Elements of selling include product planning and development, contactual function, demand creation, negotiation and contractual functions .
These elements of selling can be explained as follows:
1. Product Planning And Development
Product planning and development is an important function in selling process. The process of identifying what to produce for selling more quantity and earning more profit is called product planning. The product planning include the activities such as decision on quality, design and quantity of product, necessary technology, knowledge and skill, ascertainment on the stage of life cycle of product etc.
This is the starting point of entire marketing program of the company. Product planning is a continuous process, which is related with identification of new product , diversification of the product variety, modification or improvement in the existing products and termination of unprofitable products.
Business firm should be attentive towards the needs of the consumers for selling goods in the market. Needs, wants and interest of the customers should be identified and goods should be produced accordingly and taken to market to selling. For doing so adequate information about market condition is necessary. Market research should be carried out to get market information.
2. Contactual Function
The another sub-function in selling process is to establish contact with customer. To identify potential customers, to find their living place and to keep contact with them is the task of all sellers from producers to retailers. Contacting customers is the first task for selling products. A seller should keep contact with innumerable customers like final consumers, industrial users, institutional buyers, retailers etc.
3. Demand Creation
Creation of demand for any product is the other element of selling. Without demand in market, it becomes difficult to sell any product. Several methods are used to create demand or stimulate feeling in customers to buy any new product. Promotion is the strongest among such methods. Every firm remains active to increase sales quantity of its product at certain price through promotional method.
Personal selling and advertisement are widely used methods for creation of demand for goods. Along with this display, decoration, exhibition, trade fair, sample distribution, coupon, gift program also help to create demand. After contacting prospective customers, demand should be created for changing them to real customers.
4. Negotiation
After creating demand for goods, buyer and seller enter into negotiation for buying and selling. They reach an arrangement. This is also a sub-function or element of selling process. Buyer and seller make agreement on terms and condition of sale, quantity and quality of the goods, price, method of delivery, means of transport, time for payment etc.
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5. Contractual Function
Contractual function is the last stage of selling process. Selling signs a contract to transfer ownership of goods to the buyer as decided by negotiation. Then goods are transferred to buyer's hand and money to seller's hand according to the contract. Then selling function ends after seller hands over goods to buyer by taking price of the goods.
