UNIT 1
Introduction
Personal selling is a means of implementing marketing programs. It is concerned with 'persuasive communication'. A salesperson in personal selling tries to persuade the prospect so that he can take a decision to buy a product. It is a major factor in creating sales volume. It is a direct presentation of a product to a prospective customer by a salesman. It takes place face to face or over the telephone. It may be directed to a middleman or a final consumer. Personal selling is a tool for building up buyer’s preference, conviction and action.
Definition
According to William Stanton and Walker, "Personal selling is the personal communication of information to persuade somebody to buy something."
According to Mahoney and Slone, "Personal selling is the personal communication between a salesperson and a potential customer or group of customers
Nature of personal selling
- It is a Part of promotion mix: personal selling is part of promotion mix or the communication mix in the company’s marketing program. Other elements being sales promotion, advertising, public relations etc.
- It is a Two-Way Communication: It is the best tool for two-way communication. Salesman can provide necessary information to customer about company’s product, and also can collect information from customer. The ultimate aim is to persuade the customer to buy the product.
- It involves presentation and Persuasion: The salesman presents his product to the prospective buyer and tries to persuade the prospective buyer with the help of various skills and techniques.
- It is a Flexible tool: Personal selling is more flexible than other promotional tools. Salespersons can see their customer’s reaction to a particular sales approach and make adjustment according to the situation.
- It’s a creative tool: personal selling is creative in nature. The salesperson tries to create needs, he makes the customer aware of those needs and try to persuade him to buy the product. The salesman does not sell but he creates the urge to buy.
- Development of long-term Relationship: Personal selling results in the development of personal relationship between the sales person and the possible buyer. Such a relationship has an important place in sales.
- Receipt of Additional Information: Normally, before introducing its product, a company is aware of the preferences of probable buyers. Nevertheless, during the course of personal selling, when the sales person is in direct contact with the buyers, he/she gathers additional information regarding their tastes and likings.
- Quick solution of Queries: The prospective buyer can make inquiries regarding the product. Salesman answers these queries quickly and removes any doubts in the mind of the buyer.
- Customer Confidence: By systematic sales talk and presentation, a capable salesman can remove all doubts, objections and misunderstandings, and can win customer’s confidence. It increases customers’ faith in company and its products.
- Improves company’s goodwill/ Image: Note that salesmanship can remove bad image or misunderstanding by highlighting company’s achievements and offers. The detailed explanation about company and its products removes all doubts and misunderstandings in the mind of buyer. It helps in restoring company image and reputation in market.
Importance of personal selling
Importance to businessmen
(a) Effective Promotional Tool: Personal selling is an effective promotional tool in the hands of businessman for increasing sales. Salesman provides information about the various features and advantages of his product as well as about market developments.
(b) Flexible Tool: Personal selling is the most flexible tool of promotion. Sales presentation is adjusted according to the requirements of the customer.
(c) Minimizes Wastage of Efforts: Personal selling involves minimum wastage of efforts as compared to other tools of promotion.
(d) Customer Attention: The level of customer attention and interest can easily be assessed under personal selling. Thereafter, the presentation can be modified appropriately.
(e) Lasting Relationship: Personal selling aims at developing good and long lasting relationship between salesperson and the customer to increase sales in line with WIN- WIN philosophy.
(f) Personal Relationship: Competitive strength of a business organisation increases with the development of personal rapport between its salespersons and prospective customers.
(g) Role in Introduction Stage: By describing the merits of a product and persuading the customer to purchase it, salesperson helps in introducing a new product in the market.
Importance to customers
(a) Helps in Identifying Needs: It helps in identifying the needs & wants of the customers, so that they can be satisfied by getting best products.
(b) Latest Market Information: Under personal selling, customers are provided with information regarding availability or shortage of product, introduction of new product etc.
(c) Detailed Demonstration: Personal selling is the only technique through which detail demonstration of product takes place, which generates sales.
(d) Expert Advice: Expert advice and guidance can be provided to the customers while purchasing various goods and services.
