Posted in Marketing and Strategy Terms, Total Reads: 420
Overselling has multiple meanings.
a) Overselling means to promise or contract more than your capacity or planned production. Travel and lodging industry mostly indulge in the practice of overselling based on high rates of cancellation. The biggest benefit of overselling for them is that they don’t have to operate under less than full capacity because if a few people cancel, they have sold to more than their capacity already.
b) Oversell means to sell aggressively, sometimes by using high pressure merchandizing, forcing the customer to buy etc. This may help in generating revenues for the time being but is bound to leave a bad taste in the mouth of the customer and can leave him annoyed. Roadside vendors or beggars offer indulge in excessive selling (asking for money) unless they find success.
c) Overselling also means to praise the good points of your product too much sometimes on the verge of being self-defeating sometimes. If you sell the good points too much, you can scare of the customer as he might fear that something is being hidden from him. It is said that a marketer should acknowledge both the good and bad points of his product and should make the customer know why his product is better than the next best alternative he has rather than overselling on good points.