A MINI PROJECT REPORT ON

“PERSONAL SELLING SKILL IN

LIC”

SUBMITED TO:
SRUSTI ACADEMY OF
MANAGEMENT
(UNDER GUIDENCE OF PROF.SANDIP HAZRA)

SUBMITTED BY:-
DEEPAK KUMAR GOPE
 1ST YEAR MBA, 2nd sem.
Regd no.1006286071
Declaration
I, Deepak Kumar Gope presently MBA 1st year in Srusti
Academy of Management Bhubaneswar (Affiliated to
BPUT, Rourkela) hereby declare that this project work
title “PERSONAL SELLING SKILL IN LIC” is my own work
and has not been submitted to any other University or
Institute.
I express my gratitude and offer my sincere thanks to
Prof. Sandip Hazra, a faculty of our Institute who has
given me the opportunity to do this project and to
explore my knowledge towards the organizational
decision.

DEEPAK KUMAR GOPE

MBA (2ND SEM)
REGD. NO-1006286071
SRUSTI ACADEMY OF MANAGEMENT,
BHUBANESWAR
 Internal Guide Certificate

The mini project on “PERSONAL SELLING SKILL IN LIC”, is

done by DEEPAK KUMAR GOPE, student of MBA 2nd
Semester under my supervision and has not been
submitted to any other Institute or University.

Prof. Sandip Hazra

Internal Guide
Srusti Academy of Management
Bhubaneswar

CONTENTS
 INTRODUCTION

 OBJECTIVES

 COMPANY PROFILE

 PERSONAL SELLING SKILL ADOPTED BY LIC

 OBSERVATION

 CONCLUSION

INTRODUCTION
PERSONAL SELLING SKILLS
Personal selling occurs where an individual salesperson sells a product,
service or solution to a client. Salespeople match the benefits of their
offering to the specific needs of a client. Today, personal selling
involves the development of longstanding client relationships. In
comparison to other marketing communications tools such as
advertising, personal selling can be defined as follows:

Personal selling is oral communication with potential buyers of a

product with the intention of making a sale. The personal selling may
focus initially on developing a relationship with the potential buyer, but
will always ultimately end with an attempt to “close the sale”.

Personal selling is one of the oldest forms of promotion. It involves the

use of a sales force to support a push strategy (encouraging
intermediaries to buy the product) or a pull strategy (where the role of
the sales force may be limited to supporting retailers and providing
after-sales service).

What are the main roles of the sales force?

Kotler describes six main activities of a sales force:-

 Prospecting – trying to find new customers

 Communicating – with existing and potential customers about the
product range
 Selling – contact with the customer, answering questions and
trying to close the sale
 Servicing – providing support and service to the customer in the
period up to
delivery and also post-sale
 Information gathering – obtaining information about the market
to feedback into
the marketing planning process
 Allocating – in times of product shortage, the sales force may
have the power to decide how available stocks are allocated

What are the advantages of using personal selling as a means

of promotion?
  Personal selling is a face-to-face activity; customers
therefore obtain a relatively high degree of personal
attention
 The sales message can be customised to meet the needs of
the customer
 The two-way nature of the sales process allows the sales
team to respond directly and promptly to customer
questions and concerns
 Personal selling is a good way of getting across large
amounts of technical or other complex product information
 The face-to-face sales meeting gives the sales force chance
to demonstrate the product
 Frequent meetings between sales force and customer
provide an opportunity to build good long-term relationships

Main disadvantages of using personal selling

The main disadvantage of personal selling is the cost of employing a

sales force. Sales people are expensive. In addition to the basic pay
package, a business needs to provide incentives to achieve sales
(typically this is based on commission and/or bonus arrangements)
and the equipment to make sales calls (car, travel and subsistence
costs, mobile phone etc).

In addition, a sales person can only call on one customer at a time.

