Explain the nature & scope of the selling functionmarketing.cmswiki.wikispaces.net/file/view… ·...
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Explain the nature & scope of the selling functionMarketing 1.02A Notes
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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
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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
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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
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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
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Types of Items Sold Tangible products are those items that
can be touched, smelled, tasted, seen or heard. Clothes Houses Food DVDs
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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
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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.
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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
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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
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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
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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
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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
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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
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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
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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
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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
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Characteristics of a Successful Salespeople Education and Training Self-Motivation Self-Confidence Product Knowledge Customer Knowledge Ethics Persistence and Patience Selling Skills
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Characteristics of Successful Salespeople Belief in selling as a service Communication Skills Creativity Personal Appearance
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WHY DO CONSUMERS BUY?To obtain the goods
and services they desire or must have to exist (ultimate consumption)
For resaleFor use in business
operations Used in the production
of other goods Used to operate the
business
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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)
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Motive?
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Explain the role of customer service as a component of selling relationships.
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CUSTOMER SERVICEPROCESS V. FUNCTION
Process– customer satisfaction always comes first
Function–responds to complaints from customers
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CUSTOMER SERVICE HELP YOU BEAT COMPETITION?
Quality of products can be easily matched among competitors.
Therefore customer service becomes key!
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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
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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
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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
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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
Post-SALE (Customer Service)
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Explain company selling policies.
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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?
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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 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
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SERVICE POLICIES
guidelines for servicing customers. What is included in the sale?Warranties (implied or explicit)DeliveryTraining
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WHY ARE SELLING POLICIES IMPORTANT?
Standardize salesCompany / Customers understand how
products are sold.Protects the company legallyAll customers are treated the same
way Increases efficiency
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EXTERNAL Factors(selling policies)
City, county, state and federal regulations.
Changes in customer expectationsChanges in production costsCompetitors’
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Sales quotasNew managementChanges in goals
INTERNAL Factors(selling policies)
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The distribution channel requires specific policies in order to use it
EX: e-Bay Implicit warranties
REGULATORY Factors(selling policies)
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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.