To create new wants and to maintain the demand; v. To conduct effective selling at a minimum cost; vi. Personal selling is an important method of demonstrating the product to the prospective customers and giving them full information about the product. Personal selling carries importance when: 1. Personal selling can take place through two different channels – through retail and through direct-to-consumer channel. Effective Promotional Tool 2. A sensitivity to how buying vary, coupled with a knowledge of buying behavior is the foundation for successful personal selling. This cycle leads to economic progress of the society. Its role and importance in marketing can be discussed as follows: What is Personal Selling?We all know, or at least have an impression, of what personal selling entails. They want to “touch and feel” the product also. Personal selling efforts can be changed according to the type of customer the salesperson is attending. The importance of personal selling can be judged from its benefits, which are as follows: (a) Increase in sales – With the help of effective and skillful personal selling sales are increased to many fold. A salesman introduces the goods to the customers, arouses their interest and persuades them to purchase the goods and finalizes the deal. Personal selling focuses on personal problems of customers. Importance of Personal Selling – Eliminates Ignorance, Increases Sales Volume, Assists Customers, Increases Customer Satisfaction and Helps in Finding Prospects Personal selling … Below are few Personal Selling Strategies Call Rates If the intensity of competitive rivalry is high in the industry, salespersons involved in Although personal selling is useful for almost every product or service, it is particularly important when: 1. (ii) Latest Market Information – It helps customers to get latest market information regarding price changes, product availability, new products and competitor’s products and their comparisons. The message and sales presentation can be adjusted on the spot to suit individual needs, motives and expectations of customers. Development of personal rapport with customer increases the competitive strength of a business organization. To create a demand in such a way that it precedes supply; iv. To communicate effectively, you need to take into account the needs of multiple stakeholders. This helps the company increase the sales volume, customer base and earn more profits. Customers and society are benefited by personal selling in the following ways: Salespersons help the customers to discover their needs and wants. Similarly, it can make sales promotion tools more effective by personal guidance or conviction. – 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. Salesperson functions as the ‘eyes and ears’ of the producer. As a method of promotion, personal selling is much more flexible and effective than advertising and sales promotion. Salesman can personally attend each customer to convince as well to solve problems. Since it is an interactive form of selling, it helps build trust with the customer. About 6.5 … Definitions of Personal Selling 2. 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. A salesperson is valued if he/she is honest and sincere in his conduct. Personal Selling Marketing management also involves the ongoing activities of selecting, training, deploying, supervising, motivating, evaluating and controlling of sales representatives. A salesman is a guide and a friend of the consumer and a supporter and an aid to the producer. At the end of every call/visit, a salesman can easily judge whether the customer is interested or indented to buy. Describe the importance of personal selling form the point of customers. Generates latent Demand – It converts latent demand into effective demand. Helps in identification of needs – Personal selling helps the customers in identifying their needs and wants and knowing how these can be satisfied. Here person to person contact will help in selling the product and not advertising. Personal selling is a face-to-face sales presentation to a prospective customer. It can meet personal expectations of buyers. Personal selling helps to draw the attention of the customers quickly to the product design, features, quality, uses, price, etc. He/she must persuade customers to buy the product. Marketing, Products, Promotion Mix, Elements, Personal Selling, Importance of Personal Selling. In today’s marketing practices, personal selling has much important role to play. (ii) He informs them of new products and explains to them how best they can use these products. Sales jobs range from salesclerks at clothing stores to engineers with MBAs who design large, complex systems for manufacturers. Advertising acquaints potential customers with a product and thereby makes personal selling easier. (v) Lasting Relationship – Personal interaction helps salesperson to develop lasting relationship with customers. State the essential elements of personal selling. Salesman can provide necessary information to customer about company’s offer, … He diagnoses the market and suggests the prescription to remove the marketing ills. Note that salesmanship can remove bad image or misunderstanding by highlighting company’s achievements and offers. Importance of Personal Selling to Society. It also is a more persuasive form of marketing. Role played by Personal Selling may be discussed as follows: Personal Selling develops personal relationship with customers to increase demand for company’s products. This helps salesperson to find remedy to gain his/her attention and complete the sale. India is a diversified country. The Importance of Personal Selling. Thus the needs and buying habits of people are different, hence, it is not possible to have a mass marketing approach and have a universal mode of promotion like advertising. He must be mentally healthy with sharp memory and presence of mind. Concepts of Personal selling in Insurance. The importance/roles of personal selling in marketing can be likened to those … the promotional tool personal while using it to create awareness and close clients.. But building awareness using personal selling is also important in consumer markets. Involvement in the decision process. The product requires demonstration; ADVERTISEMENTS: 4. This helps then to match their needs and the product. The