Page 11 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Unit 1: Introduction to Sales Management

1.3 Buyer Seller Dyads Notes

The interaction between a buyer and a seller comprises a buyer-seller dyad. It is the effectiveness
of communication between the salesperson and the customer during the sales process decides
the success of the sales call. The seller can interact with the buyer by using various techniques.
The most important of them all, where both get an equal opportunity to express, is personal
selling.
Personal selling can be defined as “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.

Example: 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.

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.

Cultivation

Personal selling permits plenty of relationships to spring up, ranging from a matter-of-fact
selling relationship to deep personal friendship. Effective sales representatives will normally
keep their customers best interest at heart if they want to maintain long term relationship.

Response

Personal selling puts the buyer under some obligation for having listened to the sales talk. The
buyer has the greater need to attend and respond, even if the response is a polite “thank you”.

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