02. introduction to personal selling
DESCRIPTION
Introduction to Personal selling by Tharaka DiasTRANSCRIPT
THARAKA DIASMBA(USA), BBA(USA), Dip in Mgt, ACIM(UK),
FAEA(Dip in AEA-UK), FinstSMM(UK), CPM(Asia),
MSLIM
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� “Nothing happens until something is sold”
� Exchange process
� History of personal selling is dated back to 2000BC. It
organized in Greece. Sales people that time referred to as organized in Greece. Sales people that time referred to as
peddlers.
� The industrial revolution that began in the eighteenth
century triggered the need of sales people for the
expansion of business
� Personal selling is an act of exchange of products or services
between a buyer and a seller for a certain amount of money
or its equivalent kind.
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� The exchange warrant 5 types of flow between the buyer and the seller.
1. Product flow 2. Ownership flow3. Information flow4. Money flow5. Feedback that flows from buyer to seller � The sales person communicate information about all know how
on the product to the customer
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on the product to the customer � There for personal selling is two way form of communication
where both deal face to face � Its also a promotional technique whereby salesperson use their
knowledge and skills for engaging customer for a value driven deal.
� The value obtained from this transaction is the monetary value for the sales people while the customer receive the benefit of the product
� Personal Selling is not manipulation as the salespeople cannot direct people to buy.
� This can only encourage, persuade, stimulate, influence, people to buy.
� Personal selling has bigger role to play in identifying � Personal selling has bigger role to play in identifying prospective customers, understand their needs, communicating with them,
� Also leads to disseminating the information at the pre transaction phase, following up after sales and after sales services and building relationships with the customers for future business.
� Purpose of personal selling is to facilitate exchange to the mutual advantages of both the buyer and the seller.
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� Personal selling is a personal presentation by the firms sales
force for the purpose of making sales and building customers
relationship – Kotler
� It’s a part of promotion that involves an oral presentation in a
conversation with one or more prospective buyers for the conversation with one or more prospective buyers for the
purpose of making sale. – Evans Berman(1988)
� Personal sales is the aspect of promotion that brings human
elements into marketing transactions. – Johnson et al.(1994)
� Personal selling as two way flow of communication between
a buyer and a seller , often in a face-to-face face encounter,
designed to fulfill the purchase decision of a person or a
group. Kerin et al.(2007)
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It describes the combination of four
ingredients that constitute the core a
company’s marketing system.company’s marketing system.
Four Ingredients:
� Product
� Distribution
� Price
� Promotion8AOT - www.tharakadias.com
Marketing Mix
Place/DistributionPromotionPricesProduct
Advertising Public
Relations
Personal
Selling
Sales
PromotionInternet
Relations Selling PromotionInternet
Sales ManagementPlanning Motivating
Budgeting Compensating
Recruiting & Selecting Designing Territories
Training Evaluating Performance
Positions of Personal Selling and Sales Management in the Marketing MixPositions of Personal Selling and Sales Management in the Marketing MixPositions of Personal Selling and Sales Management in the Marketing MixPositions of Personal Selling and Sales Management in the Marketing Mix9AOT - www.tharakadias.com
Promotional activities form a separate sub mix
that we call the Promotional Mix.
Major Elements:
� Company’s Advertising
� Sales Promotion
� Personal Selling Effort
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Sales People must understand their customers needs
Companies must focus on
strengthening the customers needs
and be able to discover or help customers solve their problems
strengthening the value added
components of their offerings
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CHARACTERISTICS ADVERTISING PERSONAL
SELLING
SLAES
PROMOTION
PUBLICITY
DEFINITION Paid but non personal
communication,
through media by a
sponsor
A face to face
conversation between
seller and buyer to
exchange something
Short term incentive to
encourage purchase or
sale of anything
Non personal
stimulation of demand
for products or services
SPONSOR Company Company Company No formal sponsor
MAJOR GOALS AIDA Target and create a
demand in a
prospective customer
To stimulate a short
term sales
To reach mass with
independent massage
COST Low per audience High per customer Moderate per customer None for media space
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COST Low per audience High per customer Moderate per customer None for media space
and time
FLEXIBILITY Low High Moderate Low
CREDIBILITY Moderate to high Moderate to high Moderate to low Very high
EFFECTIVENESS Effective in pre and post
transactional periods
Effective in
transactional period
Effective in
transactional period
More in enhancing
company image
MANAGERIAL
PERSPECTIVES
Both long and short
term, it builds the
image of the company
and short term it
stimulate customer
Long term- emphasis
on long-term
relationships
Short term Long term
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� Salesmanship is the ability of the salesperson to persuade
prospective buyers to buy goods or services of a company.
