What is the major advantage of personal selling over advertising as a communication method?
Personal selling is a promotional method in which one party (e.g. salesperson) uses skills and techniques for building personal relationships with another party is personal selling, here both parties obtain value. Show
The salesperson obtains value by getting financial rewards of sale while the customer obtains value by getting the benefits obtained by consuming the product. Selling is sometimes simply use to deliver the information. Table of Contents
Personal selling involves a face to face interaction with the customers wherein there is quick response and personal confrontation. This allows for more specific adjustment of the message. The communication message can be adjusted as per the customer’s specific needs or wants. The ultimate purpose of personal selling is to sell the goods to their ultimate buyers by bringing the right goods and services into contact with the right customers. Therefore, personal selling is said to be the “Backbone of Marketing“. Definition of Personal SellingRichard Buskirk defines it as “Personal selling consists of contacting prospective buyers of product personally.“ According to William J. Stanton – “Personal selling consists in individual personal communication, in contrast to mass relatively impersonal communication of advertisings sales promotion and other promotional tools“. “Oral presentation is a conversation with one or more prospective purchaser for the purpose of making sales“. – American Marketing Association Advantages of Personal SellingAdvantages of Personal Selling are:
Allowing for two-way interactionAs it is two-way communication between the buyer and the promoter the queries whatever raised by the buyer can be unanimously solved. In case of mass communications this direct feedback is not available and such information cannot be obtained immediately. Tailoring of MessageDue to direct interaction, messages can be customized to the receiver. This more precise message content lets the sender address the consumer’s specific concerns, problems, and needs. The sales representative can also determine when to move on to the next selling point, ask for the sale, or close the deal. Lack of DistractionIn personal selling, one-to-one presentations are conducted, hence the chance of distractions is minimized and the buyer is generally paying close attention to the sales message. Even when the presentation is made by a group of salespeople or more than one decision-maker is present, the setting is less distracting than those in which no personal mass media are used. Involvement in the Decision ProcessThrough consultative selling and relationship marketing, the supplier becomes more of a partner in the buying decision process, acting in combination with the buyer to solve problems. This makes the buyer rely more on the sales representative and his or her products and services. Source of Research InformationIn personal selling the sales representatives can collect information on competitors’ products and services, promotions, pricing, and so on, personally. In addition, they can learn about the buying behaviour of customers and potential customers. As you can see, the advantages of personal selling focus primarily on the dyadic communications process, the ability to alter the message, and the opportunity for direct feedback. Sometimes, however, these potential advantages are not always realized.In fact, they may become disadvantages. Disadvantages of Personal Selling
High cost-per-action (CPA)CPA can be an important measure of the success of promotion spending, the money spent to support a sales staff (i.e., salesforce) can be steep because it involves person-to-person contact. Training CostsSales staff need to be extensively trained on product knowledge, industry information and selling skills. Training cost may include travel, hotel, meals and training equipment and their salaries. Job TurnoverJob turnover in sales is often much higher than in other marketing positions. Mainly salespeople leave a job because of geographic territory. So the company has to recruit and train staff frequently. Inconsistent MessagesWe know that the ability to adapt the message to the receiver is a unique advantage of personal selling. But the lack of a standardized message can become a disadvantage. The message to be communicated is generally designed by the marketing staff with a particular communications objective in mind. Once this message has been determined, it is communicated to all receivers. But the salespeople may alter this message in ways the marketer did not mean. Thus, the marketing staff is at the compassion of the sales force with respect to what exactly is communicated. Techniques of Personal SellingToday, the work of the salesman is not just limited to sales but cultivation of relationships. Process of Personal Selling include:
ProspectingThe first requirement in personal selling is narrowing down the selling effort to the targeted customers. Prospecting involves developing and following all the leads to identify potential target customers and this requires hard work and proper time management. Pre ApproachOnce the salesperson identifies a set of prospects and customers, the salesperson should try to learn as much as possible about the individual or company needs. In case of a company, the salesperson should collect as much information as possible about the company’s products, competition, market, potential sales volume, the purchase procedure, who is involved in influencing a purchase decision, who is the final authority for making a purchase decision, and their personal traits. ApproachIt is extremely important for the salesperson to determine how the customer should be greeted. The first impression is not just important but crucial to the success of a sales call. The salesperson must look and act like a professional. A salesperson should select an approach that suits her/his personality and judgment about the specific sales situation. Homer B. Smith has recommended different approaches. Some proven techniques include:
