There are two kinds of personal selling:
- Across –the -Counter Selling: In this kind of selling Customers come to the salespeople. It involves retail store selling. It also includes the salespeople at catalogue retailers who take telephone orders. Most salespeople fall into this category.
- Field Selling: It is the selling where the salespeople go to the customers. These people sell in person at a customer’s place of business or home. Outside sales-force usually represent producers or wholesaling middlemen, selling to business users. Today, some companies have a sales-force that goes to the customers in person. Some outside selling is becoming electronic.
- To do the entire selling job
- To “service” existing accounts
- To search out and obtain new customers
- To secure and maintain customers cooperation in stocking and promoting the product line
- To keep customers informed on changes in the product line and other aspects of marketing strategy
- To assist customers in selling the product line
- To capture and retain a certain market share
- To obtain sales volume in ways that contributes to profitability
- To obtain some number of new accounts of given types
- To keep personal -selling expenses within set limits
- To secure targeted percentages of certain accounts’ business
Need of Today: The need of personal selling has increased in present age due to the flood of products in the market and keen competition.
Basis of Economic Fortunes: If the personal selling effort in an organization falters/falls, then the economic fortunes of that organization will likely decline. It largely determines the firm’s financial future.
To Carry Promotional Load: Personal selling is a major ingredient of promotion mix of a company. It has a big role in implementing promotional programme, Personal selling carries the bulk of the promotional load when:
- The market is concentrated either geographically, or in a few industries, or a few large customers.
- The product has a high unit value, is quite technical in nature, or requires a demonstration.
- The product must be fitted to an individual customer’s need; as in the case of securities or insurance.
- The sale involves a trade – in.
- The product is in the introductory stage of its life cycle.
- The organization does not have enough money for an adequate advertising campaign.
Minimum Wasted Effort: Personal selling is focused on prospective customers. Thus, it minimizes wasted effort. In contract, much of the cost of advertising is spent on sending messages to people who in no way are real prospects.
Increase in Profitable Sales: The goal of marketing activities is to increase profitable sales by satisfying the want of consumers over the long run. Personal selling is by far the major promotional method used to realize this goal. The number of people employed in personal selling is a big one than advertising.
Largest Single Operating Expense: In many companies, personal selling is the largest single operating expense. It often equals 8 to 15% of sales, whereas advertising costs average 1 to 3 % of sales.
Mirror of the Market: Personal selling is a mirror of market. It supplies market information back to the firm. It keeps eye on market nerve, fashion trends and consumer profile. It regularly assesses the competitive forces of the market.
Broader Roles: Salesmen persuade prospective customers, expedite orders, coordinate deliveries, set-up displays, service their accounts, gather market information, and have solve customers’ problems. Thus, today’s salesman performs a wide variety of sales roles.
Cost-Effective Tool: Personal selling is the most cost-effective tool at later stages of the buying process. It builds up buyers’ preference, conviction, and action. Personal selling is an alive and interactive relationship, it considers the other’s needs and it develops all kinds of relationship, even a deep personal friendship. It makes the buyer feel obliged, attended and responded.
Exerting Influence: Salesmen can accomplish difficult things through advertising, sales promotion publicity and public relations. They can tailor their messages to the characteristics and desires of particular prospects; modify ongoing presentations in accordance with the feedback from prospects: they are in a position to ask for an order at a strategic time and if turned down, they can communicate further, in an effort to recoup and obtain an order.
Convincing and Creating Customers: Salespersons locate and identify the customers who are interested in the company products. They transform prospects into buyers by understanding their needs. Personal selling provides “repeat purchases ‘ to the company.
Creation of International Markets: Personal selling has created not only national but international markets. This has been the basis of global trade and culture.