Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e

15. Personal Selling Text © The McGraw−Hill
    Companies, 2002

Personal Selling 433

Marketing and sales managers in many firms are finding that some tasks that have

traditionally been handled by a salesperson can now be handled effectively and at

lower cost by information technology and e-commerce systems. For example, in

business markets the nature of the selling situation that the firm faces may influ-

ence which approach makes the most sense and how many salespeople are really

needed. See Exhibit 15-2.

A salesperson is likely to be required in important selling situations where

there is a significant need to create and build relationships. Here the salesper-

son focuses on tasks like creative problem solving, persuading, coordinating

among different people who do different jobs, and finding ways to support the

customer. On the other hand, information technology is very effective and cost

efficient in handling needs related to the recurring exchange of standardized

information. For example, in discussing organizational buying (Chapter 7) and

logistics (Chapter 12) we discussed how sellers use e-commerce to exchange

information about inventory, orders, and delivery status. Similarly, basic infor-

mation about the details of product specifications and prices can be organized

at a website. Of course, even for these tasks there needs to be some way to pro-

vide good customer service when needs arise. A complex relationship that also

involves standardized information might involve a mix of both approaches; using

technology for standard information frees the sales rep to spend time on value-

added communication.

When relationship building by a sales rep is not required and there is not a recur-

ring need for routine information, a firm may be able to meet customer needs best

by providing digital self-service. This is basically the role of ATMs for banks—to

service customers who don’t want to wait until a teller is available. Similarly, Ama-

zon’s virtual shopping carts play this role. But digital self-service can be more

sophisticated. Some firms provide “intelligent agents” at their websites. An intelli-

gent agent is a computer program that helps customers solve their own problems. At

the CompUSA website, a customer who wants to buy a laptop can respond to a series

of structured questions about how the laptop will be used, and the intelligent agent

recommends which features are most important and what brands have those features.

Similarly, a wholesaler’s website might provide an agent to help retailers forecast

demand for a new product based on information about their local market areas.

The total amount of personal selling effort justified in any of these situations may

depend on other factors, including how important the customer is. Further, we’ve

E-commerce

sometimes substitutes

for personal selling

Relationship building required

(problem solving, coordination, support, cooperation)

Emphasis on

standardized

e-commerce

(with customer

service)

Emphasis on both

personal selling

& customized

e-commerce

Emphasis on

digital

self-service

Emphasis on

personal selling

Low High

High

Low

Standardized information

exchanged on a recurring basis

(orders, invoices, delivery status,

product information, prices)

Exhibit 15-2 Examples of Possible Personal Selling Emphasis in Some Different Business-Market Selling Situations