Explain the nature & scope of the selling function
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Transcript Explain the nature & scope of the selling function
Explain the
nature & scope
of the selling
function
Marketing 1.02A Notes
What is Selling?
Selling
is responding to consumer needs
and wants through planned, personalized
communication in order to influence
purchase decisions and ensure
satisfaction.
Planned communication
Personalized communication
Influences purchase decisions
Should ensure customer satisfaction
Individuals that sell
A
farmer sells produce at
a roadside stand
An artisan sells handmade
baskets at a craft show
A doctor treats a patient
A retailer sells a DVD
player
A hairstylist gives a haircut
An accountant prepares a
customer’s tax forms
Groups that sell
Department
stores buy shoes to resell to
customers
Wholesaler buys candy to resell at a
grocery store
College bookstore buys books to resell to
students
Organizations/Agencies that
sell for use in operations
Some are used to produce other goods
Pizza restaurant buying pepperoni for its pizza
Furniture manufacturer buys fabric to use on its
chairs/sofas
Some are used for general operating
purposes
Pizza restaurant purchases ovens to bake its
pizzas in
Furniture manufacturer purchases trucks for
delivering its products to wholesalers and
retailers
Types of Items Sold
Tangible
products are those items that
can be touched, smelled, tasted, seen or
heard.
Clothes
Houses
Food
DVDs
Types of Items Sold
Intangible
products are productive
activities that we pay someone else to
perform
They are services provided to customers
Dry cleaning
Lawn care
Health care
Tangible & Intangible Items
Tangible
products have intangible
aspects to them
Intangible products have tangible
aspects attached to them as well
A diamond engagement ring is tangible,
but it signifies many intangible feelings and
emotions, such as love and commitment.
Where Selling Occurs
Selling
happens anywhere person-toperson contact is made.
Over the phone
On the doorstep of a person’s home
At a customer’s place of business
In a store or office
How Products Are Sold
Some goods and services
are sold directly to the
consumer or user without
the use of a wholesaler or
retailer.
Selling magazines door-todoor
Selling candy to friends and
relatives to raise money for a
student organization
Selling products such as
cosmetics and Tupperware
through home shows
How Products Are Sold
Goods
and services sold indirectly to the
consumer by intermediaries (wholesalers
& retailers)
Video stores purchase from suppliers and
then sell or rent DVDs to customers
An athlete’s agent gets him/her a five-yr
contract with a professional sports team
Role of Selling in a Market
Economy
Selling
keeps our economy moving
Businesses buy resources (natural, human,
capital) to be used in the production of
goods and services and sell to the market
that wants them
Manufacturers
Wholesalers
Retailers
Individuals
and households
Role of Selling in a Market
Economy
Individuals
sell their resources to
businesses to help in the production of
goods and services
No economic flow
Keeps our economy moving
Role of Selling in a Market
Economy
Selling
promotes competition
All businesses compete for scarce customer
dollars
Sell the most products + satisfy customer
needs + best prices = success
Develop new or improved products to
make more sales than their competitors
Roles of Selling in a Market
Economy
Selling
affects employment
Jobs depend on making sales
Businesses grow, more salespeople are
hired to keep up with the demand of
products
Example:
Starbucks
Roles of Selling in a Market
Economy
Selling adds utility.
Products can be “in the right place at the right
time”
Creating customer desire
Suggest accessories to go with an outfit
Selling helps customers determine needs
Enables customers to receive help with their
buying problems
Customers can determine their needs and
select products that are right for them
Roles of Selling in a Market
Economy
Selling
creates desire for products
Create desire for new or established
products
Determine
customers’ needs, wants, and
buying motives
Explaining product features and benefits to
customers
Heightening their desire through the use of
demonstrations
Characteristics of a Successful
Salespeople
Education
and Training
Self-Motivation
Self-Confidence
Product Knowledge
Customer Knowledge
Ethics
Persistence and Patience
Selling Skills
Characteristics of Successful
Salespeople
Belief
in selling as a service
Communication Skills
Creativity
Personal Appearance
WHY DO CONSUMERS BUY?
To obtain the goods
and services they
desire or must have to
exist (ultimate
consumption)
For resale
For use in business
operations
Used in the
production of other
goods
Used to operate the
business
BUYING MOTIVES
Emotional – based on
emotion (ex. Social
approval,
recognition, power,
love, prestige)
Rational
– conscious,
logical reasons for
purchase (ex. Saves
time or money,
quality, service)
Motive?
Explain
the
role of
customer
service as a
component of
selling
relationships.
CUSTOMER SERVICE
PROCESS V. FUNCTION
Process–
customer satisfaction always comes first
Function–responds
to complaints from customers
CUSTOMER SERVICE HELP YOU
BEAT COMPETITION?
Quality
of products can be easily matched among
competitors.
Therefore customer service becomes key!
FACTORS of
customer service expectations:
Past
Experiences
same or higher
quality than before
Word-of-Mouth
same quality service
others have received
Advertising
you to make good on
advertising claims of
quality service
Personal Needs
“reading” customers
and cater to their
personal needs
CUSTOMER SERVICE
=
RELATIONSHIPS
Maintain
Relationships
Happy customers return and refer friends
It’s more expensive to replace customers than it is
to maintain them
Create Loyalty through Rewards
PRE-SALE
(Customer Service)
all of the effort needed to prepare to make a sale
BEFORE the customer is acquired.
Obtain/maintain data of customers
Gain product knowledge
Stay abreast of the market
Post-SALE
(Customer Service)
Efforts after the sale to ensure the customer is happy.
Follow-up
Handle inquiries and complaints, keep customers satisfies
Ensure satisfaction, call, card, email
Ask for referrals
Keeping a client file
Evaluate sales efforts
Post Sales Surveys/ Comment Cards
Explain
company
selling
policies.
SELLING POLICIES
guidelines for selling. How will products be
sold?
How
•
are sales tracked?
Receipt, manual files, or online database
What
is the customer given at the completion of
the transaction?
• Receipts, email, or conformation code
Are
there any government rules or regulations
that must be followed?
TERMS OF SALE POLICIES
What conditions apply to each type of sale?
(Think airline tickets, e-Bay, close-outs)
Age,
condition of customer, single or double
occupancy.
Conditions
•
•
for returns
What will be allowed?
What if the dress has been worn?
Deadlines
for returning products
used or new
Method of refund
• money vs. store credit
•
SERVICE POLICIES
guidelines for servicing customers.
What is included in the sale?
Warranties (implied or explicit)
Delivery
Training
WHY ARE SELLING
POLICIES IMPORTANT?
Standardize
sales
Company / Customers understand how
products are sold.
Protects the company legally
All customers are treated the same way
Increases efficiency
EXTERNAL Factors
(selling policies)
City,
county, state and federal regulations.
Changes in customer expectations
Changes in production costs
Competitors’
INTERNAL Factors
(selling policies)
Sales
quotas
New management
Changes in goals
REGULATORY Factors
(selling policies)
The
distribution channel requires specific
policies in order to use it
EX: e-Bay
Implicit
warranties
PROBLEMS with selling policies
Policies
cover specific circumstances, so
some situations will not fit the current
policies.
Misinterpretation by a salesperson.
Some customers will ask for exceptions to
policies in exchange for increased
business or because of a history with your
company.