(a) What is personal selling? (b) Explain five ways in which personal selling is important to firm.

Answer Details

(a) What is personal selling?

Personal selling is a form of promotion in which a salesperson makes direct, face-to-face contact with a prospective buyer in order to inform, persuade and convince the buyer to purchase a product. It involves an oral presentation and a two-way conversation between the seller (or the firm's sales representative) and the customer, aimed at making a sale and building a lasting relationship.

(b) Five ways in which personal selling is important to a firm

1. Persuasion and closing sales: The salesperson can persuade the customer directly and answer objections on the spot, which helps to close sales and increase turnover.
2. Provision of information and feedback: The salesman explains the features and uses of the product to customers and also brings back useful information about customers' tastes, complaints and competitors to the firm.
3. Flexibility of approach: The salesperson can adjust the sales message to suit each individual customer, unlike advertising which gives the same message to everyone.
4. Building customer relationships and goodwill: Regular personal contact creates confidence, loyalty and goodwill, encouraging customers to keep buying from the firm.
5. Introduction of new products: Personal selling is effective for launching and demonstrating new or technical products that customers need to see and understand before buying.

(Other valid points: it provides after-sales service and advice; it helps to reduce the level of unsold stock.)