Thursday, 8 September 2016

Salesmanship


Definition:
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.”

Duties of a Salesman:

1. The principal duty is to make sales of products or services.
2. He has to do the assigned duty (travelling).
3. He has to make collection of bills relating to sale.
4. He has to make report-Sales made, Calls made, Services rendered, customers lost, competition and any other matters, relating to firm.
5. All complainants must be satisfied peacefully.
6. He has to attend sales meetings.
7. A salesman with his experience must supply information in order to solve problems relating to product or the firm.
8. He must maintain a good relation with the customers.
9. He must assist the customers to make good selection.
10. He must develop goodwill for the firm and the products.
11. He must have cooperative habits.
12 He takes periodic inventories of the stocks.
Characteristics or the Qualities of a Successful Salesman:
1. Establishing good relationship with a variety of people.
2. Learning quickly and adapting smoothly.
3. Planning ahead and efficiently managing his time and efforts.
4. Working hard to achieve his goals, dedicating himself to provide long-term service, rather than having a get-rich-quick attitude.
5. Communicating clearly both in speech and in writing.
6. Thinking analytically and learning to break problems down to their basic components.
7. Producing constantly both in quality and quantity rather than performing erratically.
8. Persisting steadily his goal and not giving up easily.
9. Possessing and living up to high moral characteristics that enable people to admire, respect and trust him.



Types of Sales man
(1)  Manufacturer’s salesman
(2)  Wholesaler’s salesman,
(3)  Retail salesman,
(4)  Specialty salesman,
(5)  Industrial salesman, and
(6)  The exporter’s salesman

 

(1) Manufacturer’s Salesman:

He is employed to sell goods directly to the consumers, wholesalers or retailers.
He deals in limited number of products and possesses specialised knowledge about the same. A manufacturer salesman can be of three types.

(a) Pioneer Salesman:

He is primarily concerned with the sale of the new product. He is very competent and creative in his job.

(b) Dealer Serving Salesman:

He supplies goods of his manufacturer to various dealers. He also imparts training to the salesmen of the dealers.

(c) Specialty Salesman:

He sells the manufacturer’s products directly to the consumers. He usually undertakes costly items like washing machines, televisions and calculators etc. He tells the consumers about the use of the product by giving practical demonstration. He should be expert and well trained in his job.

(2) Wholesaler’s Salesman:

He is appointed by the wholesaler and deals with the retailers. He informs the retailers about the availability of various products with the wholesaler and helps them in selecting the articles. A wholesaler’s salesman is of two type’s viz., indoor and outdoor salesman.
Indoor salesman serves the retailers at the wholesaler’s premises and supplies them goods, whereas outdoor salesman goes to various retailers in order to collect their orders.

(3) Retailer’s Salesman:

He is appointed by the retailer and deals directly with the consumers. He caters to the needs of the consumers both at the retailer’s business place and attending the consumers at their place. He also distributes free samples of the goods to the consumers and also gives them practical demonstration of the products.
A retailer’s salesman can be either creative or service salesman. A creative salesman is concerned with introducing a new product in the market whereas the service salesman is concerned with maintaining the demand of the existing products in the market.
(4) Specialty Salesman
A salesman required to sell specialty goods must have great imagination and perseverance as the salesmanship involved is highly creative. A specialty article is generally of high price, is irregular from the point of view of time of purchase, and involves personal selection on the part of the purchaser.
(5) The Industrial Salesman
The industrial salesman sells to industries or manufacturers or business houses. Technical service is generally required in case of the sale of technical products. It is often the salesman’s job to communicate technical innovations.
(6) The Importer’s Salesman and Indent Business
The responsibility of the exporter’s salesman, that is, a salesman who specialises in the export of goods of his company, is very complex. He has to supply the needs of foreign markets and has, therefore, to select very carefully the distributors for the goods.
The distributor must be given adequate and complete information about the product and should be even assisted in analysing the market.



Salesmanship


Definition:
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.”

