Data Bases • Custom Term Papers • Free Term Papers • Free Research Papers • Free Essays • Free Book Reports • Plagiarism? Links • Top 100 Term Paper Sites • Top 25 Essay Sites • Top 50 Essay Sites • Search 97,000 Papers @ DirectEssays.com • Search 101,000 Papers @ ExampleEssays.com • Search 90,000 Papers @ MegaEssays.com Free Essays • Term Paper Sites • Chuck III's Free Essays • Free College Essays • TermPaperSites.com • My Term Papers • Get Free Essays • Essay World • Planet Papers	Search Lots of Essays Back to Subjects - Marketing Lit review of used industry Lit review of used industry The Purpose of the study was to trace and analyze the impact of sales personnel in the used car industry. The study focuses on the current ways in which used car dealers are marketing their products in the Kingston Metropolitan area. The assessment will be done on the following areas: 1. To what extent do salesperson competence impact on profitability 2. How profitable are salespersons strategies to the company 3. How do salespersons impact on their customer 4. How important are salesperson in the sale of used cars In 1997-98 Jamaica spent US $205.9 million on importing 39292 vehicles. The previous year, US $263.6 million was spent to import 27335 with the majority of the permits being used car dealers (Observer, July 25, 1999). This was partly due to the fact that more and more car sales men are becoming more effective in the marketing of used cars. Sales men are taking advantage of the situation that exist in Jamaica, seeing the need for employment and the developing trend of people using used vehicles for taxi, these vehicles are priced at a more affordable cost, facilitating the easy acquisition, more efficient and better payment plan being available to customers. For instance, Mc Ds offers used car at 40% down, 4 years to pay at 15% interest, with special discounts offered to teachers, nurses, policemen and firemen. The increased extent to which sales person market ‘used vehicles’ can be emphasized by the influx of ‘deportees’ being used as taxi whether being authorized or robot. With an alarming increase in used car operating as robot, this served to threaten the viability of the JUTC bus system as shown by commander Mc Farlane in his statement saying that it was necessary to seek to eliminate the operation of robot taxi operators as their operation is wrong under the law, saying it puts the public at risk and that it challenged the viability of the JUTC as according to the Gleaner (may7, 2000) One used car dealer Worldtron in an effort to market its product had launched two initiatives to benefit motorist in general, but with special focus on women (Observer, may, 2001). The first initiative was seminar expositions held to show case their services, with sale representative being present to deal with any quires and initiate a purchase arrangement if the need aroused. The exposition covered four major areas: health and nutrition, care of the skin/hear, plant care floral arranging, as well as creating a more security conscious woman. This effort was aimed directly at marketing Worldtron along with its used cars to the public with special emphasis being placed on women. Sales persons comprise of part of the marketing team, exerting major influence in the design of various advertisement and promotional item thus the increasing extent to which sales person are marketing their product can be seen by the number of pre-owned vehicles being advertised in the Gleaner. Vehicles of all description are placed in a special section of the Gleaner giving the price and other various specifications that the customer might deem necessary. This information is also placed in the Jamaica yellow pages and is assessable via the Internet or the telephone directory. A lot of use car dealers also advertised on local cable, radio and television. Two of these most popular dealers are Despite the increasing levels to which sales person are marketing used car in Jamaica, this in no way can be compared to countries like the US, as these sale person have taken marketing used car to another level, according to (Williams, 2002) a used car salesmen: “With respect to the marketing of used car, I still think a lot more can be done by sales men interns of bringing the vehicle inside potential customers homes and work place, saving the customer the hassle of having to make the actual journey. This can be done with the use of special computer software and Hardware to effectively bring across a virtual presentation that can satisfy customer just the same as if they went to the dealership in person.” Salespersons have proven to play an integral role in the sale of used cars in Jamaica (2001 Wedderburn – Mack D’s). Used car dealers across the island offer a wide variety of services and benefits that allow their products to look more attractive. It is however, up to the salespersons to make these services and benefits known to customers and potential customers when selling the product to them (2001 Mitchell – New Line). Some of the services and plans include; reasonable prices for vehicles, special financing plans, special features on cars servicing options and trade-ins (2001 Wedderburn – Mack D’s, Mitchell New Line). The first thing that salespersons use to attract customers to the vehicles they are selling is, the reasonable prices they have on their vehicles. This proves to be very effective when selling vehicles to customers (Mitchell New Line). Customers must feel that when they are purchasing vehicles they are getting great value for money. With the present economic situation customers are trying to get the best value at the lowest cost (Wedderburn – Mack D’s). This is why salespersons use this as the base of their marketing strategy when selling cars to customers (Wedderburn – Mack D’s). With this you find that customers tend to purchase more used cars instead of new cars as, they are likely to get a car of relatively the same quality for a much lower price (Mitchell – New Line). It is also the duty of the salespersons duty to make known to the customer the various financing plans that the company offers. Salespersons employed to Mack D’s Auto Sales when selling their cars to customers tend to ask them their occupation as there are a variety of financing plans of available to persons employed to different sectors. They offer regular workers 