UNIT 3

SALESMANSHIP
 MEANING & DEFINITION
❖Salesmanship is one of the skills used in personal selling.
❖it is a direct, face-to-face, seller-to-buyer influence which can
communicate the facts necessary for marketing a buying decision; or
❖it can utilize the psychology of persuasion to encourage the formation
of a buying decision”.
❖Salesmanship is seller-initiated effort.
❖It provides prospective buyers with information and motivates them
to make favourable buying decisions concerning the seller’s products
or service.
 TODAY’S SALESMAN
❖Interact in any different ways to many different people.
❖Apart from the knowledge of the product, a
❖salesperson has to be a psychologist with one prospect,
❖a human computer with another,
❖an adviser with another, and
❖at the same time a friend with some buyers.
❖Salespersons must adjust their personalities on every call.
❖Salesmanship is the ability to persuade people to want the things which
they already need.
❖Salesmanship is the ability to convert human needs into wants.
❖The work of salesman is a service i.e., helping the consumer.
❖The salesman gives a solution to the customer’s problems.
❖Salesmanship is the ability to handle the people and to handle the
products.
• According to W.G Carter, “Salesmanship is in attempt to induce people
to buy goods.” According to the National Association of Marketing
Teachers of America, “It is the ability to persuade people to buy goods or
services at a profit to the seller and benefit to the buyer.”

• According to Knox, “Salesmanship is the power or ability to influence

people to buy at a mutual profit, that which we have to sell, but which
they may not have thought of buying until call their attention to it.
Salesmanship is the ability to persuade people to want they already
need.”
• According to Prof Stephenson, “Salesmanship refers to conscious
efforts on the part of the seller to induce a prospective buyer to
purchase something that he had not really decided to buy, even if he had
thought of it favorably. It consists of persuading people to buy what you
have for sale in making them want it, in helping to make up their
minds.”
 MODERN CONCEPT OF
SALESMANSHIP
❖Modern concept of salesmanship is creative in approach.
❖He creates needs and converts them into wants.
❖Customer satisfaction is the main problem of salesman.
❖Mutual profit is essential both for the buyer and the seller.
❖Salesman guides the customer to buy things which satisfy his want.
❖Salesman motivates the feelings of the customers to act.
 IMPORTANCE OF SALESMANSHIP
• Salesman is the connecting link between sellers and buyers at every step.
• From the collection of raw materials to the finished products.
• Of all, customers are the most benefited by salesmen.
• Present era is of large-scale production, which is in anticipation of demand.
• The market expands along with competition.
• This makes distribution a difficult and a complex factor in the face of still
competition.
• The expansion of the market, growing competition etc., invite a better
salesmanship.
 IMPORTANCE TO PRODUCERS
• Salesmanship is important to producers and manufacturers.
• For pushing products into the competitive market, salesmanship is necessary.
• To capture new markets also salesmanship is very important.
• Salesmen increase the sales volume. It brings larger profits to the
manufacturers.
• Salesmen work as the “eye and ear” for the manufacturers.
• They improve their products according to the taste of the consumers.
• They improve their sales policies by keeping in mind the suggestions,
impressions and complaints of the consumers.
• He is the creator of demand. Hence it leads to increased production and
increased business activity.
• As such it increases employment opportunity as well as personal incomes
 IMPORTANCE TO CONSUMERS
• Salesman educates and guides the consumers.
• Consumers are right’ in the marketing. As such, he gives more importance to
them.
• Salesman helps the consumers in making the right decision and proper
selection of the products which they want to buy.
• Salesmanship increases the rate of turnover, and hence reduces unsold stock.
As such it minimizes the economic stagnation.
• Consumers can select the best products according to their requirements, taste
and money.
 DUTIES OF A SALESMAN
❖The principal duty is to make sales of products or services.
❖He has to do the assigned duty (travelling).
❖He has to make collection of bills relating to sale.
❖He has to make report-Sales made, Calls made, Services rendered, customers lost,
competition and any other matters, relating to firm.
❖All complainants must be satisfied peacefully.
❖He has to attend sales meetings.
❖A salesman with his experience must supply information in order to solve problems
relating to product or the firm.
❖He must maintain a good relation with the customers.
❖He must assist the customers to make good selection.
❖He must develop a goodwill for the firm and the products.
❖He must have cooperative habits.
❖He takes periodic inventories of the stocks.
CHARACTERISTICS /QUALITIES OF A
SUCCESSFUL SALESMAN
❖Establishing good relationship with a variety of people.
❖Learning quickly and adapting smoothly.
❖Planning ahead and efficiently managing his time and efforts.
❖Working hard to achieve his goals, dedicating himself to provide long-term service,
rather than having a get-rich-quick attitude.
❖Communicating clearly both in speech and in writing.
❖Thinking analytically and learning to break problems down to their basic
components.
❖Producing constantly both in quality and quantity rather than performing erratically.
❖Persisting steadily his goal and not giving up easily.
Types/Categories of Salesmanship
 Missionary Salesmen

