Main Strategies, Types, Principles, Stages of Personal Selling - Assignment Example

Task 1 – Personal selling Assessment criteria 1.1 Provide two examples of objectives from different elements in the communication mix and explain their roles and the relationship between them Advertisement is the classical component of the communication mix. This aspect of the communication mix has the objective of reaching the largest amount of audience possible in a short span and low cost. This is why it is also called the mass media type of mass communication. The objective of this communication mix is to reach the audience in a time efficient and cost efficient manner. This is usually used to create awareness in products of high value and as the only medium of communication for low value products. Personal selling is the most expensive tool of the communication mix. This is because it requires a one to one dealing with the customer. It is usually thought of as more appropriate for large organizations selling high value products. The low value products have a large volume and a large volume means a large customer base. The increased amount of customer usually makes it very difficult to engage in personal selling due to obvious cost concerns. However it can be very effective for smaller businesses if they can create long lasting relationships with their small customer base. The objective of this tool is therefore to create long lasting relationships with the customer. As can be seen the focus of both objectives is to increase market demand. The advertisement creates market demand by creating awareness about the product, on the other hand personal selling creates relationships. Assessment criteria 1.2 Illustrate how an understanding of buyer behavior can be used in personal selling The phenomenon of buyer behavior has been the center of many different studies over the years. There are many different aspects of buyer behavior. The behavior of buyers in individual capacities is totally different from their role in business to business sales. The individual when making purchase decision takes into account a number of different factors. The primary and most important factor is the economical factor. Different consumers have different budgets and economical barriers. When making buying decisions these consumers do not exceed their specified budgets. The social factor is another important factor when we talk about buyer behavior. There are many social constraints when buyers make buying decisions. A very common example is the apparel industry. Some dresses are thought of as unacceptable in socially conservative societies. On the other hand they are considered fashionable in liberal ones. All these considerations along with many others are an important aspect of consumer behavior. The mass media tools of the communication mix have their limitations when it comes to targeting specific buyer behavior or preferences. This is because they are aimed at a larger audience and therefore cannot be customized to match the needs of a specific target market. Personal selling however is different and holds an advantage over other tools of the communication mix. This is because as personal selling targets individual customers it can be customized to meet their specific needs. The first advantage of this understanding is to establish an effective feedback system. The marketing agent can relay aspects of buyer behavior as feedback to the head office. The can change aspects of the service or product to match customer needs. Secondly an understanding of buyer behavior enables agents to effectively pitch when making personal selling efforts. For example an adequate understanding of customer budgets for a certain product would help pitch a reasonable and acceptable price. Assessment criteria 1.3 Identify the environmental and managerial forces affecting personal selling There can be many different managerial implications of personal selling and these implications have direct effect on personal selling through the decision making process. The personal selling process is different for small companies and larger companies. The association of the sales person and especially the packages and compensation being offered to the sales people would have a very important effect on managerial decisions. In organizations where the sales agent is usually a decision maker in the organizations and holds other posts such as marketing head etc i.e. small companies, the control of managerial forces on personal selling is minimal. The sales agent in such organizations usually holds power and has a very strong say in managerial decisions. In large organizations however managerial positions are totally separated from sales agents and these agents usually work as commission agents where large part of their salary is decided on an incremental basis directly linked to their sales volume. The role of sales agent in such organizations is totally different and they are entirely susceptible to managerial forces. This is because the management controls their performance by a number of different managerial controls such as sales targets, commissions and promotions. Therefore the management can directly affect the whole process of personal selling. The personal selling process is also effected by environmental forces i.e. PESTEL. This is because these forces effect the entire business environment and therefore also directly affect personal selling. The demand and supply of products can be directly affected by these environment forces. Assessment criteria 1.4 Describe the main types of personal selling There are many different levels on which personal selling can be differentiated. The medium being used by the personal selling agent can be a factor of differentiation. There are four main communication tools being used for personal selling efforts. The oldest method of personal selling is meeting client’s face to face or direct contact. This method however is becoming obsolete in the modern business environment. This is because the number of clients and prospective clients makes it inefficient to use this medium of communication. The three popular medium of communication are telephone, teleconferencing and internet. Telephonic marketing is being widely used by organizations all around the world. Call centers present in countries like China, India, Malaysia