Distribution Strategy and the Strategic Selling Cycle

7/25/2019 Distribution Strategy and the Strategic Selling Cycle

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DISTRIBUTION

STRATEGY AND THE

STRATEGIC SELLING

CYCLE


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DISTRIBUTION MIX

COVERAGE

HAVING THE PROPER TYPES OF OUTLET INGEOGRAPHICAL

PLACEMENT

HAVING A RIGHT TARGET NUMBER OF OUTLETS TO

ENSURE CUSTOMERS UTMOST CONVENIENCE PLACE UTILITY FOR CONSUMER CONVIENENCE CALLS

FOR INTENSIVE DISTRIBUTION SO THAT CUSTOMERSMAY GET THE PRODUCT WHERE THEY WANT THEM


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DISTRIBUTION MIX

VOLUME THE RIGHT INVENTORY LEVEL IN THE STORES ISCRITICAL

TOO MUCH INVENTORY OR OVERLOADING THE

OUTLETS, IS UNHEALTHY AS IT GOES AGAINST HOW ACHANNEL MEMBER NORMALLY EARNS A PROFIT

SMALL AMOUT OF INVENTORY MAY RESULT IN OUTOF STOCK SITUATIONS

DISPLAY

THE RIGHT SHELF AND OFF-SHELF LOCATIONS PLUSADEQUATE DISPLAY SPACE ASSURE MARKETERSAHIGHER PROBABILITY THAT CONSUMERS WILL

CHOOSE THEIR BRAND OVER COMPETITION


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DISTRIBUTION MIX

PRICING HAVING THE RIGHT RESALE PROMOTES HEALTHY COMPETITION

AMONG DEALERS

PRICE WARS ARE USUALLY AVOIDED, AS DEALERS DO NOT GAINANYTHING IN THE END

GOODWILL

REFERS TO THE BEST RELATIONSHIP BETWEEN A SUPPLIER AND HISCHANNEL MEMBERS

ENABLES MARKETERS TO HAVE GOOD DISPLAY SPACE, AND IN

SOME CASES ENABLES FIRMS TO HAVE ADVANCED NOTICE ANOUTIMPENDING COMPETITIVE PROMOTIONAL ACTIVITIES OR PRICEMOVEMENTS


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STRATEGIC SELLING CYCLE

SELLING TO END-USERS

PROSPECTING ------PRE APPROACH ----APPROACH ---SALES PROBING ---

PRESENTATION ---

HANDLING OBJECTION ---

DEMOMNSTRATION ---CLOSING

SELLING TO DISTRIBUTION CHANNELS

ROUTINE OBSERVATION ---DISPLAY CHECK ---

WAREHOUSE CHECK ---COLLECTION ---PRESENTATION ---HANDLING OBJECTIONS ---SELL-OUT PLAN ---CLOSING


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PROSPECTING

IDENTIFYING QUALIFIED POTENTIAL CUSTOMERS

THE SALES PERSON MUST OFTEN APPROACH MANY PROSPECTS TOGET JUST A FEW SALES

SALES PEOPLE CAN ASK CURRENT CUSTOMERS FOR REFERRALS ORSEARCH FOR PROSPECTS IN DIRECTORIES OR ON THE WEB AND TRACKDOWN LEADS USING TELEPHONE AND DIRECT-MAIL

PROSPECTS CAN BE QUALIFIED BY LOOKING AT THEIR FINANCIALABILITY, VOLUME OF BUSINESS, SPECIAL NEED, LOCATION ANDPOSSIBILITIES FOR GROWTH

PRE-APPROACH

THE SALES PERSON LEARNS AS MUCH AS POSSIBLE ABOUT A PROSPECTIVECUSTOMER BEFORE MAKING A SALES CALL



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APPROACHTHE SALESPERSON MEETS THE CUSTOMER FOR THE VERY FIRSTTIME

PRESENTATION AND DEMONSTRATION

THE STEP IN THE SELLING PROCESS IN WHICH THE SALESPERSONTELLS THE VALUE STORY TO THE BUYER, SHOWING HOW THE

COMPANYS OFFER SOLVES THE CUSTOMERS PROBLEMS

HANDLING OBJECTIONS

THE SALES PERSON SEEK OUT, CLARIFIES ND OVERCOMESCUSTOMER OBJECTIONS TO BUYING



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CLOSING

THE SALESPERSON ASKS THE CUSTOMER FOR ANORDER

FOLLOW-UP

THE SALESPERSON FOLLOWS UP AFTER THE SALE TOENSURE CUSTOMER SATISFACTION AND REPEAT

BUSINESS


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SELLING TO DISTRIBUTION

CHANNELS ROUTINE OBSERVATION

THE MARKETER TRIES TO EXPLOIT OR A THREAT TOCOUNTER OR PRE-EMPT

DISPLAY CHECK

VISIT THE SELLING AREA OF THE RETAILER ON HISPRODUCTS PLACEMENT AND DISPLAY

WAREHOUSE CHECKDONE TO DETERMINE THE INVENTORY LEVEL OFTHE FIRMS PRODUCTS BEFORE COLLECTION OF

ACCOUNTS IS DONE


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CHANNELS COLLECTION

THE VOLUME FOR DELIVERY IS BASED ON AN

AGREED JOINT FORECAST QUANTITY BETWEENMANUFACTURER AND RETAILER.

