THE SELLING CONCEPT

Selling
It is concerned with the sales of product
or focuses on the target set by the seller
The selling concept is a management
It concentrate on pushing the product to the seller orientation that assumes that
It includes interpersonal interaction, offering and consumers will normally not buy
advices, service to the customer, negotiation in enough of the product
terms of sale such as price, quantity and quality
unless they are approached with a
Finally it leads to closing of sale (entering on
agreement about pricing and service)
substantial selling and promotion
effort

SELLING CONCEPT Vs MARKETING

MARKETING CONCEPT CONCEPT
Selling focuses on the need of the seller
Consumer oriented marketing give rise to marketing
concept whereas marketing focuses on the need of the
It aim to find out the needs, wants and values of the customer
customer
It also aims to deliver the desired satisfaction more
effectively and efficiently than its competitors to the
customer
Simply it aims to satisfy the need of the customer
It is an integrative approach, i.e. identification,
assessment and satisfaction of human needs

Marketing-definition
Selling aims in sellers need to convert Marketing means working with markets
the product into cash, whereas It try to actualize potential exchanges for the
marketing aims in satisfying the need purpose of satisfying human needs and wants
of the customer by means of products It is defined as human activity directed at satisfying
needs and wants through exchange process
Marketing is another name of selling E.g. humans needs are food, water clothing,
but it is a long term process education and other service
It includes policies, techniques and methods
Marketing is a more expensive way of necessary for selling and distribution
selling It is the total commercial and support activities to
sell their product
 Principles Objectives
It should classify, assess and integrate information To give direction and purpose to the marketing
relevant to a business division as a whole as well as to various
It must provide a sound base for thinking about and departments
studying business problems and provide methods to To place present activities in perspective
draw correct conclusions
To discipline various future activities
It must be able to explain, predict and control the
process it employs To place tactical plans correctly
It should use analytical methods such as O.R, To set growth targets
statistics, computer technology etc organisation and method which will
Marketing should set it principles depending upon
the business

Marketing management Analysis detailed study of the gathered

It is the process of analysis, planning, information regarding market competitors,
implementation and control of programme to
target market, political issues etc.
bring about desired exchanges with target
markets for the purpose of achieving objectives Planning choosing the plan suitable for
of organisation the market, pricing, advertisement etc.
It is a specialized job of dealing with the Implementation putting plan into action
customer market to produce end product
according to predefined schedule
It creates interrelation and interconnection
between marketing and other business elements Controlling results are measured,
It integrates all components of marketing compared and adjustments are made
programme into a coordinated market mix

Market research
Functions
Marketing research If a firm is producing a product without
Sales forecasting conducting market study then the chances of
Advertising survival of that product is at
Sales promotion or
Selling If a firm is producing a product based on a
Handling of enquiries and order from the customer market study then of failures of that
Packing product or risk in high investment is
Servicing
 Objectives
Market research determines:
Market Research may be defined as an organised Who and where the customer is:
approach which includes all research activities What are the needs and wants
involved in marketing problems. What will he buy
Where and how he will buy
It includes: How will he pay
Gathering, recording and analyzing the utility and Reduces risk
marketability of the product
Tells about future of product and product yet to be
The nature of demand introduced into the market
The nature of competition
Measure sale trend and sales potential
The method of marketing
Measure economic trend and profitability
The movement of product from the stage of
manufacturing to the point where it get consumed Studies about market potential and market share
Studies amount demand and price rate

BENEFITS
Try to popularize the company products
Measurement of market potential
and makes them acceptable to customers
Determination of market characteristics
Keep in touch with the market
Market share analysis
Explores new market and helps Competitive product studies
developing new product New product acceptance and potential
Guides sales promotion effort Short and long range potential
Studies of business trends etc.

Market research procedure Market research techniques

Define the problem clearly Data Research
Develop a clear set of research objectives Postal Questionnaire
Supervise or subcontract the task of collecting Telephone Interview
the data Personal Interview
Extract meaningful information from the Observation Method
collected data Statistical Method
Prepare a report presenting major findings
and recommendations
 SALES PROMOTION Objectives
All activities that go into the development of To introduce new customers
sales is called sales promotion
It is also intended to raise the demand level of a To attract new customers and retain the
particular product very quickly is also termed existing customers
under sales promotion
To maintain sale of seasonal products
It includes all the marketing activities except
advertising, publicity and personal selling To meet the challenge of competition
It plays critical role in the introductory stage and
maturity stage of product life cycle.
It is intended to educate the consumer better and
to bring an increase in sales.

Sales promotion methods

Channels of distribution
Consumer promotion Producers do not sell their products directly to the
final user.
Trade promotion
Between them and the final user stands a number of
Sales force promotion marketing intermediaries performing a variety of
Good public relation functions and bearing a variety of names
The marketing intermediaries are called channels of
Good customer relation distribution or trade channel or marketing channel
Product demonstration Eg: Retailer, Wholesaler
Display Distribution channel supply products to the
customer at right time, place and quantity

Direct selling from producer to

consumer (direct distribution)
Distribution channels are mainly classified into
two
Direct selling from producer to consumer Producer Consumer
Selling from producer to consumer through a It is very effective for products having high
middle man
profit margin
Eg: Photocopy machine, computers
This method is more suited to specialized or
technical products
It represent a TWO LEVEL DISTRIBUTION
CHANNEL
Selling through middleman (indirect
distribution)
The selling via a middleman can be either PRODUCER RETAILER
through a RETAILER or a WHOLESALER or
USING BOTH