Duties of a Salesman:

1. The principal duty is to make sales of products or services.
2. He has to do the assigned duty (travelling).
3. He has to make collection of bills relating to sale.
4. He has to make report-Sales made, Calls made, Services rendered, customers lost, competition and any other matters, relating to firm.
5. All complainants must be satisfied peacefully.
6. He has to attend sales meetings.
7. A salesman with his experience must supply information in order to solve problems relating to product or the firm.
8. He must maintain a good relation with the customers.
9. He must assist the customers to make good selection.
10. He must develop goodwill for the firm and the products.
11. He must have cooperative habits.
12 He takes periodic inventories of the stocks.
Characteristics or the Qualities of a Successful Salesman:
1. Establishing good relationship with a variety of people.
2. Learning quickly and adapting smoothly.
3. Planning ahead and efficiently managing his time and efforts.
4. Working hard to achieve his goals, dedicating himself to provide long-term service, rather than having a get-rich-quick attitude.
5. Communicating clearly both in speech and in writing.
6. Thinking analytically and learning to break problems down to their basic components.
7. Producing constantly both in quality and quantity rather than performing erratically.
8. Persisting steadily his goal and not giving up easily.
9. Possessing and living up to high moral characteristics that enable people to admire, respect and trust him.



Types of Sales man
(1)  Manufacturer’s salesman
(2)  Wholesaler’s salesman,
(3)  Retail salesman,
(4)  Specialty salesman,
(5)  Industrial salesman, and
(6)  The exporter’s salesman

 

(1) Manufacturer’s Salesman:

He is employed to sell goods directly to the consumers, wholesalers or retailers.
He deals in limited number of products and possesses specialised knowledge about the same. A manufacturer salesman can be of three types.

(a) Pioneer Salesman:

He is primarily concerned with the sale of the new product. He is very competent and creative in his job.

(b) Dealer Serving Salesman:

He supplies goods of his manufacturer to various dealers. He also imparts training to the salesmen of the dealers.

(c) Specialty Salesman:

He sells the manufacturer’s products directly to the consumers. He usually undertakes costly items like washing machines, televisions and calculators etc. He tells the consumers about the use of the product by giving practical demonstration. He should be expert and well trained in his job.

(2) Wholesaler’s Salesman:

He is appointed by the wholesaler and deals with the retailers. He informs the retailers about the availability of various products with the wholesaler and helps them in selecting the articles. A wholesaler’s salesman is of two type’s viz., indoor and outdoor salesman.
Indoor salesman serves the retailers at the wholesaler’s premises and supplies them goods, whereas outdoor salesman goes to various retailers in order to collect their orders.

(3) Retailer’s Salesman:

He is appointed by the retailer and deals directly with the consumers. He caters to the needs of the consumers both at the retailer’s business place and attending the consumers at their place. He also distributes free samples of the goods to the consumers and also gives them practical demonstration of the products.
A retailer’s salesman can be either creative or service salesman. A creative salesman is concerned with introducing a new product in the market whereas the service salesman is concerned with maintaining the demand of the existing products in the market.
(4) Specialty Salesman
A salesman required to sell specialty goods must have great imagination and perseverance as the salesmanship involved is highly creative. A specialty article is generally of high price, is irregular from the point of view of time of purchase, and involves personal selection on the part of the purchaser.
(5) The Industrial Salesman
The industrial salesman sells to industries or manufacturers or business houses. Technical service is generally required in case of the sale of technical products. It is often the salesman’s job to communicate technical innovations.
(6) The Importer’s Salesman and Indent Business
The responsibility of the exporter’s salesman, that is, a salesman who specialises in the export of goods of his company, is very complex. He has to supply the needs of foreign markets and has, therefore, to select very carefully the distributors for the goods.
The distributor must be given adequate and complete information about the product and should be even assisted in analysing the market.



Salesmanship


Definition:
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.”

