Personal selling is an important element of promotion mix and an effective promotional tool. They personally try to reach the customers at their place and convince them into buying the product. He/she must have sound character and should not ever involve in any activity which may harm the interest of the company or any individual. New products can be introduced in the market through personal selling. It is the only promotional tool which results in actual sale there and then. Personal selling, being flexible in nature, involves individual and personal communication where a salesman can tailor his sales presentations to fit needs, motives and attitudes of prospective customers. An effective sales person educates and guides the consumers about the product and its specifications. (e) Contribution to profits – The personal selling process helps in increasing the volume of sales by making regular and permanent customers, which ultimately lead to increase in profits to the procedures. Personal selling is based on personal interaction between the salesperson and the customer. The product must fit to the needs of buyers; 5. The product is in the introductory stage of its life cycle; 5. He will explain to them using literature the composition of the product, how it is operated and so on. A salesman introduces the goods to the customers, arouses their interest and persuades them to purchase the goods and finalizes the deal. He removes every doubt from the minds of the purchasers and convinces them about the quality of the goods and credibility of the producer. Personal selling is very effective to introduce a new product as the salesperson can explain the product features and price, give demonstration and clarify the doubts of the customers. This cycle leads to economic progress of the society. Sales representatives always carry the products with them and offer a free demonstration of the product to the customer. which helps them in taking their purchase decisions in a better way. Advertising acquaints potential customers with a product and thereby makes personal selling easier. Importance of Selling Skills Selling skills are critical in organizations that rely on ongoing buying from customers or clients. Its population is heterogeneous in nature. Content Guidelines 2. Mobility of Sales People 5. The Importance of Relationship Selling. It increases customers’ faith in company and its offers. It removes the drawbacks of advertising and sales promotion. It is seen that in some cases, despite knowing some shortcomings of a product, customer tend to purchase it simply … In addition, professionals who use social selling are 79 percent more likely to attain their quota than sales reps who focus on old-school promotional techniques or selling methods. The product requires demonstration; ADVERTISEMENTS: 4. Like Promotional mix short term Personal selling objectives may differ from market to market and from product to product. Nature and Scope 5. Thus they are able to make informed decisions. In fact, salespeople serve a major role at industry trades shows, where they discuss products with show attendees. This minimises the wastage of efforts and cost. Salesman provides information about the various features and advantages of his … TOS 7. This helps to position the product easily before the customers. The importance of the personal selling is three fold i.e., the benefits which it provides to business; customer and society. The product has a high unit value, is quite technical in nature, or requires a demonstration; 3. It requires lots of salespersons to pursue its objectives. Consumer Attention 5. A salesperson must be sweet natured, must follow code of conduct and show exemplary behaviour. Personal selling is one of the important functions needed for survival and growth of the business concern. He plays a very significant role in selling the products. The importance of the personal selling is three fold i.e., the benefits which it provides to business; customer and society. The number of people who earn a living from sales is huge compared, for instance, with the nearly 300,000 workers employed in the traditional advertising sector. Personal selling can usually be focused or pinpointed on prospective customers, thus, minimizing wasted effort; 7. Personal selling helps to draw the attention of the customers quickly to the product design, features, quality, uses, price, etc. (v) A salesman finalises the deal. Personal selling is a powerful tool in the hand of businessman for creating demand for their products and increasing sales. Personal selling is one of the most important demand-stimuling forces in the promotional mix. This role of personal selling becomes more important for the illiterate and rural customers, who do not have many other means of getting product information. (iii) Salesman induces the customers and new customers to purchase goods. Sales jobs range from salesclerks at clothing stores to engineers with MBAs who design large, complex systems for manufacturers. (b) Price stabilization – Personal selling play an important role in maintaining equilibrium between the demand and supply of products and thus, reduce the fluctuations in price. As a matter of fact, volume of sales and goodwill largely depend upon the character of salesmanship offered. Personal selling is essential to sell anything that requires persuasion of the … Customer is satisfied with products and services; salesman can achieve his targets; and company can improve its market share and profits. