Consumer Relationship and Personal Selling - Essay Example

1.Why is personal selling so important in a time when technology is seemingly replacing people? Personal selling by definition is important despite technology. Personal selling refers to the process of influencing the customer to make a specific purchasing decision (Kalb, 1997). Personal selling has some advantages for sales’ personnel that distinguishes it from other promotional techniques. For example, personal selling facilitates a more in-depth description or explanation of the product promoted (Lamb, Hair, & McDaniel, 2013). Therefore when promoting a new or complicated product, personal selling is an important and effective tool to use (Lamb, et al., 2013). Personal selling also allows for a subjective and more personal approach for the targeted consumers. Thus, the product promoted is not needlessly brought to the attention of those who are no likely to be interested. Moreover, the cost of promotion can be modified by adjusting the size of the target consumer market. When the targeted consumer requires clarification or has a complaint or concern, the sales personnel is present and can meet those demands (Lamb, et al., 2013). According to Weitz and Bradford (1999), personal selling is an important aspect of relationship marketing and as such remains an integral part of the firm’s drive to become and/or to remain competitive. Personal selling not only initiates contact with perspective and existing consumers, but also aids in promoting and sustaining long-term relations with consumers, purchasing firms and creditors (Weitz & Bradford, 1999). Anderson (1996) argues that modern technology has increased, rather than decrease pressure on businesses to promote and use personal selling. With improvements in information technology and the integration of global markets and economies, consumers have become increasingly more sophisticated and have heightened expectations. As a result, businesses are increasingly looking to incorporate customer services into their sales’ management schemes. Many firms have turned toward managing field (personal) salespersons with electronically driven sales’ personnel (Anderson, 1996). Personal selling remains important independent of technologically driven sales processes because it is the “only communication” process that “allows a marketing message to be adapted to the specific needs and beliefs of each customer” (Spiro & Weitz, 1990, p.61). Other sales promotions such as promotions, point-of-sales’ exhibitions, packaging, and so on are directed toward the “typical customer” (Spiro & Weitz, 1990, p. 61). Personal selling is rather more flexible as it allows for adjustments to be made to the sales’ message in response to observable consumer reactions. With other forms of selling processes, marketers have limited opportunities for adjusting messages as they typically have to wait it out and interpret consumers’ purchasing behaviour (Spiro & Weitz, 1990). It would therefore appear that personal selling has become even more important with technological advancements. While consumers are more inclined to rely on, and expect technological solutions, consumers value and expect superior customer services (Spiro & Weitz, 1990). Personal selling provides consumers with superior customer services since it puts the consumer in touch with sales’ personnel and offers a unique opportunity for consumers to ask questions or to register concerns and to have those concerns addressed. Moreover, personal selling is focused on specific consumers and as such creates and fosters the feeling that the consumer is special and valued. In other words, personal selling is an important customer service technique that is particularly important at a time when modern technology is especially impersonal. Personal selling functions to personalise the relationship between the consumer and the firm and thus facilitates the superior customer services that consumers have come to expect. 2. Discuss the advantages and disadvantages of building customer relationships by the internet. Chen and Popovich (2003) argue that CRM is a mixture of people, processes and technology. Therefore, any successful adaptation of CRM necessarily requires an emphasis of people, processes and technology and this means ensuring that no factor is overused while other factors are underused (Chen & Popovich, 2003). In this regard, building customer relationships via the internet has an inherent advantage because it encapsulates the three important features of CRM: people, processes and technology. However, this using the internet to build customer relationships can have a disadvantage if the internet and therefore technology is prioritized over people and processes. One of the most important disadvantages of building customer relationships via the internet is the fact that the internet with its increase in accessibility, speed, globalization and heightened consumer control, have increased consumers’ expectations (Kincaid, 2003). At the same time, accessibility, speed and globalisation provide businesses with unique advantages. Businesses can now use the internet to meet these consumers’ expectations while reaching more consumers at relatively reduced cost over traditional advertising campaigns. Businesses are able to “deliver information, goods, and services to businesses and consumers” at anytime and anywhere (Kincaid, 2003, p. 58). Despite the new opportunities for delivering information, goods and services at any time and anywhere, there are disadvantages. Specifically, all businesses share the new opportunities accorded by the internet and therefore consumers are now in more control than ever before. Businesses are not only finding it necessary to use the internet to maintain contact with customers and to put their products and services out there, but they are also under pressure to maintain good relationships with their customers and to reach new customers. This means meeting customers’ expectations so as to gain their trust, commitment and loyalty. In the event, businesses are unable to meet these expectations via the internet, they can lose consumer trust, commitment and loyalty (Bauer, Grether, & Leach, 2002). Building consumer relations via the internet provides an advantage that capitalizes on the control that the internet gives to consumers. Businesses can use the internet to track online purchases and to obtain consumer feedback. Many businesses provide compliant and review templates that permit consumers to provide their views and critiques. By taking this approach, businesses can learn more directly, faster and at relatively lower costs, what consumers’ expectations are (Ross, 2004). Charlesworth (2009) argues that in addition to providing a quick, easy and cost friendly form of “consumer intelligence”, the internet also permits businesses to build relationships via communication tools (p. 254). Businesses typically establish online forums and social networking techniques that open up and sustain two-way communications between the business and the consumer. In addition, businesses use email communications to contact consumers on a regular basis to inform them of new products, availability and prices (Charlesworth, 2009). It can therefore be argued that while using the internet to build customer relationships has its disadvantages, its advantages far outweigh its disadvantages. The most significant disadvantage is the significant control that it confers on customers. However, the very feature of the internet that confers significant control on customers, allows businesses to gain an advantage: the delivery of products, goods and information whenever and wherever the consumer or the business desires. This in and of itself allows for superior customer services which is important to building good relationships with consumers. Bibliography Anderson, R.E. “Personal Selling and Sales Management in the New Millennium.” The Journal of Personal Selling and Sales Management, Vol. 16(4) (Fall 1996): 17-32. Bauer, H.H.; Grether, M. and Leach, M. “Building Customer Relations over the Internet.” Industrial Marketing Management, Vol. 31(2) (February 2002): 155-163. Charlesworth, A. Internet Marketing: A Practical Approach. Oxford, UK: Butterworth-Heinmenn, 2009. Chen, I.J. and Popovich, K. “Understanding Customer Relationship Management (CRM): People, Process and Technology.” Business Process Management Journal, Vol. 9(5) (2003): 672-688. Kalb, I. S. Fundamentals of High-Technology Marketing: What Marketers Need to Know. US: K&S Press, 1997. Kincaid, J.W. Customer Relationship Management: Getting it Right. Upper Saddle River, NJ: Prentice-Hall, Inc., 2003. Lamb, C.W.; Hair, J.F. and McDaniel, C. Marketing, 12th Edition. Cengage Learning, (Kindle Edition), 2013. Ross, D.F. Distribution: Planning and Control. Norwell, MA: Kluwer Academic Publishers, 2004. Spiro, R.L. and Weitz, B.A. “Adaptive Selling: Conceptualizing, Measurement, and Nomological Validity.” Journal of Marketing Research, Vol. 27(1) (Feb. 1990): 61-69. Weitz, B.A. and Bradford, K.D. “Personal Selling and Sales Management: A Relationship Marketing Perspective.” Journal of the Academy of Marketing Science, Vol. 17(2) (1999): 241-254. Read More