Ch-02 (Personal Selling)

Block: Basics of Sales Management
Ch-2
Personal Selling
Introduction
Some important aspects of personal selling are:
1.
It enhances customers confidence in the seller.
2.
It promotes long-term business relations through personal intimacy.
3.
It provides a human touch to business transactions.
4. It helps facilitate the seller to understand each customers needs and

preferences more clearly.
5. It helps satisfy a customer by modifying the product as per the customers
choice and preference.
6.
Personal selling followed by personal service helps build long-term relations

between the business and the customer.
7. It helps keep up with the competition in the market, based on product

Cont.
customisation as per customers preferences.
Copyright 2010, S L Gupta
2-1
Sales and Distribution Management
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
1.
Personal Selling
It is a powerful and effective tool for convincing the customer about the
product.
2.
Through personal selling the time lag between introducing a product through
the media and actually selling it is reduced.

3.
It provides prospective customers with a better understanding of the product
and an interactive opportunity to liaise with the sales personnel.
2-2
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Objectives of Personal Selling

Personal selling objectives may be:
Short-term
Short-term personal selling objectives are more specific and of short-term
duration. These objectives change very frequently as soon as there is change in
production mix. Further, they are usually quantitative objectives.
Long-term
Long-term personal selling objectives are broad and general. There is very little
scope of change in long-term objectives. They are usually quantitative objectives.
2-3
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Functions of Personal Selling

Personal selling is an oral presentation in face to face conversation with one or
more prospective customers for the purpose of making sales. The main functions
of personal selling are as follows:
1.
Provide service to customers (Introduce the product, explain the right use,
Convince them etc.)

2.
To sell the product
3.
Maintain the sales record
4.
Executive Function
5.
Develop goodwill
6.
Achieve sales target

2-4
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Changing Face of Personal Selling

Modern sales approach is based on the following parameters
1. Value Sharing: Salespeople study the changing needs and preferences of
their customers.
2. Relation Building: A value-based relationship helps the salespeople to
constantly mobilise resources and modify the end product by catering to the
specifics of the buyer.
3. Role Playing: The salespeople, in personal selling, go far beyond realising
sales. Sales people act as consultants to their prospective customers constantly
advising them of new products, their updates and impart knowledge to them.
4. Changing Approach: Personal selling comes in a package containing the
inputs of the experts from different areas such as maintenance, installation,
trouble shooting, delivery staff, sales personnel, etc.
Cont.
2-5
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Benefits of personal selling

1.
Availability of expertise
2.
Early access to relevant market information
3.
Availability to be flexible regarding processes, timing
4.
Faster, shorter contracts
5.
Economies of information sharing
6.
Lower cost of selling
7.
Knowledge of other uses or applications
2-6
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Efficacy of Personal Selling

Personal Selling with Respect to Product Strategy
Since salespeople are in direct liaison with prospective customers, their input is
valuable during product development.
Personal Selling and Pricing Decisions
Sales personnel undergo requisite interaction with prospective customers to
gauge their mood with respect to different price levels.
Personal Selling and Distribution
The end result of any distribution effort is the ready availability of the product to
the customer, in the right quantity and at the right place.
Personal Selling and Product Promotion
Sharing the same values that the customer does, a salesperson provides
motivation and generates interest and confidence in the customer for the product.
Cont.
2-7
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Steps in Personal Selling

Successful personal selling calls for an integrated approach devised from the
experience of the sales personnel. The approach comprises the steps as shown
in the figure here. Each of these steps are further described in brief.
Steps in Personal Selling
Cont.
2-8
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Prospecting
Prospecting is the process of identifying prospective buyers of the product. A
prospect is qualified if he has the authority, need, ability and eligibility to buy.
There are different ways to identify prospects. Some of the most frequently used
methods are described below:
Acquaintance References
2-9
Cold Calling
Centre of Influence Method
Personal Observation Method
Direct Mail or Telephone Method
Companys Records
Newspapers
Retailers
Other Methods
Cont.
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Pre-approach
Pre-approach is the second step in the selling process which emphasises that the
salesman should know, after identifying the prospect in the prospecting stage, the
prospects likes and dislikes, his needs, preferences, habits, nature, behaviour,
economic and social status etc.
Significance of Pre-Approach
1.
Salesman concentrates only on the prospects and not the suspects.
2. Salesman gain all the possible information about the prospect before
approaching him. Hence any kind of loose talk or serious mistake can be
avoided.
3. He is able to give a sales presentation more efficiently, effectively and with
confidence.
4. It does not waste the prospects time and energy since the salesman is
already aware of the needs and preferences of the prospect.
Cont.
2-10
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Friends and
acquaintances
Business failure
P
Directories
P
Trade publications
and trade shows
New buyer buys from

