SUBJECT: SALES AND RETAIL MANAGEMENT

MODULE I-Introduction to sales management: Meaning, Evaluation,

Importance, Emerging Trends in Sales, Management, elementary study of sales
organizations, qualities and responsibilities of sales manager. Selling skills &
selling strategies: Selling and business Styles, selling skills, situations, Personal
Selling: Meaning and definition, selling process, sales presentation, Handling
customer objections, Follow-u action.

MEANING AND DEFINITION

Sales is the only function of marketing that brings in revenue to the organization and hence
assumes a key role in the entire scheme of things. The salespeople act as the linking pin
between the organization and its customers.

American Marketing Association defines sales management as follows: “Sales Management

is the planning, direction and control of selling of business unit including recruiting,
selecting, training, equipping, assigning, routing, supervising, paying and motivating as
these tasks apply to the personnel of the sales force”.

The definition of AMA focuses on two broad aspects of sales management. First you have to
plan, direct and control selling activities. Second, you have to recruit, select, train,
equip, assign, rout, supervise, pay and motivate the sales force. The definition equates
sales management to the management of sales staff however contemporary sales managers
have abroad spectrum of responsibilities to perform.

The sales management function primarily seeks to accomplish three basic functions namely
sales volume, profit maximization and growth. The authority to achieve these three goals is
delegated by the top-level management to the sales management through marketing
management.

EVOLUTION OF SALES MANAGEMENT

Pre industrial revolution era - Prior to industrial revolution, the economic scenario
was well dominated by the small-scale industries whose focus always remained
catering to the needs of the local customers. Manufacturing and selling functions in
such a setup were taken care of by the single person. The prime challenge that small
scale businesses faced was to produce enough to meet the customer demands. Thus,
the focus was more on manufacturing issues and selling was not a problem at all as all
the orders were received well in advance of the production taking place.

Post industrial Revolution - Industrial Revolution that took place in England in the
year 1760 brought about some significant changes in the marketing scene for the
businesses. There started mass production of goods in factories with the help of modern
machines which in turnled businesses to hunt for newer markets to sell their produce.
The demand in local markets was not large enough to absorb the huge quantities
produced by the factories. Thus emerged the need for sales to ensure the surplus
produce to be absorbed. The other operational issues which dominated the business
scene were that of recruitment of workers in large numbers and acquisition of fixed
assets like building, machinery etc. for which large funds were required to be raised.
Thus, forcing many firms to adopt the corporate form of organization. Since the
magnitude of the operations increased multifold, separate functional departments
came into being like the financial department, manufacturing department, personnel
department, sales department.

The establishment of sales department helped the firms with the problems related to
expansion of their markets. The goods were sold to the small retailers who then sold
in small quantities to the end users. Subsequently wholesalers came into being who
purchased in large quantities to sell in smaller quantities to the retailers who finally
sold to the end users. The emergence of so many intermediaries created the challenge
of communicating with end customers for the businesses.

On the other hand, the marketing function started receiving more importance in the
firms with advertising and sales promotions becoming more complex. The need to
separate marketing from sales function was increasingly being felt. Thus, new
departments like Marketing Research, Advertising, Merchandising etc. came into
existence. In spite of emergence of separate marketing functions, sales department
continue to hold important position for the businesses as it is the only function that
brings in revenue. It is aptly termed as “Income Centre “of the business organization.
Now let us try to understand the meaning of sales management.
 DIFFERENCE BETWEEN SELLING & MARKETING

Point of Marketing Selling

Difference

Definition Marketing is concerned with creating Sales are the process of persuading
value for the customers by delivering the customers to buy the products to
them goods and services according to increase the sales.
their needs and making a profit.

Scope It is wider in scope. It is narrow in scope.

Business It views the business as a process of It views business as a process of

viewpoint satisfying the customer. manufacturing goods.

Orientation Profit orientation. Sales orientation.

Price Price is determined by the consumer. Price is determined by the cost.