importance of personal selling to a business organization are: i. Importance of Personal Selling – Explained! A salesman introduces the goods to the customers, arouses their interest and persuades them to purchase the goods and finalizes the deal. 1. This results in increased production, more job opportunities, higher incomes and improved standard of living leading to economic growth. Link with Customers. Helps in Identifying Needs 2. He settles terms and conditions such as payment, delivery etc. Effective personal selling addresses the buyer’s needs and preferences without making him or her feel pressured. There are several significant initiatives that salespeople can adopt in order to remain the ideal partner to an interested customer. Personal selling can support advertising, sales promotion, and publicity. In the present competitive environment of business, effective selling of goods or services has become very difficult and challenging task for any business firm. which helps them in taking their purchase decisions in a better way. persuasive role, service role and informative role. – Eliminates Ignorance, Increases Sales Volume, Assists Customers, Increases Customer Satisfaction and Helps in Finding Prospects, – Importance to Businessmen, Customers and Society, – Personal Interaction, Quick Response, Increases in Sales Volume and Easy Customer Assessment, – Services to Consumers, Services to Producers and Services to the Society, – From the Consumer and Businessman Perspective. A salesman finalises the deal. (h) Effective tool – Personal selling is the most effective method of selling as the efforts under this method are focused on the actual and potential buyers. It removes the drawbacks of advertising and sales promotion. Selling can be through different ways for example direct selling, selling on the internet, selling on retail stores or personal selling. The sales person through his skill, intelligence, experience and interaction with the customers easily identifies the needs and wants of the consumer. (iii) He educates the consumers and guides them so that they can make informed choice of the products which will best satisfy their needs. (ii) He makes search for the new customers and convince them’ about the use of the product. Personal selling plays a very vital role in the economic progress and development of the society. For a business firm, personal selling is important because of the following advantages: Personal selling is an effective tool to increase the sale of a product. They personally try to reach the customers at their place and convince them into buying the product. Personal selling plays a vital role in promotion of goods and services of an organization. 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. Two-Way Communication: ADVERTISEMENTS: It is the best tool for two-way communication. Personal selling should be part of a wider sales mix, alongside telesales, email marketing, sales promotion, advertising, and public relations. Report a Violation, Salesmanship: Type vs. Disclaimer Copyright, Share Your Knowledge Customer retention is the result of sharing content, communicating directly and working on addressing the specific issues or concerns that prospects have. The goal of personal selling is to actually make a sale. He helps in improving the product and sale policies by providing feedback obtained from the customers. Personal selling is the personal presentation of a tangible product or intangible services or ideas to the customers. Solved: Explain the reasons why personal selling is more important in B2B marketing than in B2C Selling. Importance to Customers. These are the sources and citations used to research The importance of personal selling in IMC. It is essentially for the accomplishment of the selling function which is at once the most difficult and the most important of the marketing functions and the smooth working of the economic order depends upon a continuous flow of commodities from producer to consumer, a flow which could not and would not be maintained under modern industrial conditions, without the exercise of selling efforts. The company do not go for advertisement. (iv) He cultivates newer markets and tries to sell more of the company’s product. iv. Each stage of the process should be undertaken by the salesperson with utmost care. The product is in the introductory stage; 2. It occupies an important place in promotion mix. Privacy Policy3. Flexible Tool – Personal selling is more flexible than other promotional tools such as advertising and sales promotion. Note that personal selling in not only important to sell the products, but also to create permanent customers. Indeed, salesmanship is the major factor underlying the success of most business houses. In personal selling, salespersons provide the latest information regarding the new products available in the market, uses of those products, etc. 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. Only when the customer is satisfied with the product, he/she makes a purchase. Converts Latest Demand 2. Importance 6. Because of this characteristic, personal selling has the … He may change the offer under different situations. Employment – It provides greater income and employment opportunities to the unemployed youth of the society. Importance of Personal Selling to Customers. Here person to person contact will help in selling the product and not advertising. The ultimate objective of producing goods and services is to sell them to the consumers. Role of personal selling as a tool of direct marketing:-There are a large number of definitions of personal selling in literature. It leads to customer satisfaction. Under the retail channel, a sales person interacts with potential customers who come on their own to enquire about a product. He helps the consumer, producer and the society alike in the following manner: A salesman helps the consumers in the following ways: It is the salesman who introduces the product in the market and informs the customers about the new product and also about the producer. The sales person usually sets a sales target and tries to achieve that target. He gives them opportunity to make more enquiries about his product. About 6.5 million people are engaged in personal selling in the United … Salesmanship offers individual services. iii. This is the only market promotion technique that provides an immediate feedback. Due to increased expectations of consumers on one end and customer orientation approach of companies on the other end, the personal selling is given more priority. ii. 