PERSONAL SELLING

Saba Kausar

Personal Selling
Communication Mix
Personal Selling Advertising Sales Promotion Public Relations Direct Mail Exhibitions

Personal Selling concerned with persuasive communication Personal selling brings human element into marketing transactions & increases the customers confidence Art of successfully persuading prospective customer to buy product/ service from which they can derive benefits & hence increase their total satisfaction The oral presentation of a companys product or services to one or more prospective buyers for the purpose of making a sale

Salesmanship
Salesmanship is a seller initiated effort that provide prospective buyers with information & motivates them to make favourable decisions regarding sellers products / services Personal selling involves salesmanship Personal selling aims at bringing the right product to the right customer. It is used for creating product awareness, stimulating interest, developing brand preference, negotiating price

Advantages of Personal Selling

Personal selling is the most commonly used promotional tool Mostly used in complex & highly technical products computers, water purifiers, for industrial consumers Helps in ability to hold customer attention Immediate feedback & two-way communication Presentation is tailored to individual needs Ability to target customer precisely Ability to cultivate relationship Ability to get immediate action

Disadvantages of Personal Selling

High cost per contact Inability to reach all customers effectively Despite training, behaviour of sales personnel differ from person to person

 Salesperson can have many names Agents Sales consultants Sales Representatives Account Executives Sales Engineers District Managers Marketing representatives Account Development Representatives

Types of Personal Selling

1. Industrial Selling 2. Retail Selling 3. Service Selling

Types of Personal Selling

1. Industrial Selling 2. Retail Selling Business-to-Business selling (B2B) / manufacture sector selling 3. Service Selling I. Selling to Resellers reseller is a wholesaler / retailer / intermediary who buy
finished goods & resell them to end user Hero Cycles, Unilever, Asian Paints Salesperson aims to gain larger shelf space & high point-of-purchase display
II. Selling to Business users output of one producer enters into production process of another producer to make final goods for consumption. Heavy machinery, electric cables Intel sells processors to Toshiba which in-turns make laptops III. Institutional Selling large / medium customers who use products in their daily operations Xerox photocopiers, Reynolds office stationary sell directly to institutions IV.Selling to Governments ultimate consumer is government organisation / govt. undertaking. Procedure in govt. buying is different from other institutions tenders, etc.

Types of Personal Selling

1. Industrial Selling 2. Retail Selling Retailing is all 3. Service Sellingactivities directly related to sale of goods / services to ultimate
consumer for personal / non-business use
Difference between retail sales & industrial sales is actual location of sales In retailing environment, customer approaches seller In industrial, seller seeks a customer

Retailer sells directly to end customer

Retailer purchases from industrial seller in large quantities & sell them in small assortments according to demand Shoppers Stop, Big Bazaar, Wal-Mart

Types of Personal Selling

1. Industrial Selling 2. Retail Selling 3. Service Selling
Service are activities / benefits provided to customers
Service selling is challenging, since services are intangible & cannot be separated from its source, hence cannot be stored for future use Some services are termed as retail service hotel room service, banking

Some are similar to industrial selling insurance, real estate

Personal Selling Process

Pre-sale preparation Prospecting Qualifying Pre-approach before interview Approach customer

Follow-up action

Closing the sales

Handling customer objections

Sales presentation

Personal Selling Process

1. Pre-sale Preparation This is pre-sale planning sales person prepares himself with adequate knowledge about product, company he represent, market in which he will sell, competitor product & prices, category of customers /segments he will target, various selling techniques applicable Pre-sale preparation helps to present credible picture to customer Makes sales person well prepared
Product Knowledge Features, Benefits, Styles, Origin, Price

Salesperson Knowledge
Company Knowledge History, Finances, Management, Size, Policies & Procedures Competitor Knowledge Industry Structure, Market Share, Market Behaviour, Other policies

2.

Identification of Prospects Important & time consuming job Sales person try to collect information about potential customers from all available sources Current Customers Best source of identifying prospective customers Easier to attract while selling additional goods & services Referrals of Satisfied Customers / Endless Chain Satisfied customers acts as good source of referrals Ask existing customers for names of relatives, friends / business associates who might need similar product Sales person contact these prospects for sale who provide further referrals . Eg. Readers Digest Centre of Influence Based on referral by a person, who has information about / influence over other people Housewives, bankers, local head / politician

