Chapter No.1 - Introduction To Personal Selling

Chapter No.
1
Introduction to Personal Selling
Every Individual is a Salesman /

Saleswomen
Chapter No. 1
Introduction to Sales, Personal Selling, Sales
Management.
• A sale is the exchange of goods or a service
Sale for money as the price of it.
• Face-to-face selling in which a seller attempts

Personal to persuade a buyer to make a purchase.
Selling
• “Sales Management is the Planning,

Direction & Control of personal selling,
Sales including Recruiting, Selecting,
Management Equipping, Assigning, Routing,
Supervising, Paying & Motivating as these
tasks, apply to the personal sales force.”
Chapter No. 1
Evolution of Selling concept
Production
Concept
Product Concept
Selling Concept
Marketing
Concept
Chapter No. 1
PRODUCTION CONCEPT –
Assumes that consumers mostly interested in product availability at low
prices.
Implicit Marketing objectives are cheap, efficient production and intensive
distribution.
Ford-Model T ,1908,$ 850 ,Individual Assembly / 1913 $ 360,Assembly line
Extensive highways / Emergence of Sub urbs with adjacent shopping malls
Production Orientation
Concentrate on achieving high production

efficiency, low cost & mass distribution
Consumers prefers inexpensive items in

Developing countries
Used also in expanding Market
Over Populated Counties-
Inexpensive Toys, electronics

Chapter No. 1
PRODUCT CONCEPT –
Assumes that consumers buy products that offer highest quality, most features and
best performance.
This leads to “Marketing Myopia” - Concentrating on product rather than on

consumer needs. Constantly upgrading with feature without finding out whether the
customer really wants it.
Henry ford enjoyed monopoly until the entry of General Motors newly appointed
President and Chairman Mr. Alfred P. Sloan brought the product strategy as “a car
for every purse and purpose” in 1924. He realized that all customers are not alike
and firms must identify and cater to different customer groups.
Although Ford was Industry pioneered, GM took over a large portion of FORDS
Market share and became Americas largest company.
As more and more companies studied customers’ needs and offered product that
satisfied them well, companies started offering more and more versions, models and
features. This gave a birth to Product Concept
Product Orientation
Consumers Favors quality, performance HMT Watches

or innovative features
Managers focus on producing superior Products
Little or No Customer Input
Rarely Examine Competitor's Product
Management commit Better-mousetrap
Leads to marketing Myopia

Chapter No. 1
SELLING CONCEPT – from 1930s to mid 1950s
Primary focus is selling the product it unilaterally decided to

produce.
Assumption is that consumers are unlikely to buy unless they are

aggressively persuaded to do so – mostly through “hard sell”
approach.
Life Insurance policies are quoted today for the selling concept.
Selling Orientation
Consumers & businesses if left alone,

will not buy enough
Undertake aggressive Selling &

Promotion
Consumers shows buying inertia until

lured
Many use it at the time of over capacity

or Competition
CONSUMER DURABLES
Chapter No. 1
MARKETING CONCEPT –
No more pressure on consumers to buy what the firm had already
produced.
Marketing oriented firms found that it was lot easier to produce only
products they first confirmed through research, that consumers wanted.
Consumers needs and wants became the firm’s primary focus.

Marketing Concept
Marketing Orientation
• Emerged in mid 1950
• Customer centered
• Instead of hunting marketing is now

Gardening
• Not right customer for you product but

right product for your customer
• More effective than competitors in

creating, Delivering, and
communicating superior customer
Value
• Putting People First
• Fulfilling Buyers Needs

Chapter No. 1
Marketing concept continues to thrive even after 65 years..
a modification or extension of the marketing concept called

Societal marketing concept.
It suggests that consumer may respond to their immediate needs

and wants, while over looking what is in effect in their own long
run best interest, best interest of their family, society,
Companies to take it upon themselves to remind consumers as to

what is in consumers' long run interest, so as to be a good corporate
citizen
Chapter No. 1
Selling and Marketing
Marketing is a core concept selling is just one of the major part of

marketing.
Communication Mix
Advertising
Sales Promotion
Products
Distribution Target
Company Services Direct Marketing Channel Customer
Price
Personal Selling
Events & Experiences
Public Relation
Communication Mix Model

