The Role of Finance and the Financial Manager, 143. Salesperson : Personal selling, a main tool in marketing communications, is used by retail associates, telemarketers and outside sales managers. Achieving High Performance through Human Resources Management, 70. Specialized Forms of Business Organization, V. Entrepreneurship: Starting and Managing Your Own Business, 36. Just because someone has been referred or has made an inquiry does not mean that the person is a genuine prospect. Can the prospect make the buying decision? Social tools give sales professionals a deep insight into what people find interesting. But personal selling must not be overlooked: it remains an extremely important part of a salesperson’s arsenal and is a skill every good salesperson must master. 83. This is the first importance of personal sellingand it means that the ultimate objective of personal selling activity is that all the sales activities right from prospecting, pre-approach, approach, presentation and demonstration, handling objections, closing, follow-up are attained in a synchronous manner and ultimate objective of revenue generation is possible. Small Business: Driving America's Growth, 42. Importance to Businessmen. In today’s business world, in which relationships are most important for long-term sales, canned or structured presentations are not well received, nor do they support the idea of building a great bond with the customer. Personal Selling: People Power. Get Your Career Off on the Right Track, Understanding the Legal and Tax Environment, Distributing and Promoting Products and Services. These steps are as follows: Prospecting and qualifying: To start the process, the salesperson looks for sales prospects, those companies and people who are most likely to buy the seller’s offerings. Management and Leadership in Today's Organizations, 47. The most significant strength of personal selling is its flexibility. Threats and Opportunities in the Global Marketplace, 24. Sales jobs range from salesclerks at clothing stores to engineers with MBAs who design large, complex systems for manufacturers. Since it is an interactive form of selling, it helps build trust with the customer. Persuading prospects to... Interaction. Feedback. The number of people who earn a living from sales is huge compared, for instance, with the nearly 300,000 workers employed in the traditional advertising sector. Managing Human Resources and Labor Relations, 62. Definition of Personal Selling The American Marketing Association has defined the term ‘Personal Selling’ as the personal process of assisting and/or persuading a prospective customer to buy a commodity or service and to act favorably upon an idea that has commercial significance to the seller. Personal selling is especially important for business-to-business marketers since products and services are complex and expensive. For example, a visit to a business cus-tomer is far more expensive than sending an email. Personal selling is a powerful tool for creating demand for a firm’s products and increasing their sale. Does the prospect have a need for our product? Trends in Ethics and Corporate Social Responsibility, 22. Trends in Developing Products and Pricing, XII. In the present competitive environment of business, effective selling of goods or services has become very difficult and challenging task for any business firm. Salesman provides information about the different features and advantages of his product as well as about market developments. Using Financial Information and Accounting, XV. In many companies, personal selling is the The sales message can be varied according to the motivations and interests of each prospective customer. The Nature and Functions of Distribution (Place), 105. Table 1.1 Strengths and weakness of personal selling 1 Interactive: questions can be answered and objectives overcome There are certain marketing situations where personal selling is more relevant as it provides easy and effective answers to the multi-dimensional sales problems. Personal selling plays a very important role in the marketing of goods and services. The importance of personal selling to businessmen, customers and society. Trends in Financial Management and Securities Markets, 147. After the product is delivered to the customer, the salesperson must make a routine visit to see that the customer is satisfied. Perhaps the easiest way to close a sale is to ask for it: “Ms. Pulling It Together: Resource Planning, 87. The sales presentation is adjusted according to the requirements of the customer. This part of the job may be easy for many consumer products, but for B2B products or services, it may be more complex. Repeat sales over many years are the goal of professional salespeople. It occupies an important … The Sales Process. It is an important marketing implement for small businesses, mainly those that sell complex or high-value products and services to other businesses, rather than consumers. Building relationships is an absolute essential for the long-term success of a business strategy. Personal selling is very useful for the businessman or the seller too. Personal Selling offers the following compensation. Advertising acquaints potential customers with a product and thereby makes personal selling easier. Introduction to Business by Rice University is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted. Using Supply Chain Management to Increase Efficiency and Customer Satisfaction, 110. Personal selling offers several advantages over other forms of promotion: Selling is a process that can be learned. The situations or the conditions favouring personal selling can be lumped into four broad categories … How Organizations Influence Ethical Conduct, 13. Other forms of promotion include some unavoidable