Chapter 15 – Personal Selling and Sales Promotion
The evolution of personal selling:
Selling has been a standard business activity for thousands of years.
Professional salespeople are problem solvers who focus on satisfying the needs of
customers before, during and after sales are made. Sales people pursue a common goal of
creating mutually beneficial long term relationships with customers.
Personal selling is a vibrant, vital, dynamic process. as domestic and foreign competition
increases emphasis on productivity, personal selling is taking on more prominent role in
the marketing mix.
Sales people must communicate the advantages of their firms’ goods and services over
those of the competitors. They must:
o Focus on customer’s situation and needs and create solutions that meet those
o Follow through and stay in touch before, during and after the sale.
o know their own industry and their customers’ industry, and have a firm grasp not
only of their own firm’s capabilities but also of their competitors’ abilities.
o Work hard to exceed their customers’ expectation, even if it means going above
and beyond the call of duty.
Relationship marketing affects all aspects of an organization’s marketing function,
including personal selling. Now marketers need to develop different sales skills. Its all
about building long lasting relationships with buyers by providing high levels of
customer service rather than providing a quick sale.
Factors affecting the importance of personal selling in the promotional mix
Variable Conditions that favour Conditions that favour
personal selling advertising
Customer Geographically concentrated Geographically dispersed
Relatively low numbers Relatively high numbers
Product Expensive Inexpensive
Technically complex Simple to understand
Transactions frequently Transactions rarely involve
require trade ins trade ins
Price Relatively high Relatively low
The Four Sales Channels:
1. Over the Counter Selling – personal selling conducted in retail and some wholesale
locations in which customers come to the seller’s place of business to purchase desired
items. Example, at Best Buy, they follow the CARE montra … which stands for contact
with the customer, ask questions to learn what are their needs, make
recommendations to the customer and encouragement praising the customer for a
2. Field selling – sales presentation made at prospective customers’ locations on a face to
the sales person must convince customers first that they need the good/service and
then that they need the particular brans the salesperson is selling.
More expensive than other selling options. To overcome this, some firms have
replaced travel with conference calls or staying in less expensive hotels and
paying less on meals.
For established customers in industries like food and wholesaling, the salesperson
is basically the order takers who processes regular customer’s orders.
Network marketing is a new time of field selling which is a type of selling that
relies on lists of family members and friends of the salesperson, who organizes a
gathering of potential customers for a demonstration of products.
3. Telemarketing- promotional presentation involving the use of the telephone on an
outbound basis by sales people or an inbound basis by customers who initiate calls to
obtain information and place orders.
Serves 2 general purposes: sales and service, and 2 general markets: B2B and
direct to customer.
Outbounding telemarketing involves a sales force that relies on the telephone to
contact customers, reducing the substantial costs of personal visits to customer’s
homes or businesses. Technologies increase chances that telemarketers will reach
customers at home.
i. Predictive diallers – weed out busy signals and answering machines,
nearly doubling the number of calls made per hour.
ii. Autodialling – allows telemarketers to dial numbers continually; when a
customer answers the phone, the call is automatically routed to a sales
iii. Random digit dialling – allows telemarketers to reach unlisted numbers
and block caller-ID.
Major drawback in telemarketing is that most consumers dislike the practice and
have implemented a Canadian do not call list as of late 2008.
Marketers use telemarketing because the avg call cost is low and companies point
to a significant rate of success.
Marketers also use inbound telemarketing which involves a toll free numbers
that customers can call to obtain information. This form of selling provides
maximum convenience for customers who initiate the sales process.
4. Inside selling Selling by phone, mail and electronic commerce.
Inside sales reps perform 2 primary jobs: they turn opportunities into actual sales
and they support technicians and purchasers with current solutions.
Trends in Personal Selling
1. Relationship Selling – regular contacts between sales representatives and customers over an
extended period to establish a sustained seller-buyer relationship.
such bonds become increasingly important as companies cut back on the number of
suppliers and look for companies that provide high levels of customer service ans
Salespeople must also find ways to distinguish themselves and their products from
competitors. To create strong, long lasting relationships with customers, salespeople must
meet buyers’ expectations.
what buyers expect from salespeople
Buyers prefer to do business with salespeople who:
Orchestrate events and bring to bear whatever resources are necessary to satisfy the
Provide counselling to the customer based on in depth knowledge of the product, the
market, and the customer’s needs
Solve problems proficiently to ensure satisfactory customer service over extended time
Demonstrate high ethical standards and communicate honestly at all times
Create imaginative arrangements to meet buyers’ needs
Arrive well prepared for sales calls.
2. Consultative Selling – involves meeting customer needs by listening to customers,
understanding their problems, paying attention to details, and following through after the
It works hand in hand with relationship selling in building customer loyalty.
Cross selling – offering many goods or services to the same customer, is another
technique that capitalizes on a firm’s strengths.
Ex it costs a bank 5 times more to acquire a new customer than to cross
sell to an existing one.
3. Team Selling – when a salesperson joins with specialists from other functional areas of
the firm to complete the selling process.
Customers often prefer the team selling approach since it makes them feel well
Another advantage of team selling is the formation of relationships between
companies rather than between individuals. Sales Tasks
1. Order Processing – selling, mostly at the wholesale and retail levels, that involves
identifying customer needs, pointing them out to customers and comple