Explain the nature & scope of the selling function

1. Explain the nature & scope of the selling function Marketing 2.01 A 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 Successful Salespeople • Education and Training • Self-Motivation • Self-Confidence • Product Knowledge • Customer Knowledge • Ethics • Persistence and Patience • Selling Skills • Belief in selling as a service • Communication Skills • Creativity • Personal Appearance

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