CONSUMER

It represent a THREE LEVEL DISTRIBUTION

CHANNEL

WHOLE
It varies well with product having low
PRODUCER profit margin
SALER
Wholesalers are considered only
RETAILER when large orders are to be placed
Middle man buys good and sells it to
the customer
CONSUMER
Thus the producer do not have the
It represent a FOUR LEVEL DISTRIBUTION CHANNEL risk of storing the product

Advertising Importance
Advertising is a form of communication Advertising is important to customer
The purpose is to convey information Advertising is important for the seller and
regarding a company, goods or service by manufacturer
means of words, pictures, diagrams, sounds, Advertising is important for society
music, colours shapes symbols etc.
It is a paid form of non-personal presentation
It encourages sales
 Classification of advertising Benefits
Print Advertising Introduces existing and new products to the
Broadcast Advertising customer
Outdoor Advertising Tells what the product is, from where it can be
Direct Marketing purchased and what should be the price
Direct Mail It makes a product stand against competitor
Telephonic Advertising products
Online Advertising Tells public the good quality of product
Covert Advertising Increase sales

STEPS Pricing
Knowing the objective Price is the amount of money required to
Research purchase the product
Target audience It means manufacturer get a fair return for
Media selection their investment
Setting the budget It increase wealth of the organisation in return
Designing and creating the ad for supplying the product
Place and time
Execution

Important situations where price

Factors affecting price fixation
setting is a problem
Fair trade law When firm is setting the price for the first time
Nationally advertised prices and government
restricted prices When competitor changes the price
Desired customer clientele When the firm produces more than one
Company monopoly product and demand for one product is
Type of merchandises (novelties or special influenced by other
interest items)
Nature of sale Price change due to certain circumstances
Distribution channel
Sales promotion
 Important pricing Methods Types of market
Market penetration The product sold in the market
Market skimming Nature and volume of selling
One price system The nature of dealing
Odd price system Regulated and municipal market
Follow the market pricing
Area covered
Fixing a price to reduce loss
Time-interval
Ethical pricing
Mark-up price

Sales forecasting Steps in sales forecast

Forecasting is the art of anticipating what buyers Determining the objective of forecast
are likely to do under a given set of conditions Subdivide the task of forecasting
It is the estimate of sales in physical units for a Determine the relative importance of factors
future period Select the method to be used for forecasting
It means estimation of type, quantity and quality Collect and analyze the data
of future work Study the correlation between sales forecast and
Sales budget depends on sales forecast sales promoting plans
Sales forecast should be simple, accurate, Study of competitors activities
economical and easy to understand Prepare final sales forecasts
Evaluation and adjustments

Advantages of sales forecast Limitations of sales forecast

Helps in effective planning Based on postulations and assumptions; so
Helps in removing the weakness of chance of error is there
organisation structure Based on past data; but future may not be a
Helps in better co-ordination copy of past
Achieves co-operation in the enterprise Changes in consumers needs, taste of fashion,
Provides a basis of effective control style etc may cause inaccuracy in forecast
Important at national level Lack of history in case of new products
Lack of efficient and experienced sales force
 Types of forecasting Objectives of short term forecasting

Short term forecasting Formulation of suitable production policy

Covers a period of 3 months, 6 months or 1 year Regulate supply of raw materials
Done when demand fluctuates from a month to Best utilization of machines
another
Regular availability of labour
Long term forecasting
Covers a period of 5 to 10 years
Price policy formulation
Used in industries like ship building, petroleum Forecasting of short term financial
refinery etc requirements
Initial investment cost is very high Setting the sales target

Objectives of long term forecasting Factors affecting forecasting

Deciding plant capacity General business conditions
Manpower planning Conditions within the industry
Estimating cash inflows Government actions
Determining dividend policy Economic trends
Competition
Planning of long term production
Change in technology and market
Long run financial requirements
Political stability
Budgetary control over expenditure Factors affecting export trade

Methods of sales forecasting

Qualitative
Quantitative
QUALITATIVE TECHNIQUES
or
JUDGEMENT TECHNIQUES
 Survey of expert opinion method
Jury or executive opinion method
Opinions sought from executives of different In this method experts in the concerned field
discipline
Estimates for future developed on their views inside or outside the organisation are
By rough averaging of these opinions final forecast is approached for making estimates.
made It opinions of experts may include opinions
Executives participating should have versatile given newspaper, trade journals, wholesalers
experience and sound knowledge of business
and retailers etc.
They should know about overall economic
environment and conditions prevailing in industry
They should know about strength and weakness of
the firm

Sales force composite forecast Delphi method

This forecast is done by sales force A panel of experts is asked to answer a series of
questionnaire.
The individual salesman develops sales forecst
The answer from one questionnaire is used to
for his territory produce another questionnaire.
Then the individual forecast are consolidated The opinions are tabulated and opinion of the
to get the organisational forecast entire group are made known to each of the
other panel members.
It is an iterative process in which opinion from all
experts are collected to arrive at a reliable
consensus.

Survey of customer buying Time series or quantitative analaysis

Here market surveys are conducted regarding In this case past data are arranged in a
specific consumer purchases chronological order as dependent variable and
time as independent variable
It includes telephone contacts, personnel It consist of four components:
interview, or questionnaires as a means of Trend (T)
obtaining data. Cyclical fluctuation (C)
Seasonal variation (S)
Irregular fluctuation (R)

Y = TCSR