• Also known as Creative Salesmen or Pioneer Salesmen

• They are employed by manufacturers.
• They create demand for the products.
• They usually develop goodwill.
• They call on distributors- wholesalers, retailers, customers, in order to
educate, train and induce them to promote the products.
• Manufacturers of medical supplies use this type of salesmen to promote
their products.
 Merchandising Salesmen:
• They assist dealers by giving suggestions on display, store- layout,
service facility etc.
• They arrange wide publicity and conduct demonstration for dealer
salesmen, by even working along with them.
• They are largely involved in drugs, medicines, grocery etc
 Dealer-Servicing Salesman
These salesmen call on retailers in their territory and visit them often.
They bring samples of new products, take orders and make up window
display.
 Sale Promotion Salesmen
• Also known as Retail Salesman. 
• They are specialized in promotional work.
• They are representatives of medical firms.
• They may not take spot orders but they try to convince people.
• Eg: Doctors about the new drug, research work, testing, result etc.
• They create demand by calling on customers.
 Technical Salesmen:
• They are trained technically.
• They provide technical assistance to company’s customers on matter
connected with the product, its quality, its design, its installation etc.
• Generally these types of salesmen deal with computers, equipment’s,
machinery items, chemical products etc.
 Wholesaler’s Salesmen:
• Products reach the hands of customers through a number of channels, the main
channel being wholesalers.
• They are the nerve-centres of distribution between manufacturers and retailers.
• These salesmen are mainly concerned with retailers.
Their main concerns are:
1. To guide the wholesalers in giving credit transaction to retailers,
2. To collect bills from retailers and customers,
3. To collect information of the market trend,
4. To help retailers to improve sales and
5. To take orders from retailers.
 Retail Salesmen:
They are of two types:
1. Indoor salesmen and
2. Outdoor Salesmen

Indoor Salesmen:
⮚Indoor salesmen work within the store—counter sales over the counter.
⮚They do not need training as they have to face only customers and not the prospects.
⮚They deal with regular buyers. They are order filling salesmen.
⮚They receive orders and execute them.
⮚They must have good manners and a helpful attitude.
⮚They must be able to guide the customers and help them to make quick decisions.
⮚They must also be knowledgeable and honest.
⮚Above all, they must maintain products in the shelves in an attractive manner.
Outdoor Salesmen
⮚Outdoor salesmen may also be called travelling salesmen.
⮚Their main job is to make regular travels, visit customers, canvass
orders etc.
⮚They must possess all the qualities of ideal salesmen.
 Speciality Salesmen:
• They are to sell specialty products-expensive durable goods, furniture,
books, house furnishings, washing machines, automobiles,
refrigerators etc.
• People purchase these products only after a personal and careful
selection, because they do not buy them frequently.
• Salesmen of this kind must be masters of the art of salesmanship.
• They are representatives of manufacturers, who produce special items.
Kinds of Salesperson
• Order Creators
• Missionary Salespeople: They are employed by manufacturers to
sell their product to retailers.
• Order Getters
• New Business Salespeople: The selling tasks are to win new
businesses by identifying and selling to prospects.
• Consumer Salespeople: They sell to individual customer’s
products and services such as cars, insurance.
• Technical Support Salespeople: Where a product is highly
technical and the negotiations are complex, a salesperson may be
supported by product and financial specialists who can provide the
detailed technical and financial information required by customers.
• Merchandisers: Merchandisers advise on product display in
stores, implement sales promotions, check stock levels and
maintain contact with store managers.
• Order Takers
• Inside Order Taker:
• They are a part of sales office and receive sales
order from different sources like phone, mail
and internet.
• Sales persons in retail stores are also inside
order takers.
• Field Order Taker:
• They are a part of sales office and receive sales
order from different sources like phone, mail
and internet. Sales persons in retail stores are
also inside order takers.
EVOLUTION OF SALESMANSHIP
• The Roman equivalent of salesman meant cheat.
• The main idea of the salesman was to sell goods by any means.
• ‘caveat emptor’
• Different prices were charged from different customers.
• The seller neither disclosed the defects nor gave any assurance about
the quality of the goods they were selling.
 Sales Force Management