Chapter No. 1
Relationship between Sales Management, Personal Selling and
Salesmanship
 Sales Management is the act of managing the activities of sales force;

whereas,
 Personal Selling establishes a one to one personal contact with the

customers to sell the product and deliver satisfaction.
 Salesmanship is the act of applying the techniques of selling to sell

the products or services and
Chapter No. 1
Transformation in selling
Many times people consider selling and marketing synonymous terms.
However, selling is actually only one of many marketing components.
A traditional definition of personal selling refers to the personal

communication of information to persuade a prospective customer to
buy good and services.
Today, Personal selling refers to the personal communication of

information to unselfishly persuade a prospective customer to buy good
and services.
This is known as s Golden Rule of personal selling

“Golden rule of personal selling refers to the sales philosophy of
unselfishly treating others as you would like to be treated.
Chapter No. 1
Traditional Professional Sale Golden Rule

Salespeople people Salespeople
• Do what they think • Do what they are • Do the right thing
they can get away legally required to • Find others’ interest
• Guided by self do. most important
interest • Take care of • Attribute result to
• Attribute results to customers. others.
personal efforts • Attribute results to • Feel that an
• Seek recognition for personal efforts, individual’s
efforts; sharing not employer, customers, performance is due
important. Pride and economy. to others, thus not
ego driven • Enjoy recognition, motivated by pride
• Money is life’s main may share if it suits and ego.
motivator. their purpose. Pride • Service most
and ego driven important; money is
• Money is important, to be shared
but not to the
customer’s loss.
Chapter No. 1
Personal Selling and Salesmanship
Personal selling refers to the presentation of goods before the potential
buyers and persuading them to purchase it. It involves face-to-face
interaction and physical verification of the goods to be purchased.
The person who sells goods to you in this way is called a ‘salesman’ and
the technique of selling is known as ‘personal selling’ or
‘salesmanship’.
Chapter No. 1
The Four Sales Channels of Personal Selling
• Over-the-counter selling Personal selling conducted

in retail and some wholesale locations in which customers
come to the seller’s place of business.
• Field selling Sales presentations made at prospective

customers’ locations on a face-to-face basis.
• Telemarketing Promotional presentation involving the use of the

telephone on an outbound basis by salespeople or on an inbound
basis by customers who initiate calls to obtain information and place
orders.
• Inside selling : Selling by phone, mail, and electronic commerce.

• Firms generally blend sales channels in their sales organization.
Chapter No. 1
Why Learn about Personal Selling?
1. Time to knock at the door gone
2. The principles of selling are useful to everyone, not just people with
the title of salesperson.
3. Sales means more to give potential solutions to the customers rather
than beat the drum of what the company sells
4. Internet and other latest technologies involved in selling and all the
possible resources of the company (support people etc)
5. Selling is a team activity
6. Rules of Selling are to be followed by all
7. Very much similar to convincing as we do in our daily lives (with
the parents, teachers, employers and friends)
8. The term Selling was not taken to be a good one, while now every
one tries to engage directly/indirectly business development
personnel to flourish.
9. Developing mutually beneficial, long-term relationships is vital to
all of us.
10. People in business use selling principles all the time.
Chapter No. 1
Personal Selling : - Objectives
1. Building Product Awareness
2. Creating Interest
3. Providing Information
4. Stimulating Demand
5. Reinforcing the Brand

