Page 3 - Lesson note

(vi) Personal Rapport: Development of personal rapport with customers increases the

competitive strength of a business organization.
(vii) Role in Introduction Stage: Personal selling plays very important role in the introduction

stage of a new product as it helps in persuading customers about the merits of the
product.

(viii) Link with Customers: Sales people play three different roles, namely persuasive role,

service role and informative role, and thereby link a business firm to its customers.

Importance to Customers

This role of personal selling becomes more important for the illiterate and rural customers, who do
not have many other means of getting product information. The customers are benefited by

personal selling in the following ways:

(i) Help in Identifying Needs: Personal selling helps the customers in identifying their needs

and wants and in knowing how these can best be satisfied.
(ii) Latest Market Information: Customers get latest market information regarding price

changes, product availability and shortages and new product introduction, which help them
in taking the purchase decisions in a better way.

(iii) Expert Advice: Customers get expert advice and guidance in purchasing various goods and

services, which help them in making better purchase.
(iv) Induces Customers: Personal selling induces customers to purchase new products that

satisfy their needs in a better way and thereby helps in improving their standards of living.

Importance to Society

Personal selling plays a very productive role in the economic progress of a society. The more

specific benefits of personal selling to a society are as follows:

(i) Converts Latest Demand: Personal selling converts latest demand into effective

demand. It is through this cycle that the economic activity in the society is fostered,

leading to more jobs, more incomes and more products and services. That is how
economic growth is influenced by personal selling.