All things being equal, people will do business with, and refer business to, those people they know, like, and trust." - Bob Burg. Show
The primary goal of any business is to generate sales and increase its profitability. The question is how it could achieve higher sales. The answer lies in building strong relationships with customers. Human psychology reveals that we engage in business and financial transactions with people we trust. This concept is effectively utilized through personal selling. In this article, we will discuss the importance of personal selling and its critical concepts. Personal Selling DefinitionWhen you hear the phrase personal selling, a picture of a pushy salesman might come to mind. It is not your fault, as salespeople are subjected to several negative stereotypes. Some think a salesperson could go to any length to complete a sale. Others think they only care about their benefits in terms of commissions and bonuses. These stereotypes about personal selling and the conduct of salespeople could not be more inaccurate. Personal selling means establishing direct contact with existing and potential customers through a sales team. Its aim is not just to engage and convince customers to buy a product/service but also to build strong relationships with them. Personal selling adds a personal touch to the sales process. The salesforce is usually well educated and trained to handle customers' queries and resolve their problems. They assess customers' needs and fulfill them by coordinating the company's efforts. The success of personal selling depends on the sales team's ability to forge strong and sustainable customer relationships. Salespeople must also possess strong interpersonal skills and prioritize customers' needs above all else. These are key to building customer trust and eventually leading to a sale. Fig. 1 - Personal selling - adds a personal touch to sales Personal Selling Advantages and DisadvantagesThere are some advantages and disadvantages when implementing a personal selling strategy. Personal selling advantagesFirst, let's talk about its plus points. Here are five main advantages of personal selling:
Personal selling disadvantagesThat said, personal selling is not without its disadvantages. Here are some challenges when implementing personal selling:
Direct Marketing vs. Personal SellingDirect marketing and personal selling are both techniques to sell products or services to customers. However, both techniques differ in terms of audience reach, costs, and objectives (See Table 1). Direct marketing is a type of marketing where a company communicates directly with the customers to sell its product/services.
Table 1. Direct marketing vs. Personal selling Types of Personal SellingThere are three main types of personal selling. Companies could use one or all of them based on sales activities. It is decided in the sales strategy what type of personal selling is ideal for improving sales performance:
Personal selling examplesThere are many examples of personal selling in our daily lives. From a departmental store employee to street vendors, we see the use of personal selling in marketing and sales. Here are a couple of examples of personal selling: Personal selling example: The sales rep in tech storesThe sales representatives in tech stores help customers in making purchase decisions. They listen to queries, provide information, and assist customers. They ask customers questions about their price range and desired specifications and suggest a product that fulfills their requirements. Fig. 2 - Sales reps and customers in an Apple store Personal selling example: Door-to-door salesOne of the common examples of personal selling is door-to-door sales. The salespeople knock on the doors of potential customers to advertise and sell the products/services. They try to convince the customers to buy from them with their strong interpersonal skills. In many cases, they give free product demos to eliminate customers' doubts. Fig. 3 - Door-to-door salesmen Personal Selling - Key takeaways
What is the similarity between direct marketing and personal selling?Direct marketing and personal selling are two selling techniques that are very similar to each other as both involve making a direct contact with the end consumer rather than relying on the traditional mode of letting products or services sell off the shelves in shops and stores.
Is personal selling and direct selling same?Personal selling occurs when an employee or salesperson has a conversation with a potential customer. Direct marketing involves using campaign materials like emails, text messages, fliers, catalogs, letters and postcards, and does not involve interacting directly with customers.
Is personal selling and marketing the same thing?In simple words, selling transforms the goods into money, but marketing is the method of serving and satisfying customer needs. The marketing process includes the planning of a product's and service's price, promotion and distribution.
What's the difference between personal selling and nonPersonal Selling is a marketing tool in which the sales person presents the goods to the customers and instigates them to purchase it. Sales Promotion is a range of non-personal marketing activities that are carried on to initiate sales of product and service.
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