MEANING,FEATURES,SIGNIFICANCE AND PROCESS OF PERSONAL SELLING

v  PERSONAL SELLING
MEANING,FEATURES,SIGNIFICANCE AND PROCESS

BUSINESS STUDY/MARKETING MGMT/SALES AND ADVERTISING AMGMT

v  MEANING AND DEFINITION

◦     PERSONAL SELLING OCCURS WHEN A SALE REPRESENTATIVE MEETS WITH POTENTIAL CLIENT FOR THE PURPOSE OF TRANSACTING A SALE.

◦     PERSONAL SELLING CAN BE DEFINED AS THE PROCESS OF PERSON TO PERSON COMMUNICATION BETWEEN A SALES PERSON AND A PROSPECTIVE CUSTOMER,IN WHICH THE FORMER LEARNS ABOUT THE CUSTOMER’S NEEDS AND SEEKS TO SATISFY THOSE NEEDS BY OFFERING THE CUSTOMERS THE OPPORTUNITY TO BUY SOME THING OF VALUE SUCH AS GOODS AND SERVICES.

◦     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 PROMOTIONAL METHOD BY WHICH THE SALES PERSON USES HIS OR HER SKILL AND ABILITIES IN AN ATTEMPT TO MAKE A SALE.

v      DEFINITION

THE AMERICAN MARKETING ASSOCIATION,” THE PERSONAL SELLING AS 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

v  FEATURES OF PERSONAL SELLING

1.     FACE TO FACE CONTRACT BETWEEN THE SALESMAN AND PROSPECT

2.     ART OF PERSUADING THE PROSPECT

3.     REQUIRES PROFICIENCY IN SELLING SKILLS AND TECHNIQUES

4.     FOCUS IS ON DEVELOPMENT OF PERMANENT RELATIONS WITH PROSPECT

5.     ART OF CONVINCING THE PROSPECT IN FAVORABLE WAY

6.     REQUIRES FLEXIBLE APPROACH

7.     MAIN AIM IS MUTUAL SATISFACTION

◦     WHY????(NEED)

1. CERTAIN PRODUCTS WHICH REQUIRE PHYSICAL DEMONSTRATIONS ND EXPLANATION OF ITS FEATURES
2. FOR UNEDUCATED PROSPECT IT IS MUST
3. IN SOME CASES WHERE ADVERTISING IS NOT DONE,IN THESE CASES PERSONAL SELLING IS REQUIRED LIKE:

• MEDICINES
• INDUSTRIAL GOODS
• IN CASE OF NEW PRODUCTS

4. HELPS MANUFACTURER TO DEVELOP GOOD RELATIONS WITH CUSTOMERS AND PROSPECT
5. SALESMEN ARE ABLE TO PROVIDE VALUABLE DATA FOR THE PURPOSE OF MARKETING RESEARCH
6. TO REMOVE THE DOUBTS,MISINFORMATION

v      PROCESS ( STEPS)

1.     IDENTIFICATION OF POTENTIAL BUYER

2.     APPROACHING THE BUYER: HAS TO ADOPT PLANNED APPROACH AND HAS TO FIND OUT THE CONVENIENCE OF THE BUYER AND FIX APPOINTMENT WITH THE POTENTIAL BUYER

3.     OVERCOMING OBJECTION

4.     CLOSING THE SALE

v      PERSONAL SELLING METHODS

1.     TENDER SELLING: BUYER INVITE OPEN TENDERS AND COMPANY IS REQUIRED TO SUBMIT HIS TENDER.

2.     SELLING THROUGH DISCUSSIONS

3.     DOOR TO DOOR SELLING:-COMPANY’S SALES MAN VISITS PROSPECTIVE BUYERS AND GENERALLY USED FOR HOUSEHOLD PRODUCTS. BENEFICIAL IN RURAL,SEMI URBAN AND EVEN IN CITIES

4.     OVER THE COUNTER SELLIN(OTC SELLING) RETAIL OUTLET

v  PERSONAL SELLING TECHNIQUES

1.     SALES PRESENTATION

2.     CONVERSATION: RELATIONSHIP BUILDING DIALOGUE

3.     DEMONSTRATIONS

4.     ADDRESSING OBJECTIONS

5.     FIELD SELLING

6.     RETAIL SELLING

7.     DOE TO DOOR SELLING

8.     CONSULTATIVE SELLING: CONSULTATION WITH A PROSPECTIVE CUSTOMER

9.     REFERENCE SELLING:-USING SATISFIED CUSTOMERS AND THEIR POSITIVE EXPERIENCE TO CONVINCE A TARGET CUSTOMERS TO PURCHASE A PRODUCT OR SERVICE

v  WHEN TO USE PEROSNAL SELLING

1.     PERSONAL SELLING IS APPROPRIATE WHERE THE PRODUCT IS OF HIGH UNIT VALUE

2.     WHEN A FIRM SERVES A SMALL NUMBER OF LARGE SIZE BUYER OR WHEN AN INDIRECT CHANNEL OF DISTRIBUTION IS USED FOR SELLING TO AGENTS OR MIDDLEMEN

3.     WHEN A FIRM IS NOT IN POSITION TO USE ADVERTISING

4.     SHOULD BE ADOPTED WHERE PURCHASES ARE VALUABLE BUT INFREQUENT AND CONSUMERS REQUIRE PERSUASION AND FOLLOW UP

v      BENEFIT

1)    FLEXIBILITY

2)    CAN SEE THE REACTION OF THE CUSTOMER

3)    ALSO MINIMIZED THE WASTED EFFORT.

4)    EASY TO PINPOINT THE TARGET MARKET IN CASE OF PERSONAL SELLING RATHER THAN ADVERTISING

5)    EASY TO MEASURE MARKETING EFFECTIVENESS AND DETERMINING ROI

6)    AS IT IS ONE TO ONE COMMUNICATION. SALES PEOPLE CAN EFFECTIVELY RESPOND TO AND OVER COME OBJECTIONS.

7)    IN PERSONAL SELLING H,MULTITASKING IS ALSO DONE BY SALES FORCE LIKE COLLECTING THE PAYMENT,SERVICE OR REPAIR THE PRODUCT AND MARKETING INFORMATION

v  DEMERITS

1.     FORCES BUYER TO BUY GOODS THAT ARE NOT ACTUALLY REQUIRED

2.     EARNS THE ILL WILL

3.     LACK OF CAPABILITIES

4.     PEOPLE DO NOT TRUST THE SALES MAN HIGHLY

5.     MESSAGE INCONSISTENCY: SALES PEOPLE DESIGN THEIR OWN STRATEGIES

6.     DIFFERENT LEVELS OF MOTIVATION