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35. What are advantages and disadvantages of personal selling?

The major advantages are:

  • A two-way form of communication (in selling situations the salesperson can adjust the message as they gain feedback from customer. So if a customer does not understand the initial message (e.g., doesn’t fully understand how the product works) the salesperson can make adjustments to address questions or concerns).

  • The interactive nature of personal selling also makes it the most effective promotional method for building relationships with customers, particularly in the business-to-business market. (This is especially important for companies that either sell expensive products or sell lower cost but high volume products (i.e., buyer must purchase in large quantities) that rely heavily on customers making repeat purchases).

  • Finally, personal selling is the most practical promotional option for reaching customers who are not easily reached through other methods.

The major disadvantages are:

  • Most people have had some bad experiences with salespeople who they perceived were overly aggressive or even downright annoying.

  • A second disadvantage of personal selling is the high cost in maintaining this type of promotional effort.

  • A third disadvantage is that personal selling is not for everyone (job turnover in sales is often much higher than other marketing positions).

36. What are the best strategies in pricing?

The market view of pricing takes account of the value of a product, its quality, the ability of the customer to pay, the volume of sales required, the level of market saturation and the prices charged by the competition. Too low a price can reduce the number of sales just as significantly as too high a price. A low price may increase sales but not as profitably as fixing a high, yet still popular, price. As fixed costs stay fixed whatever the volume of sales, there is usually no such thing as a ‘profit margin’ on any single product.

If goods are low-priced it means these goods are cheapest (for low-end/bottom-end goods).

If goods are sold at coast this means one sells them at the same price one pays for them.

If goods are sold at a loss this means one sells them at a price that lower then price one pays for them.

If goods are high-priced it means these goods are the most expensive (for high-end/top-end goods).

The mid-range goods often are sold at a mid-price.

Loss-leader is a cheap item to attract customers in.

List price is the selling price of something as stated in a catalogue or price list; often subject to discounts; "I got it at 30% off the list price".

Recommended retail price is the price which the manufacturer recommends that the retailer sell the product.

Discounting - is reduction in price on the product.

Undercutting - is sale goods cheaper than ones’ competitors.

Mass market describes goods that sell in large quantities and the people who buy them. For example, family cars are a mass market product. A niche or niche market is a small group of buyers with special needs, which may be profitable to sell to. For example, sports cars are a niche in the car industry.

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