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. 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. Through their communication skills, the salespersons can create personal rapport with the customers. Tailoring of the message. Personal selling is based on personal interaction between the salesperson and the customer. The purchaser thinks himself honourable, in whom the producer is interested. Personal selling is required to sell high-priced consumer durables like television, refrigerator, etc. The importance of personal selling can be described as under: 1. A polite and courteous salesperson can very easily win the confidence of his/her customers and convince them to be his/her permanent buyer. Personal selling is important not only for businesses but also for customers and society. (v) He helps in interpreting the sentiments of the market because he serves as a communicating link between producer and the consumer. Personal selling plays a very important role in the marketing of goods and services. 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. A salesman is like a hunter who shoots the particular prey. Latest Market Information 3. What is personal selling? Plagiarism Prevention 4. 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. Role in Introduction Stage 8. 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. ii. He informs them of new products and explains to them how best they can use these products. Content Filtrations 6. Personal Selling Marketing management also involves the ongoing activities of selecting, training, deploying, supervising, motivating, evaluating and controlling of sales representatives. Personal Selling offers the following compensation. Personal Selling and Qualities of a Good Salesman, Personal Selling: Objectives and Features, Sales Process: 8 Steps of Sales Process (With Diagram). Other forms of promotion are designed to move a prospect closer to a sale. He will explain to them using literature the composition of the product, how it is operated and so on. Evaluation of Personal Selling Efforts The main purpose of personal selling is to increase the volume of sales. Thus they are able to make informed decisions. Salesmanship offers triple rewards. Personal selling is absolutely necessary to sell products like computers that require technical knowledge. Thus, Personal selling has made the large scale production and sales possible. BMS Students Network for FYBMS, SYBMS, TYBMS and beyond BMS Importance to Society. 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). A salesman introduces the goods to the customers, arouses their interest and persuades them to purchase the goods and finalizes the deal. It provides better income and employment opportunities to the … Disclaimer 9. There are certain marketing situations where personal selling is more relevant as it provides easy and effective answers to the multi-dimensional sales problems. Latest Market Information – Through personal selling customers get latest market information regarding price changes; product availability and new product introduction etc. Personal selling offers not just a physical product, but also ideas, recommendations, technical assistance, experience, confidence and friendship to customers. Telemarketing is used to reduce the substantial cost involved in maintaining a sales force for making personal calls at customers' homes or businesses. It is the largest single operating cost accounting for 10 to 15% of net sales in many enterprises. Content Guidelines 2. The prospective buyer can make inquiries regarding the product and the salesman answers these queries quickly and removes any doubts in the mind of the buyer. iii. 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. It results in large scale production and reduction of costs and prices. Minimizes Wastage of Efforts – Compared to tools of promotion, the possibilities of wastage of resources in personal selling is minimum, as sales personal are focused on single or small group of prospects. A salesman can more effectively convince buyers and procure sales. (iii) Expert Advice – Salespersons provide customers expert advice and guidance in purchasing goods and services. Hence, this sales function is an indicator of customer satisfaction. He plays a very significant role in selling the products. In this way it adds more value to the society at large and to business in particular. At every step from the collection of raw material to the finished product, a salesman is needed to bring the buyers and sellers in close contact. Copyright 10. He removes every doubt from the minds of the purchasers and convinces them about the quality of the goods and credibility of the producer. Mobility of Sales People 5. Personal selling involves person in selling activity.Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships is called Personal selling . This bibliography was generated on Cite This For Me on Tuesday, January 26, 2016 They do not cater individual needs. Helps in introducing new products to the customers. iv. Other benefits of personal selling, due to which it is a famous promotion activity are: i. The salesmen aim to inform and encourage the customer to buy, or at least try the product. (iv) Induces Customers – Personal selling induces customers to buy new products which satisfy their needs in a better manner thus helps them to improve their standard of living. 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. The Importance of Relationship Selling. Personal selling is an important method of demonstrating the product to the consumers and giving them full information about the product. The situations or the conditions favouring personal selling can be lumped into four broad categories … Personal Selling offers the following compensation. Many useful products might not have seen the light of the day but for the untiring efforts of salesmen. Salespersons put vigorous effort in collecting market information, credit information, delivering goods and collecting payments. 108 The Importance of Personal Selling What is personal selling? Role 7. 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