M Com 2nd Year Advertising Sales Management Study Material Notes

LIMITATIONS OF SALESMANSHIP
ARGUMENTS AGAINST SALESMANSHIP

No doubt, salesmanship is very essential in the modern business context, it is not free from criticism. Moreover, there are several Limitations of salesmanship. The main limitations or points of criticism against salesmanship are as follows:

1. Pressurised Sale. Sometimes salesmen pressurise the buyers, to buy things which they do not want to buy or which they do not need or which are beyond their capacity to buy. They fall into the trap of an ancient salesman and purchase unnecessary things at the cost of necessary things, thus making their budget unbalanced.

2. An Expensive Art. Salesmanship is an expensive art. An enterprise appoints and bears the cost of retaining him in business

irrespective of the sale-increase or irrespective of the fact whether he achieves the desired object or not. The salesmen who fail to achieve the desired goal of sale, prove a financial burden to the enterprise.

3. Recruitment of Efficient Salesman. Salesmen are appointed for promotion of sale. For this purpose a salesman should be able, efficient and loyal to the enterprise. But it is difficult to find out such salesman due to lack of proper and sufficient training facilities of the salesmanship

4. Salesman not Required in Case of Monopoly. Under monopoly, there is only one producer/seller. He enjoys the monopoly of producing and selling that commodity. The buyer has no choice but to purchase that commodity if he requires it, irrespective of its price or quality. In such a case, the enterprise needs no salesman and the goods are sold automatically.

5. Salesman not Required in a seller’s Market. Seller’s market refers to the market where seller dominates the market. In such a market, supply always falls short of demand. In other words, the goods demanded are short in supply. The enterprise is not to pursue the buyer to purchase that commodity; rather it is automatically sold even at a higher price.

6. Retirement of a Salesman. If a salesman who has worked for, long in the enterprise retires or exits or is terminated, the enterprise may lose some of its permanent customers who were purchasing the goods because of that salesman. Thus, all of a sudden the total saleproceeds may decline, without any change in the quality of the product,

7. Absence of Keen Competition. When there exists a keen competition among the sellers in the market, the efficient salesmen are: needed to attract the buyers and pursue them to buy the goods which they sell. But in the absence of such a competition the services of salesmen are not at all required and the goods are sold without them.

8. Difference in Price. If the different producers fix rifferent prices) of the same commodity-some higher and some low, then those enterprises which fix the price of their commodity compa, atively higher need salesmen. Here it is to be noted that even these saleumen may notes find market, however efficient they may be.

9. Quality of the Product. The efficient salesman is one whore succeeds in providing maximum satisfaction to his customers. But in the quality of the product is too poor to satisfy the customer, it will not find the market inspite of the best possible efforts on the part of the salesman. In other words, even a good salesman will not be able to atiradi the buyer and promote his sale.

10. Distance between the Salesman and the Customer. If the customer resides at a very distant place from the enterprise and is inaccessible to the salesman, a salestaan is not needed at all as the contact will be made through post.

11. Scarcity of a Commodity. If the commodity is scarce in quantity and the enterprise is not capable to meet the demand of the buyers, the enterprise does not need salesman and the goods are automatically sold.

12. Nature of the Product. The requirement of the salesman very much depends upon the nature of the product. If the product is of essential nature and satisfies only the necessary wants of the customer (like salt, kerosene, cooking gas etc.) the salesmen are not needed at all. On the other hand, if the goods satisfy the comforts and the luxuries of the people, there is keen competition in the market and salesmen are needed to attract buyers.

MEANING AND DEFINITION OF SALES FORECASTING

Sales Forecasting is a combination of two words-Sales and Forecasting. Sales means the transfer of some goods or serv.ces for some consideration. Forecasting means to estimate the future on the basis of past trends and present circumstances. Thus, Sales Forecasting means the estimation of sales of the enterprise on the basis of sales records in the past, present circumstances and future expectations. The terms ‘Sales Forecasting’ has been defined by eminent authors as under:

1. William Later, “Sales Forecasting is the focus of integrative planning”

2. Philip Kotlar, “The company Forecast is the expected level of company sales based on a chosen marketing plan and assumed marketing environment”.

3. Cundiff and Still, “Sales Forecast is an estimate of sales during a specified future period, which estimate is tied to a proposed marketing plan and which assumes a particular set of uncontrollable and competitive forces.”

4. American Marketing Association, “Sales Forecast is an estimate of sale in dollars or physical units for a specified future period under a proposed marketing plan or programme and under an assumed set of economic and other forces outside the unit for which the forecast is made. The forecast may be for a specified item of merchandise or for the entire line.”

5. C.E. Sultan, “Business forecasting is the calculation of probable event to provide against the future. It, therefore, involves a look ahead in business an idea of pre-deternunation of events and then financial implications as in the case of budgeting.”

– On the basis of analysis of above definitions, its can be concluded that sales forecast is an estimate of sales of the enterprise for a certain period of future. Such estimate may be in the form of value or quantity Such estimate is based upon the study of past trends, present

circumstances and future trends. Sales Forecast may be for a particular or for all the products of the enterprise. It may be for a particular segment of the market or for the whole market of the enterprise. Furt it may be for a particular manufacturing unit or for the whole industry.

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