Personal Selling

Personal selling is the process wherein a salesperson has a Face to-face interaction with the customer for the purpose Of selling an offering that could be anything , a product , Service , idea, information , a concept , a place , a person , Just any offering that may offer some value to the customer.

Prof. T. K. Chatterjee

Personal Selling : A Promotional Tool

Personal selling is highly effective tool of sales promotion since It provides a platform for interaction and is extremely effective In selling an offering that is complex in nature.

In the new millennium Personal Selling has become highly Challenging owing to rapid changes in technological, behavioral, And managerial aspects. Flexibility and adaptability are the buzz word for succeeding In sales function today.

Concept Of Buyer Seller Dyads

Effective communication between salesperson and customer Determines success in the sales process. Sociologists use the term DYAD : When two people interact. Whenever a salesperson and a potential customer interact , They form a DYAD , and this is called a Buyer-seller Dyad. Research by H. Lee Mathews , David T. Wilson and John F. Monoky, Jr. published in the Journal Of Marketing Research in 1972 showed that the relationship between customer and the Sales person is influenced by sellers principles , expectations And communication skills. The study concluded that similarity breeds cooperation.

Buyer Seller Dyads

Franklin Evans conducted research into Buyer-Seller Dyads in In the life insurance business and found that prospects Bought insurance when they knew more about the salesperson And their companies. The More alike the salesperson and the prospect the higher the Probability of sale getting closed ! Conclusion from a Sales Managers perspective : : Pairing Salesperson with Prospect is critical. However, this is more Easily achievable in industrial selling than in FMCG sales.

Diversity Of Personal Selling Situations

Service selling vs. Developmental selling Different sales situations require different mix of service and Developmental selling.

McMurry & Arnold classify sales situations on a spectrum Ranging from the very simple to the highly complex ones.

Diversity Of Personal Selling situations

McMurry and Arnold segregated sales situations into 3 mutually Exclusive groups and then further divided them into subgroups Totaling 9 subgroups all put together .

The detailed classification follows in next slide.

Diversity Of Selling Situations

Group A ( Service selling) : : Simple selling situation

Inside Order Taker : Sales clerk behind a counter

Delivery Salesperson : Person delivering milk/fuel Missionary : Only goodwill creator do not take order Technical Salesperson : Sales Engineers consulting client

Diversity Of Personal Selling Situations

Group B ( Developmental Selling ) : : Complex selling situation Creative Salesperson Of Tangibles : Automobile salespersons

Creative Salesperson Of Intangibles : Insurance/education selling

Diversity Of Personal Selling Situations

Group C ( Basically developmental selling with unusual creativity) : Highly complex selling situation Political , Indirect or Backdoor Salesperson Salesperson Engaged in Multiple Sales : Involves sale of big ticket Items wherein presentations are to be made to a group wherein Only one person can say yes but all can say no. For example I used to demonstrate electronic typewriters to group of officials In SBI , a real tough challege , since anyone could say no including The typing clerk but rate contract could be signed by the CGM Himself !

Theories Of Selling
Selling : A Science Or Art ?

Experiential knowledge has given birth to certain Approximation based theories : : :

AIDAS Theory : Obtaining Attention Creating interest Stimulating desire Induce Action Create satisfaction

Theories Of Selling
Buying Formula Theory Of Selling : This theory deals with the mental process of a buyer and the factors that Impact his buying process. The mental sequence of events go as : : Need recognition Solution Purchase Satisfaction Application of the theory : The salesperson should help Prospect to identify/recognize his needs through a process Called the Personal Need Analysis then offer him the Solution in form of his offerings and also identify the hot Buttons and match the FABs of the offering to the identified NEED.

Theories Of Selling
Behavioral Equation Theory : B=PXDXKXV Where B = The act of buying P = Internal response factor or force of habit

D = Level of motivation or the present drive K V = The perceived value to the buyer = Combined intensity of all cues

Theories Of Selling
Right Set Of Circumstances Theory : This theory assumes that creating the right set of circumstances will make the sale happen. This depends a lot on skill and experience of the salesperson. The creation of right set of circumstances depends on internal and external forces. External force could be sales person himself and the internal force could be buyers mood.

Personal Selling Process

Prospecting

Pre-Approach
Approach

Sales Presentation
Handling Objections

Closing
Follow through

Objectives Of Personal Selling/Sales Force

Objectives may be qualitative or quantitative : :
Qualitative objectives are strategic or long term in nature Quantitative objectives are tactical or short term in nature

Qualitative Objectives
Effective time management Possession & Proliferation of Knowledge Customer Relationship Management Projection of right attitude and appearance Market intelligence

Quantitative Objectives
Increase/Retain the Market share
Number of calls/day and no of days worked

Achieving optimum profit by selling the right product mix

New customer development in a given time frame

Cost Control
Procurement of targeted volume from clients

Selling Strategies

Two Broad Categories : : : Gain market share ( discussed in detail in next slide)

Customer Relationship Management

Market Share Strategies

Using own sales force Use Of Intermediaries Telemarketing Independent Selling Agents The Internet Developing Hybrid Marketing Systems Establishing Alliances

Automation In Personal Selling

Benefits Of Automation : Information sharing Handling Customer alerts Reporting sales force activities Monitoring progress of leads Accurate routing of leads Internet based facilities Customer profiling Comparison of historical data Competitive intelligence Sales forecasting tools

CONCLUSION
Personal selling is one of the most effective tools of selling. The effective rapport in a buyer-seller-dyad is critical for Sale to happen. Sales force have two objectives : qualitative & quantitative There are certain theories of personal selling. The selling process consists of certain steps from prospecting To follow through.

Prof. T. K. Chatterjee