Explain the economic importance of salesmanship.

Ans.

Economic Importance of Salesmanship

Salesmanship is the soul of modern business and industry. Salesmanship is universal. It is significant for industrialists, businessman, politician, professional, scientists, religious guru, etc. Salesmanship is the base of all commerce: Salesmanship is the beginning and end of commerce. It is significant for producers, consumers, economy etc.

Economic importance of salesmanship can be understood as under:

1. Increase in Sales and Profits: Salesmanship increases sales. Consequently the profits of the producer increases. Salesmanship persuades prospective customers to buy the things of the producer. According W.M. Thompson, “Much of the goods sold by salesmanship would never be sold at all through other means.”

2. Large Scale Production and Decrease in Cost: Salesmanship increases demand which leads to increase in sales. It gives rise to rapid increase in production. It leads to large scale production and decreases cost of production. Producer finds new market.

3. Designing of Suitable Marketing Policies and Strategies: Salesman monitors market information and convey it to firm. Salesmanship -helps in designing, adjusting or altering sales policies and strategies of the firm. Salesman gives information on choices of purchasers, extent of competition, working of distribution system and promotional programmes required in the market. Thus, firm can adopt suitable marketing policies and strategies.

4. Significance to the Salesman: Salesmanship is significant for the salesman himself. Salesmanship increases the income, general knowledge, acquatance of the salesman.

5. Salesmanship Promotes New Products in the Market: Salesman adopts techniques of salesmanship to promote the sale of new products. Thus, it promotes new products in the market.

6. Creation of New Wants: Salesmanship creates new wants. For example, as soon as one women commences using cosmetics and makes herself attractive. Other women follow it. It is the salesmanship which creates new wants.

7. Safety from Trade Cycle: Salesmanship brings effective co ordination between production and consumptions. It will provide safety from trade cycles.

8. Salesmanship promotes Goodwill of the Firm and Industry: Salesmanship helps in promoting goodwill of the producer by providing various services e.g. repair services, consultancy services, replacement services etc.

9. Salesmanship is a Panacea: In the present stringent competition world every firm wants to maximize the sales of the products. It increases competition. To face this competition a team of good, experienced, talented and trained salesmen is required.