Spotters / Sales Trainees Company employs sales trainees specifically for helping the sales person identify prospects These sales trainees are spotters Help in reducing time & effort required by sales person Cold Canvassing Calling on potential customer without any prior appointment Sales person just goes in & introduces himself to prospects & inquires Involves a lot of time & effort as all calls may not materialise Nowadays cold calls are made through telephones to save time Directories Abundant source of finding potential customers Also membership directories of trade associations, professional socities, civic / social organisations Mailing List Organisations compile list of persons & organisations for direct mail advertising, pamphlets Advantage over directories focused, current, selective

Trade Shows / Exhibitions Companies participate in trade shows / exhibitions promote, advertise, sell Also gain market information customer, competitors, prospective buyers Qualifying the prospects Excellent sales effort will fail if Delivered to person / company that has no need of product Cannot afford to buy it Extremely satisfied with present supplier Salesperson should make sure that customer has clear & well defined need for the product / service Customer has adequate resources to pay Customer is in position to buy large enough / repetitive quantity to make for profitable sale Authorised to make decision M Money ability to pay A Authority to make decision on own N Need need for product / service

3.

Pre-Approach Pre-approach stresses on customer orientation Sales person gather information like Financial position of prospect Customer special needs / problems How companys products satisfy those needs Who is involved in buying decision Type of motivation / appeal most likely to be effective These information help salesperson to ascertain the prospects needs & ability to buy the product Give tailor-made presentation & increase confidence

Call Planning Sales person define the objective of call, devise selling strategy, lastly make appointment cold calls are mostly not welcome & should be avoided if possible

4.

Presentation Mainly to show that sales person has good understanding of prospects needs Presentation is all about explaining the consumer how products meet their requirements Fully Automated Semi-automated Memorised Organised Unstructured Effective presentation is not how well it is delivered, but how well it helped the buyer to relate his needs 6 basic requirements Plan, Pattern, Power, Proof, Pictures, Participation Approach If approach fails, sales person cannot proceed to presentation / demostration For good approach, sales person should attract prospects attention Arouse his interest in conversation Salesperson should be courteous & polite in manners

5.

Handling of Objections Prospects usually show resistance against buying by pointing real / imaginary hurdles, related to price, quality, service, quantity, expectations, colour, etc. Objections, even if insincere, should be met with courtesy Problems arise if customer needs are hidden, so salesperson should try to understand explicit needs Salesperson should adopt low pressure approach Methods of handling customer objections Superior feature method accept the objections & persuade the customer by providing additional advantages / benefits Yes..but method accept objections in beginning & slowly make effort to remove the objections Reverse English method pitches presentation on the objections raised then solves them through offering benefits Indirect denial method salesperson denies objections indirectly, giving affirmative answers, so that customer is not offended Pass out method salesperson does not pay attention to objections & expresses neutral opinion. Used if objections are baseless, but customer may feel offended

6.

Closing the Sale Most important, since, unless sale takes place, whole effort is wasted Techniques Action Close sales person takes an action that will complete the sale like negotiating for supplying financial assistance to the prospects Gift Close sales person provides an added incentive on immediately buying the product Benefit Close sales person restates the benefits of product in order to elicit a positive response from prospect Direct Close simple technique & is most appropriate if buyer is showing strong buying motives. Sales person gives presentation & directly ask for orders

Alternative Close technique provides the customer with alternatives with regard to the product / or payment on cash or credit basis
Objection Close if objection is major hurdle, salesperson try to gain commitment from customer, if objection is removed, he will buy the product

7.

Follow-up Salesperson ensures that product is delivered at desired location, at appropriate time Customer may demand some minor modifications to suit the particular need Sometimes customer has to be trained how to use / operate the product properly & safely After-sale service is also important These are important to convert buyer into loyal customer Customer complaints should be taken seriously

Theories of Personal Selling

Selling generally perceived as skill success depends on ability of salesperson Theories of selling has been developed on basis of experimental knowledge accumulated over the years dealing with market & customers Although, there is no exact procedure to guide a salesperson, 4 theories have been developed 1. 2. 3. 4. AIDAS Theory of Selling Right Set of Circumstances Theory Buying Formula Theory Behavioural Equation Theory

Pre & Post Purchase Dissonance

1. AIDAS Theory of Selling

A attention sales person acts as good conversationalist , let prospect relax & set stage for presentation. Secure attention towards main theme I interest second phase is to convert prospects attention into interest. Done with catalogue, sales portfolios, flipchart / visual aids D desire third goal is to kindle prospects desire to ready-to-buy point. Prospect may raise objections, which should be anticipated & answered to satisfaction A action if all actions are perfect, prospect is ready to buy. But, a prospect will not buy anything if left alone, so sales person induce the buying action. Salesperson should recognise closing signals. Salesperson can ask for order, review points of agreement, offer help to write order / remind the buyer will loose out if order not placed now S satisfaction reassure customer that his decision is correct. Salesperson should schedule a follow-up for proper service

2. Right Set of Circumstances Theory

Seller oriented theory Also called situation- response Theory Depends on skill of salesperson, how effectively he can handle situation internal situation & external situation This theory says that all the circumstances, which led to the sales, were appropriate or right for the sales to have taken place. In other words, if the salesperson is successful in securing the prospects attention, maintaining his interest and inducing his desire to buy the product, sales will result. Moreover, if the salesperson is highly skilled, he will take control of the presentation, which would lead to sales.

