spo 1 full

Upload: nguyen-ngoc-thuy

Post on 10-Apr-2018

231 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/8/2019 SPO 1 full

    1/23

    Table of ContentsTable of Contents ................................................................................................................................... 1

    Introduction ............................................................................................................................................ 3

    Major research ....................................................................................................................................... 3

    The objectives and the relationship between the different elements of the communication mix . . 3

    The understanding of buyer behavior can be used in personal selling .......................................... 6

    Culture: ........................................................................................................................................ . 6

    National culture: ......................................................................................................................... 7

    Branches of culture: ................................................................................................................... 7

    Level of society: ......................................................................................................................... 8

    Society: ......................................................................................................................................... 9

    Family and reference groups: ..................................................................................................... 9

    Personal. .................................................................................................................................... 10

    Age: .......................................................................................................................................... 10

    Career: ...................................................................................................................................... 10

    Economic circumstances: ......................................................................................................... 11

    Psychological factors: ................................................................................................................ 11

    Motives: ................................................................................................................................... 11

    Perception: ............................................................................................................................... 13

    Learning: .................................................................................................................................. 13

    1

  • 8/8/2019 SPO 1 full

    2/23

    Attitude and belief: .................................................................................................................. 14

    The environmental and managerial forces affecting personal selling ......................................... 14

    The environmental forces affecting personal selling .............................................................. 15

    The managerial forces affecting personal selling .................................................................... 16

    The main types of personal selling ................................................................................................ 17

    Order getting: ............................................................................................................................ 17

    Order taking: ............................................................................................................................ 18

    Order supporting: ..................................................................................................................... 18

    The principles of personal selling .................................................................................................. 18

    Analyze the stages in the personal selling process ........................................................................ 20

    Conclusion ........................................................................................................................................... 22

    2

  • 8/8/2019 SPO 1 full

    3/23

    Introduction

    The capital citys population has increased remarkably in recent decades. The city was home to

    more than 3 billion in 2004, with an average density of over 17,800 people per kilometre.

    However, this rate is much higher in the central districts such as Hoan Kiem District, Hai Ba

    Trung District. Because of almost all of the narrow, twisty roads are lined with tiny shop

    houses with ground floor retail accommodation, development site are almost impossible to

    assemble. There are few buildings above 4-6 floors and all were built since the past and most in

    dreadful condition. Thus, there are also very few bespoke retail developments such as Vincom

    tower, Trang Tien plaza....In this report, Vincom Shopping Center is the major research.

    Major research

    The objectives and the relationship between the

    different elements of the communication mix

    The main objective of communication mix of Vincom Plaza is to improve communication with

    customer. This objective can be measured by the number of customers that visit Vincom, go to

    shops and buy product or use services. In order to that achieve the objective, Vincom Plaza canuse Public Relation and Sale Promotion effectively alongside with Personal Selling

    First, Public Relation refers to the communication between the organization and its public. It is

    important to building up and maintaining mutual understanding and awareness between an

    organization and the public. Nowadays, the market is extremely competitive. Vincom Plaza is

    not the only centre for customers to shopping and entertaining. It is not the rare place as in the

    end of 2004. Hanoian can visit Trang Tien Plaza, Parkson Plaza, The Garden Plaza and so on.

    Therefore, the main objective of public relation is to enhance Vincoms reputation and make itstand out from the crowd. The reason for the using of public relation in Vincom Plaza is place.

    Vincom Plaza located in the good place in Ba Trieu Street where even in rush hours; the traffic

    jam matter still does not happen so much. It is not too far from the city centre as Parkson or The

    Garden. It is also not too much centre as Trang Tien Plaza which is difficult for customers to

    3

  • 8/8/2019 SPO 1 full

    4/23

    parking. As the result, it provide Vincom Plaza a lot of convenience if the Plaza use some public

    relation tools such as organizing charitable and public events. Many people will go into Vincom

    to feel the enthusiastic and animated atmosphere of the occasions. Hence, in some special

    occasions such as Valentine, Christmas or Mid-Autumn Festival, Vincom may has some new

    design outside of the building which can attract customers think about that special time.

    Second, Sale Promotion relates to the purchase incentives that the company provide to the

    customer. The objective of sale promotion is to attract new customers and retain the existing

    customers so that increasing sale. Sale promotion tools can include premiums, price discounting,

    coupons, gift, bonus and so on. In the case of Vincom, sale promotion has a significant job. The

    reason is that people can visit Vincom for window shopping and relaxing but they tend to go to

    other place such as Chua Boc or Ton Duc Thang Street where they can bargain to buy product.