(e) Induces Customers: Personal selling induces customers to buy new product in order to satisfy their needs in a better way.
Importance to society
(a) Removes ignorance: Salesmanship removes ignorance and educates people regarding different types of products and their utilities.
(b) Assist the society: Salesman is one of the help to increase aggregate sales. They help to maintain equilibrium between demand and supply
(c) Employment Opportunities: It provides opportunity to unemployed people to work as salespersons for earning income.
(d) Mobility of Sales People: Travel and tourism in the country get promoted by the mobility of the people from one place to another.
Importance to government
The Government also receives maximum utility out of salesmanship. Salesmanship helps the producers to produce and sell more of goods and services. As production and sale in country increases, the Government is able to get more revenue by way of various taxes, duties and levies like sales tax, income tax, excise duty, freight and transportation charges. It contributes to GDP growth of the country
Myths of selling
These are the certain myths associated with personal selling that affect the perception of a salesperson during the entire process of personal selling.
Myth 1-Anyone can be a buyer: The first myth about personal selling is related with the buyers. It is not right to think that each consumer may buy everything. Many different factors are considered by the consumers before making any purchase decision. However, there are few exceptions to it. For example, a consumer may be induced for impulse buying by offering him a steal deal or deep discounts. In order to make efficient use of the efforts a salesman should carefully assess the attributes of the product and accordingly target the market.
Myth 2-Price is the most important criterion for buying a product: Sellers may be misguided if they believe this myth. There is no denying fact that price plays an important role in making any purchase decision but not always a primary factor. There are many exceptions to this assumption. First in case of luxury goods, prices of the product hardly matter. Rather people look for expensive items to show their status. Second for quality conscious customers, quality or features of the product matter than prices. Finally, in case of brans loyal customers, the users of particular brand will rarely compare the prices of the substitutes and shift just because of lower prices offered by the competitor.
Myth 3-Same sales techniques will work for everyone: All customers are different individuals hence they are driven by different needs, motivations, and goals. Hence, a single sales strategy may not be helpful for everyone. The marketers have well understood this and now they are focusing on Segment of One where each individual is considered as a segment and customized products being offered to every one based on their unique requirements.
Myth 4-Finish the selling process soon as possible: This myth is guided by the selling concept where the selling of unit is more important than customer satisfaction. However, in today’s time the swiftness in closing the deal may not help much as in case of any dissatisfaction consumers may use social media to spread the negative word of mouth. Besides this, it’s going to cost goodwill in the long run.
Myth5-Explore everything to close the sale: This myth may lead salespersons towards unethical selling behavior too. It is unethical on the part of seller to misrepresent the facts or misinform about the product quality or capabilities of the product to the consumers just to increase the sales number or match the sales quota. Following this myth salesman can adopt manipulative and aggressive sales approach. In long run, a company may fail because of such salespersons who believe in this myth.
Myth6- Extrovert salesman perform better than introvert one: Few people think that salesmanship is the cup of tea only for those who are outspoken. But it is not true. The task of salesperson is to understand the needs of its potential customer and present the solution of his/ her problem. Salesperson should try to overcome this misconception by adopting professional approach that will be appreciated by customers. Salesperson should try to refrain from being overly friendly.
Myth 7- “fake it, fill it and make it”: The long term goal of every salesman should be establishing relationship with its customer rather than just seeing a buyer as an account. Therefore, sales representative should not hide any information or fact from the customer just for closing the deal. Rather, all the crucial points should be well communicated to the customer.
Myth 8- A customer “no” is “never”: A salesman should not be disheartened after hearing a “no” from the customer. Rather he should try new ways to address the customer struck points and find new ways to pursue them more. Salesman should be hopeful towards converting the “no” of the customer into “yes”.
Myth 9 The customer is always right: This is an old saying in business that “customer is always right”. This line has largely been misinterpreted. It is not necessary that customer is always correct in understanding his innate needs. Sometimes a customer gets confused in identifying about his preferences. In that situation he needs guidance of the salesman. Moreover, in the era of over exposure to information, consumer may form some misconception about products. Here the role of salesperson is to make him aware about the true facts related to products. Salesperson has to figure out what information customer possesses and what he is missing out and bridging the information gap for making rational decisions.