Duties of a Salesman:

1. The principal duty is to make sales of products or services.
2. He has to do the assigned duty (travelling).
3. He has to make collection of bills relating to sale.
4. He has to make report-Sales made, Calls made, Services rendered, customers lost, competition and any other matters, relating to firm.
5. All complainants must be satisfied peacefully.
6. He has to attend sales meetings.
7. A salesman with his experience must supply information in order to solve problems relating to product or the firm.
8. He must maintain a good relation with the customers.
9. He must assist the customers to make good selection.
10. He must develop goodwill for the firm and the products.
11. He must have cooperative habits.
12 He takes periodic inventories of the stocks.
Characteristics or the Qualities of a Successful Salesman:
1. Establishing good relationship with a variety of people.
2. Learning quickly and adapting smoothly.
3. Planning ahead and efficiently managing his time and efforts.
4. Working hard to achieve his goals, dedicating himself to provide long-term service, rather than having a get-rich-quick attitude.
5. Communicating clearly both in speech and in writing.
6. Thinking analytically and learning to break problems down to their basic components.
7. Producing constantly both in quality and quantity rather than performing erratically.
8. Persisting steadily his goal and not giving up easily.
9. Possessing and living up to high moral characteristics that enable people to admire, respect and trust him.



Types of Sales man
(1)  Manufacturer’s salesman
(2)  Wholesaler’s salesman,
(3)  Retail salesman,
(4)  Specialty salesman,
(5)  Industrial salesman, and
(6)  The exporter’s salesman

 

(1) Manufacturer’s Salesman:

He is employed to sell goods directly to the consumers, wholesalers or retailers.
He deals in limited number of products and possesses specialised knowledge about the same. A manufacturer salesman can be of three types.

(a) Pioneer Salesman:

He is primarily concerned with the sale of the new product. He is very competent and creative in his job.

(b) Dealer Serving Salesman:

He supplies goods of his manufacturer to various dealers. He also imparts training to the salesmen of the dealers.

(c) Specialty Salesman:

He sells the manufacturer’s products directly to the consumers. He usually undertakes costly items like washing machines, televisions and calculators etc. He tells the consumers about the use of the product by giving practical demonstration. He should be expert and well trained in his job.

(2) Wholesaler’s Salesman:

He is appointed by the wholesaler and deals with the retailers. He informs the retailers about the availability of various products with the wholesaler and helps them in selecting the articles. A wholesaler’s salesman is of two type’s viz., indoor and outdoor salesman.
Indoor salesman serves the retailers at the wholesaler’s premises and supplies them goods, whereas outdoor salesman goes to various retailers in order to collect their orders.

(3) Retailer’s Salesman:

He is appointed by the retailer and deals directly with the consumers. He caters to the needs of the consumers both at the retailer’s business place and attending the consumers at their place. He also distributes free samples of the goods to the consumers and also gives them practical demonstration of the products.
A retailer’s salesman can be either creative or service salesman. A creative salesman is concerned with introducing a new product in the market whereas the service salesman is concerned with maintaining the demand of the existing products in the market.
(4) Specialty Salesman
A salesman required to sell specialty goods must have great imagination and perseverance as the salesmanship involved is highly creative. A specialty article is generally of high price, is irregular from the point of view of time of purchase, and involves personal selection on the part of the purchaser.
(5) The Industrial Salesman
The industrial salesman sells to industries or manufacturers or business houses. Technical service is generally required in case of the sale of technical products. It is often the salesman’s job to communicate technical innovations.
(6) The Importer’s Salesman and Indent Business
The responsibility of the exporter’s salesman, that is, a salesman who specialises in the export of goods of his company, is very complex. He has to supply the needs of foreign markets and has, therefore, to select very carefully the distributors for the goods.
The distributor must be given adequate and complete information about the product and should be even assisted in analysing the market.



Sunday, 27 March 2016

MONETARY POLICY


Monetary policy is a regulatory policy by which the central bank or monetary authority of a country controls the supply of money, availability of bank credit and cost of money, that is, the rate of Interest.