Customer It views the customers as the starting Customers are viewed as the lastlink
orientation point of any business. in any business in selling.
Profits It focusses on earning profits through It focusses on
customer satisfaction. earning profitsthrough
aggressive promotions
Emphasis Emphasis on adoption of latest Emphasis on cost
technology for product innovation to reduction bystaying with
provide enhanced value to the the same technology.
customers.
Views of It stresses on the needs of the customers. It stresses on the needs of the sellers.
seller’s needs

IMPORTANCE OF SALES MANAGEMENT

The significance of sales management as a function is evident from the huge budgets
allocated for the same across the companies. This is because it helps the firm deal with
competition and is thus considered an inevitable part of the business organization. Importance
of the sales management as a function can be summarized in the following points:

1. Attains organizational goals: Sales management helps in achieving predetermined

organizational goals by transforming the marketing plans into actions to generate
 profits, meeting customer demands effectively and capturing the market share.

2. Aids in better planning: One of the fundamental tasks of sales management is to

formulate the sales plans, sales budgets and drawing sales strategies so that the efforts
of the salesforce can be well directed towards achieving the common organizational
goals.

3. Maximizes the sales: By supporting the establishment of SMART sales plans, the
sales management aids in maximizing the sales and thereby revenue for the
organizations.

4. Fosters strong customer relationships: Sales management urges the salesforce to

attach highest importance to building strong customer ties. The strong ties with the
customers facilitate the brand develop a loyal customer base and increased
profitability.

5. Optimum utilization of distribution channels: Channels of distribution can be more

optimally utilized by the organization when the sales management is able to identify
appropriate distribution channel. They must take adequate step to resolve the distribution
issues and enhance the smooth operations of the distribution channel.
6. Develops result driven salesforce: Sales management is concerned with not only
recruiting but also training, motivating and compensating the sales staff. The continuous
training, development and motivation drive them to contribute effectively towards the
profits of the firm.

SCOPE OF SALES MANAGEMENT

Sales is the management function responsible for ensuring that an organization has sustainable
cash flow. For this, sales department undertakes a variety of functions. Look atFigure 3.1
which shows scope of sales management.
 Fig 3.1: Scope of Sales Management
The scope of the sales management has been discussed below:

1. Sales Forecasting and Budgeting: The sales managers are expected to chalk outwell-
structured sales plans well in advance. She/he should estimate the expenses thatwill
be incurred as a result of various sales activities.

2. Sales Team Structure: The sales team is expected to perform variety of sales
related activities. The sales manager is responsible for determining and organizing the
functions to be performed by his sales team.

3. Manpower Planning and Hiring: The sales manager is required to estimate the
requirement of sales personnel in the organization. As per requirement of the
organization, She/he should plan recruitment and selection activities.

4. Sales Training: To drive effective performance from the salespeople, it is important

to impart them with the right skill sets. The sales managers are responsible for
providing training and orientation to newly hired sales candidates so as to establish a
suitable match between the know-how and job position.

5. Sales Areas: The sales manager is responsible for establishing sales goals for the
team, for this purpose she/he determines the sales quotas and identifies the sales
territories. She/he further determines the region where the company wants to sell its
products depending on the profitability of the organization.

6. Salesforce Management: The sales manager is entrusted with the responsibility of

motivating the sales personnel, appraising their performance, ascertaining their
remuneration and rewards for the targets achieved. Therefore, she/he should manage
the sales force in such a way that they are driven towards the achievement of the goal.
TRENDS IN SALES MANAGEMENT

Contemporary businesses operate in the VUCA world which is characterized by high levels
of Volatility, Uncertainty, Complexity and Ambiguity. To survive in this highly disruptive
business environment, the sales manager must continuously scan the emerging trends shown
in figure 3.4

Global Markets: With the rise of globally connected economies, the companies have also begun
expanding their operations across the national frontiers. While selling the productsabroad, the
sales managers may have to face many challenges related to differences in culture, laws,
customer preferences, negotiation style etc. The sales managers must take into account the global
competitors while devising their sales strategies to tap the business opportunities arising in the
global markets.

