The Role of Personal Selling in Direct Sales Organizations

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The Role of Personal Selling in Direct Sales
Organizations by Thomas N. Ingram
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The Role of Personal Selling in Direct Sales
Organizations

• Summary
• This article review several developments in the
  operating environment of direct sales
  organizations which affect the strategic roles of
  the personal selling function.
• To fully realize the multiple benefits of
  personal selling, direct sales organization must
  be firmly committed to the trust-based
  relationship selling paradigm.
• Such a sales approach requires salespeople to
  move past a short-term transaction orientation to
  fulfill roles such as counselors, ombudsmen, and
  ambassadors.
• The purpose of this article is to define the role
  of personal selling in direct sales organizations.

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Framework for Defining the role of personal
selling in Direct Sales Organization

• Marketing Developments
• Fragmentation
• Globalization
• Multiple Channels
• Timing and Speed
• Relationship Selling

• Strategic Roles of
• Personal Selling
• Universal Roles
• Information
• Service
• Revenue
• Strategic Roles
• Growth
• Differentiation
• Niche

• Personal Selling Tactical
• Implications
• Trust-Based Selling
• Candid
• Dependable
• Competent
• Customer-Oriented
• Likable
• Trust-Based Roles
• Counselor/teacher
• Ombudsman
• Ambassador

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Marketing Developments

• Fragmentation
• Mary Kay Cosmetics, have practiced
  expeditionary marketing in the implementation of
  direct ordering alternatives for consumers.
• Globalization
• Translation problems are lessened, cultural
  differences are dissipated, set time is minimal,
  and sunk channel cost are low.
• Multiple Channels
• Mary Kay Cosmetics has realized substantial
  benefits from tying its direct mail and telephone
  ordering system to the sales force.
• Timing and Speed as Competitive Variable
• Timing and speed will determine success in
  the marketplace.
• Trust-Based Relationship Selling
• Direct selling organizations can benefit from
  the consumer-preference-driven trend toward
  selling via trust-based relationships.

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Strategic Role of Personal Selling

• Adding Value Information
• Salespeople add utility to the products and
  services they sell by passing on worthwhile
  information to the customer. They also add value
  to the sales organizations research and consumer
  feedback efforts.
• Customer Service Activities
• The sales process has necessarily become
  service-oriented-not simply after the sale, but
  also before and during sales presentations.
• Revenue Generation
• With a lot of support from other functional
  areas, personal selling in the primary generator
  of revenue.
• Change Process
• The personal selling function is virtually
  indispensable in facilitating change in the
  marketplace,and can be especially influential
  when the total sales force number in the hundreds
  of thousands as it does with many leading direct
  sellers.

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Strategic Role for Personal Selling

• Corporate Growth Orientation and Personal Selling
• 1. Intensive growth
• 2. Diversification growth
• 3. Acquisition
• Generic Strategy and Personal Selling
• 1. Low-cost supplier
• 2. Differentiation
• 3. Niche Strategies

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Personal Selling Tactical Implications

• Trust-Based Selling
• Candor (Words)
• 1. Presentations are balanced and fair
• 2. What is said agrees with what the buyer
  knows to be true.
• 3. Support evidence and demonstrations are
  credible.
• 4. Subsequent events prove statement to be
  true.
• Dependability (Actions)
• 1. Actions fulfill prior verbal promises.
• 2. Action fits a pattern of prior
  dependable actions.
• 3. Promises can realistically be met.
• Competence (ability)
• 1. Technical command of products and
  applications.
• 2. Statepeople have the skill, knowledge,
  time and resource to do what
• the buyer wants.
• 3. Words and actions are consistent with a
  professional image.

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Personal Selling Tactical Implications

• Customer-Orientation (intent)
• 1. Buyers needs are clarified and treated
  with respect.
• 2. Clear statement of benefits.
• 3. Advise rather than sell (Dont push a
  product the buyer
• doesnt need).
• Likability (personality)
• 1. Make efficient use of the buyers time.
• 2. Be courteous and polite.

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Personal Selling Tactical Implications

• Trust-based Sales Roles
• Three tactical roles
• 1. Counselor/teacher
• Counselor/teacher role requires that
  Salespeople must be
• experts in terms of understanding
  customer needs and how
• their products can meet those needs.
• 2. Ombudsman
• The ombudsman role requires the
  salesperson to be a
• customer-oriented problem solver who
  can take decisive
• action when customer satisfaction is
  threatened.
• 3. Ambassador
• The Ambassador role allows salespeople to
  contribute to the
• overall image of the organization in a
  meaningful way.

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