Barter Trade System - Term Paper Example

Executive Summary

It is important to appreciate the fact that sales is a technique that has managed to change from one form to another throughout the years. Initially, many business enterprises were more focused on door to door selling. This approach involved moving from one household to another with a variety of products with the aim of selling them. The second phase of selling saw the rise and development of a common trading place known as the market. Lastly, technology completely revolutionized the manner in which people are handling their goods and services.

Technology introduced the concept of using commissions as a means of reaching the vast customer base. An end to the World War 2 led to the intentional manipulation of clients with the aim of making profits. This turned out to be perfect than was expected. It ended up attracting more customers to the surprise of all who were in business. This selling phase was revolutionized to a point where goods were sold primarily with the intention of satisfying customer needs. In addition to that, many companies came up with a logic of meeting the customers’ needs first before even thinking about profits.

Introduction

It is important to appreciate the fact that many selling methods used today have undergone quite some phases with a notable chain stretching from the well-known traditional methods to the more technological advanced methods. The most advanced techniques are currently being used by both corporate and personal businesses today. According to, it is quite easy to track the evolution of selling practices which was initiated in the 19th century.

It is at this time of war that many countries needed much from each other regarding food, medical supplies, and even weaponry. As much as many countries were dealing with different products, many trading partners saw the need to revolutionize the means of trade that seemed not be sufficient to handle the various market demands. This trade gap led to the slow but steady evolution of business methods from the traditional door to door selling to the technologically advanced value based selling. This report, therefore, gives an insight of the different evolutionary phases that selling has undergone to the present state. The first step is the traditional phase, commonly known as barter trade followed by industrial revolution period that was paramount between 1860 and 1950. Post-World War II period followed closely between 1950 and 1960 followed by The Tactical phase between 1970 and 1980. The second last stage is the Solution based phase between 1980 and 1990 and finally the present day value based selling of products that commenced in the year 2000 to date.

Aims and Objectives

This report focusses on the selling methods that have been used from the beginning of trade and how they have managed to evolve over time to the used current method of business. In addition to that, it tends to find the factors that might have led to the evolution of these phases. It is, therefore, important to note that this report is investigating the following issue:

What the difference between traditional selling methods and the contemporary selling methods are?

What the different phases of evolution from traditional methods to contemporary methods are?

What factors might have been instrumental towards the evolution of the traditional methods to the present day contemporary phases?

Methodology Used

One of the methods that have been used by the study to answer the different research questions is the use of literature review. Literature review involves relying on written material which is not only credible but also relevant in regards to the question of the study. In addition to that, the material must be able to give correct dates of various occurrences and lastly, it must have undergone the latest academic reviews. This report has therefore combined different information about the evolution of selling ranging from journals, books, and magazines. In addition to that, the contents of the three sources have ensured that the content and information obtained has been blended from various angles to enhance quality. The three sources have also made the report to have some sense of credibility as the data analyzed from the three sources does not only guarantee quality but also gives a timely response as to the exact dates of the selling transitions (Mitchel, 2016).

Results

First Trade Phase (Barter Trade System)

It is important to appreciate the fact that in this phase a lot of concern was pegged on producing commodities for household consumption hence the acquisition of the name, secondary trading. Many families’ only provided enough products for themselves and only considered exchanging goods that they had what they needed from their neighbors (Smith, 2013). It was the sole responsibility of the person in need to walk with his/her products from one household to another with the aim of taking whatever he/she needed most but could not produce. People involved in this trading system would carry different commodities to the ones they left their households with. This system of commerce evolved to a point where families developed what is called the family business system (Miller et al., 2005). This system was characterized by an individual family producing enough for their consumption with excess being exchanged with other goods from other families. This system of trade evolved to a point where different families mastered the art of exchanging various commodities with other families with the sole intention of making money. In addition to that, the introduction of market-based selling system steered the need to make extra money from one’s produce.

Industrially Influenced Stage of Trade

This stage of industrial revolution spearheaded the need to sell to make the profit since various family owned businesses and firms saw the real meaning of doing business. The meaning of trade for profit became very paramount, and it is at this point that the sense of selling became very apparent. One of the most notable characteristics of this phase is the emergence and rise of current trade giants such as Ford and General Motors (Myer, 2016). This two companies managed to grow from the profits they were obtaining since the commercialization of their products to become automobile giants to reckon with in the auto industry. It is important to note that this rise into the international scene was influenced by several factors.

