As compared to other methods of promotion, the wastage of efforts is minimum in case of personal selling. ii. Due to increased expectations of consumers on one end and customer orientation approach of companies on the other end, the personal selling is given more priority. Personal selling is the most important ingredient in the promotion mix. It is the only promotional tool which results in actual sale there and then. Personal selling plays a very vital role in the economic progress and development of the society. Definition: Personal selling is also known as face-to-face selling in which one person who is the salesman tries to convince the customer in buying a product.It is a promotional method by which the salesperson uses his or her skills and abilities in an attempt to make a sale. Advertising increases awareness while personal selling reinforces the advertising message. This cycle leads to economic progress of the society. This helps the business persons in bringing economy in their efforts. Personal selling plays a pivotal role in the field of distribution of goods and services. 3. A confident and convincing conversationalist can convert on enquiry into confirmed sale. Importance Of Personal Selling In Marketing 1074 Words | 5 Pages. Thus personal selling is generally adopted in India. The society also stands to gain through the personal selling activities. Here person to person contact will help in selling the product and not advertising. Such objectives are always in conformity with the company’ overall objectives. Effective Promotional Tool – Personal selling is the most effective tool, which helps in influencing the prospects about the merits of the product and thereby increasing its sales. (ii) He informs them of new products and explains to them how best they can use these products. He understands the needs, tastes and preferences of the consumers as well as the nature of products that will match the market demand. The importance/roles of personal selling in marketing can be likened to those … the promotional tool personal while using it to create awareness and close clients.. Share Your PPT File, Personal selling plays a vital role in promotion of goods and services of an, The importance of the personal selling is three fold i.e., the benefits which it provides to business; customer and society. Helps in Identifying Needs 2. A salesman can more effectively convince buyers and procure sales. This study focused on the impact of personal selling on the productivity of selected banks (First Bank Plc and Stanbic IBTC) in Calabar Metropolis. Sales representatives are fully aware of the product features and usage. Selling skills are critical in organizations that rely on ongoing buying from customers or clients. Salesman can personally attend each customer to convince as well to solve problems. The message and sales presentation can be adjusted on the spot to suit individual needs, motives and expectations of customers. Importance of Personal Selling – Explained! A sensitivity to how buying vary, coupled with a knowledge of buying behavior is the foundation for successful personal selling. They personally try to reach the customers at their place and convince them into buying the product. Personal Rapport 7. Personal selling also serves the society. Slightly over 45 percent of them are women. The customers are benefited by personal selling in the following ways: i. Personal selling is equally important to the customer as it is for organization. Because of this characteristic, personal selling has the … Helps in introducing new products to the customers. He provides their after-sales service also. The product’s unit value is high; 3. This bibliography was generated on Cite This For Me on Tuesday, January 26, 2016 Personal selling can usually be focused or pinpointed on prospective customers, thus, minimizing wasted effort; 7. For technical products, it has more relevance. (ii) Latest Market Information – It helps customers to get latest market information regarding price changes, product availability, new products and competitor’s products and their comparisons. Privacy Policy 8. He will explain to them using literature the composition of the product, how it is operated and so on. The Importance of Personal Selling Personal selling is a process in which an individual salesperson works one-on-one with a customer to try to match a product to her needs. The importance of personal selling can be judged from its benefits, which are as follows: (a) Increase in sales – With the help of effective and skillful personal selling sales are increased to many fold. Advertising acquaints potential customers with a product and thereby makes personal selling easier. He provides them after-sales service also. Each stage of the process should be undertaken by the salesperson with utmost care. It requires lots of salespersons to pursue its objectives. Other forms of promotion include some unavoidable waste because many people in the audience are not prospective customers. Personal selling highlights potential customers on various new financial services launched in the market. Secondly, it can cover only limited number customers at a time. In addition, professionals who use social selling are 79 percent more likely to attain their quota than sales reps who focus on old-school promotional techniques or selling methods. persuasive role, service role and informative role. Acts as a source of information in terms of feedback of the product and for identifying the needs of the customers. It is seen that in some cases, despite knowing some shortcomings of a product, customer tend to purchase it simply … Importance of personal selling in financial services The importance of personal selling in marketing of financial services may be summarized as follows: 1. 