Sales PresentationSalespersons can use different approaches to making a sales presentations. The oldest method is the stimulus-response theory of learning (sometimes called the canned presentation). This approach reflects the belief that a customer will buy a product or service if exposed to the right stimuli, such as words, terms, pictures, and actions etc. The salesperson memorises the sales presentation, including when to do what, and with the customer after customer repeats it. Handling of Customer ObjectionsAll salespersons, encounter sales resistance and this resistance often takes the form of objections. Some of these objections may be rational, or may be purely psychological. A salesperson should be prepared to face such objections. However, no matter how well-prepared a salesperson is, there is always a chance that a customer may raise some objection for which the salesperson has to come up with a solution immediately on his own. The salesperson must possess a good degree of presence of mind. In most situations, a good product and competition knowledge, and an understanding of human behaviour are of considerable help to salespersons. Closing the DealClosing refers to asking for the order. After making an effective sales presentation, the salesperson is ready to ask for the order. Closing is the sum total of all the sales presentation steps. It is the very reason for which the prospect was contacted. Many salespeople, perhaps because they lack confidence, feel uneasy, fail to perceive the positive cues indicating the prospect’s readiness, and fail to take the step of asking for order. Follow UpPost-purchase follow up is very important in building customer confidence and long-term relationship with the company. The salesperson contacts customer to learn if there are any problems and answers any questions that the customer does. He also contacts customers regularly to ascertain that they are happy with their purchase and offered services. Objectives of Personal Selling
Building Product AwarenessTo educate customers on new product offerings is major task for salespeople. In fact, salespeople serve a major role at industry trades, where they discuss products with show attendees. However, building awareness is also important in consumer markets. Creating InterestThe personal selling involves person-to-person communication, creating interest goes hand-in-hand with building product awareness as sales professionals can often accomplish both objectives during the first encounter with a potential customer. Providing Informationsalespeople receive large amount of sales support including brochures, research reports, computer programs and many other forms of informational material from organisation. Salespeople‘s conversation focus on product information. Stimulating DemandThe main objective of personal selling is to convince customers to make a purchase. Reinforcing the BrandRegular and frequent meetings with customer help to build a long-term relationships. This requires regular communication with a customer, which again help customer to strengthen their knowledge about product. Characteristics of Personal SellingPersonal selling occurs where an individual salesperson sells a product, service or solution to a client. Salespeople match the benefits of their offering to the specific needs of a client. Personal selling has the following features:
Importance of Personal SellingPersonal selling is an important element of promotion mix and an effective promotional tool. As you have already noted, personal selling is a process that offers mutual benefit, both to the customer and to the seller. Personal selling offers the following compensation.
Flexible ToolPersonal selling involves individual and personal communication as compared to the mass and impersonal communication of advertising and sales promotion. Therefore, personal selling is most flexible in operation. A salesman can tailor his sales presentation to fit the needs, motives and attitudes of individual customers. He can observe the customer’s reaction to a particular sales approach and thus make necessary adjustments right on the spot. Face-to-face contact with customers is the most effective means of communication and persuasion. Involves Minimum Wasted EffortIn personal selling, a salesman can select the target market and concentrate on the prospective customers. He need not communicate with the people who are not the real prospects. Therefore, personal selling involves minimum wastage of effort. Results in Actual SaleAdvertising and sales promotion techniques can only attract attention and arouse desire. By themselves they cannot create an actual sale. Personal selling in most cases leads to actual sale. A salesman can find prospective buyers, demonstrate the product, explain its operation, and convince customers to buy it, install it at the customer’s place and provide after-sales service. No other method of promotion can perform all these functions. Therefore, personal selling does the entire job of selling. Personal selling is a complete promotional technique of keeping customers satisfied. Provides FeedbackPersonal selling involves two-way flow of communication between buyer and seller. It is a useful method of understanding the needs and behaviour of customers. It provides knowledge about the tastes, habits and attitudes of the prospective customers. Complements AdvertisingIn most situations, there is a need for explaining the uses and price of the product. Salesmen can persuade the prospective customers to buy a product. Advertising attracts customers but their doubts and questions about the product are answered by salesmen. In this way personal selling supports advertising. Salesmen educate the consumers about new products and about new and varied uses of existing products. Educates CustomersSalesmanship is not simply a tool of convincing people to buy certain products. It assists customers in satisfying their wants. A salesman provides: information, education and guidance to customers. He handles their complaints and assists them in getting value for their money. He can clear their doubts on the spot. Assists the SocietySalesmen help to increase aggregate sales and production in the country thereby increasing employment opportunities. They help to maintain equilibrium between demand and supply. Reference
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What is the advantage of personal selling?Personal selling can support advertising, sales promotion, and publicity. It removes the drawbacks of advertising and sales promotion. Advertising increases awareness while personal selling reinforces the advertising message.
Why is personal selling most effective form of communication?Personal selling is the most effective marketing communication tool because it allows salespeople to adapt their presentation to each potential or current client. They use their knowledge of the customer's buying process to choose effective sales strategies.
Which is better personal selling or advertising?Advertising conveys a message to end number of individual in less time. As against this, personal selling conveys the message to a few customers only in relatively high time. There is a lack of feedback in advertising, whereas, in personal selling, feedback is always present.
What are the major advantages and limitations of personal selling?Advantages and Disadvantages of Personal Selling. Advantages of Personal Selling. Better Image. Reward. Customer Confidence. Flexibility. Quick Feedback. Complementing Professional Tools. Detailed Demonstration. ... . Disadvantages of Personal Selling. High Turnover. Training Cost. High Cost-per-Action. Negative Image of Salesmen.. |