Post on 03-Apr-2018
7/29/2019 Sales and Distribution Management- Introduction
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SALES and
DISTRIBUTION
MANAGEMENT
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INTRODUCTION
to
Part One - SALES MANAGEMENT
andPart Two - LINKAGE
with
DISTRIBUTION MANAGEMENT
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Definition - Sales Management
Sales Management means..
The planning, direction, and control of personal
selling,including
recruiting,selecting,equipping,assigning,
routing,supervising,paying and motivating as
these tasks apply to the personal salesforce.
In short, The Management of a Salesforce.
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Nature and Importance of Sales Management
1.Integration with Marketing Management2. Relationship Selling
3. Varying Sales Responsibilities.
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Integration with Marketing Management
Sales Management is A PART of Marketing Management
So, Sales Planning should be integrated with Marketing Planning.
A Companys Marketing Team consists of TWO basic groups:
(a) Marketing Team at Headquarters
(b) Field Selling (or Personal Selling) Team
Field Selling Teams are in their territories (or branches / regions), contacting
existing and prospective customers.
The Marketing Team performs support and service functions,or activities to
assist or help field salespeople in their jobs.
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The Headquarters based Service
and Support Functions
a) Promotion: Advertising, Sales Promotion, Public RelationsPublicity, Direct Marketing.
b) Marketing Research: Collecting and Interpreting informatioon Customers,Competitors,Products,Market.
c) Marketing Logistics: Physical Distribution of FinishedGoods including Warehousing, Inventory,
Transportation, and Order Processing.
Customer Service: Pre-Sales and Post Sales Service aswell as Delivery Service to existing and prospective Customers
Co-ordination: Between Customers, Company's
Salespeople,Production,Operations, by employing HQSalespeople.
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Relationship Selling
Buyers and Salespeople, who do business together,have some type of business (or working) relationships.
These Relationships have a Range or Spectrum
a) Transactional Relationshipb) Value Added Relationship
c) Collaborative / Partnering Relationship
Each Relationship is an exchange,which is the process ofobtaining a desired product or service by offering
something in return.
Customer Relationship Management is a Topic of greatrelevance today, and will be dealt with much later.
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Varying Sales Responsibilities
1. Takes Customer Orders
2. Takes Customer Orders AND Delivers
3. Supports Sales by Educating the Decision Maker
4. Provides Technical Sales Support
5. Creates Demand
6. Provides a Solution to the Customers Problem
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Importance of Personal Selling
and Sales Management
Personal Selling (or Sales) is
tough,challenging,tests endurance and patience
yet,exciting,and one of the fastest routes toTop Management.
Sales reflect the Top Line in the Financial
Results of a Company.
Profits are the Bottom Line that result from theFulfillment of the Sales Orders efficiently.
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Roles and Skills of Modern Sales Managers
Playing a Strategic Role providing Inputs for
Marketing and Sales Plans
Working as a Key Member of the Corporate Team
Working as a Team Leader with the Salespeople
Managing Multiple Sales Channels
Using latest Technologies
Continually updating information, understandingchanges in marketing environment.
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The specific duties and
responsibilities of a Sales Manager Determining Sales Force Objectives and Goals Finalizing Salesforce Organization,Size,Territory,and
Quota
Forecasting and Budgeting Sales Selecting,recruiting,and training the salesforce
Motivating and leading the salesforce
Designing compensation and plan and control
systems
Designing career growth plans and buildingrelationship strategies with key customers
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Skills of a Sales Manager
People Skills-Ability tomotivate,lead,communicate,and coordinate
Salespeople. Coach and Mentor to improve
Performance. Managing Skills - Planning, Organizing,
Directing and Controlling.
Technical SkillsTraining,Selling,Negotiating,ability to use
Computers, and Problem - solving
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Sales Objectives, Strategies and Tactics
Sales Objectives are Statements of Intent, quantified
to SPECIFIC and MEASUREABLE Targets.
Strategies are WAYS to achieve Objectives.
Tactics are ACTIONS that should be carried out toimplement the Strategies.
Decide Objectives > Develop Strategies >Evolve Tactics
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Emerging Trends in Sales Management
Global Perspective Global competition is intensifying. Digital Management of Information.
Customer Relationship Management (CRM).
Salesforce Diversity Women in Sales, educated
Salespersons. Team Selling Approach
Managing Multi - Channels using two or more Marketing orDistribution Channels to reach one or more Customer
segments. Ethical and Social Issues
Sales Professionalism
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Differences between Selling and Marketing
Selling MarketingEmphasis on Product Emphasis on Consumer Needs and Wants
Company manufactures the product firstand THEN decides to sell it
Company FIRST determines theCustomers needs and wants and THEN
decides on how to deliver a product to
satisfy these wants
Management is sales -volume oriented Management is profit -oriented
Planning is short term oriented, in terms
of Today's products and markets
Planning is long- term oriented, in terms of
new products, tomorrow's markets, and
future growth
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Differences between Selling and
Marketing contd.
Views business as a goods producing
process
Views business as a Customer
satisfying process
Emphasis is on staying with existing
technology and reducing costs
Emphasis is on innovation in every
sphere, on proving better value to the
customers.
Different departments work as
separate watertight compartments
All departments operate in an
integrated manner, the sole purpose
being generation of consumer
satisfaction
Cost determines price Consumers determines price, pricedetermines cost
Selling views Customers as the LAST
LINK in business
Marketing views the Customers as the
VERY BEGINNING of a business
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Linking Sales and Distribution Management
Distribution Management serves the primaryfunction of ensuring that the product or service ismade available to the consumer.
It is the Sales Managers who decide the
organization which is responsible for thedistribution effort.
Normally, this organization is a combination ofthe companys own salesforce and a set of
marketing channels. Sales Management and Distribution
Management are two sides of the same coin.
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Linking Sales and Distribution Management
Distribution is an integral part of Sales Management.
It is the HEARTBEAT of Sales Management.
Sales Management and Distribution Management
CANNOT exist or perform without each other. Planning and Execution is a Team Effort between
Sales Managers and the Distribution Channels.
Distribution Management has the responsibility ofphysical movement and storage also.
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Distribution Channels 1. Own Salesforce
2. C & F As or Depots
3. Distributors,Dealers,Agents, Stockists
4. Transporters, Warehouse Operators
5. Independent Wholesalers in the Market
6. Independent Retailers in the Market
Distribution Channels can be In - House too.
Experience has shown that it is more cost effective to
outsource the distribution function.
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Maximizing Customer Service
Sales Management and Distribution ManagementTOGETHER take certain actions to ensure that theCustomer Service objectives are fully met.
1. Demand Management : A critical step in getting SalesVolumes and Earning Revenues. Both Sales Managers andtheir Channel Members help this activity through Forecasts,and securing Orders to meet set volume targets.
2. Supply Management : This isthe major responsibility ofthe Distribution Channels.
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Sales Operations Planning
The planning of the Sales Operations is ALWAYS done JOINTLY by the
Sales Managers and the Channel Members.
1. List of Markets to be covered and the Schedule.
2. Market Share Objectives to be achieved,and How
3. Tracking Competition 4. Designing Coverage Beat Plans / Call Plans
5. Ensuring Highest Call Productivity 6. Market working methods and tools
7. Sales Promotion Efforts 8. New Product Launches
9. Shelf Space maximization and merchandising
10. Reports and Records