4. In this way, he helps converting wants into needs. Face to face interaction enables quick resolving of queries and problems. Personal selling is one of the important functions needed for survival and growth of the business concern. However, the role of personal selling becomes more important for the illiterate and rural customers, who do not have many other means of getting product information. Importance of Personal Selling – To Introduce a Product to the Customers, to Create New Wants and to Maintain the Demand and a Few Others, Importance of Personal Selling – For a Business Firm, Customers and Society, Importance of Personal Selling – Benefits to the Business, Customers and Society, Importance of Personal Selling – Eliminates Ignorance, Increases Sales Volume, Assists Customers, Increases Customer Satisfaction and Helps in Finding Prospects, Importance of Personal Selling – Importance to Businessmen, Customers and Society, Importance of Personal Selling – Personal Interaction, Quick Response, Increases in Sales Volume and Easy Customer Assessment, Importance of Personal Selling – Services to Consumers, Services to Producers and Services to the Society, Importance of Personal Selling – From the Consumer and Businessman Perspective. Importance of Personal Selling. Thus, it provides many employment opportunities to young and energetic people. Before publishing your articles on this site, please read the following pages: 1. There is a vast difference among the people in terms of culture, behaviour, psychology, income etc. It leads to customer satisfaction. Sales representatives are important in increasing the sales volume of a product. Personal selling plays a very important role in the marketing of goods and services. This results in increased production, more job opportunities, higher incomes and improved standard of living leading to economic growth. Personal selling is an important element of promotion mix and an effective promotional tool. It provides following specific benefits to a society: (i) Converts Latest Demand – Personal selling converts the latest demand into effective demand. Personal s… Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. To create new wants and to maintain the demand; v. To conduct effective selling at a minimum cost; vi. Customer retention is the result of sharing content, communicating directly and working on addressing the specific issues or concerns that prospects have. He must be mentally healthy with sharp memory and presence of mind. Salesmanship offers triple rewards. The following variables should be considered while formulating sales strategy. Many useful products might not have seen the light of the day but for the untiring efforts of salesmen. Personal selling ensures development of relationship between the sales person and the prospective customer. Latest Market Information – Through personal selling customers get latest market information regarding price changes; product availability and new product introduction etc. The main purpose of personal selling is to increase the volume of sales. (vii) Role in Introduction Stage – Personal contact with customers help business to introduce new product and its comparative advantages more effectively and thus persuade them to buy the product. About 6.5 million people are engaged in personal selling in the United … Thus, they supply the vital information to the manufacturer which helps them to make strategic marketing decisions. This will improve the competitive strength of the organisation. The personal selling process consists of a series of steps. Salesperson functions as the ‘eyes and ears’ of the producer. This minimises the wastage of efforts and cost. (ii) Flexible Tool – Personal Selling is considered to be flexible as it helps businessmen to adapt to the changes required by customers and offer products accordingly. Personal selling uses in-person interaction to sell products and services. Personal selling paves the way for increasing production, distribution and consumption. Definitions of Personal Selling 2. The importance of the personal selling is three fold i.e., the benefits which it provides to business; customer and society. This helps a business person in successfully completing the sales. The main thing that sets personal selling apart from other methods of selling is that the salesperson conducts business with the customer in person. This is the only market promotion technique that provides an immediate feedback. Minimises Wastage of Efforts 4. The sales person through his skill, intelligence, experience and interaction with the customers easily identifies the needs and wants of the consumer. (ii) He makes search for the new customers and convince them’ about the use of the product. The product is in the introductory stage; 2. Its population is heterogeneous in nature. iii. Personal selling plays a very productive role in the economic progress of a society. As the world of sales continues to change and evolve, so has the number of sales tactics and various technologies to … A. The product requires to be customized for each individual, as in the case of securities or insurance; 4. There are huge opportunities for growth and advancement in this career. Except television advertisements, demonstration is not possible. (e) Contribution to profits – The personal selling process helps in increasing the volume of sales by making regular and permanent customers, which ultimately lead to increase in profits to the procedures. This sales discipline is practiced by many companies in the retail industry and in business-to-business sales. (vi) Personal Rapport – Personal interactions develop personal rapport with customers and increase the competitive strength of a business organisation. Personal selling is an important element of promotion mix and an effective promotional tool. It removes the drawbacks of advertising and sales promotion. Personal Selling Marketing management also involves the ongoing activities of selecting, training, deploying, supervising, motivating, evaluating and controlling of sales representatives. