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Pearson BTEC Level 5 HND Diploma in Business (Marketing)

Unit 20: Sales Planning and Operations

Assignment 1

Understand the role of personal selling within the overall marketing strategy
a.) Explain how personal selling supports the promotion mix ( LO1.1)

Promotional mix consists of marketing techniques to promote product or service by

using all possible outlets for spreading the information of a product or service. It may
be established by personal and impersonal communication, such as advertising,
direct marketing, public relations, sales promotion, personal selling etc. Personal
selling is one of the promotional mixes, in which a company uses skills and
techniques to build personal relationships with customers that result in both parties
obtaining mutual value.

The objective of promotional activities is to sell a product or service and

simultaneously striving for customers want-satisfaction, which is the economic and
social justification for a firms existence. Therefore the company must offer a product
that the company truly believes will benefit the customer. Then the company must
develop the skill ethically to motivate the customer to improve his or her life with the
product in a way that outweighs the investment. For Chow Tai Fok (CTF), most
customers purchase the jewelry for themselves or for gifts of important lifetime
occasions for their beloved ones, such as birthday, proposal for marriage, wedding,
anniversary celebration, etc. It is very important that CTF understands the customers
want of a product which must represent precious monetary and sentimental value, and
of a perpetual quality that last virtually forever. In order to satisfy the customers
want, CTF shall first build a personal relationship with customer by understanding
their inner intent or intrinsic needs of the purchases. Secondly CTF shall understand
the customers practical budgetary concerns on the amount of spending. Base on this
CTF may then establish a personal selling channel to guide the customers to meet
their want-satisfaction by recommending a range of appropriate jewelry product with
the acceptable price category. For examples: for customers who wish to purchase a
birthday gift, CTF shall establish personal relationship by understanding the
customers want in terms of the age, gender, ethnicity of the recipient as well as the
amount of spending that the customer has in mind. Further personal relationship with
customer maybe developed by offering suggestions or identifying preferences base on
relationship with recipient, skin color, usage (daily or occasions only), or even
alternative jewelry other than the original intended choice ( for example suggest to
buy bracelet, earrings, brooch, pendant instead of necklace). It is an important
personal selling skill for CTF as the customers places great personal meaning in the
purchase of that piece of product to reflect their love to the one whom they are buying

Push-pull strategy was originally developed from logistics and supply chain
management, now widely used in marketing. Push refers to a situation that a
product is being stamped in the customers mind after repeated advertising.
Companies typically push their product information to consumers. Pull implies
that the customer in turn feels the need to seek the product when the advertising stops.
Consumers typically pull these information when they need to purchase. Like all
major gold and jewellery retailer, CTF constantly invests a fair expense in advertising
and other promotional mixes, to push or instill a reputable company image in the
customers mind. It is of ultimate importance that customers have complete trust of
the jewellery retailers product, as the purchases represent both precious monetary and
sentimental value for them. Even in the absence of advertisement, the customers will
automatically pulled or drawn to CTF to seek jewellery product, simply because of
the image stamped on their mind with trust and likely fulfillment of their want-

b.) Compare buyer behavior and the decision making process in different
situations ( LO1.2)

Understanding the buyers behavior and their purchase decision process are crucial to
identify the right market segment and design a marketing campaign that will attract

Consumers behavior are influenced by 4 main factors, cultural, social, personal and
psychological factors. Cultural factors include social classes ranked according to a
form of social hierarchy, and cultural trends widely followed by people to be
conformed or complied with social pressure. Social factors include reference groups
and membership groups related to social origin, age, work, etc., family, social roles
and status that individual is supposed to have and do according to his profession,
gender, etc. Personal factors include age and way of life (such as values, consumer
habits), purchasing power and revenue, lifestyle, personality and self-concept.
Psychological factors include motivation that drives a purchasing behavior,
perception, learning, beliefs and attitudes.

