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.
Merits:
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.
