Type: Economics
Pages: 4 | Words: 974
Reading Time: 5 Minutes

The term “sales” refers to the transactions between people, in which each of the participants has a problem and pursues its objective. This is not a random encounter, not a simple conversation that two members of plotting to make the time. In this sense, the act of selling can be considered as negotiations because the parties’ interests do not always coincide.

There are four main types of sales that radically differ from each other. Therefore, sales can be: active, passive, direct and indirect. Active sales type is one of the most difficult types, but gives some of the best results. Active salles involve finding customers, practicing cold sales (those who are not interested in the conclusion of the transaction with you), the formation of the customer base and active testing of the base. Passive sales type is a kind of sales that does not require action from vendors, more initiative, and done on the basis of the client. An example of passive sales can serve a grocery store or online store, etc. However, in passive sales, there are also techniques and methods that are used to increase the effectiveness of sales, which is directly related to the increase in profits.

Direct sales type is a variety of sales, designed to direct consumers. A striking example of direct sales are sales on the trading floor, exit to the customer, for sale, exhibitions and presentations. The main difference of direct sales is that employees have direct contact with customers without intermediaries. Indirect sales type is the kind of sales, which is found in most companies. Indirect sales may be the sale of goods and services through dealers, franchise, advertising and merchandising. The indirect form of sales occurs, when sales are done without contacting directly with customers.

For the successful implementation of the comprehensive sales, it is necessary to involve the various services on the part of the seller and the buyer. System of the main stages in the implementation of integrated sales is called sales activity. There are different approaches to determining the stages of sales activity, but in the end, the difference is not significant and may reflect the corporate culture of a company:

Prequalification. At this stage, the preliminary information is collected that the certain company, person may correspond to “profile of our client,” and there are indications that it may be interested in our product or service.

Qualification. This is one of the most important stages in the cycle of the complex sale. At this stage, the final decision – whether the person is going to continue to work with the certain information, and whether it could grow into a potential deal.

Research. At this stage, the buyer begins active exploration of the market in search of suppliers of necessary goods or services. The seller, in turn, continues to qualify, for the potential transaction, timing issues of the process of supplier selection, the procedure for the purchase decision, as to the planned delivery of goods or services, the final determination of the strategy for the transaction. After all, the seller generates the necessary project group.

Development and control stage. This is the key stage of the sales cycle for both, the buyer and the seller. At this point, the buyer has identified the major suppliers, detailed business problem. The task of the seller, now, is to control the situation and manage the process of interaction with the client. The final meeting is held with the buyer and products and services are demonstrated. This is the last opportunity to focus on their strengths.

Decision making. At this stage, the buyer examines the strengths and weaknesses of the two or three best suppliers, conducting visits to existing customers of these suppliers. The buyer finds out all aspects of the suppliers associated with both, the supply of goods or services or with the subsequent service directly from these customers. The most critical aspect of the work for the seller is the ability to demonstrate real-world experience, solving similar business problems with their existing customers, and to arrange a possible meeting with them to the buyer.

Negotiation stage is a crucial stage of the sales cycle. At this stage, the final selection of the best supplier is made, usually these are the two best selected in the preliminary stage. Each of these moments in the negotiation process may be critical, as much as the determination of the importance of some of them is impossible. At this stage, the final value of goods and consistent service delivery is defined.

Closing the deal — is the crowning stage of the sales and design team. This is the result of the agreements, arranged meetings between representatives, the final decision making of both parties about signing necessary documents of the project, start of delivery of the goods or services, and, possibly, its subsequent implementation.

“Business to Business” – that is business for business. The difference from a regular business is that here as a consumer or client is the other business, and not an ordinary consumer.

The main differences of B2B sales and B2C:

  • In B2C a person buys a product that meets individual needs; the acquired solutions are at relatively low cost;, the customer accepts the individual solution; the client makes a single purchase; important emotional component purchases; the short sales cycle; the relatively low cost of customer acquisition.
  • For the B2B sales typical organization gets the solution to their business problems; ther is high risk of erroneous decisions; high cost of purchased solutions; the seller has professional business experts; solutions are evaluated for objective; measurable; high value industry experience is a supplier; long sales cycle, the high cost of customer acquisition; the limited number of potential customers and the high value of each customer.

Business-to-business sales are characterized by the long and specific process of sales activities. It is very important for any business to maintain effectively every stage of sales.

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