Presentation on theme: "‘Sales’ means to transfer or agree to transfer the ownership in the goods to the buyer for a price. The words ‘Manship’ implies attaining a certain objective."— Presentation transcript:
‘Sales’ means to transfer or agree to transfer the ownership in the goods to the buyer for a price. The words ‘Manship’ implies attaining a certain objective by making efforts. Thus, salesmanship means all those efforts through which the seller sells his products or services. Meaning and Definition
DEFINITION “Salesmanship is the ability to persuade people to buy goods or services at a profit to the seller and benefit to the buyer.” -National Association of Marketing Teachers of America
The old concept of salesmanship aimed at showing the goods to the customers, procuring order and receiving payment. No efforts were made to educate and pursuade the customers. The modern concept of salesmanship is based on the idea of service. The aim now is to create demand for the product, educate the customers about the traits and uses of product and pursuade the buyers to go for it. The problem solving approach is the main thrust of modern salesmanship
OLD CONCEPT OF SALESMANSHIP RECEVING MONEY PROVIDING COMMODITIES QURIES REGARDING PRODUCT..!!!
MODERN CONCEPT OF SALESMANSHIP EDUCATE THE CUSTOMER USES OF PROCUCT CHARACTERISTIC OR QUALITY
FEATURES OF SALESMANSHIP Pressure Salesmanship Pursuasion Aiming at Service Winning of Buyer’s Confidence Mutual Benefit Educative Process Creative
The old concept of salesmanship gives more emphasis to high pressure salesmanship. The quality of a good salesmanship was that he should be able to sell a product even if the customer does not need it. The salesmanship would try to persuade and pressurize the customer in such a way that he is able to sell the goods.
Salesmanship is the ability to persuade people to go for a particular product. The ability to handle people properly determines the success of a salesmanship. MODERN SALESMANSHIP DISCARDS PRESSURE TACTICSWRONG PROMISES
Salesmanship aims to provide service to the customer. The buyer have a problem and a salesman should help in providing a solution. The selection of a product which will satisfy the customer want is difficult task.
Misrepresentation, wrong promises, cheating, dishonesty, doubtful methods of influencing buyers have no place in modern salesmanship. There should be not attempt to take advantage of customer’s ignorance. The present salesmanship aims to win buyer’s confidence by educating him and helping him solving his problems.
Salesmanship should aim at the benefit of both buyers and sellers Salesmanship should help the buyer in getting maximum benefit from the money he spends. At the same time it should help in providing reasonable profit to the seller.
Salesmanship educates buyers about their needs suggest ways to satisfy them. The customer sometimes not aware of their needs or the way in which these can be satisfy. Salesmanship educates buyers about the products available in the market, their traits, their utility and suggests products which will meet their requirements.
Salesmanship is creative activity. The study of buyers' problem and methods to solve them requires an insight into the situation. Every problem requires a different solution. Only creative thinking will help a salesman to cope with various situations in the market.
Nature of salesmanship- An Art or Science Generally a controversy arises as to whether salesmanship is an art or a science. Some people are of the opinion that salesmen are born but not made, while others think that salesmen are mostly made than born, and yet some other people who say that salesmen are born and made. This controversy has created a good deal of confusion about the nature of salesmanship to determine whether salesmanship is an art or a science, we must understand the meaning of the terms ‘art’ and ‘science’.
Salesmanship – An Art An art is a system of rules for the attainment of a given end. “In an activity that is classed as an art the emphasis is on applying skills and knowledge and accomplishing an end through deliberate effort”. -T.L. Massie Art is thus concerned about the application of knowledge and skill. In this sense, salesmanship is an art as one has to use his skill and knowledge in persuading people to buy goods or services. Salesmanship is one of the most creative art of selling and nothing more or less than making the other fellow feel as you, about the thing you have to sell.
Salesmanship- A Science The word ‘science’ literally means knowledge. It is a systematised body of knowledge acquired by mankind through observation and experimentation and which is capable of verification. In the words of Keynes, “Science is a systematised body of knowledge which establishes relationship between cause and effect”. Salesmanship is viewed as a science as it is an organised body of knowledge built up by management practitioners, thinkers and philosophers over a period of years. It has certain principles and rules developed after continued observation. Thus, D.D. Couch has referred to salesmanship as ‘the science of creating in the mind of prospective customer, a desire that only your product will satisfy’.
Salesmanship – A Science as well as an Art We have seen above that salesmanship has elements of both art and science. It may not be proper to term it as pure science or pure art. In fact, it is a science as well as an art. Salesmen are born as well as made. Cossa has rightly remarked that ‘’Science requires art, art requires science, each being complimentary to each other.” It may be concluded that there is no hard and fast line between science and art or salesmanship. The former (science) will have to solve problems and establish principles which might be applied with benefits to the latter (art).
