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 communication
Personalized communication
Influences purchase decisions
Should ensure customer satisfaction

3. 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

4. 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

5. 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

6. Types of Items Sold
Tangible products are those items that can be touched, smelled, tasted, seen or heard.
Clothes
Houses
Food
DVDs

7. 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

8. 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.

9. Where Selling Occurs
Selling happens anywhere person-to-person 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

10. 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-to-door
Selling candy to friends and relatives to raise money for a student organization
Selling products such as cosmetics and Tupperware through home shows

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. Characteristics of a Successful Salespeople
Education and Training
Self-Motivation
Self-Confidence
Product Knowledge
Customer Knowledge
Ethics
Persistence and Patience
Selling Skills

19. Characteristics of Successful Salespeople
Belief in selling as a service
Communication Skills
Creativity
Personal Appearance

20. 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

21. 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)

22. Motive?

23. Explain the role of customer service as a component of selling relationships.

24. CUSTOMER SERVICE PROCESS V. FUNCTION
Process– customer satisfaction always comes first
Function–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 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

27. 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

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 customers
Gain product knowledge
Stay abreast of the market

29. 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,
Ask for referrals
Keeping a client file
Evaluate sales efforts
Post Sales Surveys/ Comment Cards

30. Explain company selling policies.

31. 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, , or conformation code
Are there any government rules or regulations that must be followed?

32. 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

33. SERVICE POLICIES guidelines for servicing customers.
What is included in the sale?
Warranties (implied or explicit)
Delivery
Training

34. 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

35. EXTERNAL Factors (selling policies)
City, county, state and federal regulations.
Changes in customer expectations
Changes in production costs
Competitors’

36. INTERNAL Factors (selling policies)
Sales quotas
New management
Changes in goals

37. REGULATORY Factors (selling policies)
The distribution channel requires specific policies in order to use it
EX: e-Bay
Implicit 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.