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.