Chapter No. 1
Personal Selling : -Objectives
1. Building Product Awareness – A common task of salespeople,
especially when selling in business markets, is to educate customers
on new product offerings. In fact, salespeople serve a major role at
industry trades shows they discuss products with show attendees.
But building awareness using personal selling is also important in
consumer markets. As we will discuss, the advent of controlled
word-of-mouth marketing is leading to personal selling becoming a
useful mechanism for introducing consumers to new products.
2. Creating Interest – The fact that personal selling involves person-to-

person communication makes it a natural method for getting
customers to experience a product for the first time. In fact, creating
interest goes hand-in-hand with building product awareness as sales
professionals can often accomplish both objectives during the first
encounter with a potential customer.
Chapter No. 1
Personal Selling : -Objectives
3. Providing Information – When salespeople engage customers a
large part of the conversation focuses on product information.
Marketing organizations provide their sales staff with large amounts
of sales support including brochures, research reports, computer
programs and many other forms of informational material.
4. Stimulating Demand – By far, the most important objective of
personal selling is to convince customers to make a purchase. In The
Selling Process we will see how salespeople accomplish this when
we offer detailed coverage of the selling process used to gain
customer orders.
5. Reinforcing the Brand – Most personal selling is intended to build
long-term relationships with customers. A strong relationship can
only be built over time and requires regular communication with a
customer. Meeting with customers on a regular basis allows
salespeople to repeatedly discuss their company’s products and by
doing so helps strengthen customers’ knowledge of what the
company has to offer.
Chapter No. 1
Personal Selling : -Importance
1. It is a flexible tool
2. It involves minimum wasted effort
3. It results in actual sale
4. It provides feedback
5. It complements advertising
6. It educates customers
7. It assists the society
Chapter No. 1
1. It is a flexible tool: Personal selling involves individual and
personal communication as compared to the mass and impersonal
communication of advertising and sales promotion. Therefore,
personal selling is most flexible in operation. A salesman can tailor
his sales presentation to fit the needs, motives and attitudes of
individual customers can observe the customer's reaction to a
particular sales approach and thus make necessary adjustments
right on the spot. Face-to-face contact with customers is the most
effective means of communication and persuasion.
2. It involves minimum wasted effort: In personal selling, a salesman

can select the target market and concentrate on the prospective
customers. He need not communicate with the people who are not
the real prospects. Therefore, personal selling involves minimum
wastage of effort.
Chapter No. 1
3. It results in actual sale : Advertising and sales promotion
techniques can only attract attention and arouse desire. By
themselves they cannot create actual sale. Personal selling in most
cases leads to actual sale. A salesman can find prospective buyers,
demonstrate the product, explain its operation, and convince
customers to buy it, install it at the customer's place and provide
after-sale service. No other method of promotion can perform all
these functions. Therefore, personal selling does the entire job of
selling. Personal Selling is a complete promotional technique of
keeping customers satisfied.
4. It provides feedback: Personal selling involves two-way flow of

communication between the buyer and the seller. It is a useful
method of understanding the needs and behavior customers. It
provides knowledge about the tastes, habits and attitudes of the
prospective customers
Chapter No. 1
5. It complements advertising : In most situations, there is a need for
explaining the quality uses and price of the product. Salesmen can
persuade the prospective customers to buy a product. Advertising
attracts customers but their doubts and questions about the product
are answered by salesmen. In this way personal selling supports
advertising. Salesmen educational the consumers about new
products and about new uses of existing products.
6. It educates customers : Salesmanship is not simply a tool of

convincing people to buy certain products. It assists customers in
satisfying their wants. A salesman provides: information, education
and guidance to customers. He handles their complaints and assists
them in getting value for their money. He can clear their doubts on
the spot.
Chapter No. 1
7. It assists the society: Salesmen help to increase aggregate sales and
production in the country thereby increasing employment
opportunities. They help to maintain equilibrium between demand
and supply.
Chapter No. 1
When to Use Personal Selling

Product has a high value
Product is custom made
Product is technically complex
There are few customers
Customers are concentrated
Selling image, not product

