Personal Selling

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Advantages of Personal Selling

• Provides a detailed explanation

or demonstration of product
• Message can be varied to fit the
needs of each prospective customer
• Can be directed to specific qualified prospects
• Costs can be controlled by adjusting
sales force size
• Most effective in obtaining sales and
gaining satisfied customers

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 Personal Selling
Personal Selling Advertising & Sales Promotion
is more important if... are more important if...
Product has a high value Product has a low value

Product is custom made Product is standardized

Product is Product is
technically complex simple to understand

There are few customers There are many customers

Customers are Customers are

concentrated geographically dispersed
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Relationship Selling

A sales practice that involves

building, maintaining, and
enhancing interactions with
customers in order to develop
long-term satisfaction through
mutually beneficial
partnerships.

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 Relationship Selling

Focus:
Long-Term
Building Value-Added
Mutual Benefits to
Buyer
Trust

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 Relationship Selling
vs. Traditional Selling
Traditional
Relationship Selling
Personal Selling
Sell products Sell advice, assistance, counsel
Focus on closing sales Focus on customer’s bottom line
Limited sales planning Sales planning is top priority
Discuss product Build problem-solving environment
Assess “Product-specific” Conduct discovery in scope of
needs operations
“Lone wolf” approach Team approach
Profit impact and strategic
Pricing/product focus
benefit focus
Short-term sales follow-up Long-term sales follow-up 6
Sales Process

The set of steps a

salesperson goes through in
a particular organization to
sell a particular
product or service.

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 Steps in Personal Selling
1. Prospecting
2. Preapproach
3. Approach
4. Presentation and Demonstration
5. Handling Objections & Queries
6. Closing
7. Follow-up

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 Steps in the Selling Process
Generate Leads

Qualify Leads

Probe Customer Needs

Develop Solutions

Basic Steps Handle Objections

in the
Personal Selling Close the Sale
Process
Follow Up
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 Generating Leads
Direct Mail/
Advertising Publicity Cold Calling
Telemarketing

Web Sites/ Trade Shows/

Referrals Networking
Internet Conventions

Company
Records

Sources of
Sales Leads

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Cold Calling

A form of lead generation in

which the salesperson
approaches potential buyers
without any prior knowledge
of the prospects’ needs or
financial status.

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 Qualifying Leads

Characteristics of
Qualified Leads

Receptivity &
Recognized Need
Accessibility

Buying Power

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 Probing Needs
Product or service

Salesperson Customers and their needs

must know
everything
about... Competition

Industry

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Needs Assessment

A determination of the
customer’s specific needs
and wants and the range
of options a customer has for
satisfying them.

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 Developing and
Proposing Solutions

Sales Proposal

Sales Presentation

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 Handling Objections

View objections as
requests for information
Handling
Anticipate
Objections specific objections

Use the objection

to close the sale

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 Closing the Sale

Look for
customer signals
Closing
the Sale Keep an open mind

Negotiate

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 Following Up

Ensure delivery
schedules are met
Responsibilities
in Goods or service perform
Following Up as promised

Employees are trained

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Prerequisites of effective selling
Know your company
Know your Product
Know your competitors and their products
Know your Customers
Know the Process of Selling
Know yourself

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Qualities of a Good Salesman
• Physical Qualities
• Social Qualities
• Mental Qualities
• Moral Qualities

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 Sales Management
Responsibilities
Define sales goals and
sales process

Determine sales
force structure
Tasks of
Sales Management Recruit and train
sales force

Compensate and motivate

sales force

Evaluate sales force

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 Defining Sales Goals
Clear

Precise
Sales Goals
Should Be...
Measurable

Time Specific

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Quota

A statement of the individual

salesperson’s sales
objectives, usually based on
sales volume alone but
sometimes including key
accounts.

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 Sales Force Structure
Geographic Region

Product Line
Common
Sales
Marketing Function
Organization
Structures
Market or Industry

Individual client
or account
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 Training the Sales Force
Company policies
and practice

Selling techniques
Training
includes... Product knowledge

Industry and customer

characteristics

Nonselling duties
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 Compensation Plans

Basic
Compensation
Methods

Commission Salary

Combination
Plans

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 Compensation Plans

Straight The salesperson is paid some

Commission percentage when a sale is made.

Straight The salesperson receives a salary

Salary regardless of sales productivity.

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 Effective Sales Leaders
Effective Sales Leaders...

Are assertive
Possess ego drive
Possess ego strength
Take risks
Are innovative
Have a sense of urgency
Are empathetic
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 Evaluating the Sales Force
Sales Volume

Contribution to Profit

Calls per Order

Sales or Profits per Call

Performance
Measures
Call Percentage Achieving Goals

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 The Impact of Technology
on Personal Selling
Laptop computer link

Mobile telephones

Pagers

Personal data assistants

Sales Force
Automation E-Mail

Internet
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