Sunday, May 16, 2010

Nature & Scope of Personal Selling:

Nature & Scope of Personal Selling:

Personal Selling is used when:
1)    Market is Concentrated,

2)    Product is Expensive,

3)    Trade-in is Involved,

4)    Product is in Introductory Stage,

5)    Organisation does not have Enough Advertising-Budget.

Ø  It is a Personalised, rather than a Generalised form of Selling.

Ø  It is very much Flexible to be Tailored down, according to the individual-Customer’s Requirements.

Ø  It  is Focussed, thus no wastage, rather than a fullest – Projected Targeting.

Ø  It Aims at Making the Sales.

Ø  It completes the A.I.D.A-Principle, for a Better Presentation to make Customer ‘Take Action & Close the Sales’.

Scope of Personal Selling:
Personal Selling is not limited to the Business only. It is used frequently in Every interaction & Transaction of our Daily Life.
In Business, there are two types of Personal Selling:
a)   Inside Selling:

When Customer comes to the Sales-People,

b)   Outside Selling:

When Sales-People go to the Customers.

Current Pattern in Personal Selling:

A.   Tele Marketing:

In Some Companies, Sales-People Contact Customers on Telephone,
Fax, Computer (On Line).

 It’s main Advantages are:

Ø  to Save Time,

Ø   improve Efficiency of Sales Calls,

Ø  Reduce Handling & Shipping Costs,

Ø  Sales-Staff are to Concentrate More on Major Accounts,

Ø  Leaving Small-ones for Tele-Marketers.

B.   Relationship Selling:

It involves Building an Ever-Lasting Relationship through Concentrated Regular Visits to the Selected-Customers only, instead of taping Large Numbers of Customers, by following
20-80 Principle. i.e.
(20% of the Customers, who Give 80% of the Business & 80% of the Customers, who can hardly Give 20% of the Business!)
Relationships are built on the Basis of Trust, Earned by the Sales-People, by understanding Needs & Keeping interests of the Customers.

Limitations are that Neither Party Actually Trust the Other. Customers are trying to get Maximum Discounts & also Credit-Facility, if Possible, while the Sales-People are following the Strategy, Step by Step, to get Maximum Profit.

Additionally, Relationship – Developed, is generally with the Sales-People, which mostly comes to an End, when a Sales-Personnel leaves a Company & Joins another Company for Better Prospects & Emoluments.