Setting and formulating personal selling objectives
08/December/2025 16:29
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Below is a complete, detailed, exam-oriented, MBA/B.Com-level answer on Personal Selling and Setting/Formulating Personal Selling Objectives, written in clear paragraphs, including:
✔ Meaning & Definition
✔ Difference between Personal Selling & Salesmanship
✔ Characteristics
✔ Objectives
✔ Need & Importance
✔ Nature of Personal Selling
✔ Personal Selling Process (Step-by-step)
✔ Case Studies & Real Examples
✔ How to Set & Formulate Personal Selling Objectives (FULL FORMAT)
Perfect for assignments, exams, viva, presentations, or notes.
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? PERSONAL SELLING – FULL DETAILED EXPLANATION
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1. What is Personal Selling? (Meaning and Definition)
Personal Selling is a direct, face-to-face interaction between a salesperson and a prospective buyer where the aim is to influence the buyer’s decision, create awareness, answer queries, build relationships, and successfully close the sale.
It is a two-way, personalized communication and the most effective component of the promotional mix, especially for complex, technical, or high-value products.
Simple Definition:
Personal Selling is the process of persuading and assisting customers to buy goods or services through direct personal communication between a salesperson and a buyer.
Features of the Definition:
Direct interaction
Customized communication
Relationship-focused
Helps close sales
Example:
A LIC agent personally meets a customer, explains insurance plans, clears doubts, and helps select a policy. This is personal selling.
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3. Characteristics of Personal Selling
1. Personal Interaction
Direct face-to-face contact helps understand customer needs.
2. Two-Way Communication
Salesperson listens and responds in real-time.
3. Relationship-Oriented
Builds long-term trust and loyalty.
4. Flexible & Adaptive
Message can be changed according to customer mood and situation.
5. Goal-Oriented
Focus is on closing sales and generating revenue.
6. Problem-Solving Approach
Salespeople act as consultants.
7. High Cost Per Contact
More expensive than advertising due to manpower costs.
Example:
A car salesperson modifies his pitch based on whether the customer is a family buyer or a bachelor.
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4. Objectives of Personal Selling
(1) To Generate Sales
The main objective is to increase company revenue.
(2) To Build Customer Relationships
Personal selling develops trust and loyalty.
(3) To Provide Information & Education
Particularly important for technical products like electronics or insurance.
(4) To Persuade & Influence Buyer Decisions
Guiding customers towards a favourable purchase decision.
(5) To Provide After-Sales Service
Helps create long-term customer satisfaction.
(6) To Gather Market Feedback
Salespeople are the eyes and ears of the company.
(7) To Assist in Product Introduction
New product launch requires personal selling.
(8) To Support Channel Members
Retailers depend on company salespeople for training and guidance.
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5. Need and Importance of Personal Selling
1. Suitable for Complex and Technical Products
Industrial machines, software, medical equipment require explanation.
2. Helps Build Customer Trust
Human contact increases credibility.
3. Effective in Competitive Markets
Salesperson influence makes the difference.
4. Helps Create Customer Satisfaction
By solving after-sales problems.
5. Customised Communication
Message is tailored to each customer.
6. Creates Long-Term Business
Repeat purchases and referrals.
7. Strong Tool for B2B Marketing
Businesses rely heavily on personal selling.
Example:
In pharmaceuticals, medical representatives personally visit doctors and influence prescription decisions.
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6. Nature of Personal Selling
Personal selling has the following nature:
1. Human-Oriented
Involves personal skills, empathy, communication.
2. Creative Process
Requires innovation in presenting the product.
3. Psychological Process
Salesperson must understand buyer behaviour.
4. Sequential Process
From prospecting to follow-up.
5. Relationship Driven
Focuses on converting prospects into long-term customers.
6. Economic Activity
Direct impact on sales and revenue.
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7. Personal Selling Process (Step-by-Step)
This is highly important for exams.
1. Prospecting and Qualifying
Finding potential customers (prospects) and checking if they are financially and need-wise suitable.
Example: A bank executive identifies businessmen who need credit card services.
2. Pre-Approach
Gathering information about the prospect and preparing sales strategy.
3. Approach
Making the first contact with the customer.
4. Presentation and Demonstration
Explaining product features, benefits, and showing how it solves the customer's problem.
5. Handling Objections
Responding to doubts such as price, quality, or competition.
6. Closing the Sale
Convincing the customer to finalize the purchase.
7. Follow-Up
Providing after-sales service to ensure satisfaction.
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8. Case Studies & Real Examples
Case Study 1: Maruti Suzuki Showroom
A customer visits a showroom confused between Swift and Baleno.
The salesperson demonstrates features, offers a test drive and explains EMI options.
He handles objections by comparing fuel efficiency and resale value.
Customer purchases the Baleno → successful personal selling.
Case Study 2: HDFC Bank Credit Card Sales
Sales executive approaches corporate employees and explains benefits such as:
no annual fee
cashback
airport lounge access
Customer signs up.
This shows how personal selling influences financial product sales.