Chapter No. 1
Traditional and Modern Selling Approaches : Introduction
• Today’s time is more advanced in terms of selling products than it
used to be earlier. The customers today have all the information at
their fingertips.
• Bluffing or making false claims would not take the company’s sales
anywhere, so naturally things have changed for the good. Customers
have got prudent and they are in a position to distinguish well
between a marketing ploy and a real genuine product/service.
• Most of the customers are computer and internet-savvy, which helps

them to be abreast with latest products/services which they can
easily compare with other products/services in the market.
• As the customers have changed, so have the sales techniques. To sell

today means to establish and make evident the needs of the
customers, so that a possible solution is matched up for the customer
demands..
Chapter No. 1
Traditional Selling Approaches
• Canned Sales Presentation it is prepared structured
1. Canned sales script memorized by Salesman to present the
product, It is widely used by telemarketers for different
Sales products as it's easy way to describe features and
Presentation benefits of products, it is also used for door to door
selling.
2. Stimulus- • Stimulus-Response Theory it is that potential

customer will buy the product only if hear certain
Response statements which should be presented in correct
Theory manner
• Selling Formula A sales approach used to lead the

potential customer through different stages of buying
process in persuasive manners, Its formula AIDR
3. Selling (Attention, Interest, Desire, Resolve) was published in
1902 which was revised by AIDA (Attention, Interest,
Formula Desire, Action), if prospect is correctly taken through
these 4 different stages it will surely be a successful
sales
Chapter No. 1
Modern Selling Approaches
 The salespersons, as per this approach
1. Partnering collaborate with the buyer and buying
organization and hence treat the buyer
as a viable partner.
2. Team Selling
 This collaboration facilitates the buyer
to come up with the best solution.
Many organizations are presenting
3. Value Added lifetime agreements to their supplier-
partners.
Selling
 They tend to understand the need of
the customer and try to solve the
4. Problem Solving problem in the best possible way. They
support their customers and share the
Approach/ values with them. Basically, it is a kind
of value sharing among the suppliers
Consultative and the buyers.
Selling
Chapter No. 1
 Nowadays the customers also are
1. Partnering looking for long-term relationships
with sellers who may turn out to be
useful resources over the long term.
2. Team Selling  So basically, modern sales approach
advocates the benefit of partnering
among the buyer and the seller, thus
there is focus on two-way sharing
3. Value Added which facilitates partnerships.
 A salesperson, in order to position
Selling himself as a trusted and caring partner,
need to see things through customer’s
eyes rather than being just another
4. Problem Solving seller.
 For example: a life insurance agent, in order
Approach/ to sell his policy, becomes the partner of Mr.
Y who is the prospect. He understands the
Consultative needs of Mr. Y, and thereby creates a link
between the policy and the benefits.
Selling
Chapter No. 1
1. Partnering
Chapter No. 1
 When the large buyers or buying
1. Partnering companies have some complex needs
that cannot be satisfied by one individual
salesperson, the seller goes for team
selling.
2. Team Selling  Under a selling approach, a team of
salesperson is constituted with
knowledge of various functional areas.
3. Value Added Collectively, they address the complex
needs of the buyers by working in an
Selling integrated and co-ordinated manner.
 The focus of the salesperson is on the
sales effort, while the support functions
are taken care of by other team members.
4. Problem Solving This approach benefits the companies as
the team members try to achieve higher
Approach/ level of satisfaction. By using this
approach, the salesperson can position
Consultative their brand name in a better way.
Selling
Chapter No. 1
 For example, while presenting the
1. Partnering product, two technicians and two
salespeople make a team and give the
presentation, where technicians explain
only the technical part of the product
2. Team Selling and salespeople take care of other
aspects, i.e., benefits and uses of the
product.
3. Value Added  However, this approach is not always
Selling considered as the best select in all
situations as it can be expensive to apply
and should be used when there is a
chance for high sales and profit. Also,
4. Problem Solving non-sales people may also create
confusion in the mind of the buyers. If
Approach/ the various departments have multiple
agendas then the team cannot work in a
Consultative co-ordinated manner
Selling
Chapter No. 1
2. Team Selling
Chapter No. 1
 A salesperson is required to meet their
1. Partnering customer’s expectation. He provides
value added services to the buyers
while selling the products. It simply
2. Team Selling refers to giving something extra to the
buyers as they expect or perceive.
 A seller may add the value to the
product by:
3. Value Added  Making product handling and storage
convenient.
Selling  Giving a related product free. For
example, offering toothbrush free with
the toothpaste.
 Making package usable. For example,
4. Problem Solving selling sugar in a container.
 Extending after sale services.
Approach/  For example: offering a laptop cover with the
purchase of a laptop to the customer. The cost of
Consultative value edition is mostly borne by the company and
rarely adds up to the basic price of the product,
Selling and thereby does not pass on to the customer
Chapter No. 1
Example
1. Partnering  Samsung offered an Introductory
Grand Package worth Rs. 10,990 Free
on purchase of Samsung Galaxy
2. Team Selling Grand at Rs. 21,490. The package
included:
 Samsung Genuine Flip Cover, Movies