Management of selling requires planning, implementation and

evaluation of sales force strategies.
The first step in sales force management involves setting the sales goals
and planning the objectives of different sales activities of the sales
executives.
Then, arises the need for designing the sales force to achieve the
predetermined goals.
In the final stage, the sales manager evaluates the performance of the
individual salespersons as well as the sales team as a whole.
 Establishing Sales Objectives
Sales objectives are statements of what the sales team expects to achieve
in a specified period of time.
Selling objectives differ from one firm to another.
They depend on the overall objectives of the firm, the nature of its
product, the channels of distribution, the target market and the nature of
competition in the market.
The most important objective of a salesperson is to create an interest in
the customer, convince him about the product and convert his interest
into a sale by persuading him.
Sales objectives can be set either for the individual salesperson or for the sales
team as a whole.
They provide the direction and purpose for the functioning of a sales team.
They also act as a standard for evaluating the performance of the sales persons and
the sales team.
Sales objectives for the entire sales team are usually stated in terms of the sales
volume, the market share and overall profit to the organization, whereas sales
objectives for an individual salesperson, also known as sales quotas, are stated in
terms of his unit sales volume, his average order size, the average number of calls
in the specified time and the ratio of orders generated in that time.
Sales managers have realized the need to determine explicit, feasible and
measurable goals.
Hence, they set the sales objectives in consultation with the salespersons.
They discuss, identify and jot down the KPAs (key performance areas) and then
set the sales objectives.
 Fixing the Sales Quotas
After establishing the sales objectives, you are assigned a sales quota on the basis of the
number of potential customers in that territory.
Sales quotas are quantifiable objectives set for measuring and appraising the
effectiveness of sales personnel.
Quotas are the targets that specify the desired performance required from each
salesperson or sales region to achieve the organizational sales target.
When the sales quotas are determined and communicated, they act as a motivational
factor for the sales personnel to achieve the desired goals.
Sales quotas should reflect the firm’s selling objectives, its overall sales plan, size of the
sales force and the nature of the sales territory.
Sales quotas include the number of sales calls to be made, the dealers to be contacted, the
displays and the demonstrations to be conducted by the sales personnel and the number of new
accounts to be created in a specific time.
Sales personnel are encouraged by the sales managers to forecast the demand and help
determine their sales quotas.
 Designing the Sales Force

Sales force could be designed using:

