02. introduction to personal selling

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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