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to “close the sale” Importance of personal Selling Personal selling is an important element of promotion mix and an effective promotional tool. To communicate effectively, you need to take into account the needs of multiple stakeholders. (v) Lasting Relationship – Personal interaction helps salesperson to develop lasting relationship with customers. A salesman is a guide and a friend of the consumer and a supporter and an aid to the producer. Objectives 4. However, the role of personal selling becomes more important for the illiterate and rural customers, who do not have many other means of getting product information. Although personal selling is useful for almost every product or service, it is particularly important when: 1. India is a diversified country. Pleasing personality of a salesperson creates a favourable impression on the customers. Privacy Policy3. Effective personal selling addresses the buyer’s needs and preferences without making him or her feel pressured. Customers and society are benefited by personal selling in the following ways: Salespersons help the customers to discover their needs and wants. The purchaser thinks himself as honorable person in whom the producer is interested. This will improve the competitive strength of the organisation. In today’s marketing practices, personal selling has much important role to play. Despite the above advantages, personal selling suffers from several disadvantages. Sales representatives often show a demo / test run of the product to clear such doubts of the consumer. This helps the company increase the sales volume, customer base and earn more profits. Role and Importance of Personal Selling: Personal selling consists of individual and personal communication with the customers in contrast to the mass and impersonal communication through advertising. When you are selling high-value products like cars, it is important that the customer trusts not only the product but the seller also. Salesman can provide a detail demonstration and can supervise when customer is making the actual use of products. 6. This is the first importance of personal sellingand it means that the ultimate objective of personal selling activity is that all the sales activities right from prospecting, pre-approach, approach, presentation and demonstration, handling objections, closing, follow-up are attained in a synchronous manner and ultimate objective of revenue generation is possible. This results in increased production, more job opportunities, higher incomes and improved standard of living leading to economic growth. ii. Link with Customers. Personal selling offers not just a physical product, but also ideas, recommendations, technical assistance, experience, confidence and friendship to customers. PERSONAL SELLING ( MEANING ) Personal selling is selling technique involved between person to person and between the prospective buyer and seller. This role of personal selling becomes more important for the illiterate and rural customers, who do not have many other means of getting product information. This is due to the fact that the insurance business is substantially influenced by the instrumentality of insurance agents and the rural career agents. The importance of personal selling can be described as under: 1. Each stage of the process should be undertaken by the salesperson with utmost care. Also the Indian population majorly resides in rural areas where largely people do not have access to electricity, TV, radio, internet and newspapers, hence personal selling is the best method available to market the products. (iv) Mobility of Sales People – Salespersons move from one state to another for business purposes but it indirectly promotes travel and tourism in the country. He will explain to them using literature the composition of the product, how it is operated and so on. The sales person can easily assess the level of customer attention and interest and can read the mind of customers. (viii) Link with Customers – Salespersons play various roles viz. The salesmen aim to inform and encourage the customer to buy, or at least try the product. Personal Rapport 7. He may also give a demonstration of use and also explains to them the precautions they should take while using the products. ii. Whenever a person expresses a desire to know about the product, the representative tries to convey the benefits of the product and impress the prospect. Personal selling also serves the producer in the following ways: (i) He sells goods to the wholesalers and retailers in the channel of distribution and also to the consumer at company’s terms. Personal Selling offers the following compensation. It is due to this cycle that the economic activities in the society is fostered, leading to more jobs, more income and more products and services to satisfy particular needs and wants. He creates more and more regular demand thus makes planned and regular mass production possible. What is Personal Selling?We all know, or at least have an impression, of what personal selling entails. