Concept selling

Concept Selling is a comprehensive action plan relating to the sale and distribution of a product or service 3. (Drucker 1974 p. 63)..

Idea of concept selling

The concept of sales is based on the claim that customers left alone will not buy enough of the company's products. The organisation must therefore take aggressive sales and promotional action 3. (Drucker 1974 p. 63). This concept assumes that consumers are typical of inaction or even resistance to buying, so they should be skillfully persuaded to do so. To this end, the company has a number of effective sales and promotion tools in its position 1. (Abela 2006 p. 5-16.).

Functions of concept selling

The specific course of action depends on the types of goods offered by the business and consumers, but usually the tasks of a sales concept are as follows (Swaim R., 2013):

• forecasting - searching for new consumers,
• planning - determining how much time to spend on current and future customerscommunication - informing consumers about products offered or services provided by a specific undertaking,
• sales - commencement of relations with a specific customer, presentation, clarification of doubts and signing a contract,
• service - resolving customer difficulties, offering technical support, guaranteeing the source of financing and preparing the delivery of goods or services,
• gathering information - carrying out market analysis and intelligence activities,
• allocation - the process of selecting customers in the event of a shortage of a specific product or service (Perreault, McCarthy 1999, p. 150-152).

Usage

• The concept of sale is most often used for less sought-after goods, which buyers normally do not think about, such as insurance, encyclopaedias, a place in the cemetery. Various sales techniques are constantly being improved in order to locate potential buyers (Perreault, McCarthy 1999, p. 150-152). Aggressive sales also apply to sought-after goods, e.g. cars: as soon as the customer enters the showroom, the car dealer tries to "harness" the customer. If the customer likes the car in the showroom, they are informed that there is another customer interested in buying the car, so they must decide immediately (Perreault, McCarthy 1999, p. 150-152). If the customer hesitates because of the price, the seller offers to talk to the manager about the possibility of obtaining a special discount. The customer waits 10 minutes, and when the seller returns triumphantly declares that "the boss does not like it, but he has managed to get him to give his consent". The aim is to "make the customer" and "finalize the sale" (Kotler, Armstrong 1999, p. 21-27).
• The sales concept is also used by non-profit organisations, in particular the founders of foundations, admission offices for studies and political parties. A political party is vigorously trying to "sell" its candidate to electors, presenting him as an excellent person for this position (Kotler, Armstrong 1999, p. 21-27)
• The candidate walks around the constituencies in the morning until the evening, exchanging handshakes, kissing children, meeting with donors, giving lively speeches. Countless amounts of money are spent on radio and television advertising, posters and mail. The candidate's shortcomings are not revealed because the aim is to sell. Nobody is worried about later satisfaction (Brennan, Baines, Garneau, Vos, 2008 p. 8.)
• After the elections, the newly elected official continues his sales-oriented policy towards citizens. He pays little attention to public expectations, but much of his effort is spent on persuading the public to accept his and his party's policies.
• Most companies use the concept of sales in case of overproduction. Their aim is to sell what they do, not to produce what the market wants. In modern industrial economies, overproduction has reached such a scale that most markets are consumer markets (i.e. buyers play a dominant role in them) and sellers have to fight for customers (Brennan, Baines, Garneau, Vos, 2008 p. 8.). Potential customers are attacked on all sides by TV advertising, newspaper advertisements, direct mail and telephone calls that encourage them to buy. Every step of the way someone tries to sell something. As a result, marketing generally identifies itself with aggressive sales and advertising (Kotler, Armstrong 1999, p. 23).

Elements of concept selling

In order to create an effective and efficient concept selling, it is important to set up a sales department, as it is an element that binds the consumer to the company. The preparation of the sales department consists of the following steps (Swaim 2013 ):

• Target setting,
• the definition of an action plan,
• selecting the appropriate organisational structure,
• quantification of the population,
• determining the salaries of sales department employees.