waste because many people in the audience are not prospective customers. Here is a good example of personal selling from a Sr. Business Development Rep at Influitive: There are two important things that Josh does well: Goes beyond simply naming a competitor by pointing out a very specific weak spot. Rarely does a customer say, “I’ll buy it,” without asking questions or voicing concerns. This is what delivers true value, along with very specific way to solve the problem. The best way to counter objections is to have a thorough knowledge of the product offering so that a solution can be found that overcomes the objection. Sales representatives attend such meetings to display and demonstrate their company’s products and to answer the questions of those attending. The step that follows that of lead generation is to further analyze your … Managing a Socially Responsible Business, 15. Understanding Financial Management and Securities Markets, 137. Selling is one element of marketing, which is the process of developing a product or service offering, communicating the benefits through promotions and managing the ongoing exchange of value with targeted customers. Identifying Quality Leads. Making Ethical Decisions and Managing a Socially Responsible Business, 12. Personal selling uses in-person interaction to sell products and services. ), Creative Commons Attribution 4.0 International License. Closing the sale: After all the objections have been dealt with, it’s time to close the sale. The Selling Importance of Marketing. most important part of marketing communications in business to business marketing. (vi) Personal Rapport: Development of personal rapport with customers increases the competitive strength of a business organization. The importance of personal selling to businessmen, customers and society. The importance and power of this tool might be seen in the numbers of people employed in the personal selling field. But even if it isn’t, it will build goodwill for the salesperson’s company and may bring future business. The professional salesperson tries to anticipate objections so they can be countered quickly and with assurance. Legal Environment of Human Resources and Labor Relations, 71. Characteristics of Successful Entrepreneurs, 37. (iv) Consumer Attention: The level of customer attention and interest can easily be assessed under personal selling. This follow-up call may also be a chance to make another sale. Developing Interpersonal Skills Is Key to Your Success, 148. This type of communication is carried out by sales representatives, who are the personal connection between a buyer and a company or a company’s products or services. An order for a complex piece of industrial equipment may include a hundred pages of detail. Personal selling is a powerful tool for creating demand for a firm’s products and increasing their sale. About 6.5 million people in the United States are directly engaged in personal selling. In contrast, advertising and sales promotion can respond only to the objections the copywriter thinks are important to customers. Personal Selling Most business owners I know are good natural salespeople — they know how to get along with people, they want to serve, they’re not too pushy. So the selling agent can get instant feedback from the prospective buyer. the series of conversations between buyers and seller that take place over time, in an attempt to build relationships. Trends in the Business Environment and Competition, II. Trends in Production and Operations Management, XI. B2B Buyers Are More “Rational” The description of business-to-business buyers as more ‘rational’ … 2. Leading, Guiding, and Motivating Others, 55. Detail Demonstration: Except television advertisements, demonstration is not possible. Trends in Entrepreneurship and Small-Business Ownership, VI. Social selling allows for the establishment of genuine relationships. To communicate effectively, you need to take into account the needs of multiple stakeholders. For many companies, the inquiries generated by advertising and promotion are the most likely source of prospects. Correspondence with buyers can be helpful. In fact, the sale is just the start. Each detail must be carefully checked to ensure that the equipment is exactly what was ordered. Make Your Future Happen: Learn to Plan, 149. 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” Importance of personal Selling Personal selling is an important element of promotion mix and an effective promotional tool. Personal selling offers several advantages over other forms of promotion: Personal selling provides a detailed explanation or demonstration of the product. Selling is ultimately about collaboration, not your own personal chance to shine. Importance of personal selling: (i) It is a flexible tool: Personal selling involves individual and personal communication as compared to the mass and impersonal communication of advertising and sales promotion. Importance of Selling Skills Persuasion. Production and Operations Management—An Overview. Protecting Computers and Information, XIV. Bateson, we’ll have this equipment in and working for you in two weeks.” If Mr. Bateson doesn’t object, the salesperson can assume that the sale has been made. Some companies supply salespeople with prospect lists compiled from external sources, such as Chamber of Commerce directories, newspapers, public records, club membership lists, internet inquiries, and professional or trade publication subscription lists. Developing Customer Relationships. It may be a casual conversation, with the salesperson presenting product benefits and assisting the customer in solving his or her problems (like a partner on the client company’s team) in a way that might interest the potential buyer. Professional salespeople are