Marketing Aptitude Study Material – Personal Selling

Marketing Aptitude Study MaterialComputer AwarenessBanking Awareness

Personal selling is an ancient art. It is a two way communication between seller and buyer. Personal selling occurs when an individual salesperson sells a product, service or solution directly to a customer. Now, companies are spending large amount of money each year to train the sales representatives.

Steps in Personal Selling

Personal selling takes place in the following ways

• Prospecting and Qualifying: Before planning a sale, a salesperson conducts research to identify the people or companies that might be interested in the product.
  A prospect is a lead that is qualified or determined to be ready, willing and able to buy.
• Pre-Approach: The pre-approach is the ‘doing your homework’ part of the process. A good salesperson researches his prospect, familiarizing himself with the customer’s needs and learning all the relevant background information.
• Approach: The first impressions (e.g the first few minutes of a sales call) are crucial to build the client’s trust.This usually involves introductions, making some small talk, asking a few warm-up questions and then explaining who you are and whom you represent. This is known as approach.
• Presentation: The presentation should be tailored to the customer, explaining how the product meets that person or company’s needs.
• Handling Objections: After the sales presentation by the sales representative, it is quite natural for the customer to have some hesitations or concerns which are known as objections. Good salespersons look at objections as opportunities to further understand and respond to customers need.
• Closing the Sale: Eventually, if the customer is convinced that the product will meet his demand, he closes by agreeing on the terms of the sale and finish up the transaction.
• Follow Up: Post sales activities that often determine whether an individual who has made a recent purchase will become a repeat customer. It helps to build mutually beneficial long-term relationships.

Characteristics of Personal Selling

• It is a creative activity.
• It involves personal relationship between customer and salesman.
• It is a two way communication of marketing.
  Customer  Seller
• An effectively trained company sales force can make four important contributions It is an oral presentation.
• It is based on social and individual activity.
• It is a tool to sell the product or service.
• It is a relationship marketing.

An effectively trained company sales force can make four important contributions

1.    Increase Stock Positio
2.    Build Enthusiasm
3.    Conduct Missionary Selling
4.     Manage Key Accounts

Significance of Personal Selling  

Following benefits of personal selling show its significance

• Benefits the Consumers: By making conversation with salesperson, the customer gets help in identifying the product of his need and the price range that suits him and by giving the requisite information about the company and the product.
• Benefits the Business: Personal selling helps a business in increasing its sales. Identification of new customers and persuading them to buy can be done effectively through personal selling.
• Benefits the Society: Sales persons inform the consumers about the introduction of new products, if any On their feedback, company improves the product and tries to match it with the demand/preference/ requirements of the consumers. It leads to more value to the society and more business as well.

Difference between Personal Selling and Advertising

Personal Selling	Advertising
Personal	Non-personal
Confined to particular area	Generally covers larger number of people
Two-way communication	One-way communication
Only one channel of transmission	Wide choice of channels
Used only for promotion and sales of products	Used for various other purposes such as seeking jobs, offering services
Aims at selling existing products	Aims at enhancing goodwill customer base
Salesmen get salary or commission or both	It involves one time of expenditure
Effectiveness depends upon qualities of the salesman	Effectiveness depends upon design of advertisement

Qualities of a Good Salesperson

Some of the common qualities which a salesperson must possess are as follow

1. Impressive Personality: Personality is a mixture of many traits like physical appearance, sense of dressing, way of talking, manners, pitch of voice, habits, etc. So, a salesperson should have an impressive personality and should also look a very friendly person.
2. Good Behaviour: A salesperson should be a well behaved person with an ability to interact with people comfortably. He should also be cooperative, a patient listener who can understand the requirements of the prospective buyer.
3. Ability to Communicate and Persuade: The salesperson must speak confidently, clearly and audibly. Good communication skill coupled with good product knowledge helps the salesperson in persuading the customer to buy.
4. Persistence: The salesperson must know the art of persistence. He/She requires a sense of determination to convince the customers to buy.
5. Mental Qualities: A good salesman should possess certain mental qualities like imagination, initiative, self-confidence, sharp memory, alertness, etc.
6. Knowledge of the Product and the Company: He should be able to explain each and every aspect of the product i.e., its qualities, how to use it, what precautions to be taken, etc to the prospective buyer.

Tit-Bits

• Personal selling facilitates the process of production, distribution and consumption,
• In order to qualify the prospects, one needs to plan a sales approach, determine the products meeting the need and rank the prospect.
• A contract of sale may be absolute or conditional. It includes a sale and an agreement to sell.
• Conversion means converting a buyer into a seller.
• Cross selling means selling to existing customers.

Check Your Skills

1. In the personal selling process, ……. and …… are involved.

1. producer, seller
2. buyer, producer
3. retailer, wholesaler
4. seller, buyer
5. None of these

2. Which is the function of personal selling?

1. Making effective sales
2. Executive function
3. Service to customer
4. All of the above
5. None of the above

3. Personal selling facilitates the process of

1. production
2. distribution
3. consumption
4. All of these
5. None of these

4. Which of the following is the quality of a good salesperson?

1. Impressive personality
2. Good behaviour
3. Persistence
4. Sound health
5. All of these

5. The importance of personal selling includes

1. benefits to consumers
2. benefits to business
3. benefits to society
4. All of the above
5. None of the above

6. The effectiveness of personal selling depends upon

1. qualities of product
2. suitable price of product
3. qualities of customers
4. qualities of salesman
5. None of the above

7. ……consists of contacting prospective buyers of product personally.