Technological Advancements: The emerging digital technologies have made the modern-day
customers more aware than ever before about the new product launches, price of various products,
the strengths and weaknesses of various products. The customers can access almost every
information about the brands online. The internet-based content consumption has gone up
significantly amongst the consumers.

Diverse Salesforce: Modern day salesforce consists of individuals with diverse backgrounds,
gender, age, culture, education, etc. This diversity brings in a difference in the needs and

expectations of the salesforce. A sales manager needs to understand these differences to

manage them effectively.

Omni-Channel Management: Contemporary businesses are increasingly adopting

multichannel route to provide superior customer experience whether they shop from online or
offline. The use of omni channels offer many benefits like reduction in channel cost, better
market coverage and customized selling. However, one flip side of using omni channel is that
at times it leads to emergence of channel conflicts when two or more channels startcompeting
against each other. The sales managers must utilize various conflict resolution techniques to
handle such disputes.

E-Selling: With the increased internet penetration, more and more customers expect the
companies to sell them online. Increased online buying makes brands focus their efforts on
selling to convert passive audience into active customers. The sales managers must select
shopping cart software’s and services carefully.
 SALES ORGANISATION
According to American Marketing Association, “sales organization is the planning,
directing and coordinating the activities of sales force for increasing organizational
efficiency.”
According to Still and Cundiff, “A sales organization is group of individual striving
jointly to reach certain goals and bearing formal as well as informal relations to each
other.”.

OBJECTIVES OF SALES ORGANISATION

1. To Permit the Development of Specialists: As a business expands, it becomes difficult to

fix responsibility for performance of all activities on certain executives alone. At this stage
re-organization of the sales department is necessary to facilitate the assignment of
responsibility and delegation of authority by reshaping the structure of the sales
organization.
2. To Ensure that All Necessary Activities are Performed: When the sales organization
grows and specialization increases, it becomes necessary to perform all activities according
to schedule. As a company grows, its marketing channels lengthen, the marketing area
expands geographically, and the executives begin to lose their informal contacts with
customers.
3. To Achieve Coordination: Good sales organization achieves coordination smoothly. Total
accomplishments of tasks are greater advantage when the sum of a combination of effort
exceeds the efforts of individual effort.
4. To Define Authorities: Sales managers should know whether their authority is line, staff,
or operation. Line authority carries the power to require execution of orders by those lower
in the organizational hierarchy.
5. To Economize on Executive Time: As the operations of sales department increases in
complexity and number, additional subordinates are appointed.

STEPS IN SETTING UP SALES ORGANISATION

1. Defining the objectives
2. Determination of activities
3. Grouping activities into job positions.
4. Assignment of personnel to positions.
5. Providing coordination and control.
Step # 1. Defining Objectives: The first step in setting up a sales organization is to define
objectives. The top management defines the long-term objectives for the company and from
these, the long-term objectives for the sales department are derived.
Step # 2. Determination of Activities: A sound organizational design requires that all
activities are organized in a systematic manner. Along with determining necessary
activities, estimation of volume of performance is also done to ascertain the requirement of
executive positions.
Step # 3. Grouping Activities into Job Positions: Next step in the process of organizational
set up is to allocate different positions identified according to activities. It should be kept in
mind that the activities are aimed at achieving the set objectives for the sales organization.
Step # 4. Assignment of Personal to Positions: The next step in this process is to assign
personnel to positions. This requires recruitment of special individuals to fill the positions
or to see the personnel fit into the capabilities of the organization.
Step # 5. Providing for Coordination and Control: Sales executives with line authority
require means to control their subordinates and to coordinate their efforts. They should not
be so overburdened with detailed and undelegated responsibilities that they have
insufficient time for coordination.