another source
P
P
P
P
Telemarketing
advertising
The Ferris Wheel

concept, which is
aimed at supplying an
ongoing
list
of
prospects, is part of
world sales record
holder Joe Girards
customer strategy
Relationship between
customer and salesperson deteriorates
Referrals
Acquisitions and mergers
and
Customer moves
Death of customer
Cold calling
Customer has only a

one-time need for
product
Networking
2-11
Customer needs change

because of new technology
Text & Cases
(2nd Edition)
S L Gupta
Cont.
Excel Books
Ch-2
Personal Selling
Usage of Prospecting Time
Sales force must plan its time in such a manner that maximum time is made
available for those prospects who are likely to give a large volume of
business to the company.
To avoid this wastage of time, grading of the prospects will be an important
step.
Cont.
2-12
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Approaching
In this stage the prospect and the salesman come in contact with each other
face to face.
The salesman has an opportunity to understand and interact with the
prospect in a better way.
Salesman should put forward his best efforts to make the best use of this
opportunity in getting the attention of the prospect and to convince him to buy
the product.
Getting the attention of the prospect and persuading him to buy are the two
main objectives of a salesman.

Cont.
2-13
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Approach Adopted by Travelling Salesmen

A salesman may directly approach the prospect without any introduction
whatsoever and then conduct an interview.
Sending an advance mailer explaining his product and its benefits vis--vis
other products available.
There is no better method of securing an appointment with a prospect than

through a reference given by the friend, relative or business associate of the
prospect.
Another effective way of securing an appointment and interview with the

prospect is for salesmen to give away gifts to the prospects before asking for
an appointment.
Sale letters have proved to be another kind of door opener.
Cont.
2-14
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Successful Approach
The following points specify the importance of a successful approach:
i.
A successful approach enhances the sale and it is thus important for the
running of a business.
ii.
A failed approach will give an opportunity to the rival company. So a good
approach will go a long way in building good relations with the prospect while
bad approach will not only result in losing business but will also make it easy for a
competitor to tap new customers.
iii.
The approach helps in enlightening the prospect by providing him ample
information about the product, price, competitors product, benefits etc. that
he can derive from the product.
Cont.
2-15
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Key guidelines for successful approach
Prior Appointment
Timing
Command
Relaxed Atmosphere
Open Mindedness
Courtesies
Effective Presentation
Follow up
Cont.
2-16
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Methods of Approach
There are different methods of approaching a prospect and some of the most
important ones are given below.
Cashing in on Brand Name or the Companys Reputation
Customer Benefit Approach
Innovative Product Opens the Door to the Salesman
The Premium Approach (Small Gifts or Novelties)
The Stock Approach
The Approach of Making the Prospect Feel Important
The Survey Approach
Interactive Approach
Cont.
2-17
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Presentation
Quick presentation creates a good impression.
Attractively packaged, decorated and well- organised.
Should explain the product with its features and price advantage to the
customer in simple and easy terms.
Customer be shown the kind of quality that he is looking for.
Helps the salesman to prove the features of the product and emphasise its
genuineness.
Cont.
2-18
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Demonstration
Demonstration is an exercise to prove the characteristics of the product.
It highlights various attributes of the product such as utility, performance,
service and quality.
It is only during the demonstration that the customer gets an opportunity to
verify the facts about the product.
Demonstration is imperative and essential for a prospect to make a buying
decision.
Cont.
2-19
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
The Close
This is the last stage of any sales presentation.
The main aim of the close is to convince the prospect to sign the order form
or to place an order immediately rather than in the future.
It is also important that through proper planning, prospecting, presentation
and demonstration the salesman should try to capture the attention of the
prospect and not let the prospect change his mind.
2-20
Text & Cases
(2nd Edition)
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Excel Books
Ch-2
Personal Selling
Relationship of Salesmanship with Sales Management

and personal Selling
Salesmanship & Personal Selling
1.
The ability to quickly develop rapport with their prospective customers.
2.
A desire to truly help their customers.
3.
The habit of asking questions to gather information before making a pitch.
4.
Sticking to a consistent, proven sales process.
5.
A never ending desire to learn more about how to sell more effectively.
Cont.
2-21
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Myths about selling