EFFICIENT REPLENISHMENT AND OPERATING

SYSTEM (EROS)

AUTOMATED WAY RETAILERS COMPUTE

STOCK REPLENISHMENT BASED ON ACTUAL

CONSUMER OFF-TAKE KNOWN THRU THE

POINT-OF-SALE SCANNERS LOCATED IN THE

CHECKOUT COUNTER OF THE SUPERMARKETS


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CHANNELS PRESENTATION STAGE

THE MARKETER WOULD VISIT THE RETAILER TO

INTRODUCE NEW PRODUCTS, EXPLAIN NEWRESEARCHES, LAUNCH NEW PROMOTIONS, SHOWNEW DISPLAY MATERIALS OR INTRODUCE A NEWMEMBER OF HE TEAM


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DISTRIBUTION CHANNELS

PERFORMS THE WORK OF MOVING PRODUCTSFROM MANUFACTURERS TO FINAL CONSUMERS OR

BUSINESS USERS

A GOOD DISTRIBUTION CHANNEL SHORTEN THETIME, PLACE, AND POSSESSION GAPS BETWEEN THEMANUFACTURERS AND CONSUMERS


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DISTRIBUTORS

APPOINTED TO PERFORM THE DISTRIBUTION FORMANUFACTURERS IN MAKING THEIR PRODUCTS AVAILBLE

DISTRIBUTORS MAY SELL TO WHOLESALERS OR RETAILERS

OR MAY EVEN GO DIRECTLY TO CONSUMERS

WHOLESALING

ACTIVITIES OF A PERSON OR ORGANIZATIONS THAT SELL

TO THOSE WHO BUY FOR RESALE (RETAILERS) OR BUSINESSUSE (INDUSTRIAL, INSTITUTIONAL, AND COMMERCEUSERS).

THEY LESSEN THE INTERACTION BETWEENMANUFACTURERS /PRINCIPALS ND RETAILERS


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DIVISORIA

LOCATED IN TONDO, MANILA AND IS THE CENTER OF TRADEBETWEEN METROM MANILA AND THE PROVINCES

WHOLESALERS IN DIVISORIA PURCHASE PRODUCTS ONVOLUME BASIS AND MOSTLY ENJOY VOLUME REBATEARRANGEMENTS WITH MANUFACTURERS OR DISTRIBUTORS

JOBBERS

ARE WHOLESALERS WHO ALSO PROVIDE WAREHOUSINGSPACE FOR MANUFACTURERS AND DISTRIBUTORS, THUSENABLING THE LATTER TO AVOID A FIXED COST


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EX-TRUCKA SALES OPERATION WHERE THE EX-TRUCK SALESMAN CARRIESSTOCKS IN HIS VAN OR SMALL TRUCJK, SATURATES A GIVENTERRITORY REGULARLY BY SELLING HIS STOCKS ON CASH ASIS,

AND DELIVERS THE STOCKS IMMEDIATELY UPON ORDER

CATERS THE NEEDS OF RETAILERS LIKE SARI-SARI STORE

FEEDER

A DISTRIBUTOR SALESMAS GOES AROUND BY HIMSELF TO TAKE

ORDERS AND RELAYS THESE TO A DELIVERY TEAM WHO WILL BRINGTHE ORDERS TO THE RETAILERS

THE ADVANTAGE OF THE FEEDER MODEL OVER THE EX-TRUCKMODEL IS THAT THE SALESMAN IS ABLE TO SELL MORE THAN HISTRUCK WOULD NORMALLY CONTAIN


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RETAILING

ACTIVITY INVOLVING THE SALE OF PRODUCTS OR SERVICESDIRECTLY TO FINAL CONSUMERS

FRANCHISINGA FRANCHISE FEE IS PAID TO THE FRANCHISE OWNER INEXCHANGE OF AN ESTABLISHED BRAND NAME, A PROVENSYTM OF OPERATION, TRAINING AND OTHERINFRASTRUCTURE SUPPORT

