2-1 by The McGraw-Hill Companies, Inc. All Rights Reserved Chapter 2 Retail, Business, Services and Nonprofit Selling

2-2 by The McGraw-Hill Companies, Inc. All Rights Reserved Learning Objectives  After studying this chapter, you should be able to: Discuss the importance of personal selling Describe the retail selling process Discuss the differences between business and consumer and their markets Describe the characteristics of business markets and products. Explain the steps of business purchasing agent use in buying decisions Explain the difference between services and nonprofit selling.

2-3 by The McGraw-Hill Companies, Inc. All Rights Reserved 2.Agenda  What is Retailing?  The Retail Salesperson’s Role  Basic Retail Selling Process  What’s different about business market?  Who makes the decisions around here?  Purchasing Agents are rational buyers  Selling Services is challenging  Nonprofit selling - its about time!  Summary

2-4 by The McGraw-Hill Companies, Inc. All Rights Reserved 2.What is Retailing?  Individual or organization that sells good or services to final customers for their personal, non-business use. Key – final customer

2-5 by The McGraw-Hill Companies, Inc. All Rights Reserved 2.Career Opportunities  Financial rewards are excellent Straight salary Commissions Combination of salary & commission  Non-financial rewards are many Excellent training programs Rapid assumption of responsibility Personal growth & development

2-6 by The McGraw-Hill Companies, Inc. All Rights Reserved 2. The Retail Salesperson’s Role  Service is key  Working hard and knowing stock is necessary  Personal selling is where it’s at!  Accurate completion of transaction – a must.

2-7 by The McGraw-Hill Companies, Inc. All Rights Reserved 2.Basic Retail Selling Process  The customer asks certain questions: Salesperson Company Product Price Time to buy Service Trust customer productsalespersoncompany

2-8 by The McGraw-Hill Companies, Inc. All Rights Reserved 2. What’s different about business market?  The business market defined… Industrial, producer, organizational  Business uses buy for three purposes: To make other goods and services To sell to consumer of industrial partner To conduct organizational operations

2-9 by The McGraw-Hill Companies, Inc. All Rights Reserved 2. What’s the difference cont’d  Demand for business products is different Derived demand Inelastic demand Joint demand  The key is understanding the demand for the product…$$$!

2-10 by The McGraw-Hill Companies, Inc. All Rights Reserved 2. Who makes the decisions around here?  Understanding the business buying process Eight steps …..  Key: Finding and spending time with the right person. Persons with influence over buying decision Purchasing agent

2-11 by The McGraw-Hill Companies, Inc. All Rights Reserved 2. Purchasing Agents are rational buyers  Purchasing agents Well trained Knowledgeable Rational buyers  Decision based on: Business reasons Value for money Buying Motives Increased profits Increasing sales Improving the operation’s efficiency

2-12 by The McGraw-Hill Companies, Inc. All Rights Reserved 2. Selling Services is challenging!  Characteristics of Services Intangibility Inseparability Heterogeneity Perish ability and fluctuating demand  Selling services is the most challenging sales job, why?

2-13 by The McGraw-Hill Companies, Inc. All Rights Reserved 2. Selling Services is challenging Service intensive good HYBRID Goods Intensive service Relatively Pure Service Relatively pure good Salt Soup Toothbrush AutomobileRestaurantsAir Travel Baby Sitting Insurance Teaching A good-service continuum Intangibles are often difficult for many prospects to understand, e.g.. insurance, financial investments, health services

2-14 by The McGraw-Hill Companies, Inc. All Rights Reserved 2. Nonprofit selling  No profit motive!  Most nonprofit organization sell services rather than intangibles, such as: Cultural - museums, zoos Religious -temples, mosques Social cause - civil rights, smoking Political - political parties, politicians

2-15 by The McGraw-Hill Companies, Inc. All Rights Reserved 2. Nonprofit selling cont’d  Nonprofit clients  Nonprofit contributors  Importance  Impact

2-16 by The McGraw-Hill Companies, Inc. All Rights Reserved 2. Summary  Retail extremely important to society  Salespeople activities vary from store to store  Business buying decision may be complex  A service redefined …

2-17 by The McGraw-Hill Companies, Inc. All Rights Reserved 2. Notes