Page 33 - DMGT205_SALES_MANAGEMENT

Unit 2: Personal Selling

Notes
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Case Study Personal Selling

run Lal, a sales representative of a progressive company was doing brisk business
by cold calling. He would randomly pick any building and start chatting with
Asecretaries collecting information which provided him with valuable names and
designations which made his calls less cold.
Arun Lal would make around 30 calls per day which includes about 4 presentations. He
has been a salesman for over 15 years and has made about 15000 calls in his career. His
secret of success in cold calling was alertness and fast thinking. He would assure that every
prospect was a decision maker and could give him business.
In contrast to this, Madan Mohan working for a telemarketing company would make
unsolicited telephone calls with potential customers. He would use various marketing
tactics to persuade these customers to buy or at least be interested in the product. If calls
seemed interested they were transferred to another section of employees as qualifiers.
These qualifiers evaluated the prospect's investment objectives, willingness to accept
following calls and financial ability.
A set of 20 telemarketers made about 9000 initial contacts and opened about 35 accounts in
a 4 day period.

The Government has passed a regulation and put restrictions on unsolicited telephone calls
to customers. This was done on the instance of many complaints received from customers
who did not want to receive telemarketing calls and are critical about this procedure.
Auto dialing by computers to hospitals and other institutions were a great distraction as
these organisations needed open lines. Some rule makers are also of the opinion that
unsolicited sales calls be banned where the caller has to sort the bill in case of phones,
others want to ban calls at homes.

Cold calling is often unpopular but it can be effective if there is some benefit to the
customer in case of information about some schemes or discounts.
Arun Lal is trying to get sales by dynamic personal selling which requires positive bent of
mind. In case of Madan Mohan the focus is organised modern technology. Both sales
person are for the time being engaged in cold calling, showing that cold calling is very
much alive at the moment.
Questions

1. Compare and contrast cold calling between the 2 salesmen.
2. Which of the two companies is going to be affected by new rules?
3. Which of the patterns of cold calling would you prefer?

2.9 Summary

 Personal selling is a part of communication mix.

 Personal selling involves an alive, immediate and interactive relationship building
between two or more persons.
 Personal selling is a tool for building up buyer's preference, conviction and action.

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