Why might a business move from a production approach to a selling approach?
A - HSC - SSCE Business Studies - Question 16 - 2021 - Paper 1
Question 16
Why might a business move from a production approach to a selling approach?
A. In response to increased competition
B. In order to increase promotional expenditure
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Worked Solution & Example Answer:Why might a business move from a production approach to a selling approach?
A - HSC - SSCE Business Studies - Question 16 - 2021 - Paper 1
Step 1
In response to increased competition
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Answer
A business may transition to a selling approach to enhance its competitive edge. Increased competition necessitates a focus on sales techniques and customer engagement to differentiate products.
Step 2
In order to increase promotional expenditure
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Answer
While increasing promotional expenditure can be a strategy in sales, it does not necessarily warrant a shift from production to selling. Instead, this could be a part of the selling approach.
Step 3
In order to better understand customer needs
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Answer
Shifting to a selling approach allows businesses to gather feedback and gain insights into customer preferences, which is crucial for tailoring products and services.
Step 4
In response to an inability to satisfy current demand
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Answer
If a business struggles to meet customer demand with a production focus, adopting a selling strategy can help prioritize customer satisfaction and responsive sales activities.