IMPORTANCE OF THE SALES ORGANIZATION

Increase Efficiency: In the sales organization, jobs are properly distributed, duties are
defined, direction and control are properly provided. This helps to avoid duplication of work
and to increase work efficiency.
Promotes Specialization: The sales organization divides and subdivides various sales
functions. Suitable people are appointed to handle their respective activities. Thus, the right
person performs the right job.
Facilitates Co-ordination: A sound sales organization coordinates the efforts of different
departments and sub departments, offices, and employees for the attainment of sales goals
and common objectives.
Delegation of Authority: A sales organization defines the rights and responsibilities of
every individual. This helps in the delegation of power to discharge their job and
responsibilities.
Timely Contacts with Customer: By assigning proper duties and by structuring the roles
of employees, it is quite possible to make regular contact with customers. This also helps
in obtaining valuable information relating to customers’ problems and suggestions.
 Contributes to Success of Business: A good sales organization achieves goals at the
minimum costs. It helps achieve the desired success in selling as well as the other areas of
business. The salesman can work at the optimum level. This contributes to the overall
progress of Enterprise.

FACTORS AFFECTING THE SIZE/ STRUCTURE OF SALES ORGANISATION

1. Nature of the product: Nature of the product plays an important role in determining the structure
of sales organization. For example, in the case of consumption goods like soaps, oil, rice, cosmetics
etc., the size of sales organization may be bigger to handle many consumers.
2. Scale of production: The volume of production and the quantities involved in each sale will also
affect the structure of the sales organization. If the scale of production is big and the number of
products and the quantity involved is too many, the size of the sales organization will be large and
complex.
3. Market Area: Market area is also considered as an important factor in determining the size of
sales organization. If the product is sold locally, sales organization will be small. On the other hand,
if the product is sold nationally or internationally, the size of sales organization will be big.
4. Size of Business: Size of business has a direct relationship with the structure of sales organization.
Large businesses have large sales organizations, and small businesses have small sales organization.
For example, Reliance telecom has a large sales organization.
5. Number of Products: If the enterprise is dealing with a large number of products, it needs large
sales organization. For example, Hindustan Unilever selling many products like Surf Excel, Lux
Soap, Sun silk Shampoo, Vaseline etc., will have large sales organization, while company which is
selling few products will have small sales organization.
6. Level of Competition: High level of competition leads to large sales organization. If the level of
competition is high in the market, many salesmen have to be appointed to attract the customers, so
the size of the sales organization become large.
7. Distribution Policy: Different companies follow different distribution policies for their products
directly to the customers by opening their own shop or through their personal selling.
8. Sales Policy: Every business has its own sales policy, if the business unit adopts the aggressive
sales policy, then it will require more salesmen for achieving higher sales level. The business unit
who sales goods on credit, installment system, hire purchase system will have to hire more salesman
for collecting dues and installment from customers.
DEPARTMENTS IN SALES ORGANISATION

Sales organization may have following departments:

1. Physical Distribution Department: This department performs the functions of storage, packing,
dispatching and transportation.
2. Advertising Department: All the activities related to advertisements are performed by the
advertising department. The department must plan an advertising campaign, to select the media of
advertising keeping in mind nature of products, nature of customers, availability of funds, media
cost, media circulation; and to implement advertising programs etc.
3. Personnel Department: This department performs the function of recruitment and selection.
After selection a proper training is given to the salesmen and motivating them to give their best
effort in the workplace.
4. Public Relation Department: This department performs the function of knowing public opinion
about the firm. It establishes contacts with customers, suppliers, employees, bankers, political
leaders, social organizations, other competing and noncompeting organizations.
5. Sales Department: The Sales department is very important part of sales organization. Sales
manager is the head of sales department.
6.Market Research Department: The main task of this department is to conduct research about
consumer behavior, to measure the level of consumer satisfaction and dissatisfaction, to measure
the existing demand and supply in the market, to explore new markets and to find the products
which are mostly purchased by customers.
7. Debt Collection Department: The main function of debt collection department is to collect dues
and installment in time to time to avoid risk of bad debts
8. Statics and Record Department: this department is divided into two sections:
(i) Statistic section: Statistic section collects data and information from present consumers,
intermediaries, suppliers etc., It collects information about the sales, quantity demanded, sales of
competitive firms, percentage change in market share etc.,
(ii) Record Section: This section maintains and preserves the collected data and information in such
a way that it can be made available at the time of decision making and sales forecasting. The data
is store in the form of papers, files and other electronic devices.
TYPES OF SALES ORGANIZATIONS