3. Buying Formula Theory

The buying formula theory (EK Strong,Jr.) is based on the analysis of the sequence of events that goes on in the buyers mind during the sales presentation.

The theory emphasizes on the factors internal to the prospect and the factors which are external, i.e., influence of the salesperson on his prospects decision to buy his product. The theory is based on the presumption that the salesperson will take care of the external factors.
The sequence of events in a prospects mind can be represented as
Need Solution Purchase

There are all the chances that a continuous relationship will develop between the prospect and the salesperson. As a result of sales, the satisfaction will also come in the sequence. This sequence can be presented as
Need Solution Purchase Satisfaction

4. Behavioural Equation Theory

Using stimulus-response model, JA Howard explains buying behaviour in terms of purchasing decision process phases of learning process Four essential elements 1. Drives strong internal stimuli that impel the buyers response 2. Cues weak stimuli that determine when the buyer will respond 3. Response decision of a buyer 4. Reinforcement event or action that strengthens the tendency to arrive at a decision Howard incorporates these 4 elements into an equation B = P*D*K*V B = response, i.e., the act of purchasing a brand / favouring a supplier P = predisposition, inward response tendency, force of habit D = present drive level, amount of motivation K = incentive potential, value of product, its potential satisfaction to buyer V = intensity of all cues: triggering, product, informational

Pre & Post Purchase Dissonance

When buyer wants to buy, he has to choose between various alternatives, which can create anxiety / dissonance Pre-purchase dissonance buyer has too many choices available & unable to decide for himself Buyer postpones his decision / panics on reaching point of purchase / rushes into purchase to escape the situation Post-purchase dissonance buyer may be in state of conflict after the purchase & cannot decide, if choice made by him was correct Post-purchase dissonance theory Festinger after decision has been made, people expose themselves to comments, which support their choice & avoid those comments that disfavour their choice because buyer is also puzzled Salesperson should help reduce pre & post decision anxiety Salesperson should emphasize on benefits of product purchased & stress disadvantages of foregone alternatives Salesperson should be able to show that product bought has all & better features of foregone product & reassure buyer

4 situations in this regard -

Established Product & Strong Salesperson-customer Relationship Buying is automatic No anxiety as buyer has faith in salesperson & established product No / nearly negligible dissonance Salesperson is effective Established Product & Weak Salesperson-customer Relationship Buyer has faith in product Dissonance is there, since buyer does not have much faith in salesperson Salesperson less effective New Product & Strong Salesperson-customer Relationship Dissonance is there since product is new / technical / costly Salesperson can remove such dissonance because of good relation with customer New Product & Weak Salesperson-customer Relationship Dissonance very high as buyer is unfamiliar with product & salesperson Apprehension about product

Sales Strategy Formulation

Sales strategy is game plan adopted to achieve desired objective in sales Sales strategy is different from marketing strategy marketing strategy involves identifying target segments & directing marketing mix on target segments to achieve 3 steps 1. 2. 3. Market Analysis Setting Objectives Designing Sales Startegy

Qualities of Good Salesman

Physical quality: A salesman should have a good appearance and an impressive personality and sound health Mental quality: good salesman should have imagination, initiative, self-confidence, sharp memory, alertness etc. Should be able to understand the needs and preferences of customers. Integrity of character: should posses the qualities of honesty and integrity, to gain the confidence of the customers. The employer too should have faith in him. A salesman should be loyal both to the employer and customers Knowledge of the product and the company: Should have full knowledge of the product and the company he is representing. He should be able to explain each and every aspect of the product i.e. its qualities, how to use it, what precautions to be taken, etc. He should also have knowledge of products of rival companies. Good behaviour : A salesman should be co-operative and courteous so as to win the confidence of the customers. Should not feel irritated if the buyer puts up many questions even if the questions are irrelevant. It is also not necessary that the person he is trying to convince buys the product. Salesman has to remain courteous. Ability to persuade: good salesman should be good in conversation so that he can engage the person. He should be able to convince him and create the desire to posses the commodity.