3. Value Added & Music on My Services & 500 GB
Dropbox Space.
Selling  Get 15% Cash back on purchase via
Standard Chartered or ICICI Bank
Credit Cards.
 Cash back: Rs. 3,223 & Effective price:
4. Problem Solving Rs. 18,267.
 12 EMIs @ 0%: Rs. 1,790.
Approach/  Zero Down Payment, 0% Interest &
Zero Processing Fee
Consultative
Selling
Chapter No. 1
3. Value Added Selling
Chapter No. 1
 As per this approach, the salesperson
1. Partnering acts as consultant or problem solver.
Their job is to match their product or
services to the specific needs of
2. Team Selling customers.
 Generally, every customer has a
problem in hand and he seeks for
solution.
3. Value Added  Salesperson needs to solve these
problems, which can be done only if
Selling the salesperson clearly understands
the problem.
 In this a win-win scenario is
4. Problem Solving highlighted for both the buyer and the
seller. Also, this approach is applied
Approach/ where the main focus is on the
problems faced by the prospects and
Consultative not on the features of the products that
Selling are offered by the sellers.
Chapter No. 1
 A sales person, who possesses all the
1. Partnering information, plays a role of a problem
solver or consultant.
 He first understands the needs or
2. Team Selling problems of the prospect and then
suggests a product or offers a solution
by referring to a product that meets all
the requirements of the both the buyer
3. Value Added and the seller.
 Example
Selling  A prospect is having a problem while
washing clothes with hands; the
salesperson suggests her to use the
washing machine.
4. Problem Solving  For another prospect there is time
Approach/ shortage problem while running a
semi-automatic machine. The
salesperson solves his problem by
Consultative telling him to buy a fully-automatic
Selling machine
Chapter No. 1
4. Problem Solving Approach/ Consultative Selling
Chapter No. 1
Ethics in selling : Introduction
 Ethics are the basic principles that govern behavior.
 Ethics are NOT laws because they are not enforced by governmental
statutes.
 Ethics go beyond the law. A high level of ethics will compel you to
behave in a truthful way.
 Ethics are highly valued because Salespeople are the face of the
company. Customers evaluate the company’s ethical standards.
Salespeople should acknowledge that trust is the foundation of
customer relationships.
Chapter No. 1
What happens when there is a low level of selling ethics?
 The business can experience legal issues.
 Customers may become distrustful of the company and stop
purchasing its products.
 The company’s profits can decrease.
NOTE: The unethical behavior of just one salesperson can undermine

