Lessons 23 · 1 lessons · U. G‘afurov, Q. Sharipov. Basics of Entrepreneurship: textbook for Grade 11 of general secondary schools and for secondary specialised and vocational institutions. 1st edition. “O‘zbekiston” publishing house, Tashkent, 2018
23
Selling goods and advertising
Textbook: pp. 107–110
GoalExplain the forms and stages of selling goods and the functions of advertising, and do a simple calculation of how effective advertising is.
New words
retail trade: selling goods in small quantities directly to the final buyer · Chakana savdoselling to order: the buyer orders a product beforehand and receives it on an agreed date · Buyurtma bo‘yicha sotishobjection: a buyer’s doubt or concern about a product that the seller needs to answer honestly · E’tirozadvertising: public announcement that draws attention to a product, service or business · Reklama
Explanation
On the market it is not enough to produce goods; they must also be sold at a fitting price. For everyday goods, self-service suits; for rarely available goods, selling by pre-order; and in complex cases individual service or free display. Bulky or complex goods can be sold by samples, by phone, through consultation or by discussion. Selling has several stages: starting the conversation and gaining trust, listening to and identifying the buyer’s need, showing the product and giving reasons, answering objections honestly, and closing the sale. Advertising fulfils marketing, information, educational, economic and social functions; it must be truthful, must not deceive buyers and must not harm children. The cost of advertising can be compared with the number of new customers it brought to calculate what each new customer cost.
Worked examples
An imaginary furniture workshop sells large wardrobes by samples: 3 samples stand in the hall, the customer chooses and pays, and the wardrobe is delivered to the home 5 days later. The choice of form depends on the goods being bulky.
Advertising effectiveness: an imaginary café spent 600 000 so‘m on advertising and 150 new customers came. The cost of one new customer = 600 000 / 150 = 4 000 so‘m. If each customer leaves on average 9 000 so‘m of profit, the advertising pays off.
Class activity
Role play: pairs play the seller and the buyer (imaginary product). The seller goes through the five stages of selling and the buyer raises one objection. Then the class judges whether the seller answered honestly.
Practice
1
Why must an objection from a buyer be answered honestly?
Deceit destroys trust; an honest answer may turn the buyer into a regular customer.
2
Which form is convenient for selling a large item that is hard to carry? Answer in one phrase.
Selling by samples.
3
480 000 so‘m was spent on advertising and 120 new customers came. How many so‘m does one customer cost?
4000
4
40 orders at 85 000 so‘m each. What is the total revenue in so‘m?