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Question

A sales person who has a customer relationship, selling products is said to be involved in:

The correct answer is

Cross-selling

When a sales person who has an existing customer relationship is involved in selling additional products, this specific sales activity is known by a particular term. Let's explore the given options to identify the correct one.

Cross-Selling: Leveraging Customer Relationships

Cross-selling is a sales strategy where a sales professional encourages a customer to purchase related or complementary products or services to an item they have already bought or are about to buy. The fundamental aspect of cross-selling, as highlighted in the question, is the presence of an existing customer relationship. This relationship implies a level of trust and understanding of the customer's needs, which makes it easier for the sales person to suggest additional items that would genuinely benefit the customer or enhance their experience with the primary product.

  • Example: If a customer buys a laptop, the sales person might cross-sell a carrying case, a mouse, or an extended warranty. These are related products that complement the initial purchase.
  • Relevance to the question: The question specifically mentions a "customer relationship" and "selling products," which perfectly aligns with the definition and practice of cross-selling, where the sales person utilizes the established bond to offer more solutions.

Understanding Other Sales Concepts

Let's briefly examine why the other options do not fully describe the scenario presented:

  • Direct selling: This refers to selling products directly to consumers in a non-retail environment, often through personal contact (e.g., door-to-door, party plan, network marketing). While it involves selling, it describes the distribution method rather than the specific act of selling additional products based on an existing relationship with the customer.
  • Customer value selling: This is a sales approach focused on demonstrating and delivering the tangible value of a product or service to a customer, aligning with their specific needs and goals. It's about how you sell (by focusing on value) rather than the act of selling more to an existing customer with a relationship.
  • Link-selling: This term is not a widely recognized or standard professional sales term. While one might intuitively connect it to "linking" products, it does not have a formal definition in sales literature comparable to cross-selling, upselling, or direct selling.

Therefore, when a sales person with an established customer relationship sells additional products, the activity is precisely defined as cross-selling.

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Important Questions from Sales Promotions & Personal Selling

  1. Which one of the following is not a major direct selling company in India?

  2. Arrange the following steps of personal selling process in a sequence.

    A. Making an appointment with customer to establish rapport.

    B. Gathering relevant information about the prospects and their needs to plan sales presentation.

    C. Handling customer's objections related to price / value / functionality of the product.

    D. Discovering, clarifying and understanding the buyer's needs.

    E. Gaining buyer's commitment to action.

    Choose the correct answer from the options given below:

  3. Personal selling includes:

  4. Arrange the following steps of Personal Selling in sequence : 

    A. Pre approach 

    B. Presentation and Demonstration 

    C. Approach 

    D. Prospecting and Qualifying 

    E. Handling Objections 

    Choose the correct answer from the options given below. 

  5. Which amongst the following methods is not a method of generating sales leads in personal selling?
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