Posts tagged "Selling concept"

NEW CONCEPTS IN SELLING

Our economy has shifted from a “manufacturing-oriented” economy to a “marketing-oriented` economy. This means that we generally do not first design and manufacture a product and then decide how to market or sell it. Instead, we first carefully study the marketplace to determine what the consumer needs and wants. Selling and promotional strategies are also determined, and then the product is designed and manufactured in accordance with these factors. In applying this concept, the function of selling becomes more important in the total business environment and involves a greater degree of coordination with the other business functions.

Each year more and more companies are operating on the basis of this “marketing concept.” Those who adopt this marking approach make important changes in their methods, usually with improved results. They focus on satisfying the consumer, but they also zero in on the accomplishment of the company`s objectives – increased sales volume, larger share of the market, but above all, if the company is to survive, adequate profits. All aspects of the business are integrated to achieve these goals. No longer is production allowed to become an end in itself or to dominate company polices.

In short, the marketing concept envisions a total system of operation in which satisfying the consumer leads to profitable sales. Satisfying the consumer is the means of achieving long-run as well as immediate profits. The customer, then, becomes the pivot supporting all the activities of the business. Implementation of this philosophy requires teamwork by all those in marketing research, product planning, sales forecasting, advertising, selling, physical distribution, sales analysis and control, and other related marketing activities. Selling plays a key role in this combined effort because a customer is not satisfied nor is a profit made until the product or service is actually sold.

Business today is also influenced by more competition, both domestically and from abroad. There are more rigid cost controls, and more and better information is now available regarding the products and services we buy-particularly over the Internet. Furthermore, labor, material, and operating costs have greatly increased, and profit margins are therefore narrower. All of these conditions have made the work of the salesperson more important and complex. Accordingly, selling today requires more knowledge and skill.

The modern salesperson must not only be skillful in selling her product or service but must also be able to show the individual customer how to use the product or service in solving her particular needs or problems. If she sells a product to a merchant, she may also be required to show the merchant how to retail the product and be prepared to advise her on activities ranging from choosing a store location to developing inventory methods, preparing advertising, analyzing consumer behavior, setting prices, and others. With this expansion in the activities of selling, the modern salesperson of today must be knowledgeable in many areas of business and be capable of adjusting to a multitude of varying circumstances.