Personal Selling Notes

Personal Selling

Personal Selling

• Definition: Personal selling involves direct interaction between a company representative and a consumer to provide information and assist in the buying decision.
• Advantages:
  • One-to-one interaction allows for addressing specific customer needs.
  • The message can be altered based on the customer's response.
  • Additional information can be provided as needed.

Relationship vs. Traditional Selling

• Relationship Selling: Focuses on building long-term relationships with customers.
• Traditional Selling: Focuses on closing individual sales.

Business vs. Consumer Markets

• Business (B2B) Markets:
  • Demand: Organizational.
  • Volume: Larger.
  • Number of Customers: Fewer.
  • Location: Concentrated.
  • Promotion: Personal Selling.
  • Buying Influence: Multiple.
  • Negotiations: More Complex.
• Consumer (B2C) Markets:
  • Demand: Individual.
  • Volume: Smaller.
  • Number of Customers: Many.
  • Location: Dispersed.
  • Promotion: Advertising.
  • Buying Influence: Single.
  • Negotiations: Simpler.

Attributes of Business Customers

• Better informed about products purchased.
• Demand more detailed product information.
• Personal goals can influence buying behavior.

Best Use Cases for Personal Selling

• When a push strategy is employed.
• For infrequent purchases.
• For custom products.
• When negotiation is required.
• For complex products.
• For expensive products.

Number of Salespeople in the US (Millions)

• 1990: 12 million
• 2000: 15 million
• 2006: 17 million
• 2016: 18 million
• Source: U.S. Department of Labor Statistics, 2007

Personal Selling Process

• The practice used by salespeople to identify, research, and approach potential customers to sell products and services.

Steps in the Personal Selling Process

1. Prospecting
2. Research
3. Approach
4. Sales Presentation
5. Overcome Objections
6. Close the Sale
7. Follow-up

Generating Leads

• Advertising
• Publicity
• Direct Mail/Telemarketing
• Cold Calling
• Internet Web Site
• Referrals
• Trade Shows/Conventions
• Networking
• Company Records

Qualifying Leads

• Recognized need
• Buying power
• Receptivity and accessibility

Relationship Selling vs. Traditional Selling

Time Spent in Key Steps of Selling Process