A Presentation on Essentials of

Selling and Retailing

Taught by Vibhor Sir (HOD)
Made by – Pravah Shukla
PGDM – I
@ IISE

INTERNATIONAL INSTITUTE FOR SPECIAL EDUCATION

KANCHANA BIHARI MARG, KALYANPUR, LUCKNOW, PIN-226022
 Basic Concepts
• Need- State of Deprivation
• Desire- Basic willingness to satisfy the
need
• Want- Specific Desire to buy a particular
product
• Demand
1. Basic Desire
2. Willingness to buy
3. Ability to purchase/purchasing power
 What is Product?
• Product is an offer to be sold.
• Product is nothing but a solution to a
problem.
• Products may be goods or services
 Goods vs. Services
• Goods are tangible • Services are intangible.
• Less perishable • More perishable
• Can be separated • Cannot be separated
and countable. and not countable.
• Ownership is • Ownership is not
transferred. transferred.
• Can be stored • Cannot be stored
• Homogenous • Can never be exactly
homogenous
 What is USP?
• USP stands for Unique Selling Proposition
• USP is the unique feature of any product
for which a desired target segment
customer group can buy the product.
• USP concept was given by Roser Reeves
of Ted Bates and Company
 Some useful terms
• ROI – Return on Investment
• BPO – Business Process Outsourcing
• KPO – Knowledge Process Outsourcing
• LPO – Legal Process Outsourcing
• PSU – Public Sector Undertaking
• IPO – Initial Public Offer
• CSR – Corporate Social Responsibility
 Characteristic
• The basic points which describe a
particular object.
• Those points which define general points
• For example, characteristics of a human
will be two hands, two legs etc.
 Quality
• Ability to satisfy its defined users.
• Fitness of use.
• Given by Joseph P. Juran
 Feature
• Features are used to define individual
objects.
• For example, a man has two legs and two
hands is a characteristic but he is tall or
short is a feature.
 Attribute
• Features which give additional use.
• Features which deliver some benefit to its
defined users.
• For example, a good height of a player in
basketball match will be his atttribute.
 Business
• Business is a commercial activity engaged
as a means of livelihood or profit , or an
entity which engages in such activities on
a regular basis.
• Business is a legally recognized
organization designed to provide goods
and/or services to consumers.
 Characteristics of Business
• Capital
• Risk
• Profitability
• Transaction
• Continuity
 Profession
• An occupation in which a person has
undergone a specialized training and has
expertise in a particular field.
 Vocation
• Term for occupation to which person is
specially drawn or for which they are
suited, trained or qualified.
• An occupation pursued more for altruistic
benefit rather than for income.
 Marketing Myopia
• Short-sightedness is so common is that
people feel that they cannot accurately
predict the future.
• A company or organization which cannot
forseen long term needs by short terms
acts.
• Concept given by Theodore Levitt
• Similar terms are:
• Marketing Hyperopia
• Marketing Macropia
 Prosumer
• Producer-Consumer
• Professional consumer
• A consumer who is helping in the
production process by giving feedback or
suggestions and is somehow involved with
production and development of a product.
 What is Market?
• Market is a group of people sharing
common need.
• Remember : Market is not a place
• Marketplace is a different word and should
be interchangeably used with the word
“Market”
 Market Size
• Number of Units sold
• Actual Monetary Value of business.
 Market Share
• Total share of a product in the market
size.
• Market share is always in percentage
 Need has 3 levels
• Hidden Needs or Latent Needs
• Identified Needs
• Recognized Needs

Need

Desire

Want

Demand
Maslow’s Theory of Need- Abhram Maslow
 Commoditization
• When a brand of any product is considered as
the commodity name or products brand name
becomes generic name for the category of
product is known as Commoditization of
brand/product.
• For example: Fridge (Actual Name:
Refrigerator)
• People call refrigerator as Fridge
• Fridge is a brand name of Electrolux
 Motivation
• Motivation is an internal force towards a
particular object.
• Can be driven externally or internally.
 Law of Marketing
• It is better to be first than to be better.
• It is better to be first in the minds than to
be at market place.
 Marketing
• Marketing is a never ending process.
• It is cyclic process
• Marketing starts before production and
continues even after sales
• Sales is exchange.
 Brand
• Anything that can be recognized by any
means is Brand.
• Brand is logo, music, text, image, movie or
combination of these which creates a
recognition.
• Every product is not a brand
• Branding means creating a recognition.
 Brand Positioning
• Acquiring a value spot in the minds of
customers
• The process by which marketers try to
create an image or identity in the minds of
their target market for its product, brand,
or organization.
• The process of creating image in the mind
of the people.
 Packaging vs. Packing
• Packaging is a • Packing is an activity
process of deciding of wrapping or
1. What to pack? covering the product.
2. With what to pack? • Packing is last activity
of packaging.
3. How to pack?
• Packing is only an art.
• Packaging is a
science as well as
an art
 More terms related to Brand
• Brand equity – Monetary value of Brand
• Brand Recognition – Brand recognized by
the people.
• Punchlines – A line used with the
advertisement which is accompanied with
all advertisements for a certain time. For
example, BPL’s Punchline : “Believe in the
best”
Levels of Product
Core Product