1) Line Sales Organization= A Line Sales Organization is one of the simplest forms
where every individual is held accountable for their actions and decisions. It is the oldest
and most basic sales organizational structure, and it is commonly employed by smaller
firms and those with a limited number of sales personnel.

Some of the key features of Line Sales Organization are-

• Direct line of communication

• Clearly defined responsibility and authority
• Easy and quick decision-making
• Ideal for small businesses with a narrow product line
• Limited specialization

2)Line and Staff Sales Organization= This structure combines the benefits of Line Sales
and specialized staff to support and advise. The line and staff sales department is commonly
found in large and medium-sized firms.

The key features of Line and Staff Sales Organization are-

• Combines traditional line organization with staff specialists

• A clear chain of communication
• Specialized teams to provide input on sales strategies and tactics
• Flexible decision-making process
• Increased specialization in various areas
• The presence of specialized staff for advice
• More balanced decision-making
• Ideal for larger businesses with diverse product lines
• Improved coordination and control, etc

3) Functional Sales Organization=Functional Sales Organization focuses on dividing the team

based on their area of expertise. This represents the complete embodiment of the work
specialization principle

The key features of a Functional Sales Organization are-

• Division of sales team members according to expertise

• Improved efficiency and coordination
• Appropriate specialization in various areas
• Improved collaboration and collective decision making
• Decreased chances for conflicts
• Increased customer satisfaction
• Departments based on function
• In-depth expertise in each function
• Streamlined operations
• Ideal for large-scale organizations
• Possibility of functional silos, etc.
4) Committee Sales Organization= Committee Sales Organizational structures are generally
employed when decisions require collective wisdom and democratic leadership by having
proper sales team structures.

The key features of the Committee Sales Organization are-

• Collective decision-making
• Shared responsibility
• Ideal for complex projects
• Encourages democratic leadership
• Potential for the slower decision-making process
• Possibility of ineffective delegation
• Lower efficiency in routine tasks, etc.

TYPES OF SALES ORGANISATIONAL STRUCTURE

A sales organizational structure is the hierarchical blueprint of a company’s sales
department that helps in organizing and prioritizing the workflow. It outlines the
roles, responsibilities, and relationships among the sales team members, providing
a clear roadmap for operational efficiency and team collaboration. Structures of Sales
Organizations
1) Geographical Structure- The geographical structure organizes sales reps based on specific
geographic regions.

2) Product Specialization Structure- In a product specialization structure, sales reps specialize

in selling specific products or product lines

3) Customer-based Structures (Industry-Based Structure)- The industry-based structure

classifies sales representatives based on the industry or sector of their clients

4) Customer-based Structures (Customer Account-Size Structure)- The customer account-

size structure organizes sales teams based on the size of their customer accounts. Reps may be
assigned to handle small businesses, medium-sized companies, or large enterprises.

