WHAT IS A PERSONAL SELLING
WHAT IS A PERSONAL SELLING?
Personal selling is direct communication between a sales representative and one or more prospective purchasers, for the purpose of making a sale. This can be accomplished through a face-to-face, personal sales call or over the telephone, called telemarketing.
ADVANTAGES OF PERSONAL SELLING
§Personal selling can be used to provide a detailed explanation or demonstration of the product.
§The message can be varied by the salesperson to fit the motivations and interests of each prospect.
§Personal selling can be directed to specific qualified prospects.
§Personal selling costs can be controlled fairly easily by adjusting the size of the sales force; if paying salespeople on a straight commission, the firm does not incur a sales expense until the sale is made.
§Personal selling is most effective in closing the sale and getting the customer order. §Certain customer and product characteristics indicate that personal selling might work better than other forms of promotion. In general, personal selling is more important if the product has a high value, the product is custom-made, the product is technically complex, there are few customers, and customers are concentrated.
STEPS IN THE SELLING PROCESS
Steps focus on the goal of getting new customers and obtaining orders from them.
A. Prospecting and Qualifying
§Identifying qualified potential customers.
§Finding current customers for the names of prospects to build referral sources. Or they can drop in unannounced on various offices (a practice known as “cold calling”)
§Qualifying – how to identify the good ones and screen out the poor ones. Prospects can be qualified by looking at their financial ability, volume of business, special needs, location, and possibilities for growth.
B. Preapproach
§Before calling on a prospect, the salesperson should learn as much as possible about the organization (what it needs, who is involved in the buying) and its buyers (their characteristics and buying styles).
§Set call objectives.
§Decide on the best approach (personal visit, phone call, letter) and timing.
C. Approach
§During the approach step, the salesperson should know how to meet and greet the buyer and get the relationship off to a good start. This step involves the salesperson’s appearance, opening lines, and the follow-up remarks.
D. Presentation and Demonstration
§During the presentation step of the selling process, the salesperson tells the product “story” to the buyer.The salesperson describes the product features but concentrates on presenting customer benefits.
§Sales presentations can be improved with demonstration aids, such as booklets, flip charts, slides, videotapes or videodiscs, and product samples.
E. Handling Objections
§Customers almost always have objections during the presentation or when placing an order. In handling objections, the salesperson should use a positive approach, seek out
hidden objections, ask the buyer to clarify any objections, use objections as opportunities to provide more information, and turn the objections into reasons for buying.
F. Closing
§After handling the prospect’s objections, the salesperson now tries to close the sale. Salespeople should know how to recognize closing signals from the buyer, including physical actions, comments, and questions.
G. Follow-up
§The last step is necessary if the salesperson wants to ensure customer satisfaction and repeat business. The salesperson should then schedule a follow-up call when the initial order is received to make sure that there is proper installation, instruction, and servicing. This visit should reveal any problems, assure the buyer of the salesperson’s interest, and reduce any buyer concerns that might have arisen since the sale.
RELATIONSHIP MARKETING
1. The principles of personal selling as just described are transaction oriented; their aim is to help salespeople close a specific sale with a customer.
2. Most companies today are moving away from transaction marketing. Instead, they are practicing relationship marketing, which emphasizes maintaining profitable long-term relationships with customers by creating superior customer value and satisfaction. They are realizing that, when operating in maturing markets and facing stiffer competition, it costs a lot more to wrest new customers from competitors than to keep current customers.
3. The company would like to show the customer that it has the capabilities to serve the customer over the long haul, in a mutually profitable relationship.
4. Companies are recognizing that winning and keeping accounts requires more than making good products and directing the sales force to close lots of sales. It requires a carefully coordinated, whole-company effort to create value-laden, satisfying relationships
with important customers. Relationship marketing is based on the premise that important accounts need focused and continuous attention.