Selling Processes Flashcards
What is product differentiation?
When products that are the same or similar are made to appear different and/or better than those of their competitors.
What differentiates products?
- Packaging/labelling
- Customer service (may include presentation of the premises, atmosphere, range of products)
- Convenience (ie food manufacturers have developed a range of ‘convenient food options’ - making the preparation component convenient as possible)
- Environmental issues (lack of pollution, organic/zero waste, green philosophy, recyclable packaging)
- Social and Ethical issues (dislike of Genetically modified foods, want of Fairtrade Certification system - minimum prices and fair labor, no testing on animals)
Identify strategies used to promote products:
1) Personal Selling:
2) Advertising
3) Relationship marketing
4) Sponsorship
5) Product Endorsement
6) Publicity
7) Sales promotion
Explain personal selling:
A sales representative directed at a customer in an attempt to make a sale - ie. real estate agents meeting the needs and identifying the desires of individual customers.
Explain relationship marketing
Individualized treatment, long term relationship with sellers to create a customer loyalty
Explain advertising
Different types include:
- Mass marketing (television, radio, newspaper, magazines)
- Direct marketing catalogues (catalogues mailed to individual households)
- Telemarketing (the use of a telephone to personally contact a customer)
- E-marketing (use of advertising emails and messages)
Explain sponsorship and product endorsement
Sponsorship: a business directly promotes its products toward a select group of consumers with a common interest
Endorsement: a celebrity expresses their support for a product
Publicity?
Any free news story about a business’ products. They raise awareness of the product.
Sales promotions?
Coupons: offer discounds on particular items
Loyalty programs: rewards to ‘loyal customers’ who purchase specified amounts
Premiums: a gift that a business offers the customer in return for using a product
Refunds: part of the purchase price is given back to those who return their items
Samples: free small trial or item
What is the role of gender in product promotion?
Use of stereotypical images of male and female roles, such as men being depicted as the worker and women as the one doing domestic duties. Another major criticism of gender in product promotion is the amount of sexual themes and connotations to sell products being used - advertisers use sex appeal to suggest to consumers that the product will increase the attractiveness of the user. It also depicts women as objects.
What are the processes used to identify target markets?
Marketing Segmentation! The market is usually segmented by:
- age
- gender
- income level
- educational background
- geographical location
- lifestyle
- family structure
What are the legal issues associated with product promotion strategies?
The Competition and Consumer Act 2010 makes misleading advertising illegal - meaning that ads must not use words that are deceptive or claim that a product has some specific quality when it does not.
What dodgy methods that cannot be proved to be illegal under the CCA 2010 are still used?
Exaggerated claims, vague statements, before and after adverts, special offers
What are ethical issues?
- Children’s advertising
- Invasion of privacy
- Creation of needs
- Product placement
- Truth in advertising
What are some selling techniques:
- Distinctive packaging
- Product development (wide range of product)
- Product promotion (advertising, sponsorship, sales representative, interactive web page, competitions, product placement, social media advertising)
- Product differentiation
- Product pricing
- Product niche focus
- Product enhancement
