Sales Concept
This article covers meaning & importance of Sales Concept from marketing perspective.
What is Sales Concept?
Sales concept is a marketing concept or an idea which lays emphasis on the sale of goods and services and not the underlying need or want of the customer. Sales concept does not really focus on whether the products are actually needed by the customer or not, but the objective is to increase sales.
Importance of Sales Concept
It is one of the parts of the marketing concept. Profitability is achieved through sales volume but it is not favorable 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.
The focus is on sales or 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.
Features of Sales Concept
The key features of sales concept are as follows.
Product Focus
Sales concept has the focus on selling the product which becomes the point of sale, and not the customer needs.
Marketing Promotion
Since sales concept focuses on aggressive sales, it needs to be backed up with a strong marketing promotion.
Profit Making
The focus on sales concept is to make as many sales as possible, thereby generating a short-term revenue & profit goal.
Limited Time Period
Sales concept approach is a strategy which a company can adopt only for a short term, and cannot be a long term strategy.
Advantages of Sales Concept
A few benefits of the sales concept strategy are as below.
1. It increases the target base by reaching out to more people to be potential customers.
2. It focuses on increasing sales & hence sales strategy for a company needs to be precise & aggressive.
3. Due to an aggressive sales strategy, it also increases demand for the product by word of mouth.
Disadvantages of Sales Concept
However, there are certain drawbacks of this approach as well.
1. It ignores the actual needs of the customers and focuses only on selling.
2. This approach can help boost only short-term sales but it is not a long term strategy.
Hence, this concludes the definition of Sales Concept along with its overview.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.
Continue Reading:
