Marketing Notes: Selling Function Objective 3.04

Objective 3.04 – Explain the nature and scope of the selling function. Marketing WHAT IS SELLING? Responding to a consumer needs and wants through planned, personalized communication in order to influence purchase decisions and ensure satisfaction. Planned – learn about...

Objective 3.04 – Explain the nature and scope of the selling function. Marketing WHAT IS SELLING? Responding to a consumer needs and wants through planned, personalized communication in order to influence purchase decisions and ensure satisfaction. Planned – learn about the product Personalized – interaction with the customer Influence – help the customer make decisions Satisfaction – means repeat business  WHO SELLS? EVERY BUSINESS Example: John SELLS! decided to Manufacturers sell manufacturer door to wholesalers and bells. He went to a retailers bank and Wholesalers sell to convinced the loan retailers officer to give him Retailers sell to a loan to start his business. After the consumers obtained the loan Service- selling he began organizations 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  Making Decisions Extensive Luxury Car Limited Disney Vacation Routine Pizza every Friday  Making Decisions (Time Frames) Extensive Once every 5+ years Limited Once every 6+ months Routine Once a week or as often as needed  BUYING MOTIVES Emotional – Rational – based on conscious, emotion (ex. logical reasons Social approval, for purchase (ex. recognition, Saves time or power, love, money, quality, prestige) service) Which Buying Motive?  Which Buying Motive? a l n Em t i o o R a t io na l a l o n l t i a o o n Em l o ti n a m t i o E a  WHAT IS SOLD? Tangible items – Intangible items GOODS – SERVICES Can be Productive touched, activities we tasted, seen, pay others to smelled, and/or perform heard WHERE CAN SELLING OCCUR? Everywhere you have person-to- person contact Over the phone Over the Internet Store On your doorstep Etc.  HOW ARE PRODUCTS SOLD? Directly to the user Indirectly through – Direct Distribution intermediaries Examples: (wholesalers, Doctors sell their retailer, agents, etc.) services directly – Indirect to their patients Distribution Farmers sell Examples: their produce A real estate directly to agent sells a consumers at house farmers market Food lion purchases Pepsi to re-sell to  ROLE OF SELLING IN OUR ECONOMY Adds utility Usefulness of the product Helps determine customers needs Two way communication Creates a desire for products Appeal to reasons that customers buy  CHARACTERISTICS OF A GOOD SALESPERSON Product knowledge Ethical standards Selling skills Belief in selling as a service Personal appearance Communication  CUSTOMER SERVICE PROCESS V. FUNCTION Customer Service Process– an attitude that customer satisfaction always comes first Customer Services Function – a department or a function of an organization that responds to complaints from customers  HOW CAN CUSTOMER SERVICE HELP YOU BEAT YOUR COMPETITION? Over time, the quality of products can be easily matched among competitors. Therefore customer service becomes key!  FACTORS that influence customer expectations of customer service. Past Experiences Advertising Customers expect Customers expect the same or higher you to make good quality than before on advertising and they compare claims of quality to past service service given by your competitors Personal Needs Salespeople must  Word-of-Mouth “read” customers Customers expect the and cater to their same quality service personal needs others have received  Sell This! What are some questions that a salesperson might ask a customer to help themselves sell these products?  Features & Benefits of Products  Product features: Basic, physical, or extended attributes of the product or purchase. The most basic feature of a product is its intended use. For example, a customer purchases a watch to tell time. Features help to provide the reasons for price differences among products. For example, a car with satellite radio will cost more than the same car with a basic AM/FM radio.  Customer benefits: The advantages or personal satisfaction a customer will get from a good or service. The benefit should be a value to the customer. Salespeople must analyze the product features from the customer’s point of view to determine the benefits. CUSTOMER SERVICE = RELATIONSHIPS Maintain Relationships Happy customers will return and refer you to their friends It is more expensive to replace a customer than it is to maintain one Create Loyalty through Rewards  CUSTOMER SERVICE IN THE PRE-SALE Pre-sales are all of the efforts taken to prepare to make a sale BEFORE the customer is acquired. Obtain/maintain data of customers Gain product knowledge Stay abreast of the market  CUSTOMER SERVICE IN THE POST-SALE Efforts after the sale to ensure the customer is happy. Follow-up Ensure satisfaction - call, card, email Handle inquiries and complaints, keep customers satisfied Ask for referrals Keeping a client file  CUSTOMER SERVICE ACTIONS FROM A SALESMAN Solicit Feedback Keep in Touch Be Prompt Have a good attitude SELLING ACTIVITY POLICIES Selling policies: guidelines for selling that explain how will products be sold. How are sales tracked? Online database, keeping customer information What is the customer given at the completion of the transaction? Are there any government rules or regulations that must be followed?  TERMS OF SALE POLICIES Terms-of-sale policies: Conditions that 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 car purchases, haircuts) Method of refund (including money vs. store credit) SERVICE POLICY TYPES Service policies: guidelines for providing a service for customers after purchase. What is included in the sale of the product? Warranties (implied or explicit) Delivery Training (how to use) WHY ARE SELLING POLICIES IMPORTANT? Selling policies standardize sales. Ensures that the company and the customers understand how products are sold. Protects the company, legally.  WHY ARE SELLING POLICIES NEEDED? To prove all customers are treated the same way Increases efficiency of the sales people. EXTERNAL factors that affect selling policies City, county, state and/or Federal regulations. Competitors’ actions. Changes in customer expectations. Changes in costs of producing the products.  INTERNAL factors that affect selling policies Sales quotas. New management. Changes in goals.  REGULATORY factors that affect selling policies The distribution channel might require specific policies in exchange for using that channel (e-Bay for example). Implicit warranties. PROBLEMS with selling policies Policies cover specific circumstances, so some situations will not fit the current policies. Mis-interpretation by a salesperson. Some customers will ask for exceptions to policies in exchange for increased business or because