Meaning and definition of Sale

 Meaning and definition of Sale

 A sale is a transaction between two or more parties in which the
buyer receives tangible or intangible goods, services, or assets in

Module-I 
exchange for money. In some cases, other assets are paid to a seller
Definition: The act of selling; the transfer of property, or a contract
to transfer the ownership of property, from one person to another for
a valuable consideration, or for a price in money.

Sales Concept Sales Concept

 Sales Concept
 A business philosophy which aims at the generation of profits through
the selling and promotion of products. The sales concept is an
extension of a firm's PRODUCTION ORIENTATION where emphasis is
placed on the effective selling of what the firm has chosen to
produce.
 It is a concept or an idea which lays emphasis on the sale of goods and
services and not the underlying need or want, and it does not really
matter whether the products are actually needed by the customer or
not.

 The focus is on sales (profit) first and then on marketing. This is also
called the selling concept where the sole aim is sales, and not
whether the product is actually required.
 It is one of the parts of the marketing concept. Profitability is
achieved through sales volume but it is not favourable in a
competitive environment. Here, the buyer beware concept is followed
where buyer should be vigilant because making sales becomes the
primary concern of companies and customer satisfaction is secondary.
For example- life insurance policy.
Sales Concept
 sales concept -Definition A marketing idea that is based only on the
selling of goods or services, rather than on whether or not they are
actually needed. Operating under the sales concept, a business would
produce goods that it anticipated a profitable return from and then
attempt to persuade consumers to purchase them by using advertising
and other sales techniques. Also called the selling concept
Retailing – Meaning and Definitions
 Retailing is a set of activities performed in selling the goods and
services directly to the end users. The goods and services sold to the
consumers are meant for their personal use and not for resale or
business activity. Retailing is the last activity conducted in the chain
of product distribution down to the consumers.
 In principle, retailing is a business activity which involves the sale of goods
and services to a large number of consumers spread in a large area. The
retailer or a retail store is like any business enterprise whose sales volume
comes primarily from retailing. There are different forms of retailing. Many of
the forms keep emerging according to the convenience of the buyers and
retailers.
Marketing– Meaning and Definitions
 Marketing refers to activities a company undertakes to promote the
buying or selling of a product or service. Marketing includes
advertising, selling, and delivering products to consumers or other
businesses.
 Philip Kotler defines marketing as “the science and art of exploring,
creating, and delivering value to satisfy the needs of a
target market at a profit. Marketing identifies unfulfilled needs and
desires. It defines, measures and quantifies the size of the
identified market and the profit potential.
Characteristics of Retailing and
Retailers
 In large towns, retailing is organised and mostly performed through
stores and automatic vending machines. However, in the rural areas,
the retailing of goods and services are conducted through a traditional
pattern by displaying the goods in mobile vans, carts and on
footpaths.
 For understanding the types of retailers and their functions, we can
broadly classify the retailing network into two categories –
 (i) store retailing
 (ii) non-store retailing.
Characteristics of Retailing and
Retailers
 Like the growth cycle of business firms, the retailing activity also
passes through the stages of embryonic, growth, maturity and
decline. A retail store observes the period of accelerated growth,
reaches the stage of maturity and starts declining. It has been
observed that the retail stores of older fashion took more than five
decades to reach the stage of maturity in terms of the volume of
sales, coverage of consumers and expansion of the chain of retail
stores. However, in the modern era, the store retail types reach their
maturity very fast due to the organised retailing management.
 According to Cundiff and Still, “Retailing consists of those activities
involved in selling directly to ultimate consumers
Characteristics of Retailing and
Retailers
 Retailing brings goods and services closer to the consumers
 . A Retailer is the last link in the distribution channel
 . Retailers buy in large quantities but sell in individual units
 . There are large number of retailers as compared to manufacturers
and wholesalers
 . Retailing can be organised (branded chain stores) or un-organised
(that is normal stores that we find in our neighbourhood)
Characteristics of Retailing and
Retailers
 Retailing – Characteristics of Retailing and Retailers
 . There is direct end-user interaction in retailing.
 . It is the only point in the value chain to provide a platform for
promotions.
 . Sales at the retail level are generally in smaller unit sizes.
 . Location is a critical factor in retail business.
 . In most retail businesses services are as important as core products.
 . There are a larger number of retail units compared to other
members of the value chain. This occurs primarily to meet the
requirements of geographical coverage and population density.
Characteristics of Retailing and
Retailers
 . Retailing provides a direct contact with the customers
 . Retailing is the function that keeps an eye on the pulse of the
customers
 . Retailing can also be done through online stores, and
 . Provides a variety of products at a single place.
Selling Meaning Sales Management

 Selling  Sales Management is attainment of an organization’s sales goals in an

 Selling is a narrower concept. Selling means providing the customer
with the good he/she needs in exchange of a price. It is usually
between two parties. Selling is more like an agreement wherein the
buyer receives the product in exchange for money.
Example :You go to a shop and the shopkeeper “sells” you a Good X
and in return you pay him some money in cash.
effective and efficient manner through planning, staffing, training,
Leading and controlling organizational resources
 According to American Marketing Association Sales Management is
“The process of planning, directing, and controlling of personal
selling, including recruiting, selecting, equipping, assigning, routing
supervising, paying, and motivating as there tasks apply to the
personal workforce.”

Sales Management

 Sales Management is all about managing all activities related with the
sales of the business. It involves marketing, advertising, pricing etc.
Through sales management only, a company keeps track record of
target sales and actual sales
 It involves management of sales operations, formulation of sales
strategies and preparing sales analysis. Sales managers in the sales
department is the responsible authority for sales management. The
sales manager has to look after marketing strategies, has to manage
the sales force and has to organize personal selling efforts.
 Sales Management is about coordinating across all the sales efforts in
the company to make sure to achieve sales targets, sales promotion
activities etc.