� It encompasses all those efforts that are needed to convert a
suspect to a prospect
� And a prospect to a buyer � And a prospect to a buyer
� Both parties will reap the benefits from this relationship
between the organization and the salesperson
� E.g Washing Machine/ food processor .
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� Informative objectives
� Persuasive objectives
� Relational objectives
Image building � Image building
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� Informational
1. Provide product or service attribute, features, benefits,
values and answer all the queries of the customers.
� Persuasive
1. Persuasive communication to stimulate target customers 1. Persuasive communication to stimulate target customers
to move in to trial purchase of products or services
2. Motivate potential buyers to seek more information
3. It improve sales people to support the push strategy to
encourage the intermediaries to buy and distribute the
products to the customers.
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� Relational objectives
1. It catalyses order getting , order taking, order influencing,
order delivering and follow ups
2. It aids the company to retain old customers, creating new
customers and position the company in the societycustomers and position the company in the society
3. It helps to reinforce the brand image and the reputation
4. Personal selling can be intelligently use for new business
development
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� Image building objectives
1. Spread the companies concern for social
well being
2. Consolidate the confidence and trust the 2. Consolidate the confidence and trust the
stakeholders of the company
3. It becomes a vital promotional tool for
salesperson to deal with customers
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Thank you
Thank you
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1. Knowing the company
2. Knowledge of competition
3. Knowledge of selling process
4. Selling skills4. Selling skills
5. Sales motivation
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1. A one to one interactive platform unable communicating
information and getting immediate feedback happens
almost simultaneously.
2. Flexibility it offers adjusting the message by individual
prospect, depends on the situation and mental mapping of prospect, depends on the situation and mental mapping of
the customer.
3. Demonstrating the product and handling objections on the
spot is a genuine advantage
4. Person to person interaction assists in creating a personal
relationship which will benefit in long term
5. This will often undertaken in a team or group where each
member has a specific task to handle.
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1. Too expensive, cost per prospect is high
2. No assurance for the sale so risk of selling is very high
3. Recruiting, selecting, training and development costs for
salespeople are of extremely high order.
4. Risk of turnover of a good salesperson is a serious threat to 4. Risk of turnover of a good salesperson is a serious threat to
personal selling
5. Good and competent salespeople are difficult to find
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� Selling has a crucial role in marketing
� Selling objectives are crucial in marketing and it’s a part of
the whole marketing plan
� Personal selling is an important part in marketing strategy
� Selling in today's business environment has assume a much � Selling in today's business environment has assume a much
bigger role just a transaction with customer
� Sales need to understand the needs of the customers and
sensing the degree of competition
� Sales managers today carry out the marketing research
because they have a better understanding about the market
� Organization can gauge the pulse of the market from the
salespeople as a source of information
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� Personal selling occupies and important position in marketing mix
� Marketing become inconsequential in the absence of personal selling
skills.
� Sales people provide valuable information to marketing to take
necessary measures and remain competitive and customer oriented
Both tangible and intangible features become crucial between the � Both tangible and intangible features become crucial between the
salespeople and the prospects.
� Selling becomes so important at the transactional phase with customers
if advertising of publicity is meaningful to lead potential customers.
� They play a major role in supply chain management to make the product
available at the right time at the right place.
