Personal selling

From CEOpedia | Management online

Personal selling is an important part of a company's overall sales strategy. It involves a salesperson directly communicating with potential buyers to convince them to purchase a company's goods or services. Personal selling is an effective sales technique because it allows salespeople to build relationships with their customers, tailor their messaging to their customers' needs, and provide immediate feedback on customer's responses to their products.

Personal selling is an effective sales technique that can help companies build relationships with their customers and increase sales. By following the five steps of the personal selling process, salespeople can develop relationships with their customers and tailor their approach to the customer's needs.

Example of Personal selling

A common example of personal selling is when a car salesperson contacts a potential customer. The salesperson will start by prospecting for potential customers and then use pre-approach to find out the customer's needs and preferences. The salesperson will then use the approach to introduce themselves and explain the features and benefits of the car. During the presentation step, they will demonstrate the car and explain why it meets the customer's needs. Finally, they will follow-up with the customer to ensure their satisfaction and build a long-term relationship.

When to use Personal selling

Personal selling is most effective when a company is trying to build relationships with potential customers, sell complex products or services, or target a niche market. In these cases, the salesperson's ability to build relationships and tailor their message to the customer's needs can be invaluable. Additionally, personal selling can be used to demonstrate a product or service, provide immediate feedback to customers, and follow up with customers after the sale.

Personal selling is an important part of a company's overall sales strategy. By using the five-step personal selling process, salespeople can build relationships with their customers and tailor their message to the customer's needs. This can help to increase sales and ensure customer satisfaction in the long run.

Types of Personal selling

  • Relationship Selling: Relationship selling focuses on building long-term relationships between the salesperson and customer. The salesperson should focus on creating trust and understanding the customer's needs in order to develop a lasting relationship with the customer.
  • Needs-Based Selling: Needs-based selling is focused on understanding the customer's needs and tailoring the sales approach to meet those needs. The salesperson should focus on understanding the customer's needs and explaining how the product or service can meet those needs.
  • Consultative Selling: Consultative selling is a type of sales approach that focuses on providing advice and solutions to the customer. The salesperson should focus on understanding the customer's needs and providing a solution that meets those needs.

Steps of Personal selling

Personal selling is an important part of many companies' overall sales strategy. It involves a salesperson directly communicating with potential customers to convince them to purchase a company's goods or services. The personal selling process includes five main steps: prospecting, pre-approach, approach, presentation, and follow-up.

  • Prospecting: Prospecting involves finding potential customers who may be interested in the product or service. This step requires salespeople to identify potential buyers and determine their needs, interests, and buying power.
  • Pre-approach: The pre-approach step involves gathering information about the potential customer, such as their needs and preferences. The salesperson can use this information to develop a sales presentation tailored to the customer's needs.
  • Approach: The approach step involves introducing the salesperson to the potential customer. The salesperson should use this opportunity to introduce the company and product, and explain how the product or service will meet the customer's needs.
  • Presentation: During the presentation step, the salesperson should focus on the customer's needs and how the product can address them. The salesperson should use visuals, demonstrations, and other tools to effectively explain the product's features and benefits.
  • Follow-up: The follow-up step involves staying in contact with the customer after the sale is complete. This can help to ensure customer satisfaction and build a long-term relationship with the customer.

By following the five steps of the personal selling process, salespeople can effectively engage customers, build relationships, and increase sales. Each step of the process is important for salespeople to understand in order to maximize their success.

Advantages of Personal selling

Personal selling has several advantages when compared to other sales techniques. These advantages include:

  • Relationship building: Personal selling allows salespeople to build relationships with their customers and develop trust. This can help to increase customer loyalty and increase sales.
  • Tailored approach: Personal selling allows salespeople to tailor their approach to the customer's needs. This helps to ensure that the customer is presented with an approach that is tailored to their specific needs.
  • Immediate feedback: Personal selling also allows salespeople to provide immediate feedback on customer's response to the product or service. This can help salespeople quickly adjust their approach if needed.

Limitations of Personal selling

Despite its effectiveness, personal selling also has some limitations. These include:

  • Time consuming: Personal selling is time consuming for both the salesperson and the customer. The salesperson must spend time prospecting and researching potential customers, and the customer must spend time with the salesperson during the sales process.
  • Expense: Personal selling can be expensive for companies. This is because the company must pay for the salesperson's travel costs, as well as their salary and other expenses.
  • Limited reach: Personal selling can only reach a certain number of customers. It is difficult for a salesperson to reach a large number of potential customers, so the salesperson may only be able to reach a limited number of customers.

Other approaches related to Personal selling

There are other approaches to sales that are closely related to personal selling. These include:

  • Cold Calling: Cold calling involves calling potential customers to introduce a product or service. Cold calling can be an effective way to introduce a product or service to potential customers and generate interest.
  • Networking: Networking involves connecting with potential customers through social media and other networking events. This can be an effective way to build relationships with customers and introduce them to a product or service.
  • Trade Shows: Trade shows involve setting up a booth at an industry event to showcase a product or service. This can be an effective way to directly interact with potential customers and generate interest in a product or service.

Personal selling is an important part of a company's overall sales strategy. It involves a salesperson directly communicating with potential buyers to convince them to purchase a company's goods or services. Additionally, there are other sales approaches that are closely related to personal selling such as cold calling, networking, and trade shows. By using these approaches, salespeople can build relationships with their customers and increase sales.


Personal selling — recommended articles
Pull strategy — Search engine marketing (SEM) — Manipulation advertising — Multi-channel distribution — Social media advertisement — Market orientation — Types of marketing — Forms of promotion — Low-ball technique

References

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