Personal selling and its role vary by industry and company. In packaged goods and cosmetics, advertising is a more important element of the promotional mix than personal selling. Industrial goods are dominated by personal selling. Other than product category, factors that influence the relative use of advertising or personal selling include the volume purchased, the use of the direct or indirect distribution, the geographic spread of the market, the product costs, and the repetitiveness of the purchase. Operating on a global scale, companies should take into account cultural differences which influence the perception of a product and personal selling.
Cultural differences involve religious beliefs and unique perceptions of the technique. in spite of the fact that personal selling proposes great opportunities for both a company and consumers, it can be negatively perceived and ignored in some countries. Marketing communications bridge information gaps in distribution channels, help coordinate the total marketing system and adjust products and services to customer needs. A major problem in a marketing communications strategy is deciding how to reach the target audience (Hollensen, 2007). Also, a company should take into account different compensation schemes proposed to salesmen. The degree of sales direction and supervision varies by company, the nature of the sales task, the method of payment, and the calibre of the salesman. For example, well-qualified, highly trained salesmen, paid on a commission basis, receive less direction and supervision.
In Asian countries, salesmen paid a salary, whose job is mainly taking orders from customers on a regular basis, will probably receive close supervision. Salesmen are often directed through call reports. Statistics can be analyzed to determine the number of calls that salesmen should be expected to make per day, month, and year (Hollensen, 2007). Calls can then be related to expected sales and profit potentials by customer class. This technique helps salesmen allocate their effort and also guides management in determining the number of salesmen needed. Although salesmen should be given some guides on the average number of calls to make by customer class, making calls should not be construed as the objective of their job. The standards refer to what is usually desirable in an average situation over a long period of time. In European countries, allowances are made for variations in sales situations. Also, sales results depend on a host of factors other than time, and both the duration and number of calls made have a cumulative effect (Fill, 1999). Religious factors and cultural prejudices affect personal selling for this reason it is important to adapt personal selling to cultural conditions and needs of a particular country.
The demands and needs of global consumers should also be taken into account. The effective direction of personal selling is related to stimulation and motivation. For when salesmen are highly motivated, sales and profits should grow, morale and compensation should be high, and turnover of personnel low. The stimulation and motivation of sales representatives are achieved through incentives that are internal and external to the sales force. External incentives include quotas, compensation, sales contests, sales meetings, directives, and supervised actions of the sales supervisor and manager (Keegan and Green 2004). The sales effort is directed by both positive and negative incentives. Negative incentives, while less desirable, may be necessary. For instance, salesmen should be checked when performance does not meet standards, accounts are not covered, sales service is inadequate, and new-customer quotas are not met. Management review and control is necessary to guide sales efforts.
Desirable attributes of good compensation plans are easy to list: reward efforts expended, be fair to all, provide regular income, recognize outstanding performance, be simple to determine and provide adequate stimulation. Designing compensation plans that encompass such attributes, however, is not a simple task. Diverse and conflicting objectives and divergent perspectives of both management and salesmen are involved (Keegan and Green 2004). Regardless of the scheme used, a salesman’s earnings should be at least equal to that of “the going market rate.” Sales compensation plans may be separated into three component parts: expense allowances, fringe benefits, and direct income. Expense allowances are designed to reimburse salesmen for necessary incurred sales expenses in performing the sales job such as travel, lodging, and customer entertainment. Fringe benefits provide protection and generate good morale, security, and job satisfaction. They include pension plans, insurance packages, and vacations (Fill, 1999).
The customs, institutions, and motives of men influence achievement in personal selling. The main threats faced by global management are lack of knowledge, understanding of cultural trends, and distribution and promotion techniques. Marketing executives must often change their assumptions and perspectives to be able to function in a strange setting. Foreign customers need not react the same as American customers (Kotabe and Helsen 2006). Nor will successful American marketing practices and strategies necessarily apply in other environments. Management also lacks common standards to assess relative effectiveness, that can be applied to divisions around the world. What is in the best interest of the foreign division need not correspond with the domestic division, since there are always differences in perspective between the parent and international companies.
Bibliography
Fill, C. 1999. Marketing Communication: Contexts, Contents, and Strategies 2 edn. Upper Saddle River, NJ: Prentice Hall.
Hollensen, S. 2007, Global Marketing: A Decision-Oriented Approach. Financial Times/ Prentice Hall; 4 edition.
Keegan, W. J., Green. M. C. 2004, Global Marketing. Prentice Hall; 4 edition.
Kotabe, M., Helsen, K. 2006, Global Marketing Management. Wiley.
Pittengrew, A. M., Thomas, H. Whittington, R. 2006, Handbook of Strategy and Management. Sage Publications.