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.

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Differences between a Businessman and Entrepreneur

Are you a businessman or an entrepreneur? Have you ever wondered what’s the difference between the two? Business people and entrepreneurs have many similarities. They both provide jobs for the unemployed, give solutions to the consumers, and help in developing the economy of a certain nation. However, they are not the same kind of people.

Most of the people have a misconception that the terms businessman and entrepreneur, carry the same meaning.

A businessman walks on the defined path, but an entrepreneur believes in making his own path, which becomes a guideline for other businessmen. In this article, we will help you know the difference between businessman and entrepreneur.

The question is who is a Businessman and who is an entrepreneur?

A businessman is person who is engaged in carrying out any activity, related to commercial and industrial purposes. He sets up his business as a new entrant in the market as for the existing business. When it comes to originality of ideas, most of the businessmen go for a business which is highly in demand or which can make huge profits for them irrespective of uniqueness.

A businessman faces tough competition because there are hundreds of rivals already existing in the market undertaking the same business. Although the risk factor is low because he walks on a path that is already tested by the rivals so the chances of failure are relatively low. The main objective of a businessman of conducting the economic activities is to generate revenue by employing the human, financial and intellectual resources. By virtue of this, customers are treated as the king of business by the businessman.

While An entrepreneur is a person who conceives a unique idea or concept to start an enterprise and brings it into reality. He is the person who bears risks and uncertainties of the business. The venture established by the entrepreneur is known as Startup Company, which is formed for the very first time regarding the idea, innovation or business process. They are the ones who lead the market always no matter how many competitors will come later, but their position will remain untouched.

In economics, the entrepreneur is considered as the most important factor of production, which assembles and mobilizes the other three factors of production i.e. land, labor and capital. In the long run, these entrepreneurs become a businessman.

Entrepreneurs are known for their creative approach. They introduce innovation and coordinate the resources. They offer such products and services which bring about a change in the world.

Key Differences Between Businessman and Entrepreneur

On originality of  ideal.

A businessman can make a business out of an unoriginal business or product idea. He enters into existing businesses, such as franchising and retailing. He chooses a hot and profitable business idea regardless of whether it is his original idea or borrowed from someone else.
An entrepreneur is an inventor and the first creator of a product. He invests time, energy and money on his own idea. He doesn’t start a business from an unoriginal idea. That is why he starts on a startup while a businessman starts on a business.
On the purpose of doing
Most businessmen are doing business for profit, livelihood, for reaching their financial goals, and for becoming their own boss. Though, there are some business people who are not profit-oriented but people-oriented, that is, they are more concerned on the welfare of their workers and the satisfaction of their customers. Entrepreneurs are more concerned on changing the world. They want to pursue their passion and achieve an ultimate goal. They are not keen on financial returns, rather they are focused on what they can offer to the world. Their purpose for entrepreneurship is simply to make a difference in this world.
On the degree of risks taken
Businessmen take calculated and managed risks. They cannot afford to lose money and suffer from bankruptcy. That is why they always do the Math when it comes to business. Entrepreneurs are like sky divers. They take crazy risks. They often don’t care of losing time and money just to pursue their passion. But since they do it with love, joy and passion, they often gain extraordinary rewards. Entrepreneurs, since they do the things they love the most, they do it with the best of themselves, resulting to greater success.
On how he treats employees

A business owner is an employer and a manager. He hires employees and workers to help his business grow. An entrepreneur is a friend and a leader. He finds peers and PEOPLE, whom he will never treat as machines. He invites them to help them grow.

On how he treats customers.

A business owner usually sees customers as his source of sales and revenues. For him, customers are the lifeblood of his business. An entrepreneur sees customers as his source of duty and fulfillment. For him, customers are his own life blood.

On how he sees the competition

A business owner tries hard to beat his competitors and win the competition. He also considers cooperation rather than competition to achieve certain goals. An entrepreneur tries hard to beat his worst competitor – himself.

On what he thinks of money

Losing money is one of the biggest worries of businessmen. Most business owners rely on a good economy to start, operate and attain success in business, especially in the retail, franchising and financing industry. Entrepreneurs do not worry a lot about money since they can always start from a scratch. Some entrepreneurs don’t really care about money at all.