Myth 10- Sales is all about numbers: Sales in the quantifiable number is the most important. Though numbers are important but they are not the only thing. The quality of interaction is going to determine is going to play important role in translating the prospect into potential buyers.
Key takeaways
- Personal selling is a tool for building up buyer’s preference, conviction and action.
- Personal selling is a direct presentation of a product to a prospective customer by a salesman
Personal selling
Personal selling is an important component of promotional mix. It is a means for implementing marketing programs. Personal selling facilitates interaction with a salesman and a buyer so that the need of the buyer could be understood well and salesman could serve the buyer according to his need. We can say that personal selling is a broader concept than salesmanship
Salesmanship
Salesmanship on the other hand, is just an art of selling. It is an art of successfully persuading prospects or customers to buy products from which they can derive suitable benefits. Salesmanship is all about skills required by the salesman to understand the need and emotions of the prospect and offering him various information, options and benefit to satisfy their need. Thus, we can say that personal selling includes salesmanship.
Sales management
It is all about managing all activities related with the sales of the business. It involves marketing, advertising, pricing etc. Through sales management only, a company keeps track record of target sales and actual sales. It involves management of sales operations, formulation of sales strategies and preparing sales analysis. Sales managers in the sales department is the responsible authority for sales management. The sales manager has to look after marketing strategies, has to manage the salesforce and has to organize personal selling efforts.
Basis | Personal selling | Salesmanship | Sales management |
Meaning | Personal selling is an act of engaging with customers to persuade them to buy the product. | It is an act of being employed as sales person. Salesmanship is an art and skill of initiating selling efforts. | Sales management is an act of planning, controlling, directing and coordinating the sales process. |
Flexibility | It is most flexible as the messages could be changed according to the customer’s needs. | It is comparatively less flexible than personal selling. | It is least flexible as the rules and policies are formed and followed strictly. |
Reach | Only one or two customers can be dealt in one time. | Only limited number of persons can be contacted. | It reaches to masses in the form of advertising and other marketing communications |
Cost per person | Cost per person is high as limited persons can be reached at a given time | Cost is comparatively lower than personal selling. | Cost per person is very less. |
Coverage | It takes long time to cover the market | It takes comparatively less time to cover the market | It takes medium time to cover the market |
Media | It does not make use of mass media. | Makes comparatively less use of mass media. | Makes use of mass media. |
Feedback | Direct feedback can be collected from customers | Indirect feedback can be collected. | Feedback is not possible because customers are not involved. |
Useful for | More useful for industrial and customized product. | More useful for technical product. | Useful for all kinds of product |
Key takeaways
- Personal selling is a tool for building up buyer’s preference, conviction and action.
- Salesmanship is an art of successfully persuading prospects or customers to buy products from which they can derive suitable benefits
- Sales management is an act of planning, controlling, directing and coordinating the sales process
Characteristics of good salesman
- Physical Qualities
(a) Sound Health: Just like a normal human being, a salesperson must also be of sound health. A salesperson would be mentally and physically fit only if he has a good health. For a sound health, a salesperson must eat well, sleep well and exercise regularly.
(b) Good Appearance: Good Appearance always attracts people. A salesperson must not be too fat or thin. He must carry his body well.
(c) Cheerful Disposition: A scholar has rightly said that smile is like plague. If the salesperson is cheerful and happy he can make his customer cheerful and happy, which directly helps to have a good conversation and chances of sales increases.
(d) Agile: A good salesperson should always be agile. A lazy and boredom salesman can never attract customers.
(e) Postures: the gestures and postures of a salesman are also crucial in influencing customers. Unnecessary hand-eye movements, shoulder movements etc. creates wrong impression in the mind of prospective buyers.
(f) Cleanliness: No person likes to sit around and listen to a dirty fellow. A good salesman must have a good hair style, must be well shaved, must have clear nails etc.