knowledgeable and creative. All rights reserved. Often employed in business, the “higher authority” objection is frequently used when one of the parties says, “This agreement looks good, but I’ll have to run it by my committee” (or wife or any other “higher authority”). In contrast, advertising and sales promotion must often be purchased in fairly large amounts. Salespeople can tailor their presentations to fit the needs, motives, and behavior of individual customers. Effective promotional tool: personal selling is personal form of promotion and it is very effective in persuading the customers in buying the product. Qualifying questions are used to separate prospects from those who do not have the potential to buy. Salespeople can avoid wasting time and increase their productivity by qualifying all prospects. In a fully automated presentation, the salesperson shows a movie or slides or makes a PowerPoint presentation and then answers questions and takes any orders. Perhaps the most important advantage is that personal selling is considerably more effective than other forms of promotion in obtaining a sale and gaining a satisfied customer. Importance of Personal Selling to Businessmen. However, … The reason behind setting personal selling objectives is to make decision on sales policies and personal selling strategies, which helps in promoting the product. © copyright 2020 QS Study. Leads usually come in the form of letters, cards, e-mail addresses, telephone calls, or through social media sites. Selling is generally one of the most persuasive forms of promotion a company has. How Entrepreneur Contribution to Capital Formation? Who determines customer value. Personal selling plays a very important role in the marketing of goods and services. What are the advantages of personal selling. Importance of Personal Selling to Society, Road infrastructure and driver behavior can create complex road networks, Scientists develop Single Photons from a Silicon Chip for quantum light particles, Physicists use antiferromagnetic rust for Faster and Efficient Information Transfer, Crab armies can be a key issue in coral wall preservation, Beaches cannot be extinct if sea levels continue to rise. One good way to do this is to impart an interesting or important piece of information—for instance, “I think my product can cut your shipping and delivery time by two days.”. Firstly personal selling is the costliest method of promotion. Helpful in Selling: Personal selling is an art of selling goods. Secondly, it can cover only limited number customers at a time. Even experienced salespeople sometimes find this part of the sales process awkward. This capability is especially desirable for complex or new goods and services. Microeconomics: Zeroing in on Businesses and Consumers, 9. Because there are no surefire ways to find prospects, most salespeople try many methods. However, if the client says his uncle has to give the final approval because he will be loaning the money, the salesperson will try and set up an appointment when the uncle can be present. Transforming the Factory Floor with Technology, 89. Public Relations Helps Build Goodwill, XIII. Slightly over 45 percent of them are women. The salesman informs customers about the new products by suggesting to him their uses. Personal selling is when a company uses salespersons to build a relationship and engage customers to determine their needs and attain a sales order that may not otherwise have been placed. Table 1.1 lists the strengths of personal selling and one weakness: compared to other communications media selling is costly. Understanding the Business Environment, 7. Understanding Money and Financial Institutions, XVI. Personal selling plays a dynamic role as well as decisive role in selling. The Impact of Multinational Corporations, 29. The result is that that sales presentation turns out to be just a preliminary, nonbinding round. The personal selling process is a seven step approach: prospecting, pre-approach, approach, presentation, meeting objections, closing the sale, and follow-up. Roles and importance of personal selling. Moreover, when the prospect has questions or raises objections, the salesperson is there to provide explanations. A completely unstructured presentation that has no set format is a much more successful approach. The objectives are set for long-term, as it becomes the important element for qualitative personal selling objectives. Salesman provides information about the various features and advantages of his product as well as about market developments. Selling … The Production Process: How Do We Make It? Records in the service department can identify people who already own equipment and might be prospects for new models. Achieving World-Class Operations Management, 82. Personal selling involves person in selling activity.Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships is called Personal selling. I. Location, Location, Location: Where Do We Make It? Creating Products and Pricing Strategies to Meet Customers' Needs, 100. The firm’s files and records can be another source of prospects. 85. Handling objections: Almost every sales presentation, structured or unstructured, meets with some objection. At the same time, the salesperson tries to build interest in the coming meeting. Advantages of Personal Selling It is two-way communication. Perhaps the most important advantage is that personal selling is considerably more effective than other forms of promotion in obtaining a sale and gaining a satisfied customer. How Environmental Factors Determining Choice of Channels? The purchaser thinks himself as honorable person in whom the producer is interested. Transforming Businesses through Information, 118. After the higher authority responds, often disapproving the agreement, the sale goes into round two or starts all over again. Understanding Economic Systems and Business, 3. 