SALES MANAGER
A sales manager is a professional responsible for leading and overseeing a sales team within an
organization. The primary role of a sales manager is to drive the team towards achieving sales
targets and goals. This position typically involves a combination of leadership, strategic
planning, and hands-on involvement in the sales process.
Qualities of a Sales Manager:
➢ Leadership Skills: A successful sales manager should be able to inspire and motivate
their team, providing direction and guidance to achieve sales targets.
➢ Communication Skills: Effective communication is essential for a sales manager to
convey goals, expectations, and feedback clearly to the team. It also involves active
listening to understand the needs and concerns of team members.
 ➢ Motivational Skills: Sales can be challenging, and a good sales manager knows how to
keep the team motivated, even during difficult times. Recognizing and rewarding
achievements can boost morale.
➢ Analytical Skills: Sales managers should be able to analyze sales data and market trends
to make informed decisions and develop effective sales strategies.
➢ Problem-Solving Skills: Sales managers encounter various challenges, such as
customer objections, team conflicts, or market changes. Being able to quickly and
effectively address these issues is crucial.
➢ Adaptability: The business environment is dynamic, and a sales manager should be
adaptable to changes in the market, industry, or internal processes.
➢ Customer Focus: Understanding customer needs and ensuring that the sales team
delivers value to customers is essential for long-term success.
➢ Negotiation Skills: Sales managers often need to negotiate deals, contracts, and
partnerships. Strong negotiation skills contribute to successful business relationships.

Responsibilities of a Sales Manager:

➢ Setting Targets: Sales managers are responsible for setting achievable sales targets and
goals for the team, aligned with the overall business objectives.
➢ Sales Planning: Developing sales strategies and plans that outline how the team will
achieve its targets, taking into account market conditions and competition.
➢ Recruitment and Training: Hiring, training, and developing a high-performing sales
team. This includes providing ongoing training to keep the team updated on product
knowledge and sales techniques.
➢ Performance Monitoring: Regularly monitoring the performance of individual team
members against targets and providing constructive feedback.
➢ Budget Management: Managing the sales budget, allocating resources effectively, and
ensuring that the team operates within financial constraints.
➢ Collaboration with Other Departments: Coordinating with marketing, product
development, and other departments to ensure a cohesive approach to customer
engagement and satisfaction.
➢ Reporting: Providing regular reports to senior management on sales performance,
forecasts, and other relevant metrics.
➢ Customer Relationship Management: Building and maintaining strong relationships
with key customers, addressing their concerns, and ensuring customer satisfaction.
➢ Continuous Improvement: Identifying areas for improvement in sales processes,
strategies, and individual performance, and implementing changes as needed.

SELLING SKILLS AND SELLING STRATEGIES

A sales style is the way a salesperson approaches making a sale.

Successful selling requires a combination of effective selling skills and well-thought selling
strategies. Here's an overview of key selling skills and strategies:
Selling Skills:

✓ Communication Skills: The ability to articulate ideas clearly, listen actively, and
adapt communication style to different personalities is crucial for building rapport
and understanding customer needs.
✓ Negotiation Skills: Effective negotiation involves finding mutually beneficial
solutions, understanding the customer's perspective, and being able to make
concessions while still achieving your goals.
✓ Product Knowledge: A deep understanding of the products or services being sold
is essential for building trust with customers and addressing their specific needs.
✓ Emotional Intelligence: Being aware of and managing one's emotions, as well as
understanding and responding to the emotions of others, is key in building strong
relationships with customers.
✓ Time Management: Prioritizing tasks, managing time efficiently, and staying
organized are important for handling multiple leads and opportunities effectively.
✓ Problem-Solving: The ability to identify challenges and provide creative solutions
is crucial in overcoming objections and addressing customer concerns.
✓ Resilience: Sales often involves facing rejection and setbacks. Resilience helps sales
professionals bounce back, learn from experiences, and stay motivated.
✓ Adaptability: The business environment is dynamic, and being able to adapt to
changes in the market, customer needs, and company strategies is essential for
success.
✓ Closing Skills: Knowing when and how to ask for the sale is a critical skill. This
involves recognizing buying signals, handling objections, and confidently guiding
the customer to a decision.