Myths of selling: There are various myths about selling process which needs to
be cleared for a sales person.
1.
Buyers are liars
2.
Anyone can be persuaded to buy
3.
In buying decision, price is the primary reasons
4.
A technique that works well for one person will work for everyone
5.
Close the sales as soon as possible
6.
The deal can be closed at any price

Cont.
2-22
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Various Selling theories

SELL Model
This is a simple model describing the various actions associated with the word
itself.
1. Show features: it is the very first stage; expected to show the features of the
product, demonstrating how it works, and showing the results of using the
product immediately.
2. Explain advantage: Immediately, after demonstrating the product, explain
the advantage possibly related with the features, showing the advantages which
ate derived from it.
3. Lead into benefits: Correlate the advantages with the benefits. This is
simply highlighting the materialization of those benefits in conducting the set
of
activities due to having/using the product.
4. Let them talk: Then at the end, let them talk further about the product, its
features and those future benefits. If the previous steps are done well, they will
Cont.
talk themselves for the sale.
2-23
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
SLAID Model
This is another simple model describing the various actions associated with the
word itself, Slaid acronym for sales steps.
1.
Show the product: Showing the product in full or showing specific function
is also possible in the beginning, just to trigger the anxiety or curiosity in their
mind. It is not a full product demonstration. Demonstration comes a bit latter
state in this methods.
2.
Listen: A partial demonstration flash triggers a lot of questions, or
estimations or expectations, in case if the product is absolutely new concept.

3.
Acknowledge: Your hearing will endorse that you have understood and are
ready to fulfill their needs. You may be given elaborative further deep
information about their objection.
Cont.
2-24
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
1.
Personal Selling
Identify: Identify the objections, and bring them on a squaring off situation
with contents offered by your product. If possible, set up a concession

balancing the benefits of new product over the old objections, so that
clause,
you can
handle the objection and will get the sale.

2.
Deliver: Ask the participants to repeat the demonstration to build the
confidence about the product performance.
Cont.
2-25
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Theories of selling
Stimulus response Approach to Selling
This is the simplest approach to selling and is shown in Figure. It is up to the
salesperson to provide stimuli, of any kind, initially. This is followed by an attempt
to obtain a response from the prospective buyer a continued on until a decision is
made.
Stimulis response Approach to Selling
Salesperson provide
stimuli:
Statement
Questions
Actions
Audio/visual aids
demonstrations
Buyers responses
sought:
Favourable
reactions and
eventual purchase
Continue process
until purchase
decision
Cont.
2-26
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Mental State Selling

This approach utilizes the understanding of the AIDA (Attention, Interest,
desire, Action) concept and its utilization in the selling process.
It follows the same strategy of the Stimulus response Approach where a
script is prepared and followed. What is different here is the timing.
The timing refers to the mental state of the prospective buyer, whether at
Attention, Interest, Desire, or Action.
Simplified tasks that the salesperson can do is as follows:
Mental State
Mental State
Awareness
Awareness
Interest
Interest
Desire
Desire
Action
Action
Sales Task
Sales Task
To get prospective buyers to be interested in the product
To get prospective buyers to be interested in the product
To get prospective buyers to want the product
To get prospective buyers to want the product
To get prospective buyers to buy the product
To get prospective buyers to buy the product
To close the sale
To close the sale
Cont.
2-27
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Need satisfaction selling
It was critical for salesmen to know what the needs of the customer were.
This was done by various methods, including visit, studies of the customers,
questioning and constantly probing.
Need satisfaction Approach to Selling
Uncover and confirm

Buyer needs
Present offering to
satisfy Buyer need
Continue selling until

purchase decision
2-28
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Difference between advertising and Personal selling

Bothpersonal selling as well as advertisingare the means to communicate
with the target customers for the product or service of an organisation. To be
effective, i.e., to produce results, in terms of sales or orders, both should be
understandable, interesting, believable and persuasive.
i.
However, there are some notable differences between these two means of
communication.
ii. The customer comes in direct contact with the salesperson. In advertising,
on the other hand, the customer does not come in direct contact with any
representative of the organisation.
iii. Advertising has a major role during the pre-purchase phase as the mass
demand for the product has to be generated. Advertising also plays an important
role in post-purchase phase as it gives sound reassurance to the purchaser.
Personal selling, on the other hand, has an important role to play in all the three
phases. It plays a major role in the purchase phase.
Cont.
2-29
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Three Phase of a Products/Brands Market