1. Product mix or marketing mix
2. Personal selling
3. Sale
4. Product
5. Style

8. In personal selling, there is ……. channel of transmission of message.

1. one
2. two
3. many
4. All of these
5. None of these

9. Where under a contract of sale, the property in the goods is transferred from the seller to the buyer, it is called

1. a property
2. a sale
3. gift
4. tax
5. transaction of product with gift

10. Merit of personal selling includes

1. pinpoints prospects
2. helps close the sale
3. time coordination
4. demonstrates the product
5. All of the above

11. Which of the following is are the feature of personal selling?

1. Use fewer resources
2. Products tend to be fairly complex
3. Contact between buyer and seller after the sale
4. Purchases tend to involve large sums of money
5. All of the above

12. In a selling process in todays world [SBI Clerk 2008]

1. only standard products are sold
2. no customization required
3. the seller need not have product knowledge
4. the seller should aim at customer satisfaction
5. only quantum of sales matters

13. Marketing and selling are

1. not required if profit is high
2. not required if sales are high
3. not required in monopolistic conditions
4. All of the above
5. None of the above

14. Personal selling is a …….. communication.

1. one way
2. two way
3. single way
4. many to one way
5. None of the above

15. In order to qualify the prospects, one needs to

1. plan a sales approach
2. determine the products meeting the need
3. rank the prospect
4. All of the above
5. None of the above

16. Which of the following qualities a salesperson should not possess?

1.  Honesty
2.  Integrity
3. Cooperative
4.  Persistence
5.  Short-tempered

17. Personal selling involves …… interaction of salesman with the individuals.

1. direct
2. indirect
3. instant
4. close
5. None of these

18. Personal selling consists of

1. personal communication and advertising
2. individual relation
3. sales promotion
4. All of the above
5. None of the above

19. Personal selling is confined to a

1. particular area
2. large number of people
3. complete area
4. random area
5. None of the above

20. Which of the following includes the stage of personal selling?

1. Prospecting
2. Making first contact
3. Sales call
4. Objection handling
5. All of the above

21. Prospect is also known as

1. stable customer
2. fickle customer
3. potential customer
4. loyal customer
5. None of the above

22. The personal selling aims at selling  …… products.

1. declining
2. existing
3. inferior
4. worthless
5. None of these

23. The concept of selling is different from marketing and aims at profit maximization through [ SBI Clerk 2012]

1. increasing sales volume of quality products
2. customer satisfaction
3. solution of customer problems
4. satisfaction of customer needs
5. innovation and market research

24. A contract of sale may be

1. absolute or conditional
2. unauthorised
3. unconditional
4. All of these
5. None of these

25. A contract of sale includes

1. a sale
2. an agreement to sell
3. transfer of gift and guarantee
4. Both ‘1’ and ‘2’
5. None of the above

26. Which is the element of contract of sale?

1. Two parties
2. Transfer of property
3. Competency of the parties
4. All of the above
5. None of the above

27. Where under a contract of sale the transfer of property in goods is to take place at a future time or  subject to some condition thereafter to be fulfilled, the contract is called

1. a sale
2. gift
3. tax
4. agreement to sell
5. contract to transfer of property

28. ‘Conversion’ in sales language means [ SBI PO 2012; SBI Clerk 2009]

1. converting a buyer into a seller
2. converting a seller into a buyer
3. converting a prospect into a client
4. All of the above
5. None of the above

29. Closing the sale means [SBI Clerk 2009]

1. close down marketing functions
2. stop selling
3. successful completion of a call
4. All of the above
5. None of the above

30. Good selling skills involve [SB I Clerk 2009]

1. patience
2. preserverance
3. empathy
4. knowledge
5. All of these

31. Selling is [SBI Clerk 2012, 09]

1. different from marketing
2. a sub-function of marketing
3. same as marketing
4. more than marketing
5. None of the above

32. The performance of a salesperson can be enhanced by [SBI Clerk 2012, 09]

1. increasing the sales incentives
2. increasing the number of products to be sold
3. appropriate training
4. All of the above
5. None of the above

33. Effective selling skills depend on [PNB PO 2010]

1. effective lead generation
2. sales call planning
3. territory allocation
4. effective communication skills
5. All of the above

34. The sales process begins with [SBI PO 2011]

1. customer identification
2. lead generation
3. sales presentation
4. sales closure
5. sales meet

35. Meaning of cross selling is [SBI PO 2011; SBI Clerk 2012, 10, 09]

1. city-city selling
2. selling with cross face
3. sales with crossed fingers
4. selling to existing customers
5. cold calling

36. The most essential quality of a good salesperson is [SBI Clerk 2012]

1. questioning skills
2. good appearance
3. production skills
4. good communication skills
5. curiosity

37. Efficient marketing style requires [SBI Clerk 2012]

1. proper planning
2. good debating skills
3. arrogant staff
4. knowledge of many languages
5. ignorant customers

38. Communication skills in the case of a DSA means [SBI PO 2012]

1. giving lengthy speeches
2. sending good SMS messages
3. being talkative
4. ability to continue the customer with the right choice of words
5. being multi linguist

39. The performance of a salesperson depends on

1. size of the sales teams
2. salary earned
3. ability and willingness of the salesperson
   All of the above
4. None of the above

40. Managing the sales force of a company includes

1. recruiting sales representatives
2. training sales representatives
3. supervising sales representatives
4. motivating sales representatives
5. All of the above

Answer Key