Sales and Distribution Management

• Presented By: Sunil Kumar• PM/2014/413• Department of Pharmaceutical Management• NIPER, Hyderabad

Sales and Distribution Management

Sales management is the attainment of sales force goals in an effective and efficient manner through planning, staffing, training and controlling organizational resources

Sales managers are responsible for generating sales, profits and customer satisfaction levels that meet corporate objectives

Role of Modern Sales Manager

Playing a strategic role in the company such as sales forecasting, sales force management.

Working as a team leader with the salespeople to achieve objectives or goals of sales and profits.

Managing multiple sales channels such as company’s sales force, electronic marketing and telemarketing.

Monitoring the company’s sales policy

Setting and controlling the targets, territories, sales experiences, distribution expenses etc.

Function of Sales Management

Emerging Trends in Sales Management

• Global perspective

• Customer relationship management

• Revolutionary in technology

• Salesforce diversity

• Team selling approach

• Managing multi-channels

• Ethical and Social Issues

Personal Selling• Personal selling is an oral presentation in face to face

conversation with one or more prospective customers for the

purpose of making sales. The main functions of personal selling

are as follows:

1 Provide service to customers

2 To sell the product

3 Maintain the sales record

4 Executive Function

5 Develop goodwill

6 Achieve sales target

Relationship of Salesmanship with Sales Management and personal Selling

1 The ability to quickly develop rapport with their prospective

customers.

2 A desire to truly help their customers.

3 The habit of asking questions to gather information before making

a pitch.

4 Sticking to a consistent, proven sales process.

5 A never ending desire to learn more about how to sell more

effectively.

Distribution Management

The management of the efficient transfer of goods from the place of manufacture to the point of sale or consumption. Distribution management includes such activities as warehousing, materials

handling, packaging, stock control, order processing, and transportation.

The Channels of Distribution

It is the obligation of the producer to make goods available at right

place, at right time ,right price and in right quantity. The process of

making goods available to the consumer needs effective channel of

distribution. Therefore, the path taken by the goods in its movement

is termed as channel of distribution. The channel of distribution may

be classified as:

A) Selling through direct channels

B) Selling through indirect channels

A) Selling through direct channels

This is the oldest, shorter and the simple channel of distribution.

The producer sells the product directly without involvement of any

middle man. The sale can be made door to door through salesman,

retail stores and direct mail.

Advantage of selling through direct channels

It is simple and fast.

It is economical.

Disadvantages of selling through direct channels

Non-availability of expert services of middle man.

Large investment is required.

B) Selling through indirect channelAccording to this method of indirect selling, product is passed on to the customers through intermediaries, known as wholesalers, retailers and agents. These channels may be as under:

1. Producers -> Wholesalers -> Retailers -> Customer Two level Channel: It is also known as traditional or normal channel of distribution. The common practice is that the manufacturer sells goods in large quantity to wholesalers, who sell goods to retailers in small quantity. Finally goods are sold to customers in pieces.

2. Producer -> Agent -> Retailer -> Consumer or Two level Channel: The common practice in this two level channel is that the goods are sold to the agent in bulk. The agent sells goods to retailer, who sells goods to customers in pieces. This channel is suitable where the retailers are few and geographically centered. This channel is commonly used in textile, machinery, equipment and agricultural products.

Cont..• 3. Producer -> Agent -> Wholesaler -> Retailer -> Customer

or Three level Channel: The common practice in this three level channel is that goods are sold by the producer to the agent, who sells it to the wholesaler, who sells to the retailers who finally sells goods to customers. This is the longest channel of distribution. This practice is useful, when the producer wants to the relieved of the problem of distribution. This channel is popularly used in textile.

• 4 Producer -> Retailer -> Customer or One level Channel: Under this channel the producer sells goods to retailers, who sell the goods to customers. This channel is popular with the departmental stores, chain stores and supermarkets etc., because these are large scale retailers.

References• Krishna K Havaldar , Vasant M Cavale “Sales and Distribution

Management” Second Edition Published By The Tata Mcgraw Hill Education Private Limited Page No.6-17

• Richard R.Still, Edward W.Cundiff,Norman A.P Gavoni “Sales Management” Fifth Edition Published By Dorling Kindersley India Private Limited Page No.3-23