    Thus, sale promotion activity should be organized to encourage customers of Vincom to buy

    more. While visiting a shopping centre, customers are generally attracted towards the product or

    service that offers discount or gift on buying. Clothes and fashion floor of Old Vincom is the

    place where sale promotion applied most effective. Many stores offer price discounting. Blue

    Exchange, for example, can lure price conscious consumer by showing discount and sale items.

    From VND 30.000 VND 80.000, customers can buy a high quality T-shirt or mini skirt. This

    price may be not found in Chua Boc Street. As the result, the customers feel incentive to buy.

    Blue Exchange Shop

    4

  • 8/8/2019 SPO 1 full

    5/23

    Third, Personal Selling is a direct and face-to-face form of communication. One of the objectives

    of personal selling is to convince customers to make purchase. People are the most important

    element of any service. People buy from people. Any customer facing personnel can have an

    impact on overall satisfaction. After attract customer to visit, give them incentive to buy, the job

    of personal selling is to use demonstration of the product, persuasion and negotiation to make

    the sale (Edexcel HNC & HND Business, 2004). Personal selling becomes more important for

    expensive, complex and infrequently brought products or services such as electronic and

    technological products. Personal selling helps inform and educate the consumers about this new

    product. In Vincom, the electronics supermarket is called Caring Centre which occupied almost

    the whole floor. Consumers can go shopping easily to get the products of other brands such as

    LG, Samsung, and Sony. There is the need to explain the benefit of a complex product. Massage

    chair, for instance, is a new product for Vietnamese people. Sale person can explain the use, theutility of the product, how it solves customers problem, answer customers questions and

    provide them demonstration and try-out. Hence, personal selling also can create the desire in

    customers and motivate them to buy. Furthermore, as a face-to-face communication, sale persons

    can take feedback from customers immediately through customers complaints, questions and

    difficulties in using the product. Thus, they will be able to collect information about customers

    wants and needs in order to give suggestions to the manufactures to improve the current products

    and develop the new product.

    Public relation, sale promotion and personal selling have a strong relationship to improve

    communication with customer of Vincom Plaza. The customers have to know about the

    existence of the stores before they can buy products of them. When they see the product, they

    might buy because majority of buying decisions are made in store. Hence, Vincom must gain

    attention of the customers and attract customers visiting Vincom. Public relation has a big role in

    this case. Effective public relation helps creating interest, building awareness and a positive

    image of the organization for customers so that they tend to come to try out. After attract

    customers to the shopping centre, it is important to sell product. Purchase incentives need to be

    offered to encourage customers to buy the product because most of Vincom customers prefer

    Chua Boc and other public places to purchase products. Thus, sales promotion can be applied as

    an effective tool to increase the sale. While sale promotion encourages customers to try new

    product and buy more, personal selling convinces or persuades them to buy the products or

    5

  • 8/8/2019 SPO 1 full

    6/23

    services by provide more information, explain about the product and answer questions about

    products usage. As this relationship, each element of the communication mix can support each

    other in order to achieve the common objective of improve the communication with customers.

    Public relation creates the positive attitude toward the shopping centre, the stores and the

    products. Next, sale promotion encourages and gives purchase incentives to customers. Finally,

    personal selling convinces those potential customers to accept and purchase the products. In

    addition, it provides customers after-sale services in order to win repeat sales such as confirming

    delivery correctly and on time, giving additional customer care services, obtaining feedbacks and

    so on

    The understanding of buyer behavior can be used in

    personal sellingMarketing is the sciential subject which aims to meet the needs, wants and demands of the

    customer. However, understanding the buyer behaviour is not an easy work. The customers may

    talk about their wants and needs in one way, but they can act in the different way. The reason is

    people normally do not exactly know their main factors which influence their buying decision,

    especially, when that main factor happens, people will apply it and decide their choice.

    Regarding to that fact, the marketer must research carefully about the demands, habits, and buyer

    behaviour of the potential customers in order to make the plans for the product development, price, or promotion, etc As the market consultant of Vincom Plaza, the buyer behaviour of the

    potential customer of the company can be separated into some main sectors:

    Culture:

    Every region has its own culture; it can be defined as an unconditioned reflex. For example:

    before deciding to buy something, people will answer by themselves the question that: is it fit to

    the culture? the answer for that question is the decision of the customer even the customer likes

    these goods or not. The culture of customers affects hardly the buying decision. That sector

    involves three levels:

    6

  • 8/8/2019 SPO 1 full

    7/23

    National culture:

    National culture is the basic factor which decides the behaviour and wants of everybody in

    society. During the growth time of people in society, they have accumulated the value,

    awareness, hobby, and behaviour through their family and some other basic values. For example:

    American will get the influence from their culture as freedom, individualistic, success,

    innovation, humanitarianism, etc

    In the case of Vincom plaza, the bad news for that company is Vietnamese under the education

    of the socialist state is learnt that: Behinds wealth is a crime and most goods in Vincom plaza

    is luxury. However, Vietnamese also has the own culture that is described by the statement: The

    characteristic of one people is described through his/her face and clothes, it is the good

    opportunity for the personal selling department of each shop in Vincom to attract customers

    through marketing activities which aim to make customers the feeling that: These goods can

    improve their social standing.

    Branches of culture:

    Every national culture always involves many branches of culture. These branches of culture may be grouped into four groups: ethnic groups (e.g. HMong, Kinh, Tay, Thai, Muong), religious

    (e.g. Islam, Buddhism, Catholicism, Protestantism), race (e.g. Jewish, Germanic, Arab, Slavs),

    regions (e.g. rural, urban, North and South Vietnam). Each branch has the individual culture as

    7

    Level 3

    .Le

    Level 2

    Bra

    Level 1

    Nati

  • 8/8/2019 SPO 1 full

    8/23

    Jewish thinks that the most important is knowledge, Islam focuses on the pure of body (Ramadan

    week), etc

    There is no way to satisfy all branches of culture, so Vincom plaza must concentrate on the

    specific branch, in Vietnam market, regions group seem to be easy to research. Rural area doesnot seem to be the potential customer of Vincom because they can not have enough money to

    buy goods in that place, and they do not care much about their appearance so Vincom is not fit

    for them. However, the number of the wealth in rural area is increasing because of the

    governments policies and these people want to spend money to improve their image as soon as

    possible, Vincom can take advantage of that behavior. On the other hand, urban area is quite

    different than rural area, they know what they want and really take care of their appearance

    which can help their work. Moreover, luxury centers are familiar with them and they do not feel

    uncomfortable when buying goods in there. According to the main culture of each area, personal

    selling department can decide the development plan to attract their potential customers, as

    improve the design of each shop to make it more familiar with the customers, hiring the

    professional sellers, or held more events to attract the wealth in rural area, etc

    Level of society:

    Most countries in the world obviously show the different levels of society. There are three main

    levels which have the individual culture: upper class (1% to 2% of population) controls thelargest amount of money in society, middle class (12% to38%) normally is employee who works

    in office, lower social class (the rest) is the main workers in the society but lack of skills at work

    so they get the low salary. Upper class mainly focuses on the development of the country and

    they are the market for most luxury goods. On the other hand, middle class wants to become an

    upper class through working and learning, while spending a lot of money to improve their level

    of society. The last level, besides the low salary, the lower social class lives by the insurance of

    the government and mostly do not receive the good education system.

    Firstly, Vincom plaza is the luxury place which does not suitable for the lower social class, that

    segment is not the potential customer of Vincom. Secondly, with upper class, spending money

    into the luxury goods to improve and maintain their image is their culture; so Vincom plaza can

    be described as the paradise in their mind. Thirdly, Vincom can not forget the second level of

    8

  • 8/8/2019 SPO 1 full

    9/23

    society, middle class who has the biggest ambition to stand in the upper class. Through these

    comments of each level, personal selling department must renew their marketing process to

    assess their shops as focusing points of upper and middle class, make their shops to be more

    modern, professional, and familiar.

    Society:

    Society is one of the most basic influences on an individuals needs, wants and behaviour, people

    live in one place must be affected by some groups, for example: their family, their reference

    groups or their companys managers. These effects can cause the buying decision making of

    customers, as if their family only choose one brand of goods to buy, obviously that brand also

    will be their chosen in the future.

    Family and reference groups:

    Groups that an individual looks to (uses as a reference) when forming attitudes and opinions are

    described as reference groups . Primary reference groups include family and close friends, while

    secondary reference groups include fraternal organizations and professional associations. A

    buyer may also consult a single individual about decisions, and this individual would be

    considered a reference individual. A person normally has several reference groups or reference

    individuals for various subjects or different decisions. For example, a woman may consult one

    reference group when she is purchasing a car and a different reference group for lingerie. As an

    important part of reference groups, family has been suggested that the household, rather than the

    individual, is the relevant unit for studying consumer behaviour. This is because within a

    household the purchaser of goods and services is not always the user of these goods and services.

    Thus, it is important for marketing managers to determine not only who makes the actual

    purchase but also who makes the decision to purchase.