Personal Selling Vs Advertisem ent Personal selling and advertising are a system of communication with the customers. Both aim at modifying the attitude of customers towards the company and its products. Personal selling & advertisements adopt different methods and approach in promoting company products and both differ in the following ways : 1.Personal selling is directed at the individual customers while advertising aims at mass audience 2.Personal selling is two way communication between the buyer and salesman whereas advertising is a one-way communication with customers. 3.Advertising is less effective as compared to personal selling. 4.Advertising is efficient and cheaper as compared to personal selling
ADVANTAGES OF SALESMANSHIP The advantages of salesmanship can be well understood from the following discussion: 1.Advantages of producers: Salesmanship helps producers in following ways (a) It enables the producers to push their product in a competitive market. Efficient salesmen are able to sell whatever the producers produce. (b) It helps the producers to increase production. (c) As production and sales increases,manufactures get more profit. (d) Capacity of the industry increases. (e) It also promotes goodwill of the firm. 2.Advantages of consumers: Consumers derive maximum utility out of salesmanship.A good salesmanship makes a study of the needs of customers and satisfies them promptly.
(a)salesmanship helps customers to select right type articles and to know about the new products introduced in the market (b)It never cheats them by supplying duplicate goods at higher prices. (c)It suggests ;informs and guides customers in purchasing articles. (d) It act as an agency to help consumers, communicate their grievances and suggestions about the goods to the manufactures. (e) It enables consumers to get best quality products at reduced prices. 3. Advantages to the society: (1)It stimulates consumption and accelerates the rate of production. (2) It creates employment opportunities by creating demand. (3) It increases the national income of a country. (4) It raises the standard of living of the people at large. (5) It provides opportunities as a gainful profession. (6) It increases the revenue of the government. (7) It enables a concern to compete in the present day world market.
TYPES OF SALESMAN 1)Manufacturer’s Salesman 2)Wholesaler’s Salesman. 3)Retailer’s Salesman 4)Specialty Salesman. 5)Other Salesman. 1.Manufacturer’s Salesman. These salesmen are employed by the manufacturers to sell the product either to wholesalers or retailers or to the ultimate consumers. (a) Missionery Salesmen are those salesmen who are engaged in the creation of demand for the services rendered by their employer, e.g., insurance, advertising agencies and consultant, etc. They also include salesmen who build goodwill of the firm and are called goodwill builders. They create, expand, develop and maintain goodwill of the firm. They work through wholesalers,
distributers, dealer or retailers who ultimately sell goods to the consumers. (b) Promotional Salesmen are those salesmen are those salesmen who are employed for sales promotion rather than taking on the spot orders. They are also known as detail salesmen. These salesmen usually, maintain contacts with the person or institutions who advice or recommend the use of good of the customer,e.g., doctors, teachers, hospitals etc. Salesmen of a firm manufacturing medicines may contact doctors to persuade them to recommend a particular medicine to his patients. These salesmen do not maintain direct contact with the consumer. These type of salesmanship are very useful in introducing new products in the market. C) Merchandising Salesmen are employed to tender advice to the dealers and for collecting information from the market. They assist dealers in increasing their sales by providing advice to them about the various problems in selling the goods, viz., advertising, layout, displays, credit policies, etc. Merchandising salesmen are mere promoters of sales and do not book orders from the market. They demonstrate the product, arrange publicity for it and even work with distributors or dealers in the field.
D) Dealer Servicing salesmen are engaged in selling the products by booking orders from the dealers or retailers, show them samples and persuade them to place an on the spot order for the supply of goods. For examples, a sales representative of a detergent and soap manufacturing firm periodically visit his dealers, bring new samples, enquires about their stocks and takes or books orders. 2) Wholesalers Salesman : The wholesalers may also appoint their own salesman to sell their products. A wholesalers salesman is representative of the wholesalers who deal with the retailers or industrial consumers. He calls on the retailers or industrial consumers at regular intervals to book their order. He inform the retailers about the various product stored by the wholesalers and may carry samples with him. He acts as a linked between the wholesalers and retailer.