SELLING STRATEGIES

✓ Relationship Selling: Building and maintaining strong relationships with customers

by understanding their needs, providing personalized solutions, and fostering trust
over time.
✓ Consultative Selling: Rather than focusing solely on the features of a product, this
approach involves understanding the customer's problems and offering solutions that
meet their specific needs.
✓ Solution Selling: Positioning your product or service as a solution to the customer's
problems or challenges, emphasizing the value and benefits it provides.
✓ Social Selling: Leveraging social media platforms to connect with potential
customers, share valuable content, and build relationships before, during, and after
the sales process.
✓ Value-Based Selling: Demonstrating the value of your offering by emphasizing its
unique features, benefits, and advantages over competitors.
✓ Team Selling: Involving multiple team members with complementary skills in the
sales process to provide a comprehensive solution and address various aspects of the
customer's needs.
 ✓ Cross-Selling and Upselling: Offering additional products or services (upselling)
or complementary items (cross-selling) to increase the overall value of the sale.
✓ Strategic Account Management: Developing long-term relationships with key
accounts, understanding their business goals, and providing ongoing support and
value.
✓ Sales Funnel Management: Managing the sales process from lead generation to
closing the deal by effectively moving prospects through the various stages of the
sales funnel.

Effective selling involves a combination of these skills and strategies, tailored to

the specific industry, product or service, and target market. Successful sales
professionals continuously refine their approach based on feedback, experience, and
changes in the business landscape.

BUSINESS STYLES
1. Transactional type of selling- focuses on making quick sales. In this type of
sales model, neither the buyer nor the seller has much interest in developing a
long-term relationship. Most common in B2C situations–think e-commerce
brands or selling movie or concert tickets.
2. Solution selling- focuses on selling outcomes over products and features. In this
sales model, reps lead with a problem and use various tactics to paint a picture
of how the buyer’s life will be better once they solve that problem. Solution
selling avoids talking about features and benefits, opting to focus
conversations exclusively on presenting a solution to the buyer’s problem.
3. Consultative selling type-Consultative selling takes it a step further and
incorporates solution selling into a broader strategy that caters to buyers capable
of identifying potential solutions to their problems on their own. Here, reps apply
a consultative approach to the sales process, using a combination of user data,
market research, and insights from conversations with the buyer.
4. Provocative selling: provocation is the best way for sellers to get buyers to move
past a “buy nothing” mentality by helping customers see competitive challenges
in a new light, bringing a sense of urgency to solving specific pains/problems.
5. Collaborative selling- Collaborative selling is similar to consultative selling in
that the core focus is on developing relationships and understanding buyer needs,
challenges, and goals–but this approach takes things to the next level and places
the customer at the center of their own narrative.

PERSONAL SELLING

Personal selling process is a one-on-one selling technique.

✓ Personal selling process is a one-on-one selling technique where the
salesperson interacts directly with customers to sell a product or service.
 ✓ Businesses can conduct personal selling via email, phone, video, or in-
person.
✓ It is more common in B2B and luxurious goods trading than everyday
consumer goods.
Meaning of Personal Selling: Personal selling is an act of convincing the prospects to
buy a given product or service. It is the most effective and costly promotional method.
It is effective because there is face to face conversation between the buyer and seller and
seller can change its promotional techniques according to the needs of situation. It is
basically the science and art of understanding human desires and showing the ways
through which, these desires could be fulfilled.

According to American Marketing Association, “Personal selling is the oral presentation

in a conversation with one or more prospective purchasers for the purpose of making
sale; it is the ability to persuade the people to buy goods and services at a profit to the
seller and benefit to the buyer”.

In the word of Professor William J. Stanton, “Personal selling consists in individual;

personal communication, in contrast to mass relatively impersonal communication of
advertising; sales promotion and other promotional tools”.

Examples of products commonly associated with personal selling are cars, houses,
or insurance.

Features of Personal Selling:

The main features of personal selling are:

✓ It is a face-to-face communication between buyer and seller.