The first factor was the need for companies that wanted to venture into global businesses to set up a department that would change the manner in which the products were introduced to the customers. It is at this point that sales people came to be. They were tasked with advertising the company’s products to the large potential customer base. To motivate the sales persons, they were introduced to selling and advertising system involving the use of commissions as a method of payment. In addition to that, their advertising strategy ensured that the various products under disposal were pushed further into the market (Link, 2013).

Trade after World War II

This phase, commonly known as the information age, was characterized by the further development of the introduction of products into the market to introduction of psychology into the entire equation. It is during this phase that many products were sold via manipulation of the customers through a psychological approach. Companies interested in the sale of their products captured their customer’s attention via a mental approach from where the customers developed the desire to have a particular product even if they did not need it. In addition to that, many producers were only interested in closing a deal with the customer but did not mind how the entire process was handled. They also took advantage of the people’s needs and introduced an element of manipulation (Paul, 2016). Persuading customers to buy products took center stage with a massive shift from the users’ needs to making as much as possible from different sales.

It is at this point that companies moved from recruiting people who were just qualified for a sales job to hiring individuals who had exceptional persuasion skills. Many people viewed such people as crucial assets that could be used to capture a large chunk of the market and counter other marketing strategies that were being employed by their competitors. This phase was therefore seen as a stage of creating a much closer relationship with all potential customers across the entire globe. It was considered to be an imperative key to success (Kimball and Hall, 2011).

Tactically Influenced Trade

This phase adopted a very different and unique approach compared to other phases. It is during this phase that many companies decided to invest in products that would be of benefit to the customers by solving their needs. This was found to be a crucial tactic as many customers would eventually be naturally attracted to these products with simple marketing. Most of the customers in this phase had become conversant with different marketing and selling trends in the market and therefore it became quite difficult to manipulate them. Since many companies needed to survive in the fast moving dynamic space, they shifted their focus from the commodity to the customers.

Problem Solving Trade

This is another phase that was marked with a rapid revolution of how selling is carried out. Many producers decided to shift to the customer’s problems by developing goods that would help solve the various problems that the clients were facing.

It was realized that products that were very categorical in regards to fulfilling a customers’ needs were highly acceptable than goods produced without a proper basis (EBSCO Industries, 2016). Most of the products shifted towards functionality and were no longer inclined towards factors such as user friendliness. A critical aspect of the design was introduced that involved in-depth research into finding what the customer needs in the market was before beginning any form of manufacturing. This was to ease the process of product absorption into the market.

Trade based on Value

Confusing value based selling and solution based selling is easy. Value-based selling was created to aid in achieving full customer satisfaction instead of just meeting their needs (Duncan, 2014). Clients in this phase were treated as vital assets whose needs had to be met entirely before looking at the profits. Customers had to be very happy using the products with all their needs fully met. On the other hand, the company involved in the entire process was to go home happy after reaping the intended profits. This phase included a lot of ethical considerations as customers were not compromised over anything (Brown, 2016).

Report Conclusion

All the different phases of a revolution that selling has gone through are all considered important when it comes to the manner in which selling is done today. It is also important to appreciate the fact that the door to door phase that pioneered the sale process must be accredited for the development of other phases.

The industrial revolution period followed with a unique technique which was deemed superior to the door to door. The third in line was post-World War II period that involved the use of psychology in luring customers. This was followed by the tactical phase, solution based phase and lastly the value based selling phase. All these phases managed to come up with different strategies that were not unique but managed to meet different customer expectations as well as generating revenue through profits gained (Blank, 2016).

Barter trade has managed to be applauded worldwide and was adopted by almost all persons who were willing to be involved in some form of trade. Many of those involved in this phase were not primarily focused on making money but were interested in exchanging their products for whatever goods they could not produce. The industrial revolution phase followed closely with many people developing different tastes for different commodities hence leading to the diversification of the products produced. It is important to note that before the industrial revolution, there was no specialization in the sale’s process but a rapid introduction of sales persons was witnessed in its later stages. This was followed by the specialization and focus on the customers including their needs. The present day sale of goods is characterized by massive investment on the customer’s needs which comes together with the accumulation of wealth through profits (Allan, 2014).