30% down, with 6 years to pay at 23% interest per annum. Civil servants pay 20% down, 5 years to at 20% interest per year. Sandals employees, Police and pastors are offered 20% down with 6 years to pay and 17% interest. Staff members are offered 10% down with unlimited time to pay and no interest (Wedderburn – Mack D’s). This is another factor that salespersons utilize a whole lot when marketing their cars to consumers (Wedderburn – Mack D’s). Consumers tend to react in a positive way towards the various financing plans that Mack D’s offers. Customers tend to make up their minds when the financing plans are put forward. They tend to view it as a bargain. This is expressed especially by police and civil servants as with their limited resources they are able to purchase a vehicle because of the plan (Wedderburn – Mack D’s). However, in the case of New Line Motors, a special part of their financing plan that their salespersons tend to stress on is, the fact that they offer trade-ins to customers. When a customer who drives a car wants to purchase another car, they have the option of trading in their car, getting it valued by New Line and then paying the balance of the other car (Mitchell – New Line). The features of the cars are another factor that salespersons stress on when marketing their vehicles. This factor goes hand in hand with the reasonable price they offer for their vehicles. They market the features of the car alongside the price of the car so that consumers get the feeling of receiving great value for money. Salespersons try to sell the features to the car so that customers can get what they want and more in a car (Mitchell – New Line). Salespersons also make mention of the after sales services that are offered by the firm (Wedderburn - Mack D’s). Mack D’s offers free servicing to patrons who have not completed payments for their cars. This saves the customer money while it allows the car to remain in good condition incase it is repossessed and has to be sold again. The relaying of this information to the customer by the salesperson usually helps in decision of purchasing a car (Wedderburn – Mack D’s). New Line also allows for this type of services. They allow New Line customers to receive servicing for their vehicles at a cost. (Mitchell – New Line). When it comes to developing long-lasting profitable relationships, it is how well your salespeople present features and benefits and overcome objections that count; it is how well they serve the customers’ needs. How well are your salespeople serving your customers? That’s right, serving, not selling. I know you are concerned with sales. It’s easy to determine how well your people are selling to your customers. That’s what sales reports are for. But your customers are more concerned with how well they are being served by your salespeople said Dave Kahle. According to an article on Buying and leasing cars by the Attorney General Washington the Consumer protection Division; there are some common tactics salespersons in the automobile industry uses these are · "Bait-and-switch"- a very attractive deal on a car is advertised (the "bait"), but at the dealership the salesperson tries to sell a more expensive car (the "switch"). "Special" or "Sale Price" - references a former price when the car may never have actually been offered at the "former" price; High Pressure; Holding keys - Salespeople will sometimes ask for the keys to your car "in order to evaluate it for trade-in purposes." This is a reasonable request but you should insist that your keys be returned to you after the test drive. It is an unfair sales practice for a salesperson to keep your keys while using high-pressure sales tactics to get you to buy. Cash deposits - If a salesperson asks for a cash deposit to show "that you are serious about buying," you are under no obligation to provide such a deposit. You should be suspicious when asked to provide one. It is an unfair practice for a salesperson to take a cash deposit and then refuse to return it if you do not sign a contract. Statements that do not bind you - If you are asked to sign a statement to the effect that you "agree to buy a car when terms can be agreed upon," the salesperson may try to insist that, because you signed such a statement, you are legally bound to buy a car. That is not true. You should not sign such a statement in the first place: even if you do, it does not legally require you to buy a car. When negotiations break down, you are free to walk away. Tom Webb (2002), Chief Economist stated that For 25 years-15 of which were as a senior analyst for the National Automobile Dealer Association (NADA), he has watched the used car market grow and prosper. Today the importance of used cars has never been greater to the automotive industry as a whole. The efficient movement of those vehicles among the various remaining entities is clearly contributing to the overall industry success. Kurtz (2002) stated that the competitive environment mandates the sellers not to only sell but also serve. All companies have been affected by increasing competition, but there has been perhaps no industry more heavily impacted than the automobile industry. The sale person has always played two primary roles that add tremendous value, one is convenience and the other is that of an advisor. Convenience of the customer is helping the customer get their exact needs when they want them. Taking all of the potential options that could meet their needs and showing which ones will now. Convenience for the car company is getting the eight, twenty-seven or Three Hundred & Thirty Five customers that it needs that year to grow the business and make profits. If the industry were to wait for the phone to ring without having a sales person, the company would be out of business in a flash. The sales person becomes an advisor by helping a potential customer understand complex topics such as warranties and certified pre-owned vehicles. It is rightly a relationship grounded in face-to-face human dialogue and interaction. It’s a give and take of the needs and desires of the customer and the capabilities of the sales person to meet them Brown (2001). There are certain benefits that can only be attained form interaction with a salesperson. According to Johnson (1994) these benefits include the criticality of the human element, enhancing of consumer confidence, the