(g) Clothing: A well-dressed salesman often attracts customers very easily. He should wear a formal suit with tie. Dressing sense of a salesperson often increases his confidence and likability by the customers.
2. Speaking qualities
(a) Clear Pronunciation: A salesperson should have clear pronunciation. Otherwise prospects may misinterpret things. A person without good pronunciation can never became a good salesman.
(b) Proper Vocabulary: while giving presentations, proper choice of word is very important. A salesman must have a good vocabulary to create lasting impression with words. A salesman must use those words which are easy to understand and easy to pronounce. Technical jargons must be avoided.
(c) Effective delivery: many times, ‘how we speak’ is more important than ‘what we speak’. If the delivery style is not good, a salesperson may not be able to persuade the customer with good pronunciation and vocabulary.
Mental qualities
(a) Resourcefulness: A resourceful person is one, who understands and behaves according to the changing circumstances. A good salesperson changes his behavior according to different customers and situations.
(b) Intelligence: A salesperson must be intelligent. A good salesperson could handle objections carefully and easily with his intelligence.
(c) Sharp Memory: To be successful, a salesperson must have sharp memory. He must be able to remember previous meetings with customers, likes and dislikes of the customers along with various offers being provided by the company.
(d) Maturity: A salesperson must be mature enough to understand his duties and obligations. He must have sense of what he is talking about and how it will affect the sales of the company.
(e) Self-confidence: Self-confidence is a thing which could help a person to tackle any kind of situation. A good salesman should confident be confident on his presentations skills and objection handling techniques.
(f) Ability to Observe and Judge: The success of a salesperson depends highly on his ability to observe the conditions around him and his ability to take prompt decisions.
Social qualities
(a) Sociable: a good salesperson must be sociable. He must treat everyone equally and meet with them frequently. He must have contacts with everyone whether rich, poor, middle class people etc.
(b) Courtesy: it is said that courtesy has no cost but has high impact. Salesperson must deal everyone with courtesy.
(c) Co-operative: A salesman himself needs cooperation from various people. So, he must be cooperative with other members of the salesforce, sales managers, customers etc.
(d) Convincing Conversationalist: salesman must be a good conversationalist. He must have the ability to speak complicated things in a clear and concise manner. He must be able to influence other with his communication skills.
(e) Patience: A salesman has to meet with various kinds of people. Some people deliberately tries to annoy the salesperson. Many times sales presentations do not result in effective sales. In such a situation a salesman must remain patient and do not lose his calm.
Moral qualities
(a) Honesty: it is said that “honesty is the best policy”. A salesperson should not lie to his customers and deliver according to his promises. A dishonest salesperson can never become successful in the long run.
(b) Loyalty: To be successful, a salesperson must be loyal towards his company, sales manager, fellow salespersons and customers.
Professional qualities
(a) Educated and trained: well-educated and trained salesman could increase sales turnover of the company by his ability to engage with customers. Training helps a salesman to tackle different situations with proper care.
(b) Knowledge about the institution: A salesman must know each and every minute details about the company for which he is working. Past and present performances, types of product being offered, the credit policies of the company Etc. must be known to the salesperson.
c) Knowledge of product: Ernest and Da Vall has rightly said that ‘nothing is important to the salesman than knowing his product’ salesman must know all the features and ingredients of the product he is offering. He must also know about the different varieties of the same products.
(d) Communication Skills: it is said that personal selling involves a two-way communication between salesman and customer. It is the communication skill of salesman which helps in persuading the customer to buy the product.
Types of selling situation
- Service Selling Situation: This situation is related with obtaining sales from existing customers whose habits and patterns of thoughts are already known to the seller. Comparatively less effort is required to satisfy these type of customers. Inside order takers, delivery salesperson, merchandisers, technical salesperson etc. helps in service selling situations.
- Developmental selling Situation: In this type of situation a salesman tries to convert prospects into customers. It requires creativity by the salesperson to persuade the customer. It includes creative salesperson of tangibles and creative salesperson of intangibles. Like a salesperson selling vacuums cleaner (tangible) to a new customer and a salesperson selling insurance(intangible) to a new customer.