84. (iii) Minimizes Wastage of Efforts: Personal selling involves minimum wastage of efforts as compared to other tools of promotion. Personal Selling. Salesman provides information about the different features and … The salesperson must write up the order properly and turn it in promptly. The Importance of Personal Selling Lower Marketing Investment. Personal selling should be part of a wider sales mix, alongside telesales, email marketing, sales promotion, advertising, and public relations. Trends in Human Resource Management and Labor Relations, 79. They also are familiar with the selling process, which consists of prospecting and qualifying, approaching customers, presenting and demonstrating the product, handling objections, closing the sale, and following up on the sale. The importance of personal selling to a business organization may be described as follows: (i) Effective Promotional Tool: It is an effectual promotional tool in the hands of the businessman for increasing sales. Personal selling provides a detailed explanation or demonstration of the product. Inquiries are also known as sales leads. Using Teams to Enhance Motivation and Performance, 56. Personal selling enables a salesperson to demonstrate a product and tailor the message to the prospect; it is effective in closing a sale. Jones, may I write up your order?” One of the best techniques is to act as though the deal has been concluded: “Mr. This helps the business persons in bringing economy in their efforts. There are two main parts of this definition: Personal selling can be directed only to qualified prospects. About 6.5 million people are engaged in personal selling in the United States. (ii) Flexible Tool: Personal selling is more flexible than other tools of promotion such as advertising and sales promotion. Meetings, such as professional conventions and trade shows, are another good source of leads. Distributing and Promoting Products and Services, 102. The sales message can be varied according to the motivations and interests of each prospective customer. Definition: Personal selling is also known as face-to-face selling in which one person who is the salesman tries to convince the customer in buying a product.It is a promotional method by which the salesperson uses his or her skills and abilities in an attempt to make a sale. Following up on the sale: The salesperson’s job isn’t over when the sale is made. Personal selling costs can be controlled by adjusting the size of the sales force (and resulting expenses) in one-person increments. (Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license. Participating in the Global Marketplace, 23. Sales Dialogue. From Motivation Theory to Application, X. One guideline is that not all prospects are “true” opportunities for a sale. The following three questions help determine who is a real prospect and who is not: Approaching customers: After identifying a prospect, the salesperson explains the reason for wanting an appointment and sets a specific date and time. Perhaps the most important advantage is that personal selling is considerably more effective than other forms of promotion in obtaining a sale and gaining a satisfied customer. The importance of personal selling to a business organization may be described as follows: (i) Effective Promotional Tool: It is an effectual promotional tool in the hands of the businessman for increasing sales. Looking for a Better Way: Improving Production and Operations, 88. Buying and Selling at Securities Exchanges, 144. (v) Lasting Relationship: Personal selling helps to develop the lasting relationship between the sales persons and the customers, which is very important for achieving the objectives of business. For example, when a customer wants to buy a house, car, or anything expensive, the salesperson will say, “If we find the house (or car) that you really like, is there any reason you could not make the purchase today?” Once they get the green light, the salesperson will spend whatever time it takes to find the right product for the customer. This activity is called prospecting. Finally, friends and acquaintances of salespeople can often supply leads. This helps a business person in successfully completing the sale. The most important part of a sales person job is. Presenting and demonstrating the product: The presentation and demonstration can be fully automated, completely unstructured, or somewhere in between. Authority—Establishing Organizational Relationships, VIII. A salesperson can gauge the customer’s reaction to a sales approach and immediately … It is a useful tool is helping the people in understanding the elements of product due to one to one conversation. Another benefit of personal selling is that it helps develop … Personal selling is a face-to-face sales presentation to a prospective customer. The importance of personal selling can be described as under: 1. Experts have spelled out the steps of the selling process, shown in (Figure), and professional salespeople use them all the time. The importance of personal selling to businessmen, customers, and society. Using Technology to Manage Information, 114. Going to College Is an Opportunity of a Lifetime—Never Drop Out, 150. Personal selling plays a very important role in the marketing of goods and services. Corporations: Limiting Your Liability, 30. Personal selling is an effective promotional tool in the hands of businessman for increasing sales. Personal selling is an important marketing tool for small businesses, particularly those that sell complex or high-value products and services to other businesses, rather than consumers. 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