▪ Geographic territory
▪ Customer
▪ Product
 Geographic territory
• Organizing by geographic territory is the simplest and the most commonly used method of
structuring the sales force.
• A particular geographic area is assigned to you to sell the products and services of the company.
• A geographic territory can be as small as a part of a city or as big as an entire country.
• Most pharmaceutical companies structure their sales force on the basis of geographic territories.
• A well designed sales territory is one in which the market is homogenous in nature.
• Well-designed sales territories make the process of planning, implementation and control much
easier for the sales manager.
• Advantage of organizing on the basis of territories is that a) you can familiarize yourself and
learn more about that particular market, b) you can minimize travel time and expenditure by
operating from the center of the territory, and c) it helps you build and maintain relationships
with your customers.
• The disadvantage is that geographic division of the market is not suitable in case of complex
products that demand specialized knowledge by the salesperson.
 Customer
Organizing sales force on the basis of customers is in turn based on the
fact that different customers have different needs and requirements.
For example, Eureka Forbes has divided its sales force on the basis of
institutional customers and individual customers.
The disadvantage of this type of organization of the sales force is that
the selling cost goes up as more than one salesperson covers the same
geographical area.
 Product
• In this form of organizing, the sales force is organized on the basis of the
principle that you should have specialized knowledge regarding the product.
• The advantage here is that each salesperson can concentrate on a particular
product line or brand.
• Disadvantage of this approach is that different salespersons contact the same
customer for different products of the company.
• For example, HDFC Bank has different sales teams for each of its product,
due to which different salespersons contact the same customer for selling
different products such as credit card, debit card, personal loan and home
loan etc.
 Determining the Sales Force Size
• After formulating the objectives and the structure of the sales force, a manager
needs to determine the number of people needed in each sales team.
• This is a crucial decision because if the manager hires more people to cover the
market adequately the costs would go up and consequently, the profit volume of
the company would come down. On the other hand, if less sales people are hired,
the workload on each salesperson would increase, making it difficult for them to
meet the deadlines. This will in turn lead to low morale and productivity of the
sales force, eventually leading to a decline in sales volumes. It is almost
impossible for a sales manager to determine the exact number of sales personnel
he would require. Therefore, an optimum number of sales people should be hired
to carry out the selling activities of the firm. The two common methods
employed by the sales manager to determine the size of the sales force are
equalized workload method and incremental productivity method.
 Equalized workload method
• Equalized workload method is based on the assumption that every salesperson should
have the same amount of workload.
• Each salesperson must make approximately the same number of sales calls over a given
period of time. In this method, the customers are divided into groups based on the volume of
purchases made by them.
• Then the sales manager calculates the number of sales calls required to satisfactorily serve
the customers in each group.
• In order to determine the size of the sales force, the sales manager needs to multiply the
number of customers in each group with the number of sales calls required to be made
annually, to serve the customers in the group satisfactorily.
• This gives the total required number of annual sales calls.
• This figure is then divided by the average number of calls to be made by each salesperson to
obtain the desired size of the sales force.
• This figure can be represented in the form of an equation, total annual sales call
requirement/average annual sales calls = number of sales people.
• For example, say a manager estimates his potential and current customers as 4000 in total
and if each customer needs to be called at least 10 times in a year and each salesperson can
make 1000 calls in a year, then the number of salespersons required would be (4000 X
10)/1000 = 40.

If the customers are divided into two groups, A and B, then the number of sales people =
(total annual sales calls for group A + total annual sales calls for group B)/average annual
sales calls.

This method cannot be taken as an accurate method to predict the sales personnel
requirement of an organization because, the sales call requirement might vary from one
customer to another depending on their individual needs and problems.
• The geographical distance between the accounts of one salesperson might not be equal to
that of another salesperson. Hence, the time taken to travel and the number of accounts
covered by one salesperson cannot be the same as the other salesperson.
 Incremental Productivity Method
Incremental productivity method is considered the most appropriate method to
determine the size of the sales force.
It is based on the assumption that the addition of a salesperson is justified
when the additional sales generated by him exceed the cost of hiring him.
Sales managers continue to increase the size of their sale force as long as the
value of the sales generated by the additional personnel is greater than the cost
incurred in hiring them.
Before opting for this method, the sales manager therefore needs to estimate
the future sales, the selling costs and the cost of hiring an additional
salesperson.
 Recruiting and Selecting Salespeople

• At the heart of any successful sales force operation is the recruitment and selection of good
salespeople.
• The performance difference between an average salesperson and a top salesperson can be
substantial.
• In a typical sales force, the top 30 percent of the salespeople might bring in 60 percent of the
sales. Thus, careful salesperson selection can greatly increase overall sales force performance.
• Beyond the differences in sales performance, poor selection results in costly turnover.
• When a salesperson quits, the costs of finding and training a new salesperson—plus the costs of
lost sales—can be very high. Also, a sales force with many new people is less productive, and
turnover disrupts important customer relationships.
 Evaluating Salespeople and Sales Force Performance
• The most important source is sales reports, including weekly or monthly work plans and
longer-term territory marketing plans.
• Salespeople also write up their completed activities on call reports and turn in expense reports
for which they are partly or wholly reimbursed.
• The company can also monitor the sales and profit performance data in the salesperson’s
territory.
• Additional information comes from personal observation, customer surveys, and talks with
other salespeople.
• Using various sales force reports and other information, sales management evaluates the
members of the sales force.
• It evaluates salespeople on their ability to “plan their work and work their plan.”
• Formal evaluation forces management to develop and communicate clear standards for judging
performance. It also provides salespeople with constructive feedback and motivates them to
perform well.