✓ It is a two-way communication.
✓ It is an oral communication.
✓ It persuades the customers instead of pressurizing him.
✓ It provides immediate feedback.
✓ It develops a deep personal relationship apart from the selling relationship with the
buyers and customers.
PERSONAL SELLING PROCESS:

1. Prospecting
2. Pre-approach
3. Approach
4. Sales presentation
5. Handling objections
6. Closing
7. Follow-up
PROSPECTING
• Prospecting means looking for prospective customers or leads. Marketers can do
this through online research, in-person networks or cold calls.
• One crucial part of prospecting is lead qualification. Choosing the right lead to
contact and approach with a sales pitch. This step is vital as unqualified leads can
waste a lot of the company's time and resources. They won't make a purchase no
matter how much effort you put into the sales pitch.
• Leads can be identified through Acquaintance reference, cold calling, personal
observation, direct mail or telephone, company’s records, newspapers, retailers etc

PRE-APPROACH
• After selecting the qualified leads, the salesperson must prepare for the first contact
with them.
• This means contacting the prospect via email or call to learn more about their needs
and to set up a meeting for further discussion.
• The primary objective of pre-approach is to collect customer data and prepare the
 sales pitch. No selling takes place at this stage yet.

APPROACH
• When the solution is ready, the salesperson can approach and meet the customers in
person (or by phone/video, depending on the situation).
• The first impression is essential here as it can make or break the coming sales pitch.
The goal of the approach is simple, though not easily executed - "hook" the
customers and create a smooth transition into the sales demonstration.

SALES PRESENTATION
• The sales presentation is a crucial part of the personal selling process.
• A sales presentation is a pitch the salesperson delivers to convince customers to buy.
• During the pitch, the salesperson will discuss the product features and why the
customers should purchase them.
• The key to a good sales presentation is to follow the AIDA model - capture attention,
hold interest, arouse desire, and include a clear Call-To-Action.
• AIDA was developed by the advertising pioneer E. St. Elmo Lewis.

EXAMPLE: A landing page of a company's product or service is a good example of a sales

presentation in written form. It consists of a captivating headline to capture the reader's attention,
a list of product features and benefits, testimonials to justify claims and an actionable CTA.
HANDLING OBJECTIONS

•The sales presentation is tough, but the actual challenge lies in handling customer
objections.
• When you propose an idea, there's a good chance it will be rejected. This is not to say
the customer will never buy your product, but they might not be ready to make the
purchase quite yet.
• Objections can be genuine or mere excuses. It would require the salesperson to learn the
reasons behind the objections to counter them.
CLOSING

• Closing is where the sales process wraps up. Both parties have reached a decision.
Closing means bringing the negotiation to an end and coming to an agreement.

FOLLOW UP

• Even when the deal is closed, the salesperson has to follow up to assure customers that
the deal will be carried out correctly.
• After-sale follow-up is also an opportunity for the company to build long-term
relationships with customers
 PERSONAL SELLING PROCESS EXAMPLES

There are many examples of personal selling in real life. This section will look at three
examples in the travel, real estate, and automobile industry.
Personal selling process example: travel industry
A lot of personal selling takes place in the travel industry, especially in holiday deals
and packages. A good example is when a travel agent arranges a tour for clients in an
unfamiliar city. In this case, he might want to contact a local tour guide and ask for a
partnership.

The process may require the travel agent to meet the local guide face-to-face and then
discuss the reason and the benefits the tour guide can gain from the partnership. If the
tour guide agrees with the condition, the travel agent can discuss further details such as
customer needs and how the two parties will split the profit.
Personal selling process example: real estate
Personal selling is also commonplace in real estate. For example, in a property-buying
deal, the real estate agent will meet the customer in person to discuss their needs and
preferences for a home. He then looks actively in the market for property on sale and
directs it back to the customer.

If the customer likes the property, the travel agent will arrange a viewing date with the
host. After viewing several properties, the customer can pick the one they want, and the
travel agent will direct the buying request to the house owner. More negotiation will
follow, and the deal is closed when both parties, the host and prospective tenant, reach
an agreement.
Personal selling process example: the automobile industry
A car is also a product for personal selling as people spend a lot of money on them. A
car deal would require the car seller to first email, text, or call the prospective buyer to
see if they are genuinely interested and then arrange a test drive. During the test drive,
the car seller can discuss the car's features and learn about the customers' specific needs
and budget.