    In the case of Vincom, personal selling must look at these groups to choose the decision on

    increasing the sales volume. In Vietnam, reference groups can be idols (famous singers, actors,

    models etc) or maybe the companys managers, but far away these groups, Vietnamese has a

    culture itself that they attach much more important to advice of ones parents, then if personal

    selling can attract their family, so easy for the company to attract them. There are many ways to

    improve the image of the company in the eyes of customers as using the image of the famous9

  • 8/8/2019 SPO 1 full

    10/23

    brands which are made in Japan (electric products), advice the customers that their family will

    like that product, etc The final statement for the personal selling that: To be the people who

    make the decision to purchase not the people who make the actual purchase .

    Personal.The buying decision making of the customers depends on their individual features as age, career,

    salary, characteristic, etc The different feature will cause the different decision. Some basic

    groups are given below:

    Age:

    Different age will cause different needs and wants of the individual, e.g. baby only focuses on

    food; teenager wants to buy clothes to make them more beauty; mature people buy the suitable

    goods which support their career rather than support for their habits. The marketer must choose

    the target group from these groups as a potential market for them to maximum the sales volume.

    Personal selling departments in Vincom is separated to many different brands which support

    different demands, as Megastar cinema wants to attract more young people, Gucci, LV brands

    demand to have a lot of customers from 18 to 50, etc Then the design of each shops must

    follow these target market, moreover, the seller also must be educated to catch the habits of the

    target group the company aims to.

    Career:

    Everybody know that career affects hardly the decision making of personal, workers will buy

    clothing, shoes workers; chairmen on the other hand are in higher level, they will buy luxury

    goods, travel by plane, join in some clubs for the upper class. The marketers need to assess the

    group of career who concentrate on their products to teach the personal selling department the

    customers career habits. Vincom also is not in different situation, the design of office clothing

    shops must be suitable for the career of the customers, and the sellers in these shops also musthave professional skills to persuade them to buy products.

    10

  • 8/8/2019 SPO 1 full

    11/23

    Economic circumstances:

    Different economic circumstances will cause different decision making, the rich has the choice

    of the rich, and the poor has the choice of the poor. If the economic crisis happens, the rich

    becomes poorer, they will change their buying decision making. The marketers have to predict

    economic tendency to develop the marketing process which suitable for their potential

    customers.

    At that time, the global economic is going down, even in Vietnam. The personal selling in

    Vincom must know that fact and have some plans to prevent the damage which economic crisis

    gives them. Some solutions can do that: cut down the number of shop which does not make

    much profit in Vincom, push the customers to buy goods through some cheap types of

    advertising (hiring models to promote the goods rather than advertise it in the television).

    Psychological factors:

    These are internal to an individual and generate forces within that influence her/his purchase

    behaviour. The major forces include motives, perception, learning, attitude and personality.

    Motives:

    A motive is an internal energizing force that orients a person's activities toward satisfying a need

    or achieving a goal. Actions are effected by a set of motives, not just one. To determine thefactors which motive customer, Maslow recognized five factors: Physiological, Safety, Love and

    Belonging, Esteem, Self Actualization. If marketers can apply these motivation factors into their

    works then they can better develop a marketing mix.

    Satisfy all these factors of customers is the impossible mission for the personal selling in

    Vincom, but with concrete brands, the managers of personal selling can make the decision

    himself to meet these factors. As the design of food and drink restaurants can make the customer

    feel hungry:

    11

  • 8/8/2019 SPO 1 full

    12/23

    Or the design of entertainment center also makes the customer to feel more excited (self

    actualization):

    They are some examples to improve the design of each shop in Vincom, and then the advice for

    the personal selling department in Vincom is: Trying to meet all the motive factors of the

    customers which are suitable for the brands of each shop.

    12

  • 8/8/2019 SPO 1 full

    13/23

    Perception:

    Perception is the process of selecting, organizing and interpreting information inputs to produce

    meaning. IE we chose what info we pay attention to, organize it and interpret it. Information

    inputs are the sensations received through sight, taste, hearing, smell and touch.

    Through that definition, the personal selling must memorize the basic thing that: Information

    inputs are the sensations received through sight, taste, hearing, smell and touch . For example:

    If one person has the perception of the seller that he is a big mouth and only talks some rubbish

    things, then immediately, his goods can not sell to that customer. In contrast, if that customer

    thinks the seller is very intelligent and only wants to give the useful information to him, then the

    goods can be sold very soon. Moreover, not only the seller has the responsibility on selling

    goods, but also the design of the shop influences the decision making of customers, e.g. when thecustomer wants to buy perfume, they will choose the shops with nice design and noble lighting:

    In conclusion, to meet the good perception from the customer, the personal selling must be

    careful with their appearance through the design of the shops, the attitude of the sellers.