Monetary policy / monetary management is regarded as an important tool of economic management in India. RBI controls the supply of money and bank credit. The Central bank has the duty to see that legitimate credit requirements are met and at the same credit is not used for unproductive and speculative purposes. RBI rightly calls its credit policy as one of controlled expansion.

The Monetary Policy of RBI is not merely one of credit restriction, but it has also the duty to see that legitimate credit requirements are met and at the same time credit is not used for unproductive and speculative purposes RBI has various weapons of monetary control and by using them, it hopes to achieve its monetary policy.

I)              General / Quantitative Credit Control Methods:-

Quantitative credit controls are used to maintain proper quantity of credit o money supply in market. Some of the important general credit control methods are:-

1.    Bank Rate Policy:-
Bank rate is the rate at which the Central bank lends money to the commercial banks for their liquidity requirements. Bank rate is also called discount rate. In other words bank rate is the rate at which the central bank re discounts eligible papers (like approved securities, bills of exchange, commercial papers etc) held by commercial banks.
Bank rate is important because it is the pace setter to other market rates of Interest. Bank rates have been changed several times by RBI to control inflation and recession.

2.    Open market operations:-
 It refers to buying and selling of government securities in open market in order to expand or contract the amount of money in the banking system. This technique is superior to bank rate policy. Purchases inject money into the banking system while sale of securities do the opposite. During last two decades the RBI has been undertaking switch operations. These involve the purchase of one loan against the sale of another or, vice-versa. This policy aims at preventing unrestricted increase in liquidity.

3.    Cash Reserve Ratio (CRR)
The Gash Reserve Ratio (CRR) is an effective instrument of credit control. Under the RBl Act of, l934 every commercial bank has to keep certain minimum cash reserves with RBI. The RBI is empowered to vary the CRR between 3% and 15%. A high CRR reduces the cash for lending and a low CRR increases the cash for lending.

4.    Statutory Liquidity Ratio (SLR)
Under SLR, the government has imposed an obligation on the banks to; maintain a certain ratio to its total deposits with RBI in the form of liquid assets like cash, gold and other securities. The RBI has power to  fix SLR in the range of 25% and 40% between 1990 and 1992 SLR was as high as 38.5%. Narasimham Committee did not favour maintenance of high SLR. The SLR was lowered down to 25% from 10thOctober 1997.It was further reduced to 24% on November 2008.

5.    Repo and Reverse Repo Rates
In determining interest rate trends, the repo and reverse repo rates are becoming important. Repo means Sale and Repurchase Agreement. Repo is a swap deal involving the immediate Sale of Securities and simultaneous purchase of those securities at a future date, at a predetermined price. Repo rate helps commercial banks to acquire funds from RBI by selling securities and also agreeing to repurchase at a later date.

Reverse repo rate is the rate that banks get from RBI for parking their short term excess funds with RBI. Repo and reverse repo operations are used by RBI in its Liquidity Adjustment Facility. RBI contracts credit by increasing the repo and reverse repo rates and by decreasing them it expands credit.

II)            SELECTIVE / QUALITATIVE CREDIT CONTROL METHODS:-
Under Selective Credit Control, credit is provided to selected borrowers for selected purpose, depending upon the use to which the control tries to regulate the quality of credit - the direction towards the credit flows. The Selective Controls are:-

1.    Ceiling on Credit
The Ceiling on level of credit restricts the lending capacity of a bank to grant advances against certain controlled securities.

2.       Margin Requirements
A loan is sanctioned against Collateral Security. Margin means that proportion of the value of security against which loan is not given. Margin against a particular security is reduced or increased in order to encourage or to discourage the flow of credit to a particular sector. It varies from 20% to 80%. For agricultural commodities it is as high as 75%. Higher the margin lesser will be the loan sanctioned.