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. Importance to Society. Personal selling induces customers to purchase new products that satisfy their needs better and thereby help in improving their standards of living. Sales talks and presentation can be adjusted according to situation to suit individual nature, motives, and problems. Telemarketing is used to reduce the substantial cost involved in maintaining a sales force for making personal calls at customers' homes or businesses. Personal selling also serves the producer in the following ways: (i) He sells goods to the wholesalers and retailers in the channel of distribution and also to the consumer at company’s terms. Nature and Scope 5. Expert Advise – Consumers get expert advice and guidance in purchasing various goods and services, which helps them in making better purchase. Personal Selling benefits customers in following ways: (i) Helps in Identifying Needs – Personal selling helps customers to identify their needs and wants and to understand how the product may satisfy their needs. For many consumer products like home appliances, cosmetics, pharmaceuticals, publications, etc., salesmanship is considered as an indispensable technique to promote product as well as to increase sales. Thus, it gives opportunities in career advancement, provides security, respect, variety and independence in working. Evaluation of Personal Selling Efforts Note that salesmanship can remove bad image or misunderstanding by highlighting company’s achievements and offers. It is due to this cycle that the economic activities in the society is fostered, leading to more jobs, more income and more products and services to satisfy particular needs and wants. Some of the important functions of personal selling are: i. Salesmanship is essential to convert the effect of advertising into sale. Importance to Customers. A salesman introduces the goods to the customers, arouses their interest and persuades them to purchase the goods and finalizes the deal. Customer is satisfied with products and services; salesman can achieve his targets; and company can improve its market share and profits. He may change the offer under different situations. This is possible in personal selling. There are certain marketing situations where personal selling is more relevant as it provides easy and effective answers to the multi-dimensional sales problems. Expert Advice 4. Personal selling is a face-to-face sales presentation to a prospective customer. Solved: Explain the reasons why personal selling is more important in B2B marketing than in B2C Selling. Customer can actively involve with salesman to solve his doubts and objections. Therefore, it is extremely important that a salesman possesses the essential qualities to ensure the effectiveness of personal selling. They want to “touch and feel” the product also. Personal Selling offers the following benefits which show its significance: Personal Selling increases the sales and expand, the market by identifying new customers and persuading them to buy the products. It occupies an important place in promotion mix. uses of buying motives in personal selling/ importance of knowing buying motives in personal selling March 24, 2020 March 24, 2020 TORAN LAL VERMA Buying motives are the “inner feelings” of the buyers and he tries to satisfy them at any rate to the maximum possible extent. He also suggests them how to use the product and how the product can satisfy their needs. Sales representatives always carry the products with them and offer a free demonstration of the product to the customer. In this way it adds more value to the society at large and to business in particular. At every step from the collection of raw material to the finished product, a salesman is needed to bring the buyers and sellers in close contact. This helps salesperson to find remedy to gain his/her attention and complete the sale. They are. Salesman can provide necessary information to customer about company’s offer, … When you are selling high-value products like cars, it is important that the customer trusts not only the product but the seller also. Personal selling plays a very productive role in the economic progress of society. There are two types of Personal Selling Objectives viz.- qualitative and quantitative. Personal selling has various benefits and attributes of its own compared to the non-personal methods of promotion such as advertisement, sales promotion, publicity, public relation etc. Personal selling is an important element of promotion mix and an effective promotional tool. The market is concentrated either geographically or in a few industries, or in a few large customers; 2. 