Page 12 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management
Notes
6 LOVELY PROFESSIONAL UNIVERSITY
These distinctive qualities come at a cost. A sales force represents a greater long term cost
commitment than advertising. Advertising can be turned on and off, but the size of sales force is
much difficult to alter.
1.3.1 Advantages of Personal Selling
Following are the advantages of personal selling because of which it is the most commonly used
promotion tool:
1. Ability to close sales.
2. Ability to hold customer attention.
3. Immediate feedback and two-way communication.
4. Presentation is tailored to individual needs.
5. Ability to target customer precisely.
6. Ability to cultivate relationship.
7. Ability to get immediate action.
1.3.2 Disadvantages of Personal Selling
Despite all these advantages of personal selling, it is not without disadvantages because of
which sometimes companies may hesitate to adopt personal selling as a promotion tool.
1. High cost per contact.
2. Inability to reach some customers effectively.
1.3.3 New Approaches in Selling
Changes are taking place rapidly in selling and sales management. In order to bring down the
cost of personal selling, companies are tying to tele marketing and other direct selling methods.
Buyers are becoming more sophisticated, knowledgeable and demanding. They want to deal
with those people who have product knowledge and experience.
The intermediaries want help in determining inventory levels’ preparing trade advertising and
planning, displays and layouts. Customers want presentations based on facts, products and
services that help them to solve their problem.
The Sales person just doing the talking and smiling is out of date. Therefore, the emphasis is on
developmental roles, team selling, selling through computer and Market Information System
(MIS) as well as on tele marketing. Today the demand is for those sales persons who are qualified,
trained, capable to sell and can make long term problem solving relationship with the prospects.
It requires the recognition of their service and rewarding them adequately for their efforts.
Direct Marketing
Direct marketing is an emerging form of distribution and promotion that combines elements of
personal selling and advertising. It is an interactive communication. It is done by mail, telephone
or by electronic media to establish direct relationship with customers. It can be done for specific
and immediate action when desired. Currently communication and computer technology have
come together to give birth to tele-marketing – a very powerful cost effective tool for business
to reach target customers and business markets. The rapid growth of tele-marketing is the result