When viewing business in this way, the economic realms of activity can be separated into two spheres: source markets and end markets. A source market is one in which consumers, either business or private, are supplied with goods. It comprises the sellers in the economy. The goods being supplied may be raw materials or semi-finished goods such as lumber, steel, flour, cotton, or oil, or they may be finished manufactured products such as houses, automobiles, apparel, machinery, and appliances. End markets are those in which buyers purchase materials, either for consumption, for transformation into other goods, or for resale.
Every transaction involves both a source and an end market, and every business functions in both markets. A good example is a car manufacturer. It is an end market participant as a purchaser of steel, rubber, and glass for use in the manufacturing process, and a source market participant as a seller of automobiles. Another example is a retail outlet which functions in end markets as a purchaser of manufactured goods, and in source markets as a supplier of these goods to consumers.
To survive, a firm must purchase goods and sell goods at prices that will make profits. Retailing again serves as a good example: A store that purchases desirable manufactured goods and sells them at competitive prices stands a good chance of prospering. If it buys products with little consumer demand or offers its merchandise at prices few will pay, its chances for success are reduced.
Employment opportunities in selling and purchasing are extensive and varied. The most common career opportunities are described in the sections that follow. It should be remembered that although we have separate sections on selling and purchasing, every transaction involves both a seller and a buyer.
Sales
Selling is the process of persuading a customer to buy something or to act favorably upon an idea that has significance to the selling unit. The emphasis is not on the exchange of money between buyer and seller. Nor does what is being sold have to be a tangible object; it could be an intangible product, such as securities, insurance, or advertising time. Selling can be an impersonal process as well as an interpersonal one; advertising, product displays, and promotional merchandising are impersonal forms of selling.
Selling is today part of the total marketing process, where persuasion is used to convince customers of a product's suitability for satisfying their needs and wants. The selling process starts with a rational analysis of how customers' existing and potential needs can be satisfied through purchase of a product or service. The need might not be perceived by the customer; therefore the selling agent may have to generate interest in the product by persuading potential customers of the benefits which could result from its use. For instance, a manufacturing company might think its production process is fine-until a machinery salesperson shows them how a new machine can improve efficiency and lower costs.
The service orientation of sales is inherent in these activities. Sales professionals, like educators, dispense information potentially helpful to customers. They are a type of consultant, matching solutions with customer needs.
Because of this service orientation, as a salesperson you must be concerned with the benefits that accrue to customers as a result of a sale as well as the benefits to yourself and your company. Therefore, although selling a product to a customer who does not need it, or at a price too high, might result in a quick profit, it would not help in the development of a long-term profitable relationship. You should strive to be seen by customers as a reliable source of quality products or services at fair prices.
To be able to fill the service roles of consultant-educator, you must have extensive knowledge of both the products you represent and the customers. You must know what your product does, how it does it, how it is used, and the benefits it offers. Regarding customers, you must know and understand their needs: what they do and how, what problems they face, and their personal concerns regarding the product and its function. In addition, you must be knowledgeable about competition in the market and your product's relative weak and strong points. This requires a great deal of advance learning on your part before you start selling.
For these reasons, most companies train new salespeople before exposing them to customers. The type of training varies significantly according to company and type of product being sold. Some companies have training programs running one or two years, while some have on-the-job apprenticeships with experienced salespeople.
There is a great deal of opportunity for movement from sales positions into other corporate departments-most commonly into marketing and product management. There are five areas of sales: industrial sales, securities sales, insurance sales, real estate sales, and media sales.
Required Skills and Educational Background
As in most careers, success in sales necessitates in part a high degree of intelligence. We have already spoken of the amount of knowledge you as a salesperson would need to bring to your job: knowledge of your product, your customers' businesses, and market conditions in general. But the intelligence necessary in sales is more intuitive. You must be able to retain information and manipulate it to meet the demands of the moment. This requires creative analytical ability as well as intelligence.
Communication skills are equally important for salespeople, especially verbal skills: Being articulate is considered a prerequisite to a sales career. Persuasiveness and negotiation abilities are crucial.
Sales jobs are not routine in nature; therefore you must be adaptable and flexible. The ability to adapt well in response to situational cues requires that you be sensitive to surroundings, and that you know what type of behavior is called for at what moment. This means having a number of well-thought-out tactics in mind, combined with an equal number of alternative plans if the initial approach fails to get a favorable response.
Basic personal management skills are also important for salespeople, since much work is performed according to your personal time schedule. You must be able to identify what activities should be done when for instance, how much time should be spent on sales calls versus preparing for them. Time spent traveling must also be allocated, and proper attention given to customers both near and far.
The attribute most often associated with successful salespeople is aggressiveness. Although it is certainly true that you ought not to be shy and retiring, aggressiveness should not be exaggerated. Perseverance describes well how successful salespeople channel aggressiveness. Many say that the selling starts when the customer says no; often you will have to stick to it through dozens of rejections before making a sale.
Many people find the rejections salespeople face disheartening and choose not to stick with it despite the financial rewards. Successful salespeople are resilient in the face of rejection and find satisfaction in the challenge of each new sale. Typically, they are motivated by the job itself: they love selling, not just the possibility of high salaries. Their ambitious nature is not just focused on making more money each year, but reflects the thrill of meeting and breaking quotas set by themselves and their companies.
Honesty and integrity are two important attributes for salespeople hoping for success in contemporary corporate life. Sales positions are no longer typified by the traveling salesperson looking for his next naive customer. Today the emphasis is on building a steady, profitable salesperson-customer relationship, and nothing harms this more quickly than unethical practices. A reputable company tries hard to maintain its good reputation-built over years-and does not want to ruin it for the sake of a quick sale.
Salespeople are typically independent by nature and enjoy the freedom sales careers offer. This is seen as a positive attribute by most employers, but successful salespeople have learned that independence does not give them the right to ignore company rules. You must follow standard procedures, especially if you are hoping to advance to a sales management position.
Finally, you must show self-confidence when dealing with customers, so that they will have confidence in you and the products you sell.