1.
Pre-purchase phase
2.
Purchase phase
3.
Post-purchase phase
Personal
Selling
Advertising
Pre-purchase
Purchase
Post-purchase
The pre-purchase phase is characterised by the phase where the organisation is

trying to convince the targeted customers of the benefits of the product/brand.
The purchase phase is the time/duration when the customer is making up his
mind to actually buy the product. The post-purchase phase is one when the
customer has bought the product and is evaluating the decision. Copyright 2010, S L Gupta
2-30
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Theories of Personal Selling

There are three main theories of personal selling, which are as follows:
AIDAS Theory
Right Set of Circumstances Theory
Buying Formula Theory
Cont.
2-31
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
AIDAS Theory
this theory is based on the premise that during a sales presentation, the prospect
consciously goes through five different stages: Attention, Interest, Desire, Action
and Satisfaction.
Attention: The salesperson should attract the prospect to his presentation
before he actually goes into the details of the same.
Interest: He/she should maintain the interest of the prospects throughout the
presentation.
Desire: The next step in the sales process, as per the AIDAS theory, is to
create a strong desire in the prospects mind to purchase his product.
Action: Once the salesperson has been successful in taking his prospect
through the three stages, as discussed above, he should induce the
prospects
into actually buying the product.
Cont.
2-32
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Right Set of Circumstances Theory

The advocates of this theory opine that all the circumstances, which led to the
sales, were appropriate or right for the sales to have taken place. In other words,
if the salesperson is successful in securing the prospects attention, maintaining
his interest and inducing his desire to buy the product, sales will result. Moreover,
if the salesperson is highly skilled, he will take control of the presentation, which
would lead to sales.
Cont.
2-33
Text & Cases
(2nd Edition)
S L Gupta
Excel Books
Ch-2
Personal Selling
Buying Formula Theory

The buying formula theory is based on the analysis of the sequence of events that
goes on in the buyers mind during the sales presentation. Thus, the theory
emphasises on the factors internal to the prospect and the factors which are
external, i.e., influence of the salesperson on his prospects decision to buy his
product. The theory is based on the presumption that the salesperson will take
care of the external factors.
The sequence of events in a prospects mind can be represented as
Need
Solution
Purchase
There are all the chances that a continuous relationship will develop between the
prospect and the salesperson. As a result of sales, the satisfaction will also come
in the sequence. This sequence can be presented as
Need
Solution
Purchase
Satisfaction
2-34
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Excel Books

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Block: Basics of Sales Management

It enhances customers confidence in the seller.

It promotes long-term business relations through personal intimacy.

It provides a human touch to business transactions.

4. It helps facilitate the seller to understand each customers needs and

Personal selling followed by personal service helps build long-term relations

7. It helps keep up with the competition in the market, based on product

Sales and Distribution Management

Text & Cases

Block: Basics of Sales Management

the media and actually selling it is reduced.

It provides prospective customers with a better understanding of the product

and an interactive opportunity to liaise with the sales personnel.

Copyright 2010, S L Gupta

Sales and Distribution Management

Text & Cases

Block: Basics of Sales Management

Objectives of Personal Selling

Copyright 2010, S L Gupta

Sales and Distribution Management

Text & Cases

Block: Basics of Sales Management

Functions of Personal Selling

Convince them etc.)

To sell the product

Maintain the sales record

Achieve sales target

Sales and Distribution Management

Text & Cases

Block: Basics of Sales Management

Changing Face of Personal Selling

Sales and Distribution Management

Text & Cases

Copyright 2010, S L Gupta

Block: Basics of Sales Management

Benefits of personal selling

Early access to relevant market information

Availability to be flexible regarding processes, timing

Faster, shorter contracts

Economies of information sharing

Lower cost of selling

Knowledge of other uses or applications

Copyright 2010, S L Gupta

Sales and Distribution Management

Text & Cases

Block: Basics of Sales Management

Efficacy of Personal Selling

Sales and Distribution Management

Text & Cases

Copyright 2010, S L Gupta

Block: Basics of Sales Management

Steps in Personal Selling

Sales and Distribution Management

Text & Cases

Block: Basics of Sales Management

Centre of Influence Method

Personal Observation Method

Direct Mail or Telephone Method

Sales and Distribution Management

Block: Basics of Sales Management

Salesman concentrates only on the prospects and not the suspects.

Sales and Distribution Management

Text & Cases

Block: Basics of Sales Management