- Retail Selling situation: It is a totally different scenario when goods are sold through retailers. An individual retailer is the last person in the distribution channel to make products available to the buyer. Advertisement and promotions attracts people but the ultimate sale depends on the salesman at the counter. The salesman inside the retail store is the key person in retail selling situation. They do not negotiate with customer but they only make sales.
- Wholesale selling situation: The Wholesalers calls on retailers, dealers at regular interval on behalf of the wholesaler and helps retailers and dealers in selection of goods and services and advices them on various matters. These salespeople help a wholesaler in dealing with many retailers and dealers in day to day business which would be otherwise very difficult for wholesaler alone
- Product oriented selling situation: Selling situation also changes with the nature of the product. Products at different stages of life cycle, with different value and with different technical nature requires customized efforts in sales. a salesman according to product situation could change the selling tactic.
- Competition Oriented Selling situation: There is a cut throat competition in the market. Every company wants to grab more and more market share. Also, there is a competition between the salespeople within the company’s salesforce. The salespeople tend to convince the customer at any cost in order to stay ahead of other salesperson.
- Consumer behavior Oriented selling situation: Selling situation also differs according to the type of buyer. Different buyers have different income level, social status, occupation, personality, perception, belief, brand choice, payment options etc. all these factors affect the buying behavior of a person. A salesman must understand the consumer buying behavior and must offer products according to the buying behavior of the person.
Types of sales person
- Order Takers Order takers do not have the responsibility to persuade customers to buy products and increase the sales. Rather, they are only supposed to book customers’ orders and pass on the information to the company for delivery arrangements. Order takers should should provide accurate information to the company and customer about booking of orders and date of delivery.
- Inside order-takers: They are retail sales assistants (like sales assistants in Vishal Megamart). Customer has full freedom to choose products without the presence of a salesperson. The sales assistant’s task is purely transactional – receiving payment and passing over the goods. Another form of inside order-taker is the telemarketing sales team who support field sales by taking customers’ orders over the telephone.
- Outside order-takers: They travel to customers. Use laptop computers to improve tracking of inventory and orders etc. These salespeople visit customers, but their primary function is to respond to customer requests rather than actively seek to persuade.
- Delivery salespeople: The salesperson’s task is primarily concerned with delivering the product. In the India, milk, newspapers and magazines are delivered to the door. There is little attempt to persuade the household to increase the milk order or number of newspapers taken: changes in order size are customer-driven. Winning and losing orders is dependent on reliability of delivery and the personality of the salesperson.
2. Order-Creators/Missionary Salespeople Order creators are the salespeople who help in pulling the customer toward product. Missionary salespeople are best order creator’s Missionary salespeople do not take purchase orders. Rather, they are involved in dissemination of information about the product. They help in increasing goodwill of the company and educate customers about the product. They do not not call the ultimate buyers but approach to those who make advices to the buyer about the product. For example, A salesperson from a book publisher calls a professor urging them to use certain books, but the actual buyers are the students who buy and use the books. Similarly, medical representatives approach to the doctors, the doctor does not use the drugs but advices patients to buy the drugs.
3. Order-Getters/Front-Line Salespeople Order-getters consists of those salespersons whose major objective is to persuade customers to make a direct purchase. They are required to acquire new businesses for the company and negotiate with new prospects. These are the front-line salespeople and should have several skills like ability to identify new prospects, persuading and negotiating, and ultimately building new and profitable business. They generate customer leads, provide information, persuading customers and closes the sale. The job of order getters is most challenging than any other type of salespersons.
4. Support Salespeople
- Technical support salespeople: This type of salesperson provide sales support to front-line salespeople. When a product is highly technical and negotiations are complex, a salesperson may be supported by product and financial specialists who can provide the detailed technical information required by customers.
