All of these conditions would favor using an advertising and sales promotion driven approach over a personal selling one. Examples of products in this category include soft drinks, groceries of all types, and low-end consumer electronics that are purchased quickly based on brand loyalty over intensive analysis. In general, products that have lower margins and are highly commoditized are those that are sold through this approach. Personal selling on the other hand is very expensive as a sales strategy are often is used in situations where the sales cycles are longer as customers evaluate options more thoroughly, and where the products being sold are much higher in price. The greater the price of a product, the less commoditized it is, the more customized it is to the needs of a customer, the greater the reliance on personal selling. In the final analysis personal selling only makes sense for higher margin products that can sustain the costs of this selling approach, while lower-margin and commoditized products are best sold through intensive advertising and sales promotion driven strategies.
References
Michael Burkett (2005, July). The "Perfect" Product Launch. Supply Chain
Management Review, 9(5), 12-13. Retrieved November 21, 2007, from ABI/INFORM Global database. (Document...
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