Examples of Concept selling

• Providing a detailed explanation of the features and benefits of a product or service.
• Presenting the product or service in a way that conveys the brand’s story and mission.
• Illustrating how the product or service solves customer problems in a unique way.
• Demonstrating how the product or service stands out from the competition.
• Creating an emotional connection with the product or service by appealing to the customer’s values and lifestyle.
• Educating customers about the product or service in a way that is relevant to them.
• Developing a customized approach to selling that is tailored to the individual customer’s needs.
• Utilizing technology to provide a more engaging customer experience.

Advantages of Concept selling

Concept selling is a comprehensive action plan that is designed to maximize the sale and distribution of a product or service. It provides numerous advantages, including:

• Increased customer engagement and understanding of the product or service. By explaining the concept behind the product or service, customers can gain a deeper understanding of how it works and how it can benefit them.
• Increased customer loyalty. By understanding the concept and the value it provides, customers are more likely to remain loyal to the product or service.
• Faster sales cycles. Concept selling can help speed up the sales process, allowing businesses to close more deals faster.
• Improved customer service. Through concept selling, businesses can provide customers with a better understanding of their product or service, which can lead to better customer service.
• Increased market penetration. Concept selling can help businesses reach more customers and penetrate more markets.
• Increased customer satisfaction. Customers are more likely to be satisfied with a product or service when they understand its concept and how it can benefit them.

Limitations of Concept selling

Concept selling is a great tool for sales and distribution, but it also has some limitations. These include:

• Lack of focus on customer needs: Concept selling is focused on product or service features and benefits, but it does not always take into account the customer's needs and how they are best met.
• Difficulty adapting to changing markets: As markets change, so too do customer needs and wants. Concept selling can have difficulty adapting to these changes, since it is generally focused on a single product or service.
• Emphasis on product features: Concept selling can lead to an overemphasis on product features and benefits, rather than focusing on the customer’s individual needs.
• Pressure to close sales: Concept selling can place too much pressure on salespeople to close the sale quickly, rather than allowing the customer to make an informed decision.
• Overselling: Concept selling can lead to overselling, where salespeople try to push the customer into a purchase they may not be ready for.

Other approaches related to Concept selling

Concept Selling is just one approach when it comes to selling a product or service. Here are some other approaches related to Concept Selling:

• Solution Selling: Solution Selling is a customer-centric sales approach in which the focus is on understanding the customer’s needs and building a solution to meet them. It is a consultative sales approach that builds strong relationships with customers and develops customized solutions to their problems.
• Consultative Selling: Consultative Selling is a sales approach that focuses on helping customers make decisions about which products or services would best suit their needs. It involves providing detailed advice and guidance to customers and helping them make informed decisions.
• Value Selling: Value Selling is a sales approach that focuses on the value a product or service can bring to the customer. It involves understanding the customer’s needs and the value that a product or service can bring to them.

In summary, there are several approaches related to Concept Selling, including Solution Selling, Consultative Selling, and Value Selling. Each approach has its own benefits and drawbacks, and the right approach for any given situation will depend on the customer’s needs and the product or service being sold.

Concept selling — recommended articles

Consumer orientation — Selling process — Warm Calling — Relationship selling — Differentiated marketing strategy — Unsought good — Sales techniques — Goals of marketing — Market mapping

References

• Abela, A. (2006).The relationship between marketing and consumerismMarketing and consumerism. European Journal of Marketing, 40(1/2), p. 5-16.
• Brennan, R., Baines, P., Garneau, P. and Vos, L. (2008). Contemporary Strategic Marketing. 2nd ed. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan, p. 8.
• Drucker, P. (1974).Customers are the boss Management: Tasks, Reposnsibilites, Practices. New York: Harper & Row, p. 63.
• Kotler, Ph., G. Armstrong (1999) Principles of Marketing. 8th ed. Upper Saddle River, NJ: Prentice Hall.
• Perreault, W. D., Jr., Jerome McCarthy E.(1999) Focusing Marketing Strategy with Segmentation and Positioning Basic Marketing: A Global-Managerial Approach. 13th ed. Boston: Irwin/McGraw-Hill.
• Swaim R., (2013) Peter Drucker on Sales and Marketing

Author: Natalia Jaskot