High-end real estate is the type of product that often requires skilled personal selling.
Personal selling and distribution channels both play a role in the marketing mix. Personal selling is a type of promotion, while channels are the foundation of distribution strategy. But marketers need to consider both these tools as part of a sound and integrated approach based on the nature of the product, their resources and whether they are targeting household consumers or businesses.
Product
For some types of products, personal selling is a critical tool. In particular, costly or customized goods like homes, cars and boats, or items based on new or complex technologies, need to be explained and promoted one-on-one. Similarly, the nature of the product must be considered in choosing a channel of distribution. Low cost, frequently purchased goods like soap and cereal can be distributed through a wide range of wholesale and retail outlets, but expensive, high-involvement products are generally limited to specialty stores or manufacturer showrooms.
Resources
Personal selling is far more expensive on a per-unit basis than the other major tools of promotion: advertising, sales promotion and public relations. Small or start-up companies often cannot afford to train and pay a sales force, especially for a new product. A marketer's choice of distribution channels is also related to resources, as the firm may be unable to support its own warehouses, transportation, inventory management and other facilities and services provided by distribution intermediaries like wholesalers or jobbers.
Target Consumers
Whether a firm needs to use personal selling may depend on whether the target buyers of its product are businesses or household consumers. Across a range of products, business buyers tend to respond more positively to a knowledgeable salesperson than to an advertisement or a price discount. Likewise, the channels of distribution used in business-to-business transactions are more likely to be direct manufacturer outlets than retail stores, though specialized websites are increasingly effective for both institutional buyers and household consumers.
Competitive Advantage
A competitive advantage can sometimes be created by personal selling, or based on the extent and diversity of channels of distribution. For example, high-end real estate sales often depend as much on the skill of the salesperson as on the features of the property. In many low-margin consumer goods categories, like toiletries, packaged foods or cleaning products, how many stores carry a particular brand can make the difference between its success or failure.
Tags: household consumers, personal selling, channels distribution, distribution channels, goods like, nature product, Personal selling