Page 22 - DMGT205_SALES_MANAGEMENT

Sales Management

Notes 2.1 Definition

"The oral presentation of a company's products, or services to one or more prospective purchasers
for the purpose of making a sale". It is the art of successfully persuading prospects or customers
to buy products or services from which they can derive suitable benefit thereby increasing their
total satisfaction, i.e., delight.
The terms personal selling and salesmanship have different meanings. Salesmanship is a seller
initiated effort that provides prospective buyers with information and motivates them to make
favourable decisions concerning the seller's product or services. Personal selling on the other
hand is a two-way communication involving individual and social behaviour. It aims at bringing
the right product to the right customer. It is used for creating product awareness, stimulating
interest, developing brand preference, negotiating price, etc.

Personal selling is used extensively in complex and highly technical products like computers,
electronic typewriters, digital phones, microwaves, aquaguard, remote controlled appliances,
etc. It is used for selling to industrial consumers who may be having technical queries and want
to purchase in bulk. The increase in competition from foreign and domestic sources has increased
the importance of personal selling.
The salesman acts as a catalyst and consultant to the customer by providing information and
benefits of the products. He also works out the details, manner and timing of giving physical
possession to the customer. Personal selling is basically used during the product launching
stage when a firm cannot afford a large expenditure for advertising. Thus, personal selling is an
integral part of communication mix. It becomes important because it educates the consumer and
makes him understand the special functions and attributes of the product.

Personal selling is a tool for building up buyer's preference, conviction and action. The reason
is that personal selling when compared with advertising, has three distinct benefits.

Did u know? The main objectives of personal selling would be in any organisation to
increase the sales volumes, increase of sales revenue, reduce the cost of sales, and increase
the number of distribution channels to gain corporate clients, increase sales per person
and number of sales points.

Self Assessment

Fill in the blanks:

1. Personal selling involves persuading .................. to buy the goods.
2. The ultimate objective of personal selling is .................. .
3. The most important element of personal selling is .................. interaction.

4. Supply of information to customers makes personal selling an .................. process.
Personal Confrontation

Personal selling involves an alive, immediate and interactive relationship building between
two or more persons. Each party is able to observe the other's needs and characteristics at close
hand and make immediate adjustment.

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