N5 Sales Management 2.4 Price determination
Competitors' prices for similar products play an important role in the determination of product prices. The salesperson’s knowledge of competitors’ quality, design and price of the product (a salesperson for BMW must have knowledge of the Mercedes product range), as well as market needs, can play an important part in determining selling prices.
2.5 Distribution and transport
Most products must be physically transported from producer to buyer. Speed and cost of transport are important factors in effective distribution. Salespeople bear these factors in mind when advising customers and regularly follow up orders and their execution. Salespeople are not usually responsible for the physical execution/packaging/delivery of orders, but often the customer will hold them responsible for the timely delivery of the order. These measures bring about cost-saving and customer satisfaction.
2.6 Risk factor
Through their involvement and observation of customers’ supplies, salespeople can help both the business and the customer with effective purchasing and stock control, to ensure maximum profitable turnover at minimum risk (for example undesirable items, out of fashion, theft, etc.).
For example, consider stock control: A salesperson who has worked for the Coca-Cola Co. in a specific area for the last 10 years, can help a person who just opened their own Spar, by advising the owner of Spar on how many drinks to stock for a specific month (340 ml tins, 500 ml bottles, 1 litre, etc.).
2.7 Advertising
The advertising message (for example the price of a specific product item that is written in a printed advertisement or mentioned in a radio/TV advertisement) and the sales message (what the salesperson tells the customer) must be synchronised (the same) so that they complement and reinforce one other. The salesperson provides feedback on the effectiveness and success of the advertising message (for example, how many prospects made an enquiry about the advertisement).
2.8 Promotion and sales
The marketing function demands the greatest effort in terms of personal and financial involvement. Promotion and sales are always the most important of all marketing functions and the one we will focus attention on in this course. For example, the salesperson from DEFY must help the customers (such as Game etc.) with promotions, displays and competitions by supplying the necessary promotional material (posters, stickers, competition entry forms etc).
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