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. About 6.5 million people are engaged in personal selling in the United … He must be mentally healthy with sharp memory and presence of mind. (ii) He makes search for the new customers and convince them’ about the use of the product. The main purpose of personal selling is to increase the volume of sales. A good salesperson must have good command over the language. Telemarketing is used to reduce the substantial cost involved in maintaining a sales force for making personal calls at customers' homes or businesses. Let us discuss the qualities of a Good Salesman: A good salesman must be healthy and have an attractive personality. Development of personal rapport with customer increases the competitive strength of a business organization. The organization does not have enough money for an adequate advertising campaign; 6. As the world of sales continues to change and evolve, so has the number of sales tactics and various technologies to … Among the various promotional strategies, personal selling occupies a place of outstanding significance. He/she must be able to explain not only the special benefits or features of the product but also its advantages over the other similar products offered by their competitors. Salesman can provide necessary information to customer about company’s offer, … Role of personal selling as a tool of direct marketing:-There are a large number of definitions of personal selling in literature. 3. Personal selling is an important method of demonstrating the product to the prospective customers and giving them full information about the product. 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. uses of buying motives in personal selling/ importance of knowing buying motives in personal selling March 24, 2020 March 24, 2020 TORAN LAL VERMA Buying motives are the “inner feelings” of the buyers and he tries to satisfy them at any rate to the maximum possible extent. BMS Students Network for FYBMS, SYBMS, TYBMS and beyond BMS It is easier to persuade a person to buy a product through face-to-face explanation. Generates latent Demand – It converts latent demand into effective demand. These are the sources and citations used to research The importance of personal selling in IMC. They also help the customers to know how these needs and wants could be satisfied. The stages in personal selling … This helps then to match their needs and the product. Other forms of promotion are designed to move a prospect closer to a sale. This helps the business persons in bringing economy in their efforts. Prohibited Content 3. Content Filtrations 6. It also facilitates prompt feedback from the customers regarding acceptance of the product. Personal selling is a face-to-face sales presentation to a prospective customer. Personal selling creates product awareness, stimulates interest, develops brand preferences, negotiates price etc. Thus personal selling is generally adopted in India. Secondly, it can cover only limited number customers at a time. Flexible Tool – Personal selling is more flexible than other promotional tools such as advertising and sales promotion. Personal selling is a promotional method in which one party uses skills and techniques for building personal relationships with another party (e.g., those involved in a purchase decision) that results in both parties obtaining value. They are:-, 1. Report a Violation, Salesmanship: Type vs. (v) He helps in interpreting the sentiments of the market because he serves as a communicating link between producer and the consumer. Personal selling ensures development of relationship between the sales person and the prospective customer. The following variables should be considered while formulating sales strategy. – To Introduce a Product to the Customers, to Create New Wants and to Maintain the Demand and a Few Others, – For a Business Firm, Customers and Society, – Benefits to the Business, Customers and Society. This helps a business person in successfully completing the sales. Plagiarism Prevention 4. Latest Market Information – Through personal selling customers get latest market information regarding price changes; product availability and new product introduction etc. A salesman is like a hunter who shoots the particular prey. State the essential elements of personal selling. He understands the needs, tastes and preferences of the consumers as well as the nature of products that will match the market demand. Through their communication skills, the salespersons can create personal rapport with the customers. Learn about:- 1. (vi) Personal Rapport – Personal interactions develop personal rapport with customers and increase the competitive strength of a business organisation. A salesman increases the sales by identifying new customers and persuading them to buy the product. He diagnoses the market and suggests the prescription to remove the marketing ills. The sales person through his skill, intelligence, experience and interaction with the customers easily identifies the needs and wants of the consumer. Personal selling is an important marketing tool for small businesses, particularly those that sell complex or high-value products and services to other businesses, rather than consumers. 2. (ii) Where the product is for selected buyers, like mixer or vacuum cleaner, the salesman identifies the potential customers. Personal selling is concerned with finding new customers for the products. Consumer Attention – In case of personal selling, there is an opportunity to detect the loss of consumer attention and interest during sales. It helps a business personal to change their offer technique in varying purchase situation. There are certain marketing situations where personal selling is more relevant as it provides easy and effective answers to the multi-dimensional sales problems. This is the only market promotion technique that provides an immediate feedback. Other forms of promotion include some unavoidable waste because many people in the audience are not prospective customers. Therefore, it is extremely important that a salesman possesses the essential qualities to ensure the effectiveness of personal selling. Career Opportunities 4. Importance of Personal Selling – Aquila East Africa. iv. (ii) Employment Opportunities – Increased production creates more employment opportunities. He settles terms and conditions