THE RULE OF THUMB IS TO HAVE AT LEAST 100,000POTENTIAL QUALIFIED CUSTOMER S FOR EVERY FRANCHISE


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DIRECT SELLING

NETWORK MARKETING IS ALSO KNOWN AS TH PEOPLES

FRANCHISE BECAUSE A SELLER SECURES THE RIGHT TO SELL ACOMPANYS PRODUCT, FOLLOS A PROVEN SYSTEM OF

SELLING, AND HAS ACCESS TO TRAINING AND OTHERADMINISTRATIVE SERVICES EVEN IF THERE IS NO FRANCHISEFEE PAID

THE DSAP TRIES TO PROTECT THE CONSUMER RIGHTS AND

FIGHTS PYRAMIDING COMPANIES THAT USE NETWORKMARKETING AS THEIR FRONT


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DISTRIBUTION CHANNELS INTERNET

BUSINESS TO BUSINESS MARKETING IS ALSO GIVING A DIFFERENTFACE TO THE SELLING PROCESS AS COMPANIES REALIZE THATSUBSTANTIAL MONEY AND TIME CAN BE SAVED FROM THEPAPERLESS E-MARKETPLACE POPULARIZED BY ORACLESOFTWARE.

30-50% CAN BE SAVED IN ORDER CYCLE TIME

LESSER INVENTORY AND INVENTORY COST, AND GREATERFLEXIBILITY TO RESPOND TO THE FAST CHANGING MARKETPLACE

HOME DELIVERYINVOLVES APPOINTING A CENTRALIZED CALL CENTEROPERATOR WHO IS TASKED TO TAKE OR SUGGEST ORDERS ASWELL AS SEND THESE ORDERS TO THE BRANCH NEAREST THECUSTOEMR


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DIAGNOSTIC DISTRIBUTION

USED TO MEAN THE PROPER MATCHING OF DISTRIBUTIONCHANNELS TO THE SELLING PROCESS

DIRECT MAIL PROSPECTING

TELEMARKETING QUALIFYING SALES

DIRECT SELLING APPROACH

SALES PROBING

SALES PRESENTATION

HANDLING OBJECTIONS

RETAILING DEMONSTRATION

CLOSING

DEALERS AFTER SALES SERVIICE


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STRATEGIC ALLIANCES

TRADE CUSTOMERS AND SUPPLIERS ENTER INTO ASTRATEGIC ALLIANCE TO ATTAIN SOME LONG-TERM OBJECTIVES AND MUTUALLY IMPROVE THEIRPOSITION IN THE INDUSTRY

THE GENERAL THRUST ID PARTNERSHIP-

WHATEVER IS THE PARTNERS PROBLEM IS THEPROBLEM OF THE OTHER PARTY

SALESMAN AS ONLY LINK TEAM SELLING AS AN INITIALSTEP TO STRATEGIC ALLIANCE


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ALLIANCES AMONG

COMPETITON COMPETITION CAN SOMETIMES COLLABORATE IF

THE COLLABORATION WILL RESULT IN THE OVERALLINCREASE OF SATISFACTION OF EACH

COMPETITORS CUSTOMERS AS WELL AS FORCOST-EFFICIENCY


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EVALUATING DISTRIBUTION

CHANNELS COST-EFFICIENCY

IT IS IMPORTANT TO ESTIMATE THE LONG TERM IMPCT OFHAVING ONES OWN SALES FORCE VERSUS APPOINTING A

DISTRIBUTOR

CONTROL

IT IS IMPORTANT THAT THE OBJECTIVES, PRIORITIES AND

EXPECTATIONS OF THE FIRM BE COMMUNICATED ANDAGREED UPON BEFORE PRINCIPALS ARRE CHOSEN ANDDISTRIBUTORS ARE APPOINTED.


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EVALUATING DISTRIBUTION

CHANNELS CHANNEL MODIFICATION

THE MARKET PLACE I EVERCHANGING. THEFLEXIBILITY TO MODIFY DISTRIBUTION MAY BE

NEEDED

OTHER CHANGES IN THE CONSUMER PURCHASINGPATTERN SUCH AS WHEN NEW COMPETITIONARISES,AND WHEN INNOVATIVE DISTRIBUTIONEMERGES, MUST ALSO BE CONSIDERED


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BACKWARD DISTRIBUTION

IF MARKETERS WILL NOT SHOW RESPONSIBILITY FORTHE ENVIRONMENT, THE GOVERNMENT WILL LIKELYBE FORCED TO ENACT LAWS AND MAKE THE

RECOVRY OF A COMPANYS PRODUCT TRASHCOMPULSORY FOR EACH MANUFACTURER


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GRAY MARKETING

A TERM USED TO DESCRIBE UNAUTHORIZEDIMPORTATION AND DISTRIBUTION OF PRODUCTSBEARING GENUINE BRANDS ACROSS THE MARKET

DIFFERENT FROM SELLING IMMITATED BRANDS

Distribution Strategy and the Strategic Selling Cycle

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