the whole company!
You need to know WHERE the line is drawn before you determine how
close to the line you want to position yourself..
Chapter No. 1
Some Unethical Practices : Towards Customers
 Misrepresenting the truth (bold-faced lie)
 Saying something unfair or untrue about another business or
product.
 Participating in bribery.
 Neglecting to provide accurate information to the customers.
 Unfairly competing within the marketplace such as: making price
deals, requiring exclusive dealership, tying-in sales (making the
purchase of another product mandatory), requiring reciprocity (doing
business only with those who buy from you.)
 Make exaggerated claims to counter exaggerated claims of a
competitor
Chapter No. 1
Some Unethical Practices : Towards Customers
 Offer a customer an unauthorized ‘gift’ in return for their business
 Conceal information from a customer in order to get their business
and to meet your sales’ goals
 Put non business-related expenses on your expense account
 Divulging confidential information about one customer to another in
order to facilitate a sale
Chapter No. 1
Some Unethical Practices : Towards Competitor
 Some salespeople are tempted to “do what it takes” to hurt their
competitors.
 Tampering with or hiding competitor’s products.
 Belittling (Depreciating) competitor’s products or questioning reliability.
Chapter No. 1
Some Unethical Practices : Towards Employee
 Questionable activities that employers might participate in are as
follows:
 Putting unreasonable pressure on salespeople like setting unrealistic
sales quotas, etc.
 Neglecting to pay commission due when a territory is split and
distributed among other sales personnel.
 Being a poor role model for ethical behavior.
 Looking the other way when staff members behave unethically.
Chapter No. 1
Common Reasons (Excuses) for Unethical Behavior
1. ‘Everybody’ else is doing it.
2. It’s not that big of a deal.
3. It’s necessary (the ends justify the means).
4. It’s not going to hurt anyone.
5. It’s for the benefit of the company or somebody else.
6. I deserve it.
7. It’s legal.
8. Nobody will know.
Chapter No. 1
Qualities of Winning Sales Professionals
Physical
 Good physical appearance
 Well built & free from physical defects
 Good glooming, appropriate dress, clean & tidy appearance
 Cheerful smile
Social
 Good social behaviour
 Manners & etiquettes
 Practice of greeting thanking the customer
 Polite expression & sincere desire
Chapter No. 1
Qualities of Winning Sales Professionals
Mental
 Sharp memory & observation
 Recognise consumer by their character, buying motive,
 Imagination.
 Must handle difficult situation individually
Moral or Character
 Honesty & integrity
 Customer must rely on salesmen
 Hair & honest dealing
 Loyal to company as well as consumer
Thank you

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Chapter No.

Every Individual is a Salesman /

• Face-to-face selling in which a seller attempts

• “Sales Management is the Planning,

Concentrate on achieving high production

Consumers prefers inexpensive items in

Used also in expanding Market

Over Populated Counties-

Inexpensive Toys, electronics

This leads to “Marketing Myopia” - Concentrating on product rather than on

Consumers Favors quality, performance HMT Watches

Managers focus on producing superior Products

Little or No Customer Input

Rarely Examine Competitor's Product

Management commit Better-mousetrap

Leads to marketing Myopia

SELLING CONCEPT – from 1930s to mid 1950s

Primary focus is selling the product it unilaterally decided to

Assumption is that consumers are unlikely to buy unless they are

Consumers & businesses if left alone,

Undertake aggressive Selling &

Consumers shows buying inertia until

Many use it at the time of over capacity

Consumers needs and wants became the firm’s primary focus.

• Emerged in mid 1950

• Instead of hunting marketing is now

• Not right customer for you product but

• More effective than competitors in

• Putting People First

• Fulfilling Buyers Needs

Marketing concept continues to thrive even after 65 years..

a modification or extension of the marketing concept called

It suggests that consumer may respond to their immediate needs

Companies to take it upon themselves to remind consumers as to

Marketing is a core concept selling is just one of the major part of

Events & Experiences

Communication Mix Model

 Sales Management is the act of managing the activities of sales force;

 Personal Selling establishes a one to one personal contact with the

 Salesmanship is the act of applying the techniques of selling to sell

A traditional definition of personal selling refers to the personal

Today, Personal selling refers to the personal communication of

This is known as s Golden Rule of personal selling

Traditional Professional Sale Golden Rule

• Over-the-counter selling Personal selling conducted

• Field selling Sales presentations made at prospective

• Telemarketing Promotional presentation involving the use of the

• Inside selling : Selling by phone, mail, and electronic commerce.

1. Building Product Awareness

5. Reinforcing the Brand

2. Creating Interest – The fact that personal selling involves person-to-

2. It involves minimum wasted effort: In personal selling, a salesman

4. It provides feedback: Personal selling involves two-way flow of

6. It educates customers : Salesmanship is not simply a tool of

When to Use Personal Selling

Product is custom made

Product is technically complex

There are few customers

Customers are concentrated

Selling image, not product

• Most of the customers are computer and internet-savvy, which helps

• As the customers have changed, so have the sales techniques. To sell