6. Salesperson gain experience while dealing with different types of customers. iii. What is personal selling? BMS Students Network for FYBMS, SYBMS, TYBMS and beyond BMS A sales target serves as a motivation for the sales person and the sales person adopts a persuasive approach to increase sales volume. Indeed, salesmanship is the major factor underlying the success of most business houses. Selling is one element of marketing, which is the process of developing a product or service offering, communicating the benefits through promotions and managing the ongoing exchange of value with targeted customers. This helps the company increase the sales volume, customer base and earn more profits. Welcome to EconomicsDiscussion.net! This role of personal selling becomes more important for the illiterate and rural customers, who do not have many other means of getting product information. He gives them opportunity to make more enquiries about his product. Personal selling is a powerful tool in the hand of businessman for creating demand for their products and increasing sales. Convincing Power of the Sales Representatives: Sales representatives have effective communication skills. For example – King Gillette took five years to sell his first seven safety razors. He diagnoses the market and suggests the prescription to remove the marketing ills. People prefer to understand the usage of the product by demonstration. 1. Personal Selling offers the following compensation. iv. To introduce a product to the customers; ii. Importance Of Personal Selling In Marketing 1074 Words | 5 Pages. Because there is now … (viii) Link with Customers – Salespersons play various roles viz. The product must fit to the needs of buyers; 5. (iii) He educates the consumers and guides them so that they can make informed choice of the products which will best satisfy their needs. But personal selling must not be overlooked: it remains an extremely important part of a salesperson’s arsenal and is a skill every good salesperson must master. Share Your Word File Modern salesmanship plays an important part in the present day world. Another advantage is that personal selling can be an important source of marketing information. A salesman finalises the deal. It results in large scale production and reduction of costs and prices. Personal selling as a promotional tool performs different roles to different parties when necessary. Personal selling costs can be controlled by adjusting the size of the sales force (and resulting expenses) in one-person increments. Its role and importance in marketing can be discussed as follows: ii. Personal selling should be part of a wider sales mix, alongside telesales, email marketing, sales promotion, advertising, and public relations. It is easier to persuade a person to buy a product through face-to-face explanation. He helps in improving the product and sale policies by providing feedback obtained from the customers. Personal selling creates product awareness, stimulates interest, develops brand preferences, negotiates price etc. IMPORTANCE TO BUSINESSMEN/COMPANY: Effective Promotional Tool: Personal selling is an effective promotional tool in the hands of businessman for increasing sales. (iii) He creates more and more regular demand thus makes planned and regular mass production possible. Personal selling is required to sell high-priced consumer durables like television, refrigerator, etc. (h) Effective tool – Personal selling is the most effective method of selling as the efforts under this method are focused on the actual and potential buyers. Importance of Personal Selling to Society. personal selling strategy. The product is in the introductory stage of its life cycle; 5. The prospective buyer can make inquiries regarding the product and the salesman answers these queries quickly and removes any doubts in the mind of the buyer. This helps then to match their needs and the product. Link with Customers. Personal selling is a promotional method in which one party uses skills and techniques for building personal relationships with another party (e.g., those involved in a purchase decision) that results in both parties obtaining value. It increases customers’ faith in company and its offers. The salesmen aim to inform and encourage the customer to buy, or at least try the product. Disclaimer 9. Personal selling is important not only for businesses but also for customers and society. Advertising and publicity are among mass communication tools. But personal selling must not be overlooked: it remains an extremely important part of a salesperson’s arsenal and is a skill every good salesperson must master. Other forms of promotion are designed to move a prospect closer to a sale. State the essential elements of personal selling. The organization does not have enough money for an adequate advertising campaign; 6. (v) A salesman finalises the deal. The Selling Importance of Marketing. Under the retail channel, a sales person interacts with potential customers who come on their own to enquire about a product. Prohibited Content 3. PERSONAL SELLING ( MEANING ) Personal selling is selling technique involved between person to person and between the prospective buyer and seller. Describe the importance of personal selling form the point of customers. The short term objectives are more specific and mainly in conformity with the role assigned to the Personal selling as a part of the Promotional mix. (f) Employment opportunities – Personal selling process is carried on by the various sales persons employed by the company. A salesperson must