuasive forms of marketing communication. It reaches consumers
as they make their purchase and influences them immediately following the purchase.

Advantages of Public Relations

Public relations are indirect, unpaid communications through news outlets and other
credible sources. This type of marketing communication requires the cooperation of
the news media. Consumers are likely to believe public relations messages above all
other types of marketing communications. Public relations reaches consumers best
before they make their purchase.

Advantages of Sales Promotions

Sales promotions are discounts such as coupons, sales and giveaways. This type of
marketing communication is highly effective at changing consumer response at the
time of purchase. Marketers often use this type of communication in the maturity stage
of the product life cycle to spur renewed interest and to remind consumers of the
product.

Advantages of Direct Marketing

Direct selling is marketing communication through postal mail, email or over the
telephone. It’s information that’s prepared quickly and customized to consumers
whose contact information is kept in the business's database. Direct selling creates a
rapport with the customer and is often combined with sales promotions such as
coupon mailers. Like sales promotions, direct marketing affects the consumer at the
point of purchase.

What Is the Difference Between Personal Selling &

Direct Marketing?

Companies try a number of different ways to reach potential customers to make

sales. Among them are personal selling and direct marketing, two different
communication tactics. Personal selling requires a salesperson to communicate
directly with a potential customer, whereas direct marketing occurs when companies
send information directly to consumers. Some companies employ both tactics, along
with other advertising and marketing strategies.
What Are the Differences Between Personal Selling
And Direct Marketing?
Personal selling and direct marketing are both attempts to reach potential customers
directly, there are some differences to consider. Personal selling occurs when a
company employee, typically a salesperson, has a conversation with a potential
customer. This may occur face-to-face in a retail setting, over the phone or on social
media platforms. No matter the medium, the distinctive characteristic of personal
selling is the direct line of communication between a company representative and a
consumer.

With direct marketing, companies are also reaching consumers directly, but instead of
speaking with them, they send emails, text messages, fliers, catalogs, letters and
postcards. Though direct marketing campaigns can be tailored and customized for
different groups of recipients, they typically do not involve forming personal
relationships with customers. Instead, direct marketing materials are generally mass-
produced and sent to large audiences.

How Personal Selling Works

The theory behind personal selling is that a customer is more likely to buy something
from a person that he has a positive relationship with, and whom he trusts to provide
accurate information. Though personal selling often occurs in person or by phone,
many companies today are experimenting with other means of communication. Some
companies use social media platforms such as Facebook and Instagram, as well as
email, to build personal relationships with customers that can ultimately lead to sales.

There are many real-life examples of personal selling that people encounter everyday.
Real estate agents often generate business by establishing personal relationships with
friends, family members and acquaintances. Multi-level marketing companies, such as
those that sell health supplements and makeup, establish personal relationships with
their customers on social media and by hosting local events. Door-to-door
salespersons, who sell an array of products, also engage in personal selling tactics.

How Companies Use Direct Marketing

With direct marketing, there is no middleman, such as a radio station or a TV network.
Instead, companies give information directly to consumers in the form of mailers, fliers
and catalogs. In recent years, direct marketing has also expanded to include emails,
text messages and even social media platforms like Facebook.
For example, a local landscaping company sends a flier in the mail to all residents of a
particular neighborhood within the company's service area. To encourage repeat
business, a shoe company sends a free catalog in the mail to people who have
purchased items from them in the past. A new fitness gym may send promotional
information or coupons in the mail to customers within driving distance of the facility.

Online, companies send out targeted emails alerting customers to an upcoming sale,
using data from customers' past online purchases to determine which specific
products to highlight in the email. Similarly, a retailer sends emails with a specific
coupon code that can be used for a discount on an online purchase.

The history of direct marketing has been traced back to Benjamin Franklin, who was
drumming up business for Poor Richard's Almanac in the 1730s. Many popular
department stores have found success through direct marketing using catalogs,
including Sears and J. C.Penney.

Direct marketing is a marketing tool used by some companies because it allows them
to target specific groups of consumers, like an entire neighborhood. By incorporating a
specific coupon or a unique phone number, companies can track and measure the
success of their direct-marketing campaign. This feedback allows them to tweak future
campaigns to result in additional sales or inquiries. Direct marketing can also reach
very large numbers of people at one time.

Advantage: Convey More Information

You can convey more information with personal selling than with other forms of
promotion, like advertising. A personal sales call lasts longer than any ad. Therefore,
you have time to discuss the intricacies of your product. Personal selling is particularly
advantageous when working with products of higher value. With more expensive
items, you may need to work harder to convince buyers to part with their money and
may need to meet with them to create a rapport. Most companies use laptop
presentations, demonstrations and highly detailed product information when selling
items such as computers, medical equipment and industrial products. Pharmaceutical
reps can also better discuss the biological effects and advantages of certain new
drugs.

Advantage: Create More Impact

Personal selling has a greater impact on buyers than advertising or direct mail. The
customer does not have to wait to get his questions answered. He can learn what he
needs to know right then and there. You as a seller also get a better feel for what the
customer wants. You can suggest certain products if you have an extensive product
line or tailor your services, such as consulting, to the client's particular needs. You
also know what the customer's key objections are on each sell. For example, a
customer may be satisfied with his current industrial adhesive tape supplier. They may
sell their products for less. However, your company may sell adhesives that last longer
and, therefore, cost less in the long run. Subsequently, you can address those key
objections and make the sale.

Disadvantage: Limited Reach

One disadvantage of personal selling is that you cannot reach as many customers as
quickly. Therefore, it will take longer to build awareness of your brand and products,
especially if you use personal selling exclusively. Sales reps have to cover one
territory or market at a time. As a sales person, for example, you may only be able to
speak to 25 prospects a day and make three to five presentations. Reach can be
particularly limited in rural areas where fewer prospects are located. One way around
the limited reach of personal selling is to use inside sales reps for the smaller markets.
Inside sales reps can make a greater number of calls.

Disadvantage: It's Expensive

Personal selling is also expensive, especially when considering the salesperson's
salary, commission, and bonus and travel time. Some sales reps even travel to other
cities by plane. Companies incur a high cost per action with personal selling. These
costs are incurred regardless of whether the sales person makes the sale.
Additionally, it costs a lot of money to train your sales reps, teaching them about
various products and sales procedures. That is why it best to weigh the pros and cons
of personal selling versus other promotional methods.