and Pakistan provide outsourcing services for such companies. The other differentiation could be made on the role of personal selling in marketing communication. The first job is to seek out people who can be potential buyers. These people are than assisted in making their decisions. They are guided and given complete information by the sales agent about the products being offered. The sales pitch sometimes includes demonstrations of the product being sold. Here the agent would practically prove why the product being offered should be bought. After this the agent would persuade according to each individuals psychological contact of the viability of the sale. Task 2 – The selling process Assessment criteria 2.1 Discuss the principles of personal selling. Professionalism is the key to excelling at any job available in the market. The professionalism is however much more important for sales people. This is because it involves ethical aspects of doing the job. The sales person first of all should have a very active approach. His approach should not be of a passive order taker but much more active. His approach should be of an order getter rather than an order taker. This approach would ensure that the complete dedication of the sales agent is reflected which is necessary for both the organization and customer. The effectiveness of the whole selling process is improved by this approach. The training of staff from order takers to order getters improve their communication skills and understanding of customer needs. Two other important principles of personal selling are negotiation and relationships. The personal seller should have the skills to reach the best price which should be as high as possible for the organizations and should also ensure future business from the client. This is because in personal selling usually the prices are not fixed and sales personnel are usually provided with prices ranges. The sales agent should also engage in long lasting relationships with their clients to ensure future business. This is done by offering lower prices, bonuses and effective after sales services. Some organizations use innovative techniques for retaining customers such as first class seats in sports stadium etc. Assessment criteria 2.2 Analyze the stages in the personal selling process The different stages of the personal selling process can be distributed into five different stages. The first stage is called prospecting. In this stage the agent has to identify different targets for efforts of marketing. A very important aspect of ethical personal selling is going after prospectors rather than confirm buyers. As the reward system of most agents is linked with the volume of their business, these agents usually make the mistake of targeting confirm buyers in order to increase their own sales volume. The second stage of personal selling is called the first contact. In this stage the home work of the sales agent is the most important thing. The agent must be aware of the buyer perceptions about the product being offered. These perceptions include sales estimates and product functions. The agent therefore has to make estimates about customer perceptions and on basis of that information construct an attractive sales pitch. The sales pitch is the most important part of personal selling. In this stage the agent has the chance of convincing the customer of buying the product on offer. Usually the agents make the mistake of just stating features of their products rather than focusing on what the customer is looking for. Moreover an excited sales pitch induces excitement in the customers and goes a long way in establishing a positive buying mode. At this stage the feedback of the customer is very important. This is because once the customer engages with the agent in a discussion only than the agent can understand the true customer demands and perceptions. Therefore in the sales pitch the client should do at least 80% of the talking. This feedback leads to the fourth stage of personal selling. This stage handles the objections made by the clients. The agent should tactfully handles these objections i.e. try to maintain good terms with the customers and also keep in mind corporate objectives. The best method therefore is to effectively perceive customer objections and come prepared before the sales pitch. The fifth and final stage in the personal selling process is the called closing the sale. There are two separate parts to this stage. The first part is the administrative part. The agent has to get all the proper documentation to make the sale effective. Any error in this aspect can lose money to the company and be a discomfort to the client. The second aspect is emotional intelligence. The agent must understand client’s emotions and manage his own emotions. Task 3 – Sales management: Assessment criteria 3.1 Explain how sales strategies are revised in line with corporate objectives The corporate objectives dictate the entire tactical position of a firms business. These objectives usually change from time to time according to market demand and changes in trends. For example when a new player enters the market the corporate objectives can be radically changed to match the new market environment. The old corporate objectives such as profit reaping could suddenly change to customer retention. This strategy would reduce prices on products and induce the sales force to give discounts to retain customers. Moreover sometimes the corporate objectives can change from expansion to retention. The sales force would emphasize on promoting products in current regions rather than expanding into other markets. Similarly many different shifts and changes can take place in corporate objectives. These shifts are reflected in the sales strategies of a company. Assessment criteria 3.2 Devise appropriate recruitment and selection procedures The sales force of a company defines its true identity. The sales agents are not only the key tool in generating revenue but also hold the brand value and brand image of products. Therefore the effective recruitment and selection of sales personnel is very important. The first step is to have an efficient human resource department. This department should develop all the necessary tools to empower and educate current employees to be promoted upwards. This would not only