such as payment, delivery etc. Personal selling has various benefits and attributes of its own compared to the non-personal methods of promotion such as advertisement, sales promotion, publicity, public relation etc. Thus, they supply the vital information to the manufacturer which helps them to make strategic marketing decisions. As a method of promotion, personal selling is much more flexible and effective than advertising and sales promotion. Induces Customers C. Importance to Society – 1. TOS4. Before publishing your articles on this site, please read the following pages: 1. It also is a more persuasive form of marketing. To create new wants and to maintain the demand; v. To conduct effective selling at a minimum cost; vi. Describe the importance of personal selling form the point of customers. Disclaimer 9. Salesman can provide necessary information to customer about company’s offer, and also can collect information from customer. Sales representatives are fully aware of the product features and usage. iii. In this way it adds more value to the society at large and to business in particular. Content Guidelines 2. Personal selling is an important element of promotion mix and an effective promotional tool. They are. Researches have shown that Indians do not believe in reading and’ following instructions of any kind. The salesperson thus acts as a link between a business firm and its customers. Salespeople may learn about competitors' products, for example, or about emerging customer needs that may lead to the development of a new product. He helps in improving the product and sale policies by providing feedback obtained from the customers. At the end of every call/visit, a salesman can easily judge whether the customer is interested or indented to buy. Definitions of Personal Selling 2. Share Your PPT File, Personal selling plays a vital role in promotion of goods and services of an, The importance of the personal selling is three fold i.e., the benefits which it provides to business; customer and society. Sales are the major source of revenues to a business. Personal selling is the process of communicating with a potential buyer (or buyers) face-to-face with the purpose of selling a product or service. Converts Latest Demand 2. It is the largest single operating cost accounting for 10 to 15% of net sales in many enterprises. Similarly, it can make sales promotion tools more effective by personal guidance or conviction. Image Guidelines 5. It can meet personal expectations of buyers. Under the retail channel, a sales person interacts with potential customers who come on their own to enquire about a product. Disclaimer Copyright, Share Your Knowledge The ultimate objective of producing goods and services is to sell them to the consumers. This helps to establish a strong long term relationship between the sales person and the customer and enables free communication. In most cases, such a prospect is converted into a customer. 4. About 6.5 million people are engaged in personal selling in the United States. The role it performs or it importance to customers it quite different to that of businessmen and the society at large… But personal selling must not be overlooked: it remains an extremely important part of a salesperson’s arsenal and is a skill every good salesperson must master. There are several significant initiatives that salespeople can adopt in order to remain the ideal partner to an interested customer. A confident and convincing conversationalist can convert on enquiry into confirmed sale. Personal selling can take place through two different channels – through retail and through direct-to-consumer channel. For technical products, it has more relevance. Importance of Personal Selling to Society. It assists the society, thereby, in increasing employment opportunities. Personal selling is an important method of demonstrating the product to the consumers and giving them full information about the product. This helps then to match their needs and the product. Importance Of Personal Selling In Marketing 1074 Words | 5 Pages. Share Your PDF File The act of personal selling is deemed necessary for the smooth working of industries without mass production in anticipation of sale cannot take place. Before publishing your Articles on this site, please read the following pages: 1. Every part involved makes a profit in the transaction but probably a consumer is best benefited of all because he can purchase products of diverse makes and qualities at cheaper rates than he usually would have got by buying from a single manufacturer. Since the representatives earn incentives on every sale of the designated product, they ensure that they push the customer for every sale. It is not possible in any other methods of market promotion. 108 The Importance of Personal Selling What is personal selling? The Importance of Personal Selling. Personal selling is a face-to-face sales presentation to a prospective customer. Evaluation of Personal Selling Efforts Because of this characteristic, personal selling has the … Personal selling also serves the society. (iii) Career opportunities – Direct dealing with customers makes personal selling an interesting and satisfying job. Expert Advice 4. To retain habitual & loyal customers. He may also give a demonstration of use and also explains to them the precautions they should take while using the products. Indeed, salesmanship is the major factor underlying the success of most business houses. This is possible in personal selling. Personal selling should be part of a wider sales mix, alongside telesales, email marketing, sales promotion, advertising, and public relations. Where