Advantages And Disadvantages Of Personal Selling

Advantages and disadvantages of personal selling.

There are several advantages and disadvantages associated with personal selling, but these disadvantages can be outweighed by the advantages, especially in specific situations. This is particularly true when facing intense competition and when selling high-tech products. Personal selling also proves effective when multiple decision-makers are involved in the buying process. Regardless of the situation, it's essential to understand how to use personal selling effectively.

Transmit more information

Personal sales allow for the transmission of more detailed information compared to other forms of promotion like advertising. A personal sales call offers extended interaction, giving you the time to delve into the intricacies of your product. This becomes particularly advantageous when dealing with higher-value products. For instance, companies selling expensive items like computers, medical equipment, and industrial products often utilize portable presentations, demonstrations, and highly detailed product information. Pharmaceutical representatives can effectively communicate the biological effects and benefits of new medicines.

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Greater impact

Personal selling has a more significant impact on buyers compared to advertising or direct mail. Clients don't have to wait for their questions to be addressed; they can get immediate answers. As a seller, you gain a better understanding of the customer's needs and can make product recommendations from your extensive line of products or tailor your services to meet the client's specific requirements. You also become aware of common customer objections in each sale, allowing you to address them effectively.

Limited scope

However, one drawback is that personal selling cannot reach as many customers as quickly as other methods. It takes more time to build brand and product awareness, particularly if personal selling is your exclusive method. Sales representatives typically cover one territory or market at a time, limiting the number of prospects they can interact with daily. In rural areas with fewer prospects, this reach may be further restricted. To overcome this limitation, some companies employ internal sales representatives for smaller markets, allowing for a higher volume of calls.

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Expensive

Personal selling can also be costly, considering the salaries, commissions, bonuses, and travel expenses of salespeople. Some representatives even travel by plane to other cities, incurring substantial expenses. By 2011, a single sales call could cost up to $300 in certain industries, as reported by Knowthis.com, an online reference site. These costs are incurred regardless of whether the sale is successful. Moreover, there are significant expenses associated with training sales representatives, educating them about various products and sales procedures. Therefore, it's essential to carefully evaluate the advantages and disadvantages of personal selling in comparison to other promotional methods.