During the period of WW2, the industry was producing machine guns, weapons, and other wartime equipment. When the war finished, the industrialists changed their focus to consumer goods. They maintained the same pace of production as of the wartime in the 50s. Consequently, the supplies exceeded the demand in the market.
Now businesses and companies had a great challenge and that was to sell their products and services. Marketers developed many techniques like qualifying, closing, and probing during the same period of the 50s and 60s. Businesses and companies have created separate sales departments and started hiring sales personals. That’s how the profession of sales and marketing emerged. Today, we’ll discuss the sales or selling concept and how it’s different from the marketing concept.
Table of Contents
What is Selling Concept?
The selling concept is based on the premise that the customers won’t buy goods/services of your brand unless you perform sales and promotional activities at a large scale. Therefore, businesses and companies should carry out promotional and marketing activities to accelerate their product in the market. Customers have inner needs and your job is to convert their inner needs into buying your product through motivation and persuasion.
The selling concept is very useful for selling unsought goods i.e. insurance. Where you find your target segment of the market first, and then you persuade them by explaining the benefits of the product. The final goal is to sell many products, to increase the net profit.
The selling concept focuses on the increase of sales whether the customer needs it or not. It also means that you want to increase the transaction of sales, instead of building a relationship with him. It’s based on the assumption that the customers would like the product if you convince them well. The customers would forget their buying experience even if they don’t like the product.
There’s also one false assumption that the primary focus of marketing is selling. The problem with this approach is that the customers would purchase your product/service if you persuade them well. The customers won’t share their bad experiences with others. But in reality, it’s quite opposite that the customers do share their experiences.
Selling Concept Vs Marketing Concept
The focus of the marketing concept is on the customers or buyers and finding out ways to produce such a product that would satisfy the needs and wants of customers.
The focus of the selling philosophy is the needs and requirements of sellers and finding out different selling methods and techniques for converting products into liquid cash.
Some of the main characteristics of the selling concept are as follows;
- It focuses on the needs of the inner of businesses and companies.
- Goods and services define their business in the selling concept.
- It focuses on everyone, whether they’re kids or adults, as long as they can buy goods and services.
- As the sale of your business increases, the profitability would increase.
- If the business environment is competitive, then this marketing concept would be less favorable.
- The concept is applicable where you price your product based on the cost. They are short term oriented.
- Encyclopedia, door to door selling, insurance, and online shopping are some of the main examples of s.
Some of the main characteristics of the marketing concept are as follows;
- The focus is on the needs and wants of customers.
- The benefits of your products/services would define your business.
- Instead of focusing on everyone, the marketing concept focuses only on a specific segment of the market.
- Your business would profitable if your products have satisfied the needs and want of customers.
- If the business environment is competitive, then you should follow the marketing concept because it would be favorable in such an environment.
- This concept follows the integrated approach. Where the customer is the boss, and he would define the price, and the price would define cost. They keep in mind long term planning.
- Automobiles, Dell Computers, and designer clothes are some of the main examples of the marketing concept.
Advantages of Selling Concept
Some of the main advantages of the selling concept are as follows;
Increase in Sales
This type of marketing philosophy helps companies to increase their sales volume. Markets are competitive everywhere, and if the companies are unable to pursue customers for their products and services, then it will be difficult for the businesses to survive.
Focus on Sales and Marketing
Since the companies try to target the majority of customers in the market, it is understandable that the products would be visible to these targeted people. So, there are two benefits i.e., selling and marketing the products at the same time. If the companies do not follow this concept, then customers’ minds will never change, and they will always buy established brands.
No Unsold Stock Issues
The basic idea behind using the selling concept is to sell every product the company produces without keeping in mind the needs of the consumers. As a result, the company will not face unsold stock issues that mean the company can use its working capital for other productive activities.
Disadvantages of Selling Concept
Some of the disadvantages of the selling concept are as follows;
Ignore Customer Needs
One of the drawbacks of this concept is that it avoids the need and wants and focus remains on the sales of products and services. Companies sell whatever they produce rather than providing customers what they want.
Ignore Customer Feedback and Reviews
According to this concept, the company does not pay any attention to feedback and reviews of the customers, which is not right. Because with the help of customers’ feedback, companies can improve the product. Since there is no such thing, companies will never know the negative comments that can badly affect the reputation of the company.
It focuses on the short-term goals and objectives of the company, and that is to finish the stock. In this way, the companies have no working capital issue and can use it the other profitable projects.
Examples of Selling Concept
Insurance companies follow the selling concept by assuming that it’s good for everyone and everybody should buy insurance. The insurance agents focus on selling more and more products because that’s how they earn their commission and profit.
Prepaid Funeral Plans
No one is immortal and everyone would die one day eventually. It makes it necessary for everyone to plan their funeral before ahead. That’s how funeral plans companies follow the selling philosophy by targeting everyone and there are no after sales service.
The encyclopedia includes basic information about everything. If you have a home and family, then you should have an encyclopedia in the house. It may need you one day to learn about anything someday. That’s sellers of encyclopedia try to sell these products in huge quantity.
Door to Door Selling
Door to door sellers pay a visit to everybody’s house and try to sell routine items. They follow the sale concept that their product would be the need of everyone and they try to convince everyone.
After a careful study of the article, we have learned that the selling concept is an old and conventional method of marketing. It can work only for certain items like funeral planners, encyclopedia, insurance, and door to door selling items. But it doesn’t work at large with the majority of the products and services.