3)Retailer’s Salesmen : The salesmen appointed by the retailers to sell their products to the ultimate consumers are known as retailer’s salesmen. They may be either outdoor or travelling salesmen or indoor salesmen. An outdoor salesmen travels from one place to another and visits his prospective customers periodically. An indoor salesmen is a counters salesmen who works in a retail store and attends to the customers visiting the store. He has to be a man of deep imagination and keep observation, good appearance, impressive voice, cheerful disposition, amazing alertness, cool temperament and stimulating desireness. He has to judge his customers, their needs, buying motives and capacity. 4) Specialty Salesmen : The salesmen who are engaged in selling of the specialty goods, such as computers, typewriters,televisions, refrigerator etc are called speciality salesmen. These salesmen usually represent a single product or line. They meet a prospective customers and explain and demonstrate the use of their products. Thus,they create demand and desire among the consumer to buy a specific product. A speciality
salesmen’s main effort is in locating the prospective customers. They usually deals in expensive items which may be needed in the market. 5)Others Salesmen : Sometimes salesmen are classified on the basis of products and services which they sell.thus, their salesmen who sell tangible good which can be seen, felt and handled physically or those who are engaged in the selling of intangible goods or services. there is yet another classification as (a) creative salesmen and (b) service salesmen. A creative salesmen is one who is engaged in the selling of new product and introducing new brands in the market on the other hand, a service salesmen sells products which are already in the market so as to expend and maintain its demand. staple salesmen are those who deal in the goods which are known to the customers and are well established. exports salesmen are specialized salesmen engaged in the exports. An export salesmen should know the language, culture, habits and laws of the different countries. He should also be familiar with the import and export regulation act and the policies of the govt in regard to foreign trade.
METHODS OF REMUNERATION, COMPENSATION OF SALESMEN METHODS OF REMUNERATION, COMPENSATION OF SALESMEN Need/Importance of Proper Scheme of Remune-ration Remuneration is the reward for the services rendered by a person. The amount of reward paid to a salesman has a direct impact on his efficiency. Both low paid and excessively paid salesman are costly for the firm. When a salesman is not paid sufficient remuneration commensurate with his efforts, it affects his efficiency adversely as he has no incentive to work. In the same manner, if a salesman is paid excessive remuneration compared to his efforts, it increases the cost of goods sold. Thus, it is very essential that proper remuneration should be paid to him. Payment of fair remuneration leads to the following advantages : 1. It increases the morale of the salesmen and motivates them to work hard.
3. It reduces the problem of labour turnover. 4. It provides an incentive to put best of efforts. 5. It enables the salesmen to maintain their standard of living and creates a sense of satisfaction among them. 6. A well paid salesman can afford to keep his knowledge up-to-date which in turn helps him to perform his job better. 7. If a salesman is not paid a fair remuneration compared to his competitors, an inferiority complex comes into him and he can never be successful salesman. 8. A well paid salesman works honestly as a salesman surrounded by financial hardships cannot work with honesty and full concentration. 9. A scheme of fair remuneration attracts efficient people to undertake the profession of salesmanship.
Salesman is paid fixed amount of remuneration every month Remuneration is fixed at the time of appointment of salesman. Salesman also provide for annual increments in the salary. Salary is fixed according to: requirement of job qualification and experience of salesman N o relation with volume of sale made by him
Advantages of Straight Salary Method 1.It is easy to operate and simple to understand. 2.It ensures a certain fixed income to the salesman and thereby provides a sense of security and confidence among them. 3.It minimizes the interest of clash between the management and the salesmen and thus helps in maintaining cordial relations. 4.The salesman under this method need not indulge in high pressure selling. 5.The remuneration of salesman is not adversely affected during trade depression and unsuitable market conditions. 6.It minimizes the problem of labour turnover.
This method does not differentiate between efficient and inefficient salesmen. This method is inelastic. This method discourages salesmen to increase efficiency and productivity. The salesmen having larger service get more pay as compared to salesmen with shorter service. Permanent burden upon the management.
Under this method, remuneration is based upon sales made by them Remuneration may be paid as fixed %age of commission on sale volume. Higher the sales, higher the remuneration. Direct relation between remuneration payable and efforts made by salesmen
It differentiates between an efficient salesman and an inefficient one. It provides incentive for hard work. It provides job satisfaction, as remuneration is paid in accordance with the effort made. It is flexible and there is no burden upon the management to pay a fixed remuneration.
This method is specially suited for paying remuneration to salesmen working for various firms. Lesser efforts are required to organize and control the activities of salesmen under this method. It is a fair system of remuneration.
It encourages high pressure selling. Salesmen remain always uncertain about their income. It attracts salesmen to make more sales even by applying wrong business practices. As compared to fixed salary method, it is difficult to understand and operate. This method lays more emphasis on sales than customer’s service. Under this method, there may be disputes between the management and the salesmen.
There are certain disadvantages of salary method and commission method. Thus, to make best use of the two methods, a combination of the two methods in one form or the other adopted so as to provide minimum fixed salary as well as incentive for hard work. There are various combination plans in use.
Salary plus Commission Method Salary Plus Bonus Method Salary, Commission and Allowance Method Drawing Account and Commission Method Point System Pooled Commission Profit Sharing