SALESMANSHIP

SUBMITTED BY :-GUNJITA GUPTAB.COM III “A”ROLL NO. 629

TYPES OF SALESMEN1.MANUFACTURER’S

SALESMEN :MISSIONERY SALESMENPIONEER OR PROMOTIONAL SALESMENMERCHANDISING SALESMENDEALER SERVICNG SALESMEN

2.WHOLESALER’S SALESMEN

3.RETAILER’S SALESMEN

4.SPECIALITY SALESMEN

5.OTHER SALESMEN

MANUFACTURER’S SALESMEN

MISSIONERY SALESMEN :

•A manufacturer's sales representative sent into a territory to stimulate sales of a product.•They also include salesmen who build the goodwill of the company.•THESE SALESMEN TAKE ORDERS FOR THE SUPPLY OF GOODS.

EXAMPLES : – INSURANCE AGENTS,ADVERTISING AGENCIES,CONSULTANCIES etc.Manufacturers of medical supplies often engage such salesmen to promote their products to retailers and distributors.Textbooks salespeople use missionary selling tactics to sell textbooks to professors by providing them with free copies of texts as samples.

These salesmen are employed by the manufacturers to sell the products either to wholesalers or retailers or to the ultimate consumers.

PIONEER OR PROMOTIONAL SALESMEN:

Also known as DETAIL SALESMEN.

These salesmen do not maintain direct contact with the consumers.They maintain contact with the persons or institutions who advice to recommend the use of goods and products.EXAMPLES :DOCTORS,TEACHERS,HOSPITALS etc.Salesman of a firm manufacturing medicines may contact doctors to persuade them to recommend a particular medicine to the patients.

MERCHANDISING SALESMEN:

Mainly deals with the collection of information from the market.Demonstration of product.Merely promoters of sales and do no take on the spot orders.(They advice the manufacturers to improve the product or amend their selling policies, terms and conditions.)

DEALER SERVICING SALESMEN:These are engaged in booking the orders from the dealers.MAIN FUNCTION is to maintain and expand the demand of the product which is already established in the market.

Introducing new samples

Enquiry regarding stock

Booking of orders

Visiting the

dealer

WHOLESALER’S SALESMEN :

Wholesale and manufacturing sales representatives sell goods for wholesalers or manufacturers to businesses, government agencies, and other organizations. They contact customers, explain product features, answer any questions that their customers may have, and negotiate prices.

RETAILER’S SALESMEN: The salesmen appointed by the retailer to sell to their ultimate consumers are known as retailer’s salesmen.

INDOOR SALESMAN

TRAVELLING SALESMAN

TYPES OF RETAILER’S SALESMEN

OTHER SALESMEN

SPECIALITY SALESMEN

Specialty salesmen are those who specialize in selling specialty goods such as TV sets, audio, Video, audio-visual sets, fridges, cars, jewelry, cosmetics, computers, type-writers, copiers, sound-gadgets, watches and clocks, washing machines and even costly stationery items. Essential qualities of a Specialty Salesman:1. Creativity2. Hard work3. Drive and Initiative:4. Dashing Demonstration:5. Loyalty:

OTHER SALESMEN

A)CLASSIFICATION BASED ON GOODS:•Salesmen selling tangible goods.•Salesmen selling intangible goods.

B) CREATIVE SALESMAN : These are mainly engaged in the introduction of new products or brands in the industry.

SERVICE SALESMAN : These salesmen sell products which are already available in the market.

C)STAPLE SALESMEN:Staple salesmen are those who are employed in selling staple goods. 'Staple' goods are those which are needed by consumers for regular consumption

D)EXPORT SALESMEN:These are salesmen specialized in exports.

REMUNERATION/COMPENSATION OF SALESMEN

IMPORTANCE: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.

METHODS OF REMUNERATION

STRAIGHT SALARY METHOD

STRAIGHT COMBINATION

METHOD

COMBINATION METHOD:

• SALARY PLUS COMMISION

• SALARY PLUS BONUS• SALARY,COMMISSION

AND ALLOWANCE• DRAWING ACCOUNT

AND COMMISION METHOD

• POINT SYSTEM• POOLED

COMMISSION • PROFIT SHARING

STRAIGHT SALARY METHODFEATURES : -

1.It ensures a certain fixed income to the salesman.2.The salary is fixed in accordance with the requirements of job and qualifications and experience needed.3.It minimizes the chances of clashes between the management and the employees.4.Does not help in analyzing the efficiency of the salesman.5.Has no relation to the volume of sales made.

WORKING : A FIXED MONTHLY REMUNERATION IS PAID TO THE SALESMAN AND MAY PROVIDE FOR ANNUAL INCREMENTS.

STRAIGHT COMMISSION METHODFEATURES : -

1.There is a direct relationship between the remuneration and the efforts made by the salesman.2.It differentiates between a n efficient and an inefficient salesman.3.Provides incentive for hard work and job

satisfaction too.4.It is a flexible mode of payment.5.There is an uncertainty of income in the salesmen.6.This method may cause disputes.7.Emphasises more on sales rather than customer

satisfaction.WORKING : THE REMUNERATION IS PAID AS A FIXED PERCENTAGE OF COMMISION ON SALES VALUE.THERE MAY BE A FLAT RATE OR A VARIABLE RATE ACCORDING TO A SLIDING SCALE.

COMBINATION METHOD

EXAMPLES OF COMBINATION METHOD :-

1.SALARY PLUS COMMISSION METHOD.

2.SALARY PLUS BONUS METHOD.

3.SALARY,COMMISSION AND ALLOWANCE METHOD.

4.DRAWING ACCOUNT AND COMMISSION METHOD.

5.PONIT SYSTEM

6.POOLED COMMISSION.

7.PROFIT SHARING.

FIXED SALARY

FIXED PERCENTA

GE OF COMMISSI

ON ON SALES

TOTALREMUNERATION

1. SALARY PLUS COMMISSION METHOD

In some cases, there is a sales quota fixed.

2. SALARY PLUS BONUS METHOD

In addition to the fixed salary, a bonus is paid to the salesman on the basis of their earnings which is not based on the sales.

3. SALARY,COMMISSION AND ALLOWANCE METHOD

Same as salary plus commission, except some allowance is also paid to the salesmen to compensate for the expenses incurred on extra efforts made by them for increasing the sales.

4. DRAWING ACCOUNT AND COMMISSION METHOD

Under this method, salesmen are given certain amount at regular intervals which is entered in their drawing account. This amount paid works as a prepaid commission and the commission earned is adjusted against it.

5.POINT SYSTEM

In addition to the fixed salary paid, the salesmen are awarded points on the basis of sales volume, number of orders, number of new customers introduced etc . An additional remuneration is paid to the salesmen on the basis of these points.

6.POOLED COMMISSION

7.PROFIT SHARING

Salesmen working in a particular product line may be grouped together to form a team. Remuneration of the team is thus calculated on the basis of the sales done by them along with the fixed salary and individual remuneration is divided by the number of salesmen.

This is a method that gives employees a share in the profits of the company along with the fixed salary. Each employee receives a percentage of those profits based on the company's earnings. It creates a sense of belongingness in the salesmen and they are motivated to work hard and increase their efficiency.

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