This is not a cost-effective way of reaching a large audience

COMPANY PROFILE
Date of Establishment
1956
Address
1st Floor,West Wing, Mumbai Do-Iv,
Yogakshema, Jeevan Bima Marg,
Mumbai - 400 021, India
Branches
8 Zonal Offices and 101 Divisional Offices
Management Team

 T.S. Vijayan - Chairman

 D.K. Mehrotra - MD, LIC

 Thomas Mathew T - MD, LIC

 A K Dasgupta - MD, LIC

 Arun Ramanathan - Secretary, Financial Services, Dept. of

Financial Services,Ministry of Finance, Govt of India

 Sindhushree Khullar - Addl. Secretary, Dept of Economic

Affairs, Ministry of Finance

 Yogesh Lohiya - Chairman cum MD, GIC of India

 T.C. Venkat Subramanian - Chairman & MD, Export Import

Bank of India.
Overview
The largest life insurance company in India, Life
Insurance Corporation is fully owned by the government.
It provides individual life insurance, group insurance and
pension plans. Its subsidiaries include Life Insurance
Corporation of India International, LIC Nepal, LIC Lanka,
LIC Housing Finance and LICHFL Care Homes. It has over
12 million policy holders and over 9 lakh agents. It has
underwritten more than 120 million policies.
LIC saw computers in 1964. Today the company is on the
Internet and is utilizing Information Technology in
servicing its clients. It has bagged various award
including Loyalty Awards 2008 in Insurance Sector, NDTV
Profit Business Leadership Award – 2007, CNBC Awaaz
Consumer Awards 2007 and Outlook Money NDTV Profit
Awards 2007.

LIC provides a rewarding career as sales agents. It offers

world class training, freedom to work and unmatched
financial strength.

Selling Skills in LIC

Personal selling is about focusing on the customers and their
needs and wants, and helping them find solutions to their
problems. It is not about pressuring them into buying. While
customers don't mind having features and benefits pointed out to
them, they do want to feel that they are the ones who have made
the final decision, not that it has been forced upon them.

The functions of the sales person include:

 Communicating with the individual

 Analysing the customer's needs, even when they're not
aware of what they
really want.
  Demonstrating the features and benefits of the
product/service
 Negotiating prices and additional customer service to secure
the purchase
without loss of profit
 Monitoring the time and efficiency of delivery of the
product/service
 Building relationship to encourage repeat purchases and the
development
of loyalty among customers

The steps involved in the selling process are:

Prospecting and qualifying: involves identifying who

potential customers are, and determining as much as possible
about their needs, interests, likes and dislikes. This provides the
seller with the best possible approach to each potential client.

The Approach: this is the physical act of approaching the

customer, based on the prospecting and qualifying done in Step
1. At this stage, it is essential that the seller has all selling aids,
etc. at her/his disposal.

The Presentation: this involves the presentation and

demonstration of the benefits and features of the product/service.
The emphasis should be on benefits rather than technical details.

Handling Objections: objections are often indications that

the prospect wants to buy, but has an uncertainty. Overcome this
by trying to offer benefits to which the person can relate. Accept
the customer's view, and answer any questions sincerely.

The Close: this is simply getting the prospect to say "Yes".

Ask for the order, cash or credit, when it will be available to them
and whether they would like the product picked up or delivered.
 Follow Up: this involves thanking the customer, offering
congratulations and restating all terms and promises. Keep all
promises.

OBSERVATION
I observed that :-
 Personal selling skills are face to face sales.

 Speak more slowly than usual if the concept or

product.

 Check that your communicative skills.

 Try to ask few probing questions that will get the

prospect talking.

 Listen without interrupting and answer and

questions.
 End the conversion politely.
 Conclusion
Seals people must show resource fullness and originality
in order to find prospects. Different sells people who
sales different product and services than find out the
prospects in different way from different sources.
The most important prospects are always existing
customers. The sales person can never devote too much
time and effects to them. Seals people frequently know
very little about other than what they have learned from
the referral.
 Objective
 Objective of the study what is the personal sealing
skills
 Personal selling skill of LIC