PERSONAL SELLING

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. The main thing that sets personal selling apart from other methods of selling is that the salesperson conducts business with the customer in person. Though personal selling is more likely to be effective with certain types of products or services, it has important applications for nearly all kinds of small businesses. In fact, most of history's successful entrepreneurs have been skilled salespeople, able to represent and promote their companies and products in the marketplace.

Personal selling is one part of a company's promotion mix, along with advertising, sales promotion, and public relations. Advertising is any form of paid sales presentation that is not done face-to-face. Television and radio commercials, newspaper and magazine advertisements, and direct mail inserts are well-known forms of advertising. Sales promotion is the use of incentives—such as coupons, discounts, rebates, contests, or special displays—to entice a customer to buy a product or service. Public relations is the act of building up a company's image in the eyes of the community in the hopes of translating the feelings of goodwill into sales. An example of public relations might include a company sponsoring a charity event.

Personal selling offers entrepreneurs both advantages and disadvantages in comparison with the other elements of the promotion mix. On the positive side, personal selling allows the salesperson to target the message specifically to the audience and receive immediate feedback. In this way, it is more precise than other forms of promotion and often has a greater persuasive impact. Conversely, personal selling cannot reach as many potential customers as advertising, plus the cost of each contact is much higher. Another advantage is that personal selling can be an important source of marketing information. Salespeople may learn about competitors' products, for example, or about emerging customer needs that may lead to the development of a new product. If the sales force is well trained—acting as problem solvers and advisors for customers rather than using hard-sell tactics—personal selling may help a small business build loyal, long-term relationships with customers.

A small business may choose to use any or all of the promotion mix elements in selling its products. Deciding how to allocate resources for each component involves a number of factors. Some of the things entrepreneurs should consider when deciding on the ideal promotion mix include the type of product or service, the value of the product or service, and the budget allotted for marketing.

WHEN TO USE PERSONAL SELLING

In general, if a product has a high unit value and requires a demonstration of its benefits, it is well suited for personal sales. For example, an iPhone is a high-priced item and most people do not feel they need one. After a demonstration, however, most people agree it would be a useful item to have. Therefore, iPhone are well suited to a promotion mix that emphasizes personal selling. Highly technical products, such as computers and copiers, are also primarily sold through personal sales methods. Products that involve a trade-in, like automobiles, are usually handled through personal selling to help facilitate the trade-in process. Finally, a company that cannot afford a mass-advertising campaign might consider personal selling as an alternative to advertising. Since sales force compensation is largely based on actual sales, personal selling may require less money up front than other parts of the promotion mix.

STEPS IN COMPLETING A SALE

The many different types of salespeople all go through the same basic steps when making a sale: prospecting and qualifying, preapproach, approach, presentation and demonstration, handling objections, closing, and follow-up. Although training for personal sales forces may vary from one organization to another, the majority of the training will include some version of these steps.

Prospecting and qualifying involve locating potential customers and finding out if they are in a position to buy. Prospecting, or lead-generation, can be as simple as asking current customers for names of acquaintances who may also be interested, or as sophisticated as using a database or mailing list.

The preapproach step involves researching the prospective customer—often another company. The salesperson may read up on the company, talk to other vendors, or study the overall industry. At this stage, the salesperson will also try to determine the best time to make the sales call and establish sales call objectives

Once the approach has been made, the salesperson should be ready to launch into the demonstration or presentation. Depending on the company and the product or service, there are generally three types of presentations. The prepared or "canned" approach involves a tightly scripted talk that is either memorized or read. The formula approach is less rigid. Depending on the buyer's response to some carefully asked questions, the seller will go to a formula presentation that he or she hopes will meet the customer's needs.

Presentations and demonstrations may involve any number of visual aids, such as flip-charts, or samples of the products themselves. One of the keys to a successful presentation is product knowledge.

Handling objections is the next phase of selling. Almost every customer will present objections to making a purchase. A good salesperson is not flustered by these objections and handles them in a positive, confident manner. One approach to handling objections, used frequently with canned presentations, is simply to acknowledge the objection then continue with the presentation

The next step in the process of completing a sale—closing, or asking the buyer to make a purchase—is often identified by salespeople as the toughest step. In fact, some new salespeople are so reluctant to be perceived as aggressive that they never try to close the sale. Consequently, the customer may become annoyed and decide not to purchase just for that reason. Customers must be given the opportunity to purchase. Salespeople need to learn to look for signals that a closing is appropriate.

The last step in completing a sale—following up—is often neglected, but is important for many reasons. The follow-up, which can be done in person or by telephone, gives the customer the chance to ask questions and reinforce his or her buying decision. The salesperson can review how to use the product, go over instructions and payment arrangements, and make sure the product has arrived in proper working order.

IMPROVING THE REPUTATION OF PERSONAL SELLING

Personal selling involves specific steps, requires training and experience, and employs some highly talented people. Unfortunately, personal selling is also commo

nly perceived as being a less than reputable field of work. Unethical salespeople, aggressive or hard sell tactics, and misleading sales pitches have made many buyers wary of personal sellers. Fortunately, much has been done to address this issue. Selling associations such as the Direct Selling Association have adopted codes of ethics that dictate standards of behavior that all members are to follow. Most organizations with personal sales forces also adopt their own codes of ethics that provide guidelines regarding the type of sales pitch that can be made, and the hours during which a sales call may be made. Many companies also prohibit the use of misleading information or pressure tactics to make a sale.