Presentation on theme: "Explain the nature & scope of the selling function"— Presentation transcript:
1 Explain the nature & scope of the selling function Marketing 1.02A Notes
2 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 communicationPersonalized communicationInfluences purchase decisionsShould ensure customer satisfaction
3 Individuals that sell A farmer sells produce at a roadside stand An artisan sells handmade baskets at a craft showA doctor treats a patientA retailer sells a DVD playerA hairstylist gives a haircutAn accountant prepares a customer’s tax forms
4 Groups that sell Department stores buy shoes to resell to customers Wholesaler buys candy to resell at a grocery storeCollege bookstore buys books to resell to students
5 Organizations/Agencies that sell for use in operations Some are used to produce other goodsPizza restaurant buying pepperoni for its pizzaFurniture manufacturer buys fabric to use on its chairs/sofasSome are used for general operating purposesPizza restaurant purchases ovens to bake its pizzas inFurniture manufacturer purchases trucks for delivering its products to wholesalers and retailers
6 Types of Items SoldTangible products are those items that can be touched, smelled, tasted, seen or heard.ClothesHousesFoodDVDs
7 Types of Items SoldIntangible products are productive activities that we pay someone else to performThey are services provided to customersDry cleaningLawn careHealth care
8 Tangible & Intangible Items Tangible products have intangible aspects to themIntangible products have tangible aspects attached to them as wellA diamond engagement ring is tangible, but it signifies many intangible feelings and emotions, such as love and commitment.
9 Where Selling OccursSelling happens anywhere person-to-person contact is made.Over the phoneOn the doorstep of a person’s homeAt a customer’s place of businessIn a store or office
10 How Products Are SoldSome goods and services are sold directly to the consumer or user without the use of a wholesaler or retailer.Selling magazines door-to-doorSelling candy to friends and relatives to raise money for a student organizationSelling products such as cosmetics and Tupperware through home shows
11 How Products Are SoldGoods and services sold indirectly to the consumer by intermediaries (wholesalers & retailers)Video stores purchase from suppliers and then sell or rent DVDs to customersAn athlete’s agent gets him/her a five-yr contract with a professional sports team
12 Role of Selling in a Market Economy Selling keeps our economy movingBusinesses buy resources (natural, human, capital) to be used in the production of goods and services and sell to the market that wants themManufacturersWholesalersRetailersIndividuals and households
13 Role of Selling in a Market Economy Individuals sell their resources to businesses to help in the production of goods and servicesNo economic flowKeeps our economy moving
14 Role of Selling in a Market Economy Selling promotes competitionAll businesses compete for scarce customer dollarsSell the most products + satisfy customer needs + best prices = successDevelop new or improved products to make more sales than their competitors
15 Roles of Selling in a Market Economy Selling affects employmentJobs depend on making salesBusinesses grow, more salespeople are hired to keep up with the demand of productsExample: Starbucks
16 Roles of Selling in a Market Economy Selling adds utility.Products can be “in the right place at the right time”Creating customer desireSuggest accessories to go with an outfitSelling helps customers determine needsEnables customers to receive help with their buying problemsCustomers can determine their needs and select products that are right for them
17 Roles of Selling in a Market Economy Selling creates desire for productsCreate desire for new or established productsDetermine customers’ needs, wants, and buying motivesExplaining product features and benefits to customersHeightening their desire through the use of demonstrations
18 Characteristics of a Successful Salespeople Education and TrainingSelf-MotivationSelf-ConfidenceProduct KnowledgeCustomer KnowledgeEthicsPersistence and PatienceSelling Skills
19 Characteristics of Successful Salespeople Belief in selling as a serviceCommunication SkillsCreativityPersonal Appearance
20 WHY DO CONSUMERS BUY?To obtain the goods and services they desire or must have to exist (ultimate consumption)For resaleFor use in business operationsUsed in the production of other goodsUsed to operate the business
21 BUYING MOTIVESEmotional – based on emotion (ex. Social approval, recognition, power, love, prestige)Rational – conscious, logical reasons for purchase (ex. Saves time or money, quality, service)
23 Explain the role of customer service as a component of selling relationships.
24 CUSTOMER SERVICE PROCESS V. FUNCTION Process– customer satisfaction always comes firstFunction–responds to complaints from customers
25 CUSTOMER SERVICE HELP YOU BEAT COMPETITION? Quality of products can be easily matched among competitors.Therefore customer service becomes key!
26 FACTORS of customer service expectations: Past Experiencessame or higher quality than beforeWord-of-Mouthsame quality service others have receivedAdvertisingyou to make good on advertising claims of quality servicePersonal Needs“reading” customers and cater to their personal needs
27 CUSTOMER SERVICE = RELATIONSHIPS Maintain RelationshipsHappy customers return and refer friendsIt’s more expensive to replace customers than it is to maintain themCreate Loyalty through Rewards
28 PRE-SALE (Customer Service) all of the effort needed to prepare to make a sale BEFORE the customer is acquired.Obtain/maintain data of customersGain product knowledgeStay abreast of the market
29 Post-SALE (Customer Service) Efforts after the sale to ensure the customer is happy.Follow-upHandle inquiries and complaints, keep customers satisfiesEnsure satisfaction, call, card,Ask for referralsKeeping a client fileEvaluate sales effortsPost Sales Surveys/ Comment Cards
31 SELLING POLICIES guidelines for selling. How will products be sold? How are sales tracked?Receipt, manual files, or online databaseWhat is the customer given at the completion of the transaction?Receipts, , or conformation codeAre there any government rules or regulations that must be followed?
32 TERMS OF SALE POLICIESWhat conditions apply to each type of sale? (Think airline tickets, e-Bay, close-outs)Age, condition of customer, single or double occupancy.Conditions for returnsWhat will be allowed?What if the dress has been worn?Deadlines for returning productsused or newMethod of refundmoney vs. store credit
33 SERVICE POLICIES guidelines for servicing customers. What is included in the sale?Warranties (implied or explicit)DeliveryTraining
34 WHY ARE SELLING POLICIES IMPORTANT? Standardize salesCompany / Customers understand how products are sold.Protects the company legallyAll customers are treated the same wayIncreases efficiency
35 EXTERNAL Factors (selling policies) City, county, state and federal regulations.Changes in customer expectationsChanges in production costsCompetitors’
36 INTERNAL Factors (selling policies) Sales quotasNew managementChanges in goals
37 REGULATORY Factors (selling policies) The distribution channel requires specific policies in order to use itEX: e-BayImplicit warranties
38 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.