Question

How do companies plan, implement, and control the personal selling function?

Answer 1

Personal Selling is a type of sales process wherein the sales force ie people are deployed by businesses to promote and sell the product after meeting face to face with the customer. The salesperson meets the customer in person, and promotes the product using his expert product knowledge, attitude, and personality. The emphasis is on demonstrating the product and informing the key benefits thus convincing the customers to buy or at least try the product once. Importantly, a great amount of time is spent on developing positive relationship which aids in sales and also in repeat purchase and positive word of mouth to generate referrals.

Various companies which resort to Personal Selling which is also called as Direct Selling are Eureka Forbes, Tupperware, Amway, etc.

Companies hire the sales force in large numbers and provide extensive training to them so that they become expert at not only knowledge of product but also in demonstrating the same and converting into sales. The company and product promotion is handled by marketing team which creates an awareness amongst the masses apart from the word of mouth of existing customers.

On the basis of mass communication, enquiries are generated. Further focussed marketing efforts are made like telecalling on a database so that leads are generated. Customers who have a need and would like to know more are requested to give a suitable time for appointment. The sales person meets the customer at such time and explains the product with demonstration. The customer may buy then and there or takes some time to think over. During this time, the sales person provides the additional information as required and also addresses any specific queries that the customer may have to help him arrive at a decision. Once deal is closed, the amount is collected and product is delivered.

So, basically the steps followed are :

1. Lead Generation

2. Fixing Appointment

3. Preparing for the meeting

4. Meeting the customer & demonstrating the product

5. Handling objections & giving additional information

6. Closing the sale

7. Followup

8. Seeking more referrals

Out of multiple leads generated only few customers end up buying so it can be said that the conversion ratio is less. So, to do a particular sales, a vast amount of leads need to be generated for which even a bigger count of people must be touchbased by marketing to arouse the desire.

For every sales person, the leads in hand are counted. On basis of same, the number of calls made daily, the conversion, number of customers who bought the product is noted. The lead generation is done on basis of cold calling too wherein customers are directly touchbased by the sales person for example a sales person going door to door selling house cleaning products. So personal selling can happen at any location at home, at office, on the golf course, in train, etc

Companies focus on recruiting large number of sales force and adequate training is given. There is a good amount of variable component in pay and also incentives to perform. The motivation and morale is held high.