be sweet natured, must follow code of conduct and show exemplary behaviour. It also is a more persuasive form of marketing. Personal selling, being flexible in nature, involves individual and personal communication where a salesman can tailor his sales presentations to fit needs, motives and attitudes of prospective customers. A good sales person must have passion and ability to inspire trust in his/her customers. Induces Customers C. Importance to Society – 1. Personal selling plays a vital role in promotion of goods and services of an organization. The importance of the personal selling is three fold i.e., the benefits which it provides to business; customer and society. Although personal selling is useful for almost every product or service, it is particularly important when: 1. India is a diversified country. The company do not go for advertisement. At the end of every call/visit, a salesman can easily judge whether the customer is interested or indented to buy. Salesman can provide necessary information to customer about company’s offer, and also can collect information from customer. Personal Selling is an important means of selling product to customers viz. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to “close the sale” Importance of personal Selling Personal selling is an important element of promotion mix and an effective promotional tool. Importance of Selling Skills. Dynamic youth can take personal selling as a career. The stages in personal selling … Personal selling is important in the following ways: Many a times, the consumer has certain doubts or emotional objection regarding the features or the usefulness of the product. Indeed, salesmanship is the major factor underlying the success of most business houses. A good salesperson must have good command over the language. Personal Selling and Qualities of a Good Salesman, Personal Selling: Objectives and Features, Sales Process: 8 Steps of Sales Process (With Diagram). Personal Selling offers the following compensation. Flexible Tool 3. It assists the society, thereby, in increasing employment opportunities. Personal selling is based on personal interaction between the salesperson and the customer. Advertising acquaints potential customers with a product and thereby makes personal selling easier. 3. Better Standard of Living – It induces the customers to purchase a new product which is capable of satisfying their needs and wants in better way and thus, helps in improving their standard of living. A salesman increases the sales by identifying new customers and persuading them to buy the product. Personal Selling benefits can be categorized from the consumer and businessman perspective in the following manner: 1. Product Standardisation. For a business firm, personal selling is important because of the following advantages: Personal selling is an effective tool to increase the sale of a product. This increases profitability of the company. The ultimate objective of producing goods and services is to sell them to the consumers. Personal selling can be directed only to qualified prospects. Product Standardization – It increases product standardization and uniformity in consumption pattern in the diverse society. Thus, Personal selling has made the large scale production and sales possible. As a matter of fact, volume of sales and goodwill largely depend upon the character of salesmanship offered. Salespersons put vigorous effort in collecting market information, credit information, delivering goods and collecting payments. The importance of personal selling can be described as under: 1. Copyright 10. Personal selling is a face-to-face sales presentation to a prospective customer. To communicate effectively, you need to take into account the needs of multiple stakeholders. This helps to have repeated sales and achieve objectives of business. This role of personal selling becomes more important for the illiterate and rural customers, who do not have many other means of getting product information. Sales are the major source of revenues to a business. The importance of personal selling to a business organization are: i. ii. (b) Price stabilization – Personal selling play an important role in maintaining equilibrium between the demand and supply of products and thus, reduce the fluctuations in price. What is personal selling? Flexible Tool – Personal selling is more flexible than other promotional tools such as advertising and sales promotion. As a method of promotion, personal selling is much more flexible and effective than advertising and sales promotion. (iii) Expert Advice – Salespersons provide customers expert advice and guidance in purchasing goods and services. Benefits from the Consumers Point of View: (i) A salesman explains to his customers how well the product he is selling can satisfy their needs. Personal selling is the process of communicating with a potential buyer (or buyers) face-to-face with the purpose of selling a product or service. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. Personal selling is the personal presentation of a tangible product or intangible services or ideas to the customers. Other benefits of personal selling, due to which it is a famous promotion activity are: i. These objectives change very frequently as soon as there is a change in the Promotional mix. From above discussions you must have realised that success of personal selling as a promotional tool solely depends on the salesperson. Lasting Relationship 6. 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