1Intro to Sales and Distribution Management

© Oxford University Press 2005, All rights reserved.1

Introduction to Sales Management


Marketing concepts

1) Production concept 2) Product concept 3) Selling concept 4) Marketing concept 5) Societal concept


Customer Needs

Sales Customers

Emphasis on Seller’s Needs

Production

Production

Sales

Emphasis on Customer

Needs

Societal marketing concept

(Sales Orientation)

(Marketing Orientation)


Marketing management process

MARKET ANTICIPATION

Exchange offer of value

Producer

MarketerConsumer

Marketing mix

•Product

•Price

•Place

•Promotion


Factory FactorySelling and

promotingProfits though

sales volume

Selling concept

Market concept

Market Customer needs

Coordinated marketing

Starting point

Focus Means Ends

Profits through customer satisfaction

Difference between sales and marketing


Nature and role of sales management

The determination of sales force objective and goals

Sales force organization, size, territory, and quota finalization

Sales forecasting and budgeting Sales force selection, recruitment, and training Motivating and leading the sales force Designing compensation plan and control systems Designing career growth plans and building

relationship strategies with key customers


Persuasion

Consultative

Selling

Partnership

StrategiesBusiness

ManagementNegotiation

Evolution of personal selling


Types of personal selling

• Industrial selling

• Retail selling

• Services selling


Types of selling

• Order taker sales people

• Order creators

• Order getters


SellingFunction

OrderTakers

Order Getters

Order Creators

Outside Order Takers

Inside Order Taker

Merchandisers

Delivery Sales People

Missionary Sales People

New Business Sales People

OrganizationalSales People

ConsumerSales People

Technical Support sales People

Front LineSales People

Sales Support

Sales people

Types of Selling


Formulation of a strategic sales programme

Implementation of the sales programme

Evaluation and control of sales force performance

Sales management process


• Willingness to go to bat for the buyer within the supplier firm

• Thoroughness and follow through• Knowledge of the sales person’s product line• Market knowledge and keeping the buyer posted• Applying his product and services to buyer’s needs• Knowledge of the buyer’s product line• Preparation for sales calls• Regularity of Sales calls• Diplomacy in dealing with operating departments• Technical education

Personal Selling Requirements


Distribution channel Distribution channel management - an introductionmanagement - an introduction

Distribution channel Distribution channel management - an introductionmanagement - an introduction


Role of distribution channels• To adjust the discrepancy of assortment through the process

of sorting, accumulation, allocation, and assorting

• To minimize the distribution costs through routinising and

standardizing transactions to make exchange more efficient

and effective

• To facilitate the searching process of both buyers and sellers

by structuring the information essential to both the parties

• To provide a place for both parties to meet each other and

reducing uncertainty


How do distribution channels How do distribution channels contributecontribute

• Intermediaries can improve the efficiency of the exchange process

• Channel intermediaries adjust the discrepancy of assortment through the performance of the sorting process

• Marketing intermediaries hang together in channel arrangements to provide for the routinisation of transactions

• Channels facilitate the searching process


Discrepancies in the process of exchange

Spatial discrepancy

Need to break the bulk

Need to provide assortment


The cost and control aspects of The cost and control aspects of intermediationintermediation

Direct Distribution Indirect distribution

Control

Cost efficiency


Distribution channel strategy• Setting distribution objectives in terms of the

customer requirements

• Finalizing the set of activities that are required to

be performed to achieve the channel objectives

• Organizing the activities so that the responsibility of

performing the activities is shared among the

entities who are meant to perform these activities

• Developing policy guidelines for the smooth

functioning of the channel on a day to day basis


Distribution channel Distribution channel management management (contd.)(contd.)

• Distribution channel management encompasses all activities dealing with the distribution function of the firm

• The distribution strategy provides guidelines for decision making

• The distribution management function can be viewed as happening in two phases: the ex ante phase and the ex poste phase


Distribution channel Distribution channel management management (contd.)(contd.)

• The ex ante phase involves all the activities that are

associated with the design and establishment of the

distribution channel. These activities actually take

place before the distribution channel actually starts

functioning.

• The exposte phase involves managing the day to day

activities of the channel wherein the behavior of the

individual channel members are coordinated


Channel Management tasks

Distribution Channel StrategyChannel Objective

Activity FinalizationOrganizing the activitiesDeveloping Policy Guidelines

Design of the channel structure

Establishing the channel

Motivating Channel Members

Resolving Conflicts among channel members

Ex ante Phase

Ex Poste Phase

1Intro to Sales and Distribution Management

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