1. Explain the nature & scope of the selling function
Marketing 1.02A 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 a Successful Salespeople
Education and Training
Self-Motivation
Self-Confidence
Product Knowledge
Customer Knowledge
Ethics
Persistence and Patience
Selling Skills

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