There are certain marketing situations where personal selling is more relevant as it provides easy and effective answers to the multi-dimensional sales problems. The situations or the conditions favouring personal selling can be lumped into four broad categories namely, Market-Product-Consumer and the Company. These conditions make personal selling more economical and effective. Here, 'economy' means savings brought in by matching costs of personal selling with the sales revenue generated; 'effectiveness' means building up consumer loyalty and competitive combating ability.
I. The Market Conditions:
The special market situations that encourage personal selling are:
a. Where a firm sells in a small local or government market,
b. Where the customers are concentrated at a point though the market is wide spread,
c. Where selling is done to merchant middlemen, and
d. Where desired agent middlemen are not available.
II. The Product Conditions:
The specific product conditions that encourage personal selling are :
a. Where the company product is in introductory stage of product life-cycle warranting generation of the core demand
b. Where the product is of high unit value
c. Where the product requires personal demonstration
d. Where the product needs personal attention to match specific consumer needs
e. Where the product requires after-sale-services, and
f. Where the product enjoys no brand loyalty.
III. The Consumer Conditions:
The special consumer conditions that favour personal selling are :
a. Where consumer buyer is not can impulsive one
b. Where the consumers need immediate consumers to their queries
c. Where the consumers persuasion and follow-up in the back-drop of keen competition and
d. Where purchases are valuable and irregular.
IV. The Company Conditions:
There are certain specific company conditions that prompt the personal selling efforts. These are :
a. Where the company can not afford ambitious and consistent advertising budget,
b. Where the company is not able to identify and use nonpersonal approaches to selling, and
c. Where the company thinks that it does with personal selling better than advertising as the alternative course.