personal selling 3.ppt

7/29/2019 Personal selling 3.ppt

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Personal Selling

Personal selling is the process wherein a salesperson has aFaceto-face interaction with the customer for the purposeOf selling an offering that could be anything , a product ,Service , idea, information , a concept , a place , a person ,

Just any offering that may offer some value to the customer.

Prof. T. K. Chatterjee


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Personal Selling : APromotional Tool

Personal selling is highly effective tool of sales promotion sinceIt provides a platform for interaction and is extremely effectiveIn selling an offering that is complex in nature.

In the new millennium Personal Selling has become highlyChallenging owing to rapid changes in technological, behavioral,

And managerial aspects.

Flexibility and adaptability are the buzz word for succeedingIn sales function today.


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Concept Of Buyer Seller Dyads

Effective communication between salesperson and customer

Determines success in the sales process.

Sociologists use the term DYAD : When two people interact.Whenever a salesperson and a potential customer interact ,

They form a DYAD , and this is called a Buyer-seller Dyad.

Research by H. Lee Mathews , David T. Wilson and John F.Monoky, Jr. published in the Journal Of Marketing Research in1972 showed that the relationship between customer and theSales person is influenced by sellers principles , expectationsAnd communication skills.

The study concluded that similarity breeds cooperation.


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Buyer Seller Dyads

Franklin Evans conducted research into Buyer-Seller Dyads inIn the life insurance business and found that prospectsBought insurance when they knew more about the salesperson

And their companies.

The More alike the salesperson and the prospect the higher theProbability of sale getting closed !

Conclusion from a Sales Managers perspective : : PairingSalesperson with Prospect is critical. However, this is moreEasily achievable in industrial selling than in FMCG sales.


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Diversity Of Personal SellingSituations

Service selling vs. Developmental selling

Different sales situations require different mix of service andDevelopmental selling.

McMurry & Arnold classify sales situations on a spectrum

Ranging from the very simple to the highly complex ones.


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Diversity Of Personal Sellingsituations

McMurry and Arnold segregated sales situations into 3 mutuallyExclusive groups and then further divided them into subgroups

Totaling 9 subgroups all put together .

The detailed classification follows in next slide.


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Diversity Of Selling Situations

Group A ( Service selling) : : Simple selling situation

Inside Order Taker : Sales clerk behind a counter

Delivery Salesperson : Person delivering milk/fuel

Missionary : Only goodwill creator do not take order

Technical Salesperson : Sales Engineers consulting client


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Group B ( Developmental Selling ) : : Complex selling situation

Creative Salesperson Of Tangibles : Automobile salespersons

Creative Salesperson Of Intangibles : Insurance/education selling


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Group C ( Basically developmental selling with unusual creativity) :Highly complex selling situation

Political , Indirect or Backdoor Salesperson

Salesperson Engaged in Multiple Sales : Involves sale of big ticketItems wherein presentations are to be made to a group wherein

Only one person can say yes but all can say no. For exampleI used to demonstrate electronic typewriters to group of officialsIn SBI , a real tough challege , since anyone could say no includingThe typing clerk but rate contract could be signed by the CGM

Himself !


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Theories Of Selling

Selling : A Science Or Art ?

Experiential knowledge has given birth to certainApproximation based theories : : :

AIDAS Theory : ObtainingAttentionCreating interestStimulating desireInduceAction

Create satisfaction


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Theories Of Selling

Buying Formula Theory Of Selling : This theory dealswith the mental process of a buyer and the factors thatImpact his buying process.The mental sequence of events go as : :

Need recognition Solution Purchase Satisfaction

Application of the theory : The salesperson should helpProspect to identify/recognize his needs through a process

Called the Personal Need Analysis then offer him theSolution in form of his offerings and also identify the hotButtons and match the FABs of the offering to the identifiedNEED.


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Behavioral Equation Theory :

B = P X D X K X V

Where B = The act of buying

P = Internal response factor or force of habit

D = Level of motivation or the present drive

K = The perceived value to the buyer

V = Combined intensity of all cues

Theories Of Selling


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Right Set Of Circumstances Theory : This theoryassumes that creating the right set of circumstances willmake the sale happen.

This depends a lot on skill and experience of thesalesperson.

The creation of right set of circumstances depends

on internal and external forces. External force could besales person himself and the internal force could be buyersmood.

Theories Of Selling


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Personal Selling Process

Prospecting

Pre-Approach

Approach

Sales Presentation

Handling Objections

Closing

Follow through


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Objectives Of PersonalSelling/Sales Force

Objectives may be qualitative or quantitative : :

Qualitative objectives are strategic or long term in nature

Quantitative objectives are tactical or short term in nature


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Qualitative Objectives

Effective time management

Possession & Proliferation of Knowledge

Customer Relationship Management

Projection of right attitude and appearance

Market intelligence


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Quantitative Objectives

Increase/Retain the Market share

Number of calls/day and no of days worked

Achieving optimum profit by selling the right product mix

New customer development in a given time frame

Cost Control

Procurement of targeted volume from clients


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Selling Strategies

Two Broad Categories : : :

Gain market share ( discussed in detail in next slide)

Customer Relationship Management


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Market Share Strategies

Using own sales force

Use Of Intermediaries

Telemarketing

Independent Selling Agents

The Internet

Developing Hybrid Marketing Systems

Establishing Alliances


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Automation In Personal Selling

Benefits Of Automation : Information sharingHandling Customer alertsReporting sales force activities

Monitoring progress of leadsAccurate routing of leadsInternet based facilitiesCustomer profilingComparison of historical dataCompetitive intelligenceSales forecasting tools


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CONCLUSION

Personal selling is one of the most effective tools of selling.

The effective rapport in a buyer-seller-dyad is critical forSale to happen.Sales force have two objectives : qualitative & quantitativeThere are certain theories of personal selling.

The selling process consists of certain steps from prospectingTo follow through.

P

Prof. T. K. Chatterjee

personal selling 3.ppt

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