Session 17 Role of Personal Selling in Retailing

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Session 17 Prof: Yasmin 1

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Transcript of Session 17 Role of Personal Selling in Retailing

Session 17Prof: Yasmin

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Introduction Grocery store, hardware store, banking, insurance,

hair cut saloons are entirely dependent upon personal selling

Indian market psychology is still based on feelings emotions and cooperation, people are attracted to a store for personal reason rather than its appearance

Major department, chain and specialty stores are still full service stores, they project personal selling as their strength

Imagine buying a car, TV or refrigerator by mail order

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Introduction The sales person can tailor his communication

according to the requirement of individual customer, making him the most effective communication vehicle for the customer

Personal selling is the process of convincing the customer about the product through personal communication

The sales person is flexible enough to provide the information according to the need and behavior of the individual customer

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Types of customer servicePre transaction service- convenient store

hours, information and demonstrationTransaction service- credit facility, gift

wrapping and packaging, personal shopping and personal selling

Post transaction service- loyalty programmes, complaint handling, merchandise exchange handling, repairing, free service and delivery

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Types of Retail SellingMost of the retailers still do home delivery

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Order filling

Creative selling

Order fillingEfficient communication skillsArt of order taking rapidly and correctlyArt of informing customers about availability

of products and selling additional itemsTime managementSkills of filling the order and communicating

it to packaging sectionSkill of delivering the correct order in

minimum possible timeGrocery stores

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Creative sellingProvide sufficient time and attention to the

customers need and choiceConvince the customer to buy the product

with logical justificationsCommunicate effectively without being

biased or overpoweringMake the customers interested in buying a

productWin the confidence of the customer and the

sale conclude with a happy note7

Requirements for effective sellingListeningQuestioning

Seek long responsesSpace out the questionsKeep the questions short and simple

Interpreting and on verbal communicationFlexibility and adaptive selling

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Competencies of Personal SellingRetail is a people business, people do

business with peopleThe Process of Personal Selling

Gaining AttentionCreating InterestBuilding desireAction

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ATTENTION

ACTIONDESIREINTEREST

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The Retail Selling ProcessAcquiring product/ merchandise knowledgeStudying the customerApproaching the customerPresenting the merchandise

Understand the customers needs and wantsReduce the customers perceived riskDemonstrate the productActively involve the customerSell product benefitsMake the message simple

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The Retail Selling ProcessOvercoming resistanceSuggestive sellingClosing the sale

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Common causes of poor performancePoor selection and inadequate trainingInadequate supervisionInadequate product and store policy to sales forceHeavy stock keeping responsibilities with under

emphasis on serving customersLack of incentive for better performing sales

personLack of management commitment to good

customer serviceIncreased diversity and complexity of productsLow compensation

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Importance of sales person in CRMSalesperson is important in customer’s

satisfaction or dissatisfaction towards a storeSales person acts as a stores represenative

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Customer service as a part of retail strategy1. Identify its key customers and listen and

respond to them2. Define superior service and establish a

service strategy3. Set standards and measure performance4. Select, train and empower employees to

work for the customers5. Recognize and reward accomplishments

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Evaluation of a salespersonPlays a crucial ole as it determines the

compensation to be paid, promotions, transfer, terminations and reinforcement of sales person

Conversion rateSales per hour: is computed by dividing the

value of the total sales of the retail store at a given period of time by the total hours of work

Use of time standardsTime spent on sellingTime spent while not selling Idle timeAbsent time

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