    Learning:

    Learning is the process through which a relatively permanent change in behavior results from

    the consequences of past behavior. It influences the buying decision making of customer in the

    13

  • 8/8/2019 SPO 1 full

    14/23

    different way that: the customer feels good after using one brand, in the future, that brand will

    be his/her experience and it will be the big advantage for that brand if the customer compares it

    with the similar things.

    The lesson for personal selling in Vincom that they can sell the products with the image of someusers who have the good feeling when using those products. Moreover, the places of the shops

    also influence the feeling of customers, as if the customers have learnt that any shops which

    located in the lobby always sell the cheap and bad quality of products, then so hard for these

    shops to attract customers.

    Attitude and belief:

    Attitude and belief are the result of learning and actions. These factors affect the decision

    making of the customers. Belief is the thinking of human which confirmed about the experience

    they gain. For example: the Japan goods have created the good belief of the users that they have

    a best quality, long products age, etc through the long-time experience Vietnamese use it. On

    the other hand, attitude describes the knowledge and positive and negative feelings about an

    object or activity-maybe tangible or intangible, living or non- living... People always have the

    attitude with every activity in the world, as religious (Islam is the religious of terror) or Chinese

    goods always are the worst goods in the world.

    After understanding these factors of the customers, the personal selling department of many

    companies in Vincom must give the customer the good image of their goods in order to create

    the good belief and attitude in the mind of customers. For examples: If the shops are belong to

    the famous brands, the sellers must push the focusing point of the customers into that brands to

    assess it as the best products over the world. Furthermore, the design of that shop also must be

    more professional to have the good belief from the customers.

    The environmental and managerial forces affecting personal selling

    Environmental and managerial forces are factors which influences on selling directly. Therefore,

    knowing those factors will help company do business better. As Vincom case, we indentify the

    forces as follow:

    14

  • 8/8/2019 SPO 1 full

    15/23

    The environmental forces affecting personal selling

    Environmental factors involve macro and micro factors. For macro factor, it could be

    government policy, geography, economic rate such as CPI, average income, inflation, etc and

    culture. In the field of micro factors, the factors could be competitors, customers and suppliers.

    First, as our watching, Vincom Plaza is a expensive place. Almost of products in here are luxury

    goods. Otherwise, if the goods is the same (same product, same brand), the price goods is

    normally higher than outside store. It can be understood that Vincom stores have to pay a lot of

    money for place, so the price must be higher for ensuring the business in Vincom. It Vietnam is a

    developing country, therefore the income of people is just around USD1000$ per year. Although

    the growth rate of economic is always around 6-7% percents, but the income of people is still

    quite low when comparing with other country as Thailand, Malaysia, Indonexia, etc. So it is veryhard for people to purchase goods at there.. In addition, the world suffers the financial crisis in

    year 2008. Vietnam is also affected by it. It make the income of people reduce, or losing job in

    bad situation. Hence, the demand of purchasing good is reduced. All these factors affect on

    personal selling directly not just in Vincom but all distribution chain stores, plaza. However, now

    Vietnam government has some policies to push the economic come up again. The typical

    example is the program Vietnamese like using Vietnam good. According to this program,

    Vietnamese goods will be supported by government to reduce the price. The price will be sale

    off 30% to 50% percent. This program will attract more customers come to Vincom to

    purchasing goods.

    For micro factors, Vincom has to compete with many other competitors such as Home Centre

    plaza, Media Plaza, Pico Plaza, Trang Tien Plaza, Parkson, etc. Although Home Centre, Media

    and Pico Plaza only focus on electric goods but it also affect on personal selling of Vincom

    because it has a floor for electric good (Caring store). For Trang Tien and Parkson Plaza, they

    are do quite similar business as Vincom. Trang Tien is the first plaza in Hanoi with its many

    advantages. For example, Trang Tien Plaza has run business in a long time, so they have a lot of

    experiences of this field of business. They also already have loyal customers. Moreover, it

    locates in the centre of Hanoi, nearly Old Quarter where one of the tourism place attract foreign

    customer come to visit. Thus, Trang Tien has opportunity to approach foreign customer. Parkson

    Plaza is just opened on short time, but with the style of decoration and the famous of brand, it15

  • 8/8/2019 SPO 1 full

    16/23

    has attracted a lot of young customer. It will be a potential competitor of Vincome. For the field

    of customer, Vincom locates in Hanoi, place where people is quite saved. So they do not want to

    pay extra money just for the convenience and beautiful place, they would like to go outside

    where the price is cheaper and more suitable for them. Hanoi people just consider plazas as

    relaxing place such as walking or hiding hot air and so on. This is the reason why there are a lot

    of people visit to Vincom but it is little of them buying good.

