Introduction
to Business MGT 211
VU
LESSON
33
PERSONAL
SELLING
A
promotional tool in which a
salesperson communicates one-on-one
with potential
customers.
It
is the most expensive form
of promotion per contact.
Most companies spend twice
as much
on
personal selling as on all
other marketing activities
combined. Expenses
include
salespeople's
compensation and overhead,
usually travel, food,
lodging. The cost of a
single
sales
call has been estimated at
about $300.
Sales
force automation and new
technologies are relieving
salespeople of nonproductive
tasks,
making the time they
spend with customers more
efficient and
profitable.
Telemarketing
and Personal
Sales
Telemarketing,
selling over the telephone,
is a low-cost, efficient way to
reach many people.
However,
its intrusive nature has
led many states to enact
legislation that gives
consumers
rights
to place their names on "Do
Not Call" lists, restricts
telemarketers from calling at
certain
hours,
and prohibits telemarketers
from blocking their caller
ID technology.
Sales
Force Management
Sales
force management means
setting goals at top levels
of the organization,
setting
practical
objectives for salespeople,
organizing a sales force
that can meet those
objectives,
and
implementing and evaluation
the success of the overall
sales plan.
Personal
Selling Situations
i.
Retail
Selling--personal selling situation in
which products are sold
for
buyers'
personal or household
use.
ii.
Industrial
Selling--personal
selling situation in which
products are sold
to
businesses, either for
manufacturing other products or
for resale.
Personal
Selling Tasks
i.
Order
Processing--personal selling task in
which salespeople
receive
orders
and see to their handling
and delivery.
ii.
Creative
Selling--personal
selling task in which
salespeople try to
persuade
buyers to purchase products by
providing information
about
their
benefits.
iii.
Missionary
Selling--personal
selling task in which
salespeople
promote
their firms and products
rather than try to close
sales.
The
Personal Selling Process
i.
Prospecting
and Qualifying--Prospecting is the
process of identifying
potential
customers; qualifying identifies
those who have the
authority to
buy
and the ability to
pay.
ii.
Approaching--the
all-important first few
minutes of contact with
a
qualified
prospect.
iii.
Presenting
and Demonstrating--a full
explanation of the product,
its
features,
and its uses, linking
its benefits to the
prospect's needs.
iv.
Handling
Objections--Objections
show the prospect is
interested and
pinpoint
the parts of the
presentation with which the
buyer has a
problem.
The salesperson must work to
overcome these
objections.
128
Introduction
to Business MGT 211
VU
v.
Closing--the
most critical part of the
selling process in which
the
salesperson
asks the prospect to buy
the product.
vi.
Following
Up--a key
activity for relationship
marketing in which
sellers
supply
after-sale support that
provides convenience and
added value.
129