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� Canned Sales Presentation it is prepared structured sales script
memorized by Sales Man to present the product, It is widely used by
telemarketers for different products as it's easy way to describe features
and benefits of products which also know as door to door selling
� Stimulus-Response Theory it is that potential customer will buy the
product only if hear certain statements which should be presented in product only if hear certain statements which should be presented in
correct manner
� Selling Formula A sales approach used to lead the potential customer
through different stages of buying process in persuasive manners, Its
formula AIDR(attentition, interest, desire, resolve) was published in 1902
which was revised byAIDA (attentition, interest, desire, action), if
prospect is correctly taken through these 4 different stages it will surely
be a successful sales.
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� Partnering Salespeople Understands and shares values with
customer and solve their problem through possible means
they can, They understand as they are partners (Life,
Business etc), they perform supporting role for customers, in
simplest words it can be defined as Sharing of Values simplest words it can be defined as Sharing of Values
between Supplier and Buyer
� Relationship Selling Sales people don't only sell products
but also maintain long-term relations with customers
because by this they can easily understand and satisfy new
needs of customer by giving them new services or products,
as much as relation grows - more easy the selling becomes
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� Team Selling When there are some critical buyers or buyer
which have some complex needs different personnel effort
to sell, Sales people in this work with other companies team
to provide set of benefits
� Value-added Selling Value-addition simply means giving � Value-added Selling Value-addition simply means giving
extra to customer as they have expected or perceived, Staff
usually brings some offers like Deskjet Printer is free if you
buy Laptop, (Cost of printer is mostly bore by Company and
rarely price of printer is included in price of laptop)
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� Consultative Selling It is most easy way to sell the product
that Sales Person holds information of all competing brands
and products and play a role like problem solver or
consultants, they clearly understand need of customer than
suggest the product which meets the requirement of both suggest the product which meets the requirement of both
seller and buyer, it is alike discussed above Partnering but
the different in both that in Partnering Seller don't compare
different products with it's own but in this seller compares
products and try to prove that their product is best ones.
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� Industry selling
� Service selling
� Retail selling
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� Under this marketing transaction take place
between at least two companies, both of
which seek to generate favors' from the
business. thats why this also call as business business. thats why this also call as business
to business selling .
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� More than one person involved
� Buying process follows certain rules
� Price comparison, standardisation, tenders =
Ausschreibungen)
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Ausschreibungen)
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� involve more capabilities and greater
workloads
� From the buyer‘s and the supplier‘s side
decision has more extensive consequences
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decision has more extensive consequences
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� Industrial plants
� Manufacturing installations
� Office buildings
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� Straigtht rebuy – routine decision, repetitive process (energy, office supplies, raw materials, wood, cigarettes), component suppliers for the automotive industry – little or no new information
� Modified rebuy – more complicated but less sophisticated: cars, trucks, computers, consulting – modified rebuys are
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cars, trucks, computers, consulting – modified rebuys are often treated too uncautious
� New task – calls for thorough research – industrial plant –highest level of uncertainty. Strategic new tasks are of extreme strategic and financial importance (aircrafts, military equipment, infrastructure) – re-evaluation of alternatives and search for new information and new alternatives
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� Problem recognition� General need description� Product specification� Supplier search
Proposal solicitation
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Supplier search� Proposal solicitation� Supplier selection� Order routine specification� Performance review
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� Role keepers have different tasks – not mandatory
� BuyerUser
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Buyer� User� Initiator� Gatekeeper� Influencer
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� Formal authority to sign contracts
� Member of purchasing department
� Influences the vendor selection
� Not in technical details
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� Not in technical details
� Main criteria: price + terms and conditions of
the contract
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� Person working with the product
� Interested in benefits and unobstructed
function of the product to buy
� Large knowhow and preconceived opinion
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� Large knowhow and preconceived opinion
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� A person with high technical knowledge and
practical experience
� definition of minimum requirements on
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� definition of minimum requirements on technical or company standards
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� Controls the flow of information within the
buying center
� Assistant of decision maker
� Influence by preparing the decision and the
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� Influence by preparing the decision and the
relevant documents
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� Right to say yes or no
� Mightiest person
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� Person who brings new ideas and solutions
into the company
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� Long decision taking process
� High risk
� Complex buying center
� The specific competitive situation
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� The specific competitive situation
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� Focuses on innovation
� Has to care for high flexibility in research and
development
� And manufacturing and assembling
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� And manufacturing and assembling
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� Strict bid and tender rules
� High transparency
� Add value with service offering to achieve a
differentiating position
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differentiating position
� Another aspect: financing and sourcing
models
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� Focus on negotiation phase
� Provide excellent people in the selling center
� High technical knowledge
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� It is intangible.