3.       Discriminatory Interest Rate (DIR)
Through DIR, RBI makes credit flow to certain priority or weaker sectors by charging concessional rates of interest. RBI issues supplementary instructions regarding granting of additional credit against sensitive commodities, issue of guarantees, making advances etc. .

4.       Direct Action

It is too severe and is therefore rarely followed. It may involve refusal by RBI to rediscount bills or cancellation of license, if the bank has failed to comply with the directives of RBI.
5
. 
      Moral Suasion

Under Moral Suasion, RBI issues periodical letters to bank to exercise control over credit in general or advances against particular commodities. Periodic discussions are held with authorities of commercial banks in this respect.




Tuesday, 15 March 2016

State Financial Corporations

Establishment
In order to meet the financial requirements of small scale and medium-sized industries, there was a need of special financial institutions. With this view, the Central Government passed the State Financial Corporation Act of 28th September, 1951 which empowered the state government to establish financial corporation to operate within the state. So far (till now) 18 state financial corporations have been established in different states.

Objectives:
(i) To establish uniformity in regional industries
(ii) To provide incentive to new industries
(iii) To bring efficiency in regional industrial units
(iv) To provide finance to small-scale, medium sized and cottage industries in the state
(v) To develop regional financial resources.

Prohibited Functions
(i) Not to give loan to an industrial unit exceeding 10% of its paid-up capital or Rs. 60,000 whichever is lower.
(ii) Not to accept public deposits for a period exceeding 5 years.
(iii) Not to accept deposits exceeding the paid up capital.
(iv) Not to give loan on the security of its shares.
(v) Not to declare dividend on its shares without the sanction of the Central Government.
(vi) Not to purchase shares and stocks directly of an industrial unit or limited public company.
Management
State Financial Corporation of every State is governed by a board of directors consisting of 18 directors in all, duly elected and nominated.
·         Share Capital: The State Financial Corporation can have share capital ranging from Rs. 50 lakhs to Rs. 5 crores. It can be increased up to Rs. 10 crores with the prior sanction of the Central Government.
·        Bond and Debentures: The State Financial Corporation can issue bonds and debentures to a maximum of ten times the amount of its paid-up capital and reserve fund.
·         Public Deposits: The State Financial Corporation can accept public deposits for a maximum period of 5 years. However, the total amount received by way public deposits should not exceed twice its paid-up capital.

·         Other Sources: Borrowings from the state government and the Reserve Bank.

Thursday, 3 March 2016

Repo (Repurchase) rate, Reverse Repo rate, CRR,SLR

Repo (Repurchase) rate:

The rate at which the RBI lends money to commercial banks is called repo rate. It is an instrument of monetary policy. Whenever banks have any shortage of funds they can borrow from the RBI

Reverse Repo rate:

It is the rate at which the RBI borrows money from commercial banks. Banks are always happy to lend money to the RBI since their money are in safe hands with a good interest

Cash reserve Ratio (CRR) :

It is the amount of funds that the banks have to keep with the RBI. If the central bank decides to increase the CRR, the available amount with the banks comes down. The RBI uses the CRR to drain out excessive money from the system. Scheduled banks are required to maintain with the RBI an average cash balance, the amount of which shall not be less than 4% of the total of the Net Demand and Time Liabilities (NDTL), on a fortnightly basis.

SLR (Statutory Liquidity Ratio) :

Every bank is required to maintain at the close of business every day, a minimum proportion of their Net Demand and Time Liabilities as liquid assets in the form of cash, gold and un-encumbered approved securities. The ratio of liquid assets to demand and time liabilities is known as Statutory Liquidity Ratio (SLR).  RBI is empowered to increase this ratio up to 40%.  An increase in SLR also restricts the bank’s leverage position to pump more money into the economy.

SLR (For Non Bankers): 


This term is used by bankers and indicates the minimum percentage of deposits that the bank has to maintain in form of gold, cash or other approved securities.  Thus, we can say that it is ratio of cash and some other approved securities to liabilities (deposits) It regulates the credit growth in India