Role of Personal Selling

Concept First

Personal selling is a personal, two-way form of promotion, and it plays a very important role in the marketing of goods and services. Its role is best understood from three angles — the importance it has for the businessman, for the customer, and for society — each of which is described below. (The nature, features and merits of personal selling are covered in the preceding Personal Selling section.)

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Importance to Businessmen

For a firm, personal selling is a powerful tool to create demand and increase sales. The specific benefits are:

• (i) Effective Promotional Tool: It directly influences prospects by demonstrating the product's merits, making it highly effective at converting interest into purchase.
• (ii) Flexible Tool: Unlike a fixed advertisement, a salesperson can adapt their offer and presentation on the spot to match the unique needs of each customer and the specific buying situation.
• (iii) Minimises Wastage of Efforts: Because the salesperson targets only identified prospects, there is very little wasted effort compared to mass advertising, which reaches many uninterested people. This brings economy to the firm's promotional spending.
• (iv) Consumer Attention: In a personal selling situation, the salesperson can immediately detect if the customer's attention or interest is fading. This allows them to adjust their approach and successfully complete the sale.
• (v) Lasting Relationship: Personal selling is a personal form of communication. It helps build a lasting relationship between the salesperson and the customer, which is crucial for long-term business success.
• (vi) Personal Rapport: Developing a personal rapport with customers gives the business a competitive edge.
• (vii) Role in Introduction Stage: When a new product is launched, personal selling is especially important. It persuades early customers about the product's merits when they are most uncertain.
• (viii) Link with Customers: Salespeople perform three key roles — persuasive, service, and informative — and through these, they act as the vital link connecting the business to its customers.

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Importance to Customers

This role becomes especially important for illiterate and rural customers who may not have access to other sources of product information. The benefits to customers are:

• (i) Help in Identifying Needs: Personal selling helps customers identify their own needs and wants, and shows them how those needs can best be satisfied.
• (ii) Latest Market Information: Customers get up-to-date information on price changes, product availability, shortages, and new product introductions. This helps them make better purchase decisions.
• (iii) Expert Advice: Customers receive expert guidance in purchasing goods and services, which helps them make better choices.
• (iv) Induces Customers: Personal selling encourages customers to try new products that satisfy their needs better, thereby helping to improve their standard of living.

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Importance to Society

Personal selling plays a productive role in the economic progress of a society. The specific benefits are:

• (i) Converts Latest Demand into Effective Demand: By turning potential demand into actual purchases, personal selling drives the cycle of economic activity. This leads to more jobs, higher incomes, and more products and services — which is how it influences economic growth. …