    The managerial forces affecting personal selling

    The managerial forces could be direct marketing and qualification sale persons and sale

    managers. The direct marketing could be promotion (sale off, etc), online sale, etc. The

    marketing program can attract customer directly come to Vincom. At this point, Vincom had

    done quite well. First, Vincom have set the positioning of this brand as luxury. It means that thecustomer of it is high income people. To do this positioning, Vincom only allow luxury brands to

    locate in Vincom such as Valentino, CK, etc. On the ways to popular its brand Vincom to

    customer, Vincom also agree for company to locate its office in the building. People in these

    companies almost are high income people. There are many companies in Vincom, so that there

    are so many people who know Vincom. Because the buying centre is just under the place where

    they work, it is convenient for them for purchasing goods. Moreover, there is a game room on

    the 5 th floor in both two buildings and a big cinema on 6 th floors. They attract young people very

    well. It shows that way of setting area of Vincom affect directly to personal selling. Although

    each store of Vincom has own promotion program but Vincom still do its own promotion. For

    example, for celebrities such as Christmas, Vincom decorated its building itself. It would attract

    people come to Vincom more and more. In the field of qualification sale person, almost company

    qualify its sale based on the sale volume. Each store in Vincom has own employees and own

    training program, promote program. The sale volume depends on each store because Vincom do

    not do business directly to consumer. We thought that job of sale person and manager of Vincom

    is just about leasing business. They find customer who want to lease square in Vincom for office

    or selling. However, to qualifying sale person, it still based on the sale volume.

    16

  • 8/8/2019 SPO 1 full

    17/23

    The main types of personal selling

    Personal selling is one task of the promotional mix. It plays an important role in firms marketing

    strategy. The most advantage of personal selling is to get strong relationship with customers.

    Although the advantages of using personal selling strategy are too high, some companies onlywant to use the direct-sales force. One of the reasons for asking is that the cost of employing sale

    people is very expensive. The salespeople must be well-graduated and experience to do this job.

    The personal selling is separated into three types: order getter, order taker and support personnel.

    However, there were two types of personal selling for customers in VinCom plaza including

    order getting and order taking.

    Order getting:

    One of the order getters jobs is to increase firms sales by selling to new customers. They are

    called pioneers. They will provide customers with information about the product, persuade them

    to buy goods. The one who do this job must be talented, good experience and patient with some

    fastidious customers. In addition, the sale person also convince existing customer to buy new

    products of the company. They are called account managers. It is easier to persuade current

    customers to buy products than the others. The order getter can be inside the sellers store such

    as a machinery or clothing sales person. In Vincom plaza, we can easily realize the washing

    machine or television sales people at a big store on second floor. When customers first comeinside the store, they ask them which they want to buy and provide them some information about

    the goods. Clients might not know what we needs; the job of the order getter is to identify the

    needs. We can easily see the order getters in Vincom plaza. They satisfy customers, make

    customer feel that they are cared much. In clothing shops, order getters paid attention to

    customers by their nice voice and presentation. They will advise clients which side or style of

    clothes they should use. Seeing order getters is a good choice to know what you want and what is

    suitable for you.

    Furthermore, the order getter can be outside by a field sales force. They will visit customers and

    contact them. This method is probably effective but its cost is very high. The company must pay

    orders getters who work outside the bonus, travel-fee or some other benefit. Hence, the firms

    17

  • 8/8/2019 SPO 1 full

    18/23

    tend to use the telemarketing strategy nowadays. This solution is not only decreasing the cost of

    marketing outside but also developing the number of customers.

    Order taking:

    Different from order getters, order takers are someone who only needs to take an order to

    customers without giving them the representation. They perform an order processing function

    and complete the transaction. Normally, the order takers work in simple purchase situation. In

    Vincom plaza, we will easily realize the order getters in fast food shop or movie center. There is

    a fast food shop in the fourth floor. Most of the sale people here are order takers. Everyday, they

    deal with the similar customers. When people first came to the fast food shop, the order takers

    will ask them if they are ready to order. Afterward, they listen carefully what customer is

    ordering, read the order back to the customers and ask them to give the payment. Later on, theorder takers will check the payment and give the extra money back to their customers. The order

    getters job is not to persuade anyone to buy something from the shop. Thus, they are paid

    minimum salary and had no special training. However, they worked quite professional. Order

    takers will serve clients as soon as they ask. Customers will feel satisfy with this serve style.