Basic Product

Expected Product

Augmented Product

Potential Product
 Levels of Product
• Core Product- The main product
• Basic Product- Values added to core
product.
• Expected Product- More values added
which are expected by customers.
• Augmented product – Values added
beyond imagination, innovation.
• Potential Product- Innovation is regular
and changing. When brand becomes a
promise.
 Advertising
• Advertising is a process of using paid form
of non-personal presentation with an
identified sponsor for any kind of
communication.
• Advertisement is different from publicity.
 Advertisement vs. Publicity
• Advertisement is • Publicity is done
done by payment without any payment.
• Less credibility • More credibility
 Combination of goods & services as products
• Pure Good as a product: FMCG (Fast
Moving Consumer Goods) like Shampoo.
• Major good minor service: Consumer durable
goods  PCs, Laptops
• Equal Combination of goods & services:
Ordinary restaurants, CDMA mobile
• Major Service minor good: Branded
restaurants, hotels, PVR, Cinema Hall
• Pure Service: Banks, Ordinary Theatre, Auto,
Buses, PCOs
 Brand Diffusion
• Making the brand name visible without
letting know what exactly it is.
• For example when HUTCH company
came in India, in hoarding it wrote “Hi
Hutch”
• Now people were not able to know “Hi” is
a company or “Hutch”
 Marketing
• Marketing is creation, stimulation &
fulfillment of wants & demands against
profit.
• Marketing may be defined as “meeting
needs profitably”
 Marketing vs. Selling
• Marketing is macro • Selling is micro concept
concept • Selling focuses upon
• Marketing focuses profitability
upon consumer • Product oriented
satisfaction. • Selling is one of the
• Consumer oriented activity of marketing.
• Never ending, cyclic • Lower Level

• Senior Level
Levels of Management

Corporate

Functional

Operational
Levels of Organization

TOP

Middle

Lower
 Terms
• Distribution- Starts after manufacturing like
a supply chain.
• Logistics- How transporting things from
one place to another. Eg. Packers
• Supply Chain – Right from raw material till
end of last consumable
Administration & Management
 Merchandising
• It is process of managing and maintaining
the outlet in a manner that creates
consumer pull.
• Merchandising is the methods, practices,
and operations used to promote and
sustain certain categories
of commercial activity.
 Selling
• Selling is persuading a customer/person.
• In selling you need to be adaptive not
adoptive.
 Selling Skill
• Convincing power
• Persuade customers
• Selling your thoughts, people buy your
thoughts
 Terms
• Job Designation- Formal Name of Post
• Job Function – Major work
• Job Description – How company or
business describes the job.
• Job Profile – Way of doing work, entire
day what is being done and how?
 Terms
• Brochure – Description and price is charged
sometimes
• Leaflet – Hanging in shops
• Pamphlet- Distributed
• Prospectus – Detailed description
• Handouts -
• Catalog – Use of Pictures
• User Manual – How to operate
• Booklet -
 Opening the sale
• Visiting Card
• Handshake
• Body Balloon
• Time
 Sales Promotion
• Promoting sales of a particular product in
a particular market during a particular
short time span and within a defined
territory.
• Sales promotion is different from
promotion.
 Some methods of Promotion
• Packaging
• Merchandising
• Branding
• Advertisement
Mechanism of Sales Promotion
• Push Mechanism – High Involvement
Purchase
• Pull Mechanism – Low Involvement
Purchase
 Push vs. Pull
Push Pull
• Support to Dealers • Discount
• High margins to • Scratch card
dealers • Advertisement
• Awards to Dealers • Free gifts
• Free Foreign trips for • Contest
dealers
 Direct Selling
• Conditions for direct selling:-
• There should be no third party
involvement between customer and seller.
• Initiative for sales is taken by the seller not
by the customer.
 Personal Selling
• Face to Face
• Seller has the freedom to customize the
shop
• One to One

• Note: Never compare Direct Selling and

Personal Selling