Consumer and organizational Decision making process are different. Consumer

decision process begins with identifying the need, follow by inflammation search and
purchasing such as from memory, word of mouth comparison shopping, public
sources, etc. Then alternatives are evaluated base on criteria such as features which
the buyer wants or does not want. Along the above process, the potential buyer can
withdraw at any stage and not making the actual purchase. Finally a purchase decision
is made and the consumer experience the post- purchase behavior such as warranty
and after sales support matters. Sometimes this process becomes routine when the
aroused need is satisfied in a habitual manner by repurchasing the same brand. The
organization buying process involves more stages. It begins similarly with need
identification and specific product selection. Then a purchase team will be appointed
to specify the technical specification and establish a budget for the purchase. Potential
suppliers are research and sometimes prequalified to be invited to participates in
competitive bidding process. Bids are solicited systematically via tendering process
and analysed with final recommendation for award. The buying decision is formally
finalized as a commercial contract of procurement.

Buying interest and motivation are a combination of facts and emotion that generate
a feeling of the need to purchase. They are also the factors influencing the eventual
choice of a particular product. Buying interest and motives include profit or gain, fear
of loss, comfort and pleasure, avoidance of pain, love and affection, pride and
prestige. Profit of gain means saving or making money, more profit longer wear or
personal advancement. Fear of loss maybe preventing loss or reducing cost, safety
reasons, insurance, security, guarantee, etc. Comfort and pleasure includes enjoyment,
beauty, morale, entertainment, recreation, etc. Avoidance of pain includes protection
or relief of pain, less work, save time, no worry, etc. Love and affection includes
family, social approval, friendship, loyalty, security of loved ones, better public
relations, etc. Pride and prestige includes style, fashion, social acceptance, imitation,
honors, recognition, leadership, public image, etc.

For CTF, the customers buying valuable jewelry are often those buying for self use
purpose or gift for their beloved ones. In the former situation, a customer buys for his
or her own personal use, his/her buying interest & motives are mainly based on
pleasure, and to some extent based on pride and prestige. While as in the latter
situation, where a customer buys a piece of jewelry for his or her beloved ones (as a
gift), his/her buying interest & motives are mainly based on love and affection. The
buying behavior and decision making process can be very different as well as similar
in certain aspects.

In the former situation, for example, a middle age lady buying a piece of jewelry for
her own use, the consumer behavior is largely influenced by personal factors and
psychological factors. Personally, her lifestyle, when and where to wear the piece of
jewelry (eg. special occasions), her financial resource will determine the range of
value she is buying. If it is for daily use, she will consider more practical, affordable
and hard wearing material such as silver or karat gold. If it is for special occasion, she
will consider more elaborate pure gold items, additional precious stone, pearls, etc.
Psychologically, her motivation such as self pleasure, perception such as
appropriateness for her age and job environment, are other factors affecting her
buying behavior. To a certain extent, pride and prestige takes a certain effect
depending on her status and profession. The buying decision making process is fairly
typical and rational here, commencing with recognizing her own needs, searching for
information by browsing in shops or internet, then evaluate alternatives to make
buying decision. It is very much a logical process with the advantage of staying
within her needs and affordability.

In the latter situation, for example, a young guy buying a gift for his girlfriend, the
consumer behavior is heavily influenced by the cultural factors and social factors.
Culturally, his buying behavior is affected by the social class that they are in, and the
cultural trend widely followed by most people at the prevailing place and time. Being
in a working class, middle class or elite socialite determines the expected range of
value that he is going to purchase. Socially, he will be also concern with her
acceptance among her girl friends social group, family and even co-workers. The
more pronounce this factor will be if he is buying an engagement ring for marriage
proposal. He will have to consider the perception and conformity or compliance with
social pressure from the view of the recipient, whom in turns consider the same from
her family or peer. Therefore the decision making process will base more on problem
recognition than actual need. He has to ascertain not only her girlfriends likeness of
the item, but also the consequential perception from her peers or family. While
evaluating purchase alternatives and making purchase decision, the process is similar
but it is based on projected acceptance rather than fulfillment of certain needs. The
advantage is that he will carefully consider the recipients feeling when wearing the
gift. The disadvantage may be that he will more likely to over-spend his budget.