the product is for selected buyers, like mixer or vacuum cleaner, the salesman identifies the potential customers. Everything you need to know about the importance of personal selling. (iv) He understands the needs, tastes and preferences of the consumers as well as the nature of products that will match the market demand. Customer retention is the result of sharing content, communicating directly and working on addressing the specific issues or concerns that prospects have. Share Your Word File He settles terms and conditions such as – payment, delivery etc. The product requires to be customized for each individual, as in the case of securities or insurance; 4. The society also stands to gain through the personal selling activities. (v) Product Standardisation – Personal selling increases product standardisation and uniformity in consumption pattern in a diverse society. To enable a customer to decide what to buy and what not to buy; iii. It occupies an important place in promotion mix. To create a demand in such a way that it precedes supply; iv. The short term objectives are more specific and mainly in conformity with the role assigned to the Personal selling as a part of the Promotional mix. Personal selling converts latent demand into effective demand which leads to economic activity in the society, leading to more jobs, more income and more products and services. Selling is one element of marketing, which is the process of developing a product or service offering, communicating the benefits through promotions and managing the ongoing exchange of value with targeted customers. It involves personal selling conducted entirely by telephone either outbound (when salespeople contact customers) or inbound (when customers call to obtain information and make purchases). Face to face interaction enables quick resolving of queries and problems. Personal selling is used to meet the five objectives of promotion in the following ways: Building Product Awareness – A common task of salespeople, especially when selling in business markets, is to educate customers on new product offerings. To collect information about markets and pass it on to the manufacturers. Salesperson functions as the ‘eyes and ears’ of the producer. The goal of personal selling is to actually make a sale. Personal selling plays a very important role in the marketing of goods and services. Personal selling efforts can be changed according to the type of customer the salesperson is attending. Sales representatives are important in increasing the sales volume of a product. Marketing, Products, Promotion Mix, Elements, Personal Selling, Importance of Personal Selling. This helps to have repeated sales and achieve objectives of business. Advertising and publicity are among mass communication tools. To introduce a product to the customers; ii. Importance of Personal Selling – To Introduce a Product to the Customers, to Create New Wants and to Maintain the Demand and a Few Others, Importance of Personal Selling – For a Business Firm, Customers and Society, Importance of Personal Selling – Benefits to the Business, Customers and Society, Importance of Personal Selling – Eliminates Ignorance, Increases Sales Volume, Assists Customers, Increases Customer Satisfaction and Helps in Finding Prospects, Importance of Personal Selling – Importance to Businessmen, Customers and Society, Importance of Personal Selling – Personal Interaction, Quick Response, Increases in Sales Volume and Easy Customer Assessment, Importance of Personal Selling – Services to Consumers, Services to Producers and Services to the Society, Importance of Personal Selling – From the Consumer and Businessman Perspective. Helps in Identifying Needs 2. Advertising acquaints potential customers with a product and thereby makes personal selling easier. Importance of Personal Selling. The importance of personal selling for businessmen may be discussed as follows: (i) Effective Promotional Tool – It helps businessmen to explain the target customers about the product quality and its features and thus influence his/her decision to buy the product. The company do not go for advertisement. He/she should be fluent in common spoken languages and also have basic knowledge about the local language of the area where he/she is working. Sales jobs range from salesclerks at clothing stores to engineers with MBAs who design large, complex systems for manufacturers. There are two types of Personal Selling Objectives viz.- qualitative and quantitative. Salesmanship offers triple rewards. Importance of personal selling: (i) 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. Thus, it gives opportunities in career advancement, provides security, respect, variety and independence in working. Importance Of Personal Selling In Marketing 1074 Words | 5 Pages. The importance of personal selling to a business organization are: i. It is comparatively more effective and result-oriented. He educates the consumers and guides them so that they can make informed choice of the products which will best satisfy their needs. Slightly over 45 percent of them are women. Customers get expert advice and guidance in purchasing various goods and services, which help them in making better purchases. Promotion tools more effective by personal selling are: i important when: 1 effectively, you need to how. Untiring efforts of salesmen attend each customer to buy a product and advertising. Own to enquire about a product type of customer the salesperson important in B2B marketing than in B2C.! % of net sales in many enterprises in maintaining a sales force for making personal at. 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