Nature & Scope of Selling

1. Nature & Scope of Selling MKTG – 2.01A

2. Selling Planned, personalized communication designed to influence purchase decisions that ensure customer satisfaction.

3. Individuals, groups, & agencies that sell • Every business organization sells. Entrepreneurs sell ideas to banks to obtain financing. • Manufacturers sell to wholesalers, agents, and retailers. Wholesalers resell to retailers who then sell to customers.

4. Reasons that customers buy •  Businesses and people are able to obtain goods and service that they want and need. • Businesses also buy for business purposes. • One reason is to resell items at a profit. • Another reason is for use in business operations such as office supplies. • Another reason is for the purpose of their production of other products such as buttons and thread being purchasing to make a shirt.

5. Buying Motives • Emotional motives are based on feelings such as social approval, recognition, power, love or prestige. • Rational motives are based on conscious, logical reason for a purchase such as dependability, time or money savings, health or safety considerations service, and quality.

6.  Types of items sold •  Tangible and intangible products are sold. • Tangible products are want you can touch like clothes, food, CD’s. Intangible products are untouchable like dry cleaning, lawn care, or health care. • Goods are tangible products. • Services are intangible acts performed for someone. • Consumer goods or services are purchased by the general consumer for consumer use. Industrial goods or services are purchased by a business for business purposes (Also known as B2B).

7.  Where Selling Occurs •  Selling happens anywhere person-to-person contact is made. • Phone, door-to-door, person’s home, businesses, stores, flea markets, booths or sidewalks, or offices

8.  How products are sold • Direct Distribution is from the manufacturer directly to the consumer without the use of a retailer. • For example, door-to-door sales, selling candy for school fundraisers, Mary Kay Cosmetics, Avon cosmetics, Tupperware, or Pampered Chef sold through home shows. • Indirect Distribution uses intermediaries or middlemen like agents, wholesalers, or retailers. • A video store sells DVD’s, Wholesaler sells steel beams to a construction company, or athlete’s agent negotiates a contract for the next year.

9.  Role of selling in the market economy • Keeps our economy moving is where businesses buy resources for the use of production of goods. Individuals sell their resource of labor. Without each part there would be no flow. • Promotes competition because businesses compete for scarce resources. In order to stay in business, companies must compete by satisfying the needs of the consumer. New and improved products and lower prices is the result. This creates the flow of the economy. • Affects employment because businesses rely on salespeople making the sale. No sale, no money or more sales more jobs.

10. Role of selling in the market economy (cont’d) • Adds utility or usefulness to the products like having the right item in the right place at the right time. • Help customers determine needs through two way communication between the customer and the salesperson. That way the needs are better met. • Creates desire for the products through determining needs, pointing out features and benefits, & product demonstrations.

11.  Salespeople personal characteristics • Education and training – hands on experience, bachelor’s degree in business, marketing, or related field can assist. Many companies have training programs for the sales staffs. • Self-motivation – Sales requires a lot of hard work without direct supervision. Must be organized with good time management skills and not require someone else’s prompting to get the job done. • Self-confidence – People trust others who seem confident. Confidence gains trust and customers feel as though they are making a good buying decision.

12. Salespeople personal characteristics (cont’d) • Product Knowledge – is priceless. Salespeople must know the features and benefits of their products and their uses or purposes. Sources of information include product, people testimony, other salespeople, promotional material, or training classes. • Customer knowledge – everyone is different. Take time to review client files before the presentation to make sure you have everything in order. • Ethics – integrity is everything in any business but I can’t imagine anything more important in sales. Sales have a negative perception anyway. (i.e. used car salesman selling a lemon to their own mother.)

13. Salespeople personal characteristics (cont’d) • Persistence & patience – selling is tough. You work hours on a deal and it doesn’t come through as a sale. You must keep pushing to the next deal. Rejection is part of the job. You have to have a thick skin and keep moving forward toward the next sales opportunity. • Selling skills – determining needs, buying motives, open and close sales, question customer, handle objections, suggestions selling, demonstrate products, & follow up on sales. • Belief of selling as a service – sales people are the liaison between the company and the customer. They provide the service of communication for both parties. Satisfying the customer results in salary/profits for the salesperson and the company.

14. Salespeople personal characteristics (cont’d) • Communication skills – Salespeople must be able to express themselves simply for the customer to understand clearly. Strong communication involves LISTENING as well as speaking. • Creativity – selling today requires imagination and innovation. Salespeople must listen carefully to the needs of their customers and find unique uses for their products to satisfy those needs. Customers for life are the goal of every sales person. • Personal Appearance – you only have 60 seconds to make a first impression. Once established, it is always there. Dressing and grooming habits should always be practiced. Customers judge you and the company based on their first impression.