PERSONAL SELLING

Dr Neelam Raut 4/16/2021 1

 According to Kotler, personal selling
involves interpersonal interactions
between salespeople and individual
customers (Kotler 386).
 These interpersonal interactions can take
form of: face to face, through video, web
conference, and through an online
messenger.
 Salespeople play an important role in PS-
representing a company and gaining
customers trust.

Dr Neelam Raut 4/16/2021 2

The direct presentation of a
product to a prospective
customer by a representative
of the selling organization.
1) two-way flow of
communication
2) between a buyer and seller
3) a face-to-face or real time
encounter Dr Neelam Raut 4/16/2021 3
 Personal selling and direct marketing differ in
how they approach the sale.
 Both involve establishing a direct relationship
with individual customers.
 But personal selling emphasizes the role of the
salesman while direct marketing by passes him.
 Personal selling establishes a personal
relationship with the customer through the
salesperson.
 Direct marketing establishes a relationship to the
customer through mailings or online.

Dr Neelam Raut 4/16/2021 4

 Provides a detailed explanation or
demonstration of product.
 Message can be varied to fit the needs of each
prospective customer.
 Can be directed to specific qualified prospects.
 Instant feedback is possible .
 Personal persuasion can be used.
 “A good salesman can get you to buy ice in
winter”

Dr Neelam Raut 4/16/2021 5

Messages may be inconsistent
Possible management-sales
force conflict
Cost is often extremely high
Reach may be very limited
Potential ethical problems

Dr Neelam Raut 4/16/2021 6

 To increase distribution to 75 percent .
 To make sales call on X number of
prospective customers each month
 To identify y qualified sales leads
 To call on z current customers each
month
 To increase current customer business by
5%
 To have product featured in major retail
accounts, advertising four times a year

Dr Neelam Raut 4/16/2021 7

 Selling activity limited to
Provider
order-taking and delivery

Attempting to persuade customer to

Persuader
buy

Seeking out buyers perceived to

Prospector
have a need

Buyers identify problems to be

Problem-solver
met by goods

Seller determines buyer needs

Procreator
and fulfills them

Dr Neelam Raut 4/16/2021 8

1. Generating leads
2. Qualifying leads
3. Knowledge acquisition
4. Sales presentation
5. Handling objection
6. Sales closing
7. Follow up

3.Knowledg 4.Sales
1.Generati 2.Qualifyin 5.Handling 6.Sales
e presentatio 7.Follow up
ng leads g leads objection closing
acquisition n

Dr Neelam Raut 4/16/2021 9

 Referrals
 Database generated leads
 Networking
 Directories
 Cold calls

Dr Neelam Raut 4/16/2021 10

1. Potential income the lead can generate
2.Probability of acquiring prospect as a customer
Personal visits only for best leads
Send mails with brochures , telephone calls from sales
team
Leads categorized based on sales potential(SP) and
probability of acquisition(PA) in following category
A – high on SP and PA receive sales call from sales
personnel
B – second best leads – contacted by telemarketer or
email
C -send marketing material and encourage to make
inquires if interested .
Leads low on both dimensions will be used as
database for future actions

Dr Neelam Raut 4/16/2021 11

 Learning as much as possible about a
prospective customer prior to making a
sales call
 Understand prospects business and needs
 Changing vendors requires risk and switching
costs-both low costs convincing customer is
easy
 Decision makers and influencers to find out is
important in first call

Dr Neelam Raut 4/16/2021 12

 Qualifying: Screening leads
 Approach: Stage where the salesperson
meets the customer for the first time
 Follow up: providing solutions, customer
satisfaction and any future problems to
deal .Ensuring CRM

Dr Neelam Raut 4/16/2021 13

Presentation and Demonstration: Benefits of
the product are presented/demonstrated
Understanding prospect needs is the key
here.
Three types of presentations…………..
 Stimulus Response Format:
Appropriate stimulus will initiate a buying
decision, use one appeal after another hoping to
hit the right button...Counter Clerk @ McDonald's
"Would you like fries with your burger?"

Dr Neelam Raut 4/16/2021 14

 Formula Selling Format: (Canned
Sales Presentation) memorized,
repetitive, given to all customers
interested in a specific product.
 Good for inexperienced sales
people.
 Better with heavily advertised
items that are presold.
 Telemarketing a credit card!!
Dr Neelam Raut 4/16/2021 15
 Need Satisfaction Format: Based on the principal
that each customer has a different set of
needs/desires., therefore the sales presentation
should be adapted to the individual customer's
needs, this is a key advantage of personal selling vs.
advertising.
 Sales person asks questions first, then makes the
presentation accordingly.
 Need to do homework, listen well and allow
customers to talk etc.
Must answer two types of questions:
 for more information
 overcome objections.

Dr Neelam Raut 4/16/2021 16

 Close
 Ask prospect to buy product/products.
 Use trial closes,
 ask about financial terms,
 preferred method of delivery.

20% sales people generally close 80% sales., Avon,

The following are popular closing techniques:
 Trial Close (Minor decision close)
 Assumptive close (Implied consent close)
 Urgency close
 Ask for the sale close
 If prospect says no, they may just need more
reasons to buy!!

Dr Neelam Raut 4/16/2021 17

 Follow-up: Helps ensure customer
satisfaction
 Stay a few minutes after sale--reinforce,
 make them feel good,
 made wise choice,
 leave small gift (with co. name on it!!),
 call office at any time etc!!
 Follow up, reinforce,
 know birthdays,
 new year etc,
 friendly correspondence...relationship building!!

Dr Neelam Raut 4/16/2021 18

Cost per call =Total sales calls (salary, commissions, expenses)
Number of calls made (specified period e.g.1year)

Calls /sales Ratio=Number of calls made

Number of sales made

Sales cost per sale= Total Sales costs

Number of sales made
Tracking these ratios helps to ensure the sales effort is going in the
right direction
If ratios if 5:1 this year it means one sale was made every 5 calls done
Sales people should reduce this ratio say 3:1
This ratio also helps to measure individual sales representatives.

Dr Neelam Raut 4/16/2021 19

 Mary Kay Cosmetics,
unlike most other
consumer product
companies, relies
primarily on personal
selling which takes place
in independent
interactions or at Mary
Kay parties where
sellers and buyers meet.
While Mary Kay products
are available online for
purchase, customers buy
products through
thousands of
independent consultants
nationwide because
Mary Kay products are
not available in retail
stores.
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