� It does not result in ownership.
� It may or may not be attached with a physical
productproduct
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Physical goods Services
tangible intangible
homogeneous heterogeneous
Production and distribution are
separated from consumption
Production, distribution and
consumption are simultaneous separated from consumption consumption are simultaneous
processes
A thing An activity or process
Core value processed in factory Core value produced in the buyer-seller
interaction
Customers do not participate in the
production process
Customers participate in production
Can be kept in stock Cannot be kept in stock
Transfer of ownership No transfer of ownership
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They could be
� Equipment based
� People based – varying skill levels
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� Personal needs – haircuts, tution, massage
parlours
� Business needs – courier services, office
cleaning services, delivering fresh flowerscleaning services, delivering fresh flowers
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� Intangibility
� Inseparability
� Perishability
Variability� Variability
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� People
� Physical evidence
� Process
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Mr Bean - Bad Customer Service -- Schlechter Kundenservice - YouTube.flv
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� Reliability – delivering on promises
� Responsiveness – willing to help
� Assurance – inspiring trust and confidence
Empathy – individualising customers� Empathy – individualising customers
� Tangibles- physical representation
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� It is the customer – service encounter
� Every positive or negative experience of the
consumer would have fall-out on the overall
service experienceservice experience
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� Retail involves the sale of goods from a single
point (malls, markets, department stores etc)
directly to the consumer in small quantities for his
end use. In a layman’s language, retailing is nothing end use. In a layman’s language, retailing is nothing
but transaction of goods between the seller and the
end user as a single unit (piece) or in small quantities
to satisfy the needs of the individual and for his
direct consumption.
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� The opportunity for rapid advancement into
management, new territories and accounts
� The potential for extremely attractive
compensationcompensation
� The development of personal satisfaction, feelings
of accomplishments, and increased self confidence.
� The independence that the salespeople have
including complete control over the time and
activity
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� Ethics are the building blocks of a business that are based on moral
principals and values.
� It lends honesty and transparency in dealing between buyer and sellers. T
� A buyer and seller responsibilities governed by economics relationships,
legal procedures, and ethical principals .
Responsible organizations feel it is imperative for them to cater to the � Responsible organizations feel it is imperative for them to cater to the
customers with the right combination of Marketing mix
� Term right mean actual products which the consumer demands. With
other mix elements.
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� Delivering inferior quality product that does not commensurate with the
price paid
� Variation between promised and actual specification levels of the
product
� Price discrimination amongst buyers
Showing wrong test reports and promoting false stories of product � Showing wrong test reports and promoting false stories of product
success to certify product quality
� Use of unsafe packaging materials
� Providing wrong information on the labels of the product
� Condemning competitors harshly before customers willfully and wrongly
� Failing to supply the product at right time and place without any prior
intimation
� Disregarding the complaints received from customers or earlier supply of
products
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� Right to safety- to safeguard consumers from the hazards
and side effects of products that may endanger them
� Right to be informed – to protect consumer against
fraudulent, deceitful or grossly misleading information,
advertising, labeling or other malpractices. advertising, labeling or other malpractices.
� Right to choose – to assure access to a variety of products
and services at competitive prices .
� Right to be heard – to assure full and sympathetic
consideration in the formulation of government policy and to
provide fair and expeditious treatment in the administrative
tribunals in the interest of the customer.
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Thank you
Thank you
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