Tuesday 19 February 2013

Q Discuss (i) Uses, (ii) Functions, and (iii) Systems of sales letters.


Q Discuss (i) Uses, (ii) Functions, and (iii) Systems of sales letters.

Ans: (i) USES OF SALES LETTERS:
1. Selling by Mail:
Mail-order houses use sales letters for performing the entire selling job. i.e. from producing
inquiries to shipping merchandise. The reply cards blanks order forms and other material may be
enclosed with a sales letter to make it more effective.
2. Producing Sales Inquiries:
Businesses other than mail order houses confine the use of sales letter to soliciting inquires, which
may be followed by letters, telephone or personal calls.
3. Following-Up Sales Inquiries:
The inquiries, unsought or produced by sales letters or advertisements may be handled in different
ways. Sales letter may be used for this purpose. Printed material may also be enclosed with it.
4. Inducing People to Buy:
Sales letters may induce the customers or prospective customers to buy goods / services by
arousing their interest and desire.
5. Building-Up Goodwill:
Sales letters may also be used to thank the customers for their patronage, extend greetings, and
announce new services, for building-up goodwill.
(ii). FUNCTIONS OF SALES LETTERS:
1. Attracting Attention:
Attracting Attention of the reader through decent stationery, proper layout, neat typing,
paragraphing, etc. further, the opening sentences of the text must make the reader think by means
of a slogan or extra-ordinary idea.
2. Arousing Desire:
Arousing Desire by appealing to reason (for necessities) and appealing to emotion luxuries). The
desire to buy the goods or services must be created in the mind of the reader.
3. Implanting Conviction:
Implanting Conviction about the good quality of goods / services so that the reader does hesitate in
making the decision desired. This can be achieved by means of logical reasoning moderate claims,
and evidence to support the claims.
4. Stimulating Action:
Stimulating Action by not allowing the prospective customer to put off auction. This can be done
by offering inducements for quick action, like special discount, gifts, reply cards, etc.
(iii). Sales Letter Systems (Series):
Sales letters are generally issued in a series to a selected list of prospective customers, to achieve
the planned sales targets. Depending upon the nature of the product and the market, one of the
following systems is applied.
1. The Wear-Out System:
Under this system the total number of letters to be issued for achieving the target and the intervals
for which the different letters will be issued are determined in advance. The terms and conditions
offered are varied from letter to letter. When all the letters in the series have been issued, the series
is automatically terminated.
2. The Continuous System:
This system is suitable for those products / services, which are in regular demand; the sales letters
are issued for the purpose of gaining the maximum share of the market. At suitable intervals, sale
letters in the series continue to be issued as long as the business operates.

3. The Campaign System:
The total number of letters to be issued in the series is not determined in advance. Sales letters with
varying terms and conditions will continue to be issued until the sales target is achieved therefore
the series will be terminated.


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