- Merchandisers: These people provide sales support in retail and wholesale selling situations. Orders may be negotiated nationally at head office, but sales to individual outlets are supported by merchandisers who give advice on display, implement sales promotions, check stock levels and maintain contact with store managers.
- Trade Salespeople: Spend much time helping customers, especially in retail stores, Restock the shelves, set up displays.
- Service Salespeople: interacts with customers after sale is complete.
Career opportunities in selling
The salesmen’s job has become so important. Increasing population growth with high expectations of life, social and cultural development in almost all the economies of the world, consumer awareness, cyclical fluctuations in business conditions, acute competition, complexity of business operations etc. have created challenging opportunity to people to join this profession.
Kirpatric writes “Although selling is a difficult and competitive function, those who likes this profession has an interesting job. Salesmen deal in people and in their motivations. They work for human values and individual satisfaction.” Earnest and Davall observe, “Those who dream a challenging career, can obtain a marketing job.” They are presented here in the form of arguments in favour and against.
Advantages of accepting “selling as a career”:
1. Higher Earnings:
The supporters show a view to believe that the persons working in the selling field have physical and mental qualities. This is the reason that they have been provided with higher remuneration. In addition to regular salary they are paid with commission on the basis of increased volume of sales. Their incomes are in direct proportion to the time, energy and thoughts devoted by them to their jobs.
2. Opportunity for Advancement:
Opportunity for advancement in the sales job provides with opportunity in career, such as merit-wise promotion as sales supervisor, branch manager, divisional sales manager, Asstt. Sales manager, Dy. Sales director, etc.
3. Personal Satisfaction:
Everyone needs psychic income too. Selling provides personal satisfaction also. Salesman earns his satisfaction through customer satisfaction by solving customer problems. In the words of Kirkpatric, “salesmen earn happiness because they make buyers happy; they sell satisfaction and in return find their own satisfaction.”
4. Security:
Certain people believe that salesmanship is a job involving risk and uncertainty. At times of cyclical changes or during trade depressions much challengers are attached with their jobs. They may even face a situation of retrenchment. If they are able to create and maintain the demands even during the seasonal variations, they will have job security.
5. Sense of Proud:
Salesmen represent the producer, the society and the business world as a whole. They feel sense of proud and social prestige. H. M. Taylor writes, “The social position of a salesman depends on his personality, functions and achievements. No salesman should feel inferiority in his job.”
6. Freedom and Guidance:
Salesman has his own control on his timings of selling duties. He has freedom in functioning and decision making upto certain limits. He has freedom to deal with his customers in his selling territory and the products that he deals with. He himself is the administrator and guide for his functions in the field.
7. Pleasure of Traveling:
The main functions of a traveling salesman are to contact the customers in his territory and gets the sales orders for the producer. Traveling salesman travels throughout the country and his gives him an opportunity to visit and see different places, meeting with various people of different cultures, languages, and traditions. Traveling also provides him opportunity to make new friends and new relationships.
8. Development of Personality and Responsibility:
Selling develops various challenges before a salesman. In a changing situation, he has to deal with different people. This will help in his mental development and maturity of personality. In addition to this, he becomes self-disciplined and responsible as he gets the knowledge for self-decision-making and initiatives.
Measures for making selling an attractive career
- Increase compensation , fringe benefits and retirement benefits
- In addition to salary, offer liberal incentives linked with performance
- Provide on the job and off the job training for career growth
- Introduce rapid promotions for outstanding performance
- Give adequate autonomy and say in decision making
- Provide a sense of achievement, recognition and challenge
Key takeaways
- Salesmen deal in people and in their motivations. They work for human values and individual satisfaction.
Sources
1. Davar R.S – Salesmanship and Publicity – Vikash Publication
2. Sahu P.K & Rout K.C – Salesmanship & Sales Management – S.Chand
3. Spiro, Stanton, and Rich, Management of the Sales force, McGraw Hill.
4. Rusell, F. A. Beach and Richard H. Buskirk, Selling: Principles and Practices, McGraw Hill
5. Futrell, Charles, Sales Management: Behaviour, Practices and Cases, The Dryden Press.