immediate manner in which customers can act and treating of customers as individuals. Sales people and customers deal with each other face to face. For instance a computer system sales person will be involved in the installation of the system and subsequent system modification long after the purchase order has being signed. Familiarity, if not friendship, develops between the sales person and customer. The sales person becomes the company for the customer. Buyers do not deal just with an inanimate business organization but with human beings from that company whom they see personally and know. Since personal contacts are involved it is more difficult for buyers to ignore or remove the sales influence (in contrast to advertising message, which can be easily turned off). Since the customer deals with a supplier through a person, there is great potential for building the customer confidence in the supplier’s products, personnel, and procedures. Of course, the sales representative can muff this opportunity in many ways, such as making promises that cannot be kept or misrepresenting the product. However if done properly personal selling offers the opportunity for the sales person to build a basis of trust and confidence with customers. It is this development and nurturing of long-term relationship based on trust that is essential to sales and marketing success today. Unlike any other means of promotion, personal selling can work for a desired action by customers immediately. Here and now sales representative can place an order, commit to a purchasing plan for thee next quarter, decide on an in store promotion for the product and so forth. Personal selling makes it more difficult for the customer to delay or to forget a promise commitment in the future. It provides the opportunity for the sales person to get the decision that is wanted on the spot. All of the preceding pay offs of personal selling are important, but probably the most valuable is that sales representative personal contact with customers make it possible to customize sales presentation and to handle buyers problems and complaints on an individual basis. Suggestion and problem solutions that make no sense for one customer may be right on target for another. Only personal selling can deliver such customer-by-customer accommodation. In a board sense this is the service aspect of personal selling, to identify each customers needs and problems and to respond to them individually. This is the ‘value added’ or extra benefit that sales person can provide. This value added is often the difference between sales success and failure in today’s very competitive market. Salespersons have proven to play an integral role in the sale of used cars in Jamaica (2001 Wedderburn – Mack D’s). It is however, up to the salespersons to make these services and benefits known to customers and potential customers when selling the product to them (2001 Mitchell – New Line). Some of the services and plans include; reasonable prices for vehicles, special financing plans, special features on cars servicing options and trade-ins (2001 Wedderburn – Mack D’s, Mitchell New Line). The first thing that salespersons use to attract customers to the vehicles they are selling is, the reasonable prices they have on their vehicles. This proves to be very effective when selling vehicles to customers (Mitchell New Line). Customers must feel that when they are purchasing vehicles they are getting great value for money. Salespersons employed to Mack D’s Auto Sales when selling their cars to customers tend to ask them their occupation as there are a variety of financing plans of available to persons employed to different sectors. When a customer who drives a car wants to purchase another car, they have the option of trading in their car, getting it valued by New Line and then paying the balance of the other car (Mitchell – New Line). The features of the cars are another factor that salespersons stress on when marketing their vehicles. Salespersons try to sell the features to the car so that customers can get what they want and more in a car (Mitchell – New Line). Salespersons also make mention of the after sales services that are offered by the firm (Wedderburn - Mack D’s). Mack D’s offers free servicing to patrons who have not completed payments for their cars. The relaying of this information to the customer by the salesperson usually helps in decision of purchasing a car (Wedderburn – Mack D’s). How do salespersons impact on their customer? How well are your salespeople serving your customers? That’s right, serving, not selling. I know you are concerned with sales. It’s easy to determine how well your people are selling to your customers. That’s what sales reports are for. "Special" or "Sale Price" - references a former price when the car may never have actually been offered at the "former" price; It is an unfair sales practice for a salesperson to keep your keys while using high-pressure sales tactics to get you to buy. Convenience of the customer is helping the customer get their exact needs when they want them. The sales person becomes an advisor by helping a potential customer understand complex topics such as warranties and certified pre-owned vehicles. Sales people and customers deal with each other face to face. Familiarity, if not friendship, develops between the sales person and customer. The sales person becomes the company for the customer. However if done properly personal selling offers the opportunity for the sales person to build a basis of trust and confidence with customers. Only personal selling can deliver such customer-by-customer accommodation. Bibliography: References Roxborough, P (2000). FTC eyes used car dealers. Daily Gleaner Simpson, L (1999). More money less cars. Daily gleaner Mc Farlane (2000, May7). TA declares ‘war’ on ‘robots’. Daily Gleaner. Observer Reporter (2001, May 26). Worldtron holds expo. Observer Johnson, E.M, Kurtz .D and Scheung E,E. (1994). Sales Management concepts, practices and cases. Second Edition McGraw- Hill Kotler and Armstrong, (1996). Principles of Marketing Seventh Edition. Brigham, H (1995). Fundamentals of Finance Seventh Edition. Browns, S (2002). The importance of Salespersons, www.industrialego.com Webb. T. (2001) A letter from Tom Webb www.manhiem.com Word Count: 3036
Copyright © 2005 College Term Papers, INC All Rights Reserved.