type of selling

TYPES OF SELLING

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Selling may be classified into three broad categories :-

1)Transactional Selling2)Relationship Selling3)Value Added Selling

Transactional Selling

•A Transactional selling is a simple, short-term sale in which the customer already knows what he needs, so they need to have little product knowledge on the sales side. This strategy is all about short-term solutions. •Neither the buyer nor the seller have much interest in extending the relationship.. •A transactional selling strategy tends to be more common for a business that offers a fairly generic product or service with the objective of profiting by making a high volume of sales.•Availability of product at low or competitive price are main criteria for getting sales•Example- Selling of movie tickets .

Relationship selling• Relationship selling refers to the sales technique that focuses on the

interaction between the buyer and the sales person rather than the price or details of the product

• The objective of the seller in this type of selling is to become the preferred supplier and to build strong and ever lasting relationship over a long period of time.

• The foundation of relationship is based on trust and commitment• The goal of relationship selling is to know a large enough pool of people

so that all the sales need to come to you, instead of seller having to go out and find them.

• If a seller don't believe in his product 100% and don't genuinely care about people and their problems, then seller may need to find a different target market, or a different product to sell.

Value added selling• Value-added selling means when a seller provides a product or services to

customer that can be used in multiple ways. The products are homogeneous with few differences (if any) from that of a competitor, and provides potential customers with a feature or add-on that gives it a greater sense of value.

• In this type of selling the focus is on correctly understanding the present and future needs of the customer and meeting those needs better than the competition, so as to obtain a maximum share of customer’s business

• It is also applied in case of customers who seek lower cost and better quality and are not interested in partnership relationship.

• Eg- Food sold in a plastic box or a glass that can be used after its content is consumed.

Distinction between Transactional Selling and Relationship Selling

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