Personal Selling & Salesmanship

Example of a hierarchy in Sales Department

Sales
Director
(1)
Divisional
Manager (2)
Zonal Manager
(10)

Regional Manager (25)

Territory Business Manager (50)

Territory Business Executive (50)

 Personal Selling
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.
Definition : A form of person to person communication in which a
salesperson works with prospective buyer and attempts to influence
purchase in the direction of his or her companys products or services
Some important aspects of Personal selling:
It provides human touch to business transaction.
It promotes long term business relationship.
It enhances customer confidence
It helps in understanding the pulse of the customer.
It helps in customizing the product.
Helps in convincing the customer about the product.

Changing face of Personal Selling
In todays competitive markets, a personal sellers role is not just confined to persuading
prospective customers to buy products. In view of above, modern sales approach is based
on the following parameters.

Value sharing: The sales people share the same value as

their customers and perceive the customers needs with the

sole view to serve them better.

Relationship Building: A sales person should be able to

maintain the relationship with customers, which culminates in

building long term relations.

Role Playing: They act as a consultant to their prospective customers constantly

advising them of new products and updates

Co-ordinated approach: with a view to providing total customer satisfaction, a

coordinated approach of sales people with their colleagues is necessary. Example-
maintenance, installation, trouble shooting etc.
 Efficacy of Personal Selling
Personal Selling with Respect to Product Strategy
Since salespeople are in direct liaison with prospective customers, their
input is valuable during product development.
Personal Selling and Pricing Decisions
Sales personnel undergo requisite interaction with prospective customers
to gauge their mood with respect to different price levels.
Personal Selling and Distribution
The end result of any distribution effort is the ready availability of the
product to the customer, in the right quantity and at the right place.
Personal Selling and Product Promotion
Sharing the same values that the customer does, a salesperson provides
motivation and generates interest and confidence in the customer for the
product.
The Personal Selling Process
Selling process is the steps that salespeople follow when
selling, which include prospecting and qualifying,
preapproach, approach, presentation and demonstration,
handling objections, closing, and follow-up.
Steps in the Selling Process
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Steps in Personal selling

Successful personal selling calls for an integrated approach devised from the experience of the
sales personal. The approach comprises steps they are as follows:

Prospecting Pre approach Approach

Follow-up Presentation /
Demonstration

Handling
Closing objectives
Prospecting Prospecting

Prospecting is the process of identifying prospective buyers of the product. The

prospects are those who have a need or will to buy and need or will to buy and power
to pay. Prospects may be Individuals or institutions. There are different ways to
identify the prospects. Some of the most Frequently used methods are described below.
Cold Calling

Acquaintance of Reference

Center of Influence: Salesman obtained references from the eminent people

Personal Observation: identify prospects in social gathering, events, travelling

Direct mail / Telephone

Company records

Newspaper

Retailers

Other Methods: Trade shows exhibition

Girards Ferris WheelSupply

Copyright 2010 Pearson

Education, Inc. Publishing as
Prentice Hall
 Pre approach
Pre-approach
Pre-approach is the second step in the selling process which emphasizes that
the salesman should know the likes and dislikes, needs, preference, habits,
nature, economic and social status of his prospect clients. There are certain
significances of pre-approach they are as follows.

It is a method by which a salesperson concentrates only on the prospects.

It helps a salesperson gain all the possible information about the prospect

before approaching him.

Because of the ample knowledge of the prospects a salesperson is able to give

presentation more efficiently and effectively and with confidence.

With good presentation a salesperson is focused around the needs of the

prospect
Approaching Approach

In this stage the prospect and the salesperson comes in contact with each other face to face.
Here the salesman has the opportunity to understand and interact with the prospect in a
better way. Hence getting the attention of the prospect and persuading him to buy are the
two main objectives of a salesperson.

Methods of approaching: How do we make the

Initial contact & build rapport
Cashing in the brand name approach

Customer benefit approach

There is only one time to make
Innovative product approach
a first impression
Premium approach

The Shock Approach

Survey approach
Approach Adopted by Travelling Salesmen
A salesman may directly approach the prospect without any
introduction whatsoever and then conduct an interview.
Sending an advance mailer explaining his product and its benefits
vis--vis other products available.
There is no better method of securing an appointment with a
prospect than through a reference given by the friend, relative or business
associate of the prospect.
Another effective way of securing an appointment and interview
with the prospect is for salesmen to give away gifts to the prospects
before asking for an appointment.
Sale letters have proved to be another kind of door opener.
Approaching (continued)

Key Guidelines
Prior Appointments
Timing
Command on the subject matter
Relaxed approach
Open mindedness
Courtesies
Effective presentation
Follow ups
 Presentation /
Presentation / Demonstration Demonstration

A good presentation is as important as good product. Presentation can be in different forms like-
attractive packaging and display, conspicuous placement of the product in window display etc.
Presentation also includes the interior decoration of the shop and appearance. Requirements for
a good presentation includes

Location of display of the product.

Packaging of the product.

Explanation of the feature

Should be able to appeal the prospect.

Demonstrating the product: Demonstration is an exercise to prove the characteristic of the

product. It highlights various attributes of the product such as utility, performance, service etc.
Hence demonstration is imperative and essential for a prospect to make a buying decision.
 Handling
Handling Objection objectives

Objections, quires, doubts are signs of interest from prospects. It can taken as positive manner or
on a negative manner. Objections do take place when there is a good presentation. Or else the
salesperson may have failed to provide adequate information, or have not demonstrated how the
product meets the needs of the prospect IF HE HADNT TOLD
ME WHAT HIS OBJECTION
WAS, I NEVER WOULD
HAVE BEEN
ABLE TO HELP!

Closing
This is the last stage of any sales presentation.
The main aim of the close is to convince the prospect
and overcome the objections to sign the sales order form.
The sales person should be alert and use his good judgment
to spot an opportunity when the prospect is in a good mood.
 Follow-up
Follow ups

Follow up is as important as other pervious stages. It is this stage where the sales person
maintains the clients on a long term. Importance of follow-ups are

Building relationships

Updates from clients.

Cross selling

Re - purchase

Getting reference

Helps in avoid other competitors

Updating the market

Develops loyal clients.

Necessary for customer satisfaction

Difference between Advertising and Personal Selling
On a broad prospective both advertising and personal selling are the means to
communicate with the target customers for its products. But both has its own application and
uses to communicate.

Advertising Personal Selling

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No direct contact with Direct contact with
Produc Promoti customer customer
Price Place
t on Cannot convince the Can convince the
customer customer
Has a large reach Has limited reach
Public Person Sales
Advertisi
Relatio al Promoti
ng Costly approach Less costly approach
ns Selling on
Applies Pull strategy Applies Push strategy
Theories in Personal Selling

AIDAS Theory: This theory is based on the premise that during a sale presentation, the prospect
consciously goes through five different stages- Attention, Interest, Desire, Action and Satisfaction.

Attention Interest Desire Action Satisfaction

Attention: The sales person should attract the prospect to his presentation before he
actually goes into the details of the product.
Interest: Once the sales person has successfully gained prospects attention, he/she should maintain the
interest of the prospect throughout the presentation.
Desire: After gaining proper interest the sales person has to create a strong desire in the prospects mind to
purchase his product.
Action: At this stage a sales person should induce the prospects in to actually buying the product.
Satisfaction: Once the prospect has placed an order, the sales person ensures that the prospect carries the
impression of having taken the right decision.
Example: TATA Nano
Theories in Personal Selling (Continued)

Right set of Circumstances Theory: The advocates of this theory define that

all the circumstances, which led to the sales were appropriate for the sales to
have taken place. In other words, if the sales person is successful in securing
the prospects attention, maintaining his interest and inducing his desire to
buy the product, the sales will result. Moreover, if the sales person is highly
skilled, he will take control of the presentation, which would lead to sales

Buying Formula Theory: This theory emphasize on the buyer. This theory

emphasizes on the needs or problems of the buyer. The sales person assist
the buyer in finding an appropriate solution to the problem. This solution
may be in terms of a product or service.
Assignment- 1

Case Study Analysis

Identify a company who launched its product with the application of

AIDAS theory and explain each stage?

Assignment- 2