    Order supporting:

    The third type of personal selling is order supporting. Support personnel often do not sale

    products and service but play an important role in maintaining existing customers and resolving

    the customers concerns. Generally, there are two types of support personnel: missionary and

    technical specialist. The missionary sale people will introduce new product and perform the

    promotion strategy for company. For example, a Pharmaceutical will go to the hospital, convince

    the doctors to buy their medicines. Technical specialistsduty is to solve the customers problem

    or instruct them how to use the product, especially electronic products. They must be trained to

    explain how to use the product and its limitations.

    The principles of personal selling

    One basic principle of personal selling is that personal selling is a form of dyadic communication

    and it allows for more efficient communicative interchange between sale person and customer.

    Dyadic communication means a direct or one-on-one communication between two people (M.

    18

  • 8/8/2019 SPO 1 full

    19/23

    C. Cant & C. H. van Heerden). Personal selling is the two-way communication where the seller

    can communicate with customer directly. Advertising, for example, is the useful way to get the

    attention of the customer and let them know about the product. However, there is no guarantee

    that the customers will receive and understand the full meaning of the messages of that

    advertises. Personal selling can improve the understanding of marketing message because the

    products benefits and utilities are explained and demonstrated directly to the customers. It is

    important to know that customers tend to prefer a sales display and presentation that is suitable to

    their need and solve their problem than a memorable and impressive canned advertisement.

    Panasonic refrigerator, for instance, is one of the popular kitchen appliance advertisements for

    every people. All most people know that Panasonics slogan is ideas for life and the

    refrigerator is a state of the art home appliance created to make your life easier and more

    convenient. Nevertheless, not many people know about the product in actual. The role of sale person, therefore, is important. The sale person can show the customer how Panasonic

    refrigerator is easy to see, easy to get and easy to arrange. He also can explain the way the new

    technology refrigerator saving energy, reducing electricity consumption, eliminating unpleasant

    smell and so on. The customers, as the result, are motivated and convinced that if they purchase

    the product; it will be a smart and wisely act. The buying decision of customer can be affected in

    this way. The customers may change from the undecided customers who just want to find

    information about the product to first-time customers and repeat customer.

    Another character of personal selling is that personal selling is flexible. It means that the sales

    presentation can be change in different situation. For example, not all customers who come to

    buy refrigerator want to know about anti-bacteria effect or hygienic clean system. The sale

    person can focus on the point which the customers interests adapt the message which is suitable

    to the customer at the time. The sale person can answer question about customers current

    problems and provide them solutions, advices and directions immediately. As the result, personal

    selling has ability to guide customers in selecting goods that are best suited to their requirements

    based on their interest and question about the product. For instance, the sale person not only tries

    to persuade customers to buy the specific product which they saw in the magazine or television,

    the sale person can give more details about available model and the data of each model that make

    customers opportunity to choose the best one for themselves. In this case, personal selling also

    has affection customers decision making. Most of the time, customers come to the store because

    19

    http://panasonic.com.vn/en/PCatid/1782http://panasonic.com.vn/en/PCatid/1773http://panasonic.com.vn/en/PCatid/1782http://panasonic.com.vn/en/PCatid/1782http://panasonic.com.vn/en/PCatid/1773http://panasonic.com.vn/en/PCatid/1782
  • 8/8/2019 SPO 1 full

    20/23

  • 8/8/2019 SPO 1 full

    21/23

    them opinions. The salesperson should ask probing questions of the prospective customer to

    determine their needs. Open-ended questions are things which the customer feels comfortable to

    respond. For instance, in the shops in Vincom, it is common for two or three meetings to occur

    before the new product are released. Customers are also very important. Salesperson should

    print the business cards in English on one side and the in Vietnamese on other. In some cosmetic

    shop, salespersons always make customers feel comfortable in the first impression. They seek

    what customers need and want, after that consulting for customers and building a strong

    relationship with customer for the next time.

    The presentation is at the core of order getting selling process, and its objective is to convert a

    prospect into a customer by creating a desire for the product or service. When making

    presentation, salespersons need to focus on the real benefits of the product or service to the

    specific needs of their customers. If this step goes well, the customer will seriously consider

    purchasing the product. As jewelry shop, salesperson will introduce to customer the special

    features of product and find out what customer pay attention. Customers want to know about the

    real benefits of the products rather than listing the formal features of products. For example, in

    Sony Ericsson store, salesperson need to show why the new product is more expensive than

    others. Salesperson should base on special applications of new products as camera 8.1

    megapixels, wifi which the existent products do not have.