provide important jobs with people who have adequate knowledge about the company but also create a motivational factor for the organizations. The hiring from the market can be done through many online websites which contain useful data for candidates willing to work. Moreover fresh candidates can be hired directly for universities. Jobs tests are an effective method of short listing candidates for jobs. Assessment criteria 3.3 Evaluate the role of motivation, remuneration and training in enhancing sales performance The level of motivation plays a very important role when we talk about sales agents. This is because sales agents work in a more different environment as compared to other employees of a company. Therefore the same motivational tactics do not apply on sales force. The psychological contract of sales agents is different from other employees of a work. They are more goal and project oriented. Moreover their key priority is monetary benefits. Therefore the best method of enhancing their performance is to increase their percentage of share in the profits. The learning aspect of employee satisfaction is also very important in today’s learning environment. Employees prefer working in organizations which provide opportunities for them to learn and grow. Therefore providing opportunities to learn and grow have to fold effects on the sales force. First of all employee performance is improved due to effects of training and secondly increased motivation reduces turnover and increases performance further. Assessment criteria 3.4 Describe two techniques used to co-ordinate the control sales output In an ever competitive market place it is increasingly difficult for organizations to understand and predict their sales forecasts. The main issue is the increasing number of competitors in the market. The substitutes make it difficult for marketers to correctly assume demand in the market. Moreover it is also very difficult to analyze the rapid change in global trends especially with industries such as apparel. The promotional activities of a product can be increased or reduced to control sales output. Moreover bonuses and gifts can be given in the packaging to increase sales output. Assessment criteria 3.5 Use given information to recommend appropriate organization structures and procedures Each organization structure has its own disadvantages and advantages. In governmental organizations bureaucratic organizational structures are the most suited with a long chain of command. In FMCG organizations however divisional structures are the ones most preferred. There are a number of reasons for this preference. First of all as the name suggest in FMCG organizations the market place changes rapidly and therefore the organizations needs to react in a very fact manner in order to be successful. Therefore the divisional structure enables it to attain the required level of flexibility. Task 4 – Sales environments and contexts Assessment criteria 4.1 Identify and give three examples of the differences in the nature of sales tasks and skills in a variety of contexts There are three basic sales takes and various different sales skills. The matching of sales tasks with skills of a sales person is integral to an effective sale. For example the sales task of order getting is the first and foremost important task and requires the agent to be a good listener. This is because until the sales person does not effectively listen to his customer, an effective sales pitch cannot be constructed. In the process of order getting the sales person should have the ability to be effective communicator. Until the sales person does not effective communicate the products on offer the customer would not be interested in placing his order. The third sales task is support service. The sales person should be courteous and should have the ability to take criticism positively. Assessment criteria 4.2 Explain the role sales staff operating in an international environment The job of sales staff is becoming more and more complex. The sales agents are increasingly using mediums such as teleconferencing and telecommuting to connect with customers thousands of miles away. This increases the diversity of their customer base and makes their job much more complex. Moreover on the international scenario organizations are increasingly expanding their portfolio of products to reduce their emphasis on just a few products for revenues. All this and more increases the complexity of roles of sales person. Therefore they have to keep in mind the cultural implications and be sensitive to culture of their individual customers. This is not a simple task as globally cultures are a lot diverse. Assessment criteria 4.3 Explain the purpose of trade fairs and evaluate their contribution Trade fairs are an important tool to launch new and innovative products. Moreover they can provide organizations an opportunity to compete with their competitors. Moreover the customers get a chance to compare different products and choose the best ones. These trade fairs are becoming increasing a competitive war zone. The increased media coverage ensures that they are widely followed and watched. Therefore organizations try very hard and use all means necessary to provide the best products. These trade shows therefore not only create positive competitions but also act as a marketing and promotion tool. References Ronald, M. (1988). Personal selling: an interactive approach. Allyn and Bacon Futrell, C. (1992). Personal selling: how to succeed in sales. Business One Irwin Marks, R. (2006). Personal Selling: A Relationship Approach. Cengage Learning Calvin, R. (2004). Sales Management. McGraw-Hill Honeycutt, E., Ford, J., Antonis, C. (2003). Sales management: a global perspective. Routledge Vower, D. (2008). How to Achieve Your Sales Targets in Easy Steps . Einze (http://ezinearticles.com/?How-to-Achieve-Your-Sales-Targets-in-Easy-Steps&id=3886149) Rauseo, N. (2006). Leveraging CRM for sales: the role of organizational capabilities in successful CRM implementation. Journal of personal selling and management (http://www.allbusiness.com/marketing-advertising/relationship-marketing/866505-1.html) Meisenheimer, J. (2008). More Simple Truths about Personal Selling Success. Einze (http://ezinearticles.com/?More-Simple-Truths-About-Personal-Selling-Success&id=105107) Read More