The-Sales-Process

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Exam code:J204

Methods of selling

The sales process is the method a business uses to make its products available to customers

Face-to-face selling

This often takes place in retail outlets such as:
- Independent shops
- Markets
- Supermarkets
- Showrooms
- Department stores
Face-to-face selling involves direct interaction between the consumer and a business representative
- Customers can be greeted and questions answered
- Products can be packaged in a consistent way
- Demonstrations of products can be offered, or customers can try them out
  - E.g. Fashion retail stores such as Fatface provide fitting rooms for customers to try on clothing items
Some businesses use a direct selling approach
- E.g. Hillary’s Blinds agents visit customer homes to discuss and take orders and provide a full fitting service for products

Evaluation of face-to-face selling

Advantages	Disadvantages
Face-to-face selling provides an opportunity to provide a personal service Advice and guidance can be provided, meeting customers’ needs Sales staff can use a range of persuasive communication elements, including tone of voice and body language	Sales outlets are expensive to run and staff fully Visiting sales outlets is not always convenient for customers Face-to-face selling is not necessary for all types of products Poorly-trained staff may not be capable of delivering good customer service

Telesales

This involves completing sales transactions over the phone
- E.g. Holiday company Trailfinders sells luxury travel packages over the phone, as detailed explanations can be given to the customer in person
Sales representatives are often located in call centres

Evaluation of telesales

Advantages	Disadvantages
Allows those with limited mobility to access a more personal service Specialist sales staff are likely to be highly effective in explaining product features and negotiating Call centre premises can be located in less costly locations, reducing costs	Some customers avoid answering calls from unknown contacts Persuasive tools such as merchandising or point-of-sale promotions cannot be used Call handling equipment can be expensive to install, and workers may require training to use it

E-commerce

This involves completing transactions online, via an electronic device such as a computer, phone or tablet
- Businesses can trade through their own websites or apps
- Alternatively, platforms such as Amazon, Ebay and Etsy offer the chance for small businesses to sell their products online
The rise of e-commerce means customers increasingly pay online using credit/debit cards
- Consequently, contactless payment systems (such as Apple Pay and Paypal) are growing in popularity
E-commerce can make life more convenient for customers and is a source of competitive advantage
- It also provides the potential for small businesses to reach large audiences

Evaluation of e-commerce for businesses and consumers

Stakeholder	Advantages	Disadvantages
Business	Websites and apps offer a direct and cheap promotional method Businesses can easily make online purchases of supplies and materials from other businesses An easy-to-use and well-thought-out website can encourage customers to buy more E.g. Automation suggests products often purchased at the same time Dynamic pricing techniques can be implemented so profit can be maximised during periods of high demand	Competition comes from many businesses around the world, allowing customers to easily switch to other brands Large warehouses and efficient stock control systems are needed to fulfil online orders E-commerce is not suitable for businesses selling personal services such as beauty services or home improvements The lack of face-to-face contact with consumers means businesses miss out on instant and useful market research feedback
Consumers	Competition drives prices down and allows customers to easily ‘shop around’ and compare prices Electronic payment using credit and debit cards is relatively easy E.g. Using ‘one-click’ platforms such as Apple Pay E-commerce is convenient as it allows customers to shop from anywhere in the world E.g. When travelling, 24 hours, on many different devices Customers can buy from worldwide retailers so have increased choice E.g. Chinese e-commerce businesses Shein and Temu are increasingly popular in the UK	Poor connections or technical difficulties can sometimes deter or stop customers from using the website to make purchases Customers in low-income countries may not be able to access the products due to poor infrastructure, limiting potential market size Many consumers are concerned about identity theft or fraudulent use of credit cards if they buy goods online Products cannot be handled or tried out before purchase, which means customers frequently return them because they are unsuitable

The impact of e-commerce on the sales process

The proportion of retail sales made using e-commerce has been increasing steadily since the mid-2010s
- Its growth accelerated during the COVID-19 pandemic, as consumers were unable to access most of their favourite high street stores

UK e-commerce revenue (£bn) 2015 to 2021

Bar graph showing revenue from 2015 to 2021 in billion pounds. Revenue increases, peaking at £120bn in 2021. (Source: Office for National Statistics) — **E-commerce revenue has grown significantly since 2015, boosted by the Covid-19 pandemic in 2020**

This growth has led to a range of significant changes to business activity and processes, including:
- The need to set up specific departments for e-commerce sales
  - Businesses that sell face-to-face and through e-commerce, such as John Lewis, Tesco and River Island have established large online divisions
    - They operate large warehouses that are served by complex logistics operations, as well as customer service and technical services
- The provision of a range of delivery or collection options
  - Customers expect to be able to access products purchased online quickly
    - Some products can be delivered digitally through streaming or downloads
    - Facilities such as click-and-collect or next-day delivery can provide an important competitive advantage
    - E.g. Online retailer Argos is able to offer same day delivery in some UK locations
- Different types of workers
  - Existing workers may need training to be redeployed in online sales positions
  - New workers with technical skills and experience may need to be recruited
  - Some workers who lack transferable skills may be made redundant
- Location implications
  - Online operations can be located in less expensive locations, such as business parks
  - Proximity to transport networks such as motorways is often preferred to aid rapid distribution
    - E.g. Next‘s distribution centres are located next to major motorways, including the M1, M6 and M25

Examiner Tips and Tricks

You may be asked to evaluate the impact of e-commerce on a particular stakeholder group, such as customers. Make sure that you consider both advantages and disadvantages.

Business GCES OCR