On how he deals with time

A businessman doesn’t waste time. He always check the clock and doesn’t want any work or output to be delayed out of schedule. He is fast and always on the go. An entrepreneur works like an artist or a scientist in a lab. His product is his masterpiece. That is why he can be slow and could spend a longer period of time to finish and perfect his product.

On how he sees the world

A businessman sees the world as an opportunity. He sees it as an opportunity to make a living. He also sees it as an opportunity help the people living on it. An entrepreneur sees the world as a duty rather than an opportunity.

On how he defines success

A businessman defines success as the success of his business and its stakeholders. Its stakeholders include himself, co-owners, employees, customers, investors, and even his community. An entrepreneur doesn’t define success. He simply do his job and let history defines the success that he accomplished.

Remember both businessmen and entrepreneurs are supposed to be the kind of people that our world needs. A businessman needs an entrepreneur. An entrepreneur may also need a businessman. There can also be a person who is partly a businessman and partly an entrepreneur.

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The Expansions from the 4P's to the 7P's marketing model

MarketingMix 7P’s

The 7Ps model is a marketing model that modifies the 4Ps model. The 7Ps is generally used in the service industries.

Here is the expansions from the 4Ps to the 7Ps marketing model:

Marketing Mix : People

Of both target market and people directly related to the business.

Thorough research is important to discover whether there are enough people in your target market that is in demand for certain types of products and services.

The company’s employees are important in marketing because they are the ones who deliver the service. It is important to hire and train the right people to deliver superior service to the clients, whether they run a support desk, customer service, copywriters, programmers…etc.

When a business finds people who genuinely believe in the products or services that the particular business creates, it’s is highly likely that the employees will perform the best they can.

Additionally, they’ll be more open to honest feedback about the business and input their own thoughts and passions which can scale and grow the business.

This is a secret, “internal” competitive advantage a business can have over other competitors which can inherently affect a business’s position in the marketplace.

 Marketing Mix – Process

The systems and processes of the organization affect the execution of the service.

So, you have to make sure that you have a well-tailored process in place to minimize costs.

It could be your entire sales funnel, a pay system, distribution system and other systematic procedures and steps to ensure a working business that is running effectively.

Tweaking and enhancements can come later to “tighten up” a business to minimize costs and maximizes profits.

 Marketing Mix – Physical Evidence

In the service industries, there should be physical evidence that the service was delivered. Additionally, physical evidence pertains also to how a business and it’s products are perceived in the marketplace.

It is the physical evidence of a business’ presence and establishment. A concept of this is branding. For example, when you think of “fast food”, you think of McDonalds.

When you think of sports, the names Nike and Adidas come to mind.

You immediately know exactly what their presence is in the marketplace, as they are generally market leaders and have established a physical evidence as well as psychological evidence in their marketing.

They have manipulated their consumer perception so well to the point where their brands appear first in line when an individual is asked to broadly “name a brand” in their niche or industry.

MarketingMix 4C’s

The 4Cs marketing model was developed by Robert F. Lauterborn in 1990. It is a modification of the 4Ps model. It is not a basic part of the marketing mix definition, but rather an extension. Here are the components of this marketing model:

• Cost – According to Lauterborn, price is not the only cost incurred when purchasing a product. Cost of conscience or opportunity cost is also part of the cost of product ownership.
• Consumer Wants and Needs – A company should only sell a product that addresses consumer demand. So, marketers and business researchers should carefully study the consumer wants and needs.
• Communication – According to Lauterborn, “promotion” is manipulative while communication is “cooperative”. Marketers should aim to create an open dialogue with potential clients based on their needs and wants.
• Convenience – The product should be readily available to the consumers. Marketers should strategically place the products in several visible distribution points.

Whether you are using the 4Ps, the 7Ps, or the 4Cs, your marketing mix plan plays a vital role. It is important to devise a plan that balances profit, client satisfaction, brand recognition, and product availability. It is also extremely important to consider the overall “how” aspect that will ultimately determine your success or failure.

By understanding the basic concept of the marketing mix and it’s extensions, you will be sure to achieve financial success whether it is your own business or whether you are assisting in your workplace’s business success.

The ultimate goal of business is to make profits and this is a surefire, proven way to achieve this goal.

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