    After presenting your sales pitch, the potential customer will likely have objections . If you can

    comfort the consumer about their objections, they will probably make their final decision to buy.

    Some objectives are valid and are on the characteristics of the product or service or price.

    However, some objectives are invalid. There are some techniques which can be used to deal

    with objections in a courteous, ethical, and professional manner. First of all, acknowledge and

    convert the objections is using as a reason for buying. For example, in Mango shop in Vincom,

    the customer might say, the price is too high, the salesperson reply: Yes, the price is high

    because we use the material. Let me show you. besides, the postpone technique is used whenthe objection will be dealt with later in the presentation. Most of the time salesperson should be

    answered immediately, but occasionally they should be put off.

    The closing stage in the selling process involves obtaining a purchase commitment from the

    prospect. It is the most important and the most difficult stage because the salesperson must

    21

  • 8/8/2019 SPO 1 full

    22/23

    determine when customer is ready to buy. The salesperson can base on some features includes

    statements and questions. For instance, in statement, salesperson in an electronic store can

    realize, customer might say this equipment should reduce our maintenance cost. In Adidass

    store, customer might ask a question can I try the shoes with a smaller size. Another example

    for conversion close, buyer might say: I cannot really afford it this quarter, seller might say:

    at this special low introductory price can you rally afford to wait? When customer is clearly

    ready to buy, the close is used, and a salesperson asks for the order.

    The following up is the final step of the personal selling process. Salesperson must complete any

    agreed upon actions (i.e. bonus, rebate) and stay in touch after the sale. This stage of the selling

    process also solidifies the buyer seller relationship. The cost and effort to obtain repeat sales

    from a satisfied customer is roughly half of that necessary to gain a sale from a new customer.

    As Megastars in Vincom, the prices of tickets reduce 40,000 vnd on Monday. Not only has that,

    customer can have opportunity to get a small gift.

    All steps in personal selling process are important. No subsequent steps can succeed without

    preparation; no objections can be handled unless the customer is found. Salesperson will deal

    with a logical, step by step process. Some managers pay attention to train salesperson about

    sales presentation techniques and the ways of talking to customers into a close. Other managers

    focus on planning techniques includes gathering relevant information about the customer, setting

    sales call objective, selecting an appropriate presentation style. All steps link together thus no

    step can be considered as the most important step in personal selling process. Salespersons want

    to achieve the goals; they must go step by step in this process.

    Conclusion

    To summarize, the report has provided information the roles of personal selling within the

    overall marketing of organizations and the stages in the selling process. The major research of

    this report focus on the relationship between the different elements of communication mix, theunderstanding of buyer behavior, the environmental and managerial forces affecting personal

    selling, the principles of personal selling, and the stages in the personal selling process. All

    researches apply on Vincom Tower.

    22

  • 8/8/2019 SPO 1 full

    23/23

    Reference

    Edexcel HNC & HND Business, (2004) Sales Planning and Operations , 1st Ed. London: BPP

    Professional Education.

    J. Paul Peter and James H.Donnelly, (2000 ), A preface to marketing management , 8 th Ed, Mc

    Graw Hill.

    M. C. Cant & C. H. van Heerden, (2004), Personal Selling , 1st Ed. Lansdowne: Juta & Co Ltd.4-6

    Philip Kotler, (2001), Marketing principles

    [email protected] , (no date), what is consumer buying behaviour?,

    http://www.udel.edu/alex/chapt6.html#psychological .

    About.Com:Psychology, (No date), Colour Psychology, [online], Available from:

    http://psychology.about.com/od/sensationandperception/a/colorpsych.htm [Assessed: 27

    September 2009]

    Marketing teacher, personal selling, [online], available at:

    http://www.marketingteacher.com/Lessons/lesson_personal_selling.htm [assessed: 27 October

    2009]

    23

    mailto:[email protected]://www.udel.edu/alex/chapt6.html#psychologicalhttp://psychology.about.com/od/sensationandperception/a/colorpsych.htmhttp://www.marketingteacher.com/Lessons/lesson_personal_selling.htmhttp://www.marketingteacher.com/Lessons/lesson_personal_selling.htmmailto:[email protected]://www.udel.edu/alex/chapt6.html#psychologicalhttp://psychology.about.com/od/sensationandperception/a/colorpsych.htmhttp://www.marketingteacher.com/Lessons/lesson_personal_selling.htm