Personal Selling: Costs and Benefits

Definition:

Personal Selling refers to a sales technique where a salesperson engages directly with a customer. This interaction can occur face-to-face, at the customer's doorstep, or remotely over the phone. It's a method that relies heavily on interpersonal communication skills, aiming to establish a personal connection with the customer.

Costs:

• High Staffing Costs: Personal selling requires hiring skilled salespeople. These individuals must be adequately trained and compensated, leading to significant staffing expenses.

• Administrative Overheads: Managing a personal selling strategy involves considerable administrative work, including scheduling, travel planning for sales staff, and maintaining customer records.

Benefits:

• Effective Product Demonstration: Through personal selling, salespeople can demonstrate the product's features and benefits directly to the customer. This hands-on approach often leads to a deeper understanding and appreciation of the product.

• Building Relationships: Personal selling enables the establishment of strong customer relationships. Salespeople can tailor their approach to individual customer needs, fostering loyalty and repeat business.

Examples:

• A sales agent visiting a homeowner to demonstrate and sell a new home security system.
• A pharmaceutical representative meets with healthcare professionals to discuss the benefits of a new medication.

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Personal Selling: Costs and Benefits

Business Management

In summary, personal selling is crucial for products that require demonstration or detailed explanation. It's often employed in settings where the customer needs guidance or reassurance about the product, like in high-end retail stores or specialised markets. Personal selling, therefore, becomes a key strategy in delivering the product to the customer in a way that maximises value and enhances the buying experience.