Download - MR. ANKIT BAJPAI [email protected] Sales and Distribution Management By: Ankit Bajpai

MR. ANKIT BAJPAIANKITBAJPAIS@GMAIL .COM

Sales and Distribution Management

By: Ankit Bajpai www.uptunotes.com

Nature of Personal Selling

Most salespeople are well-educated, well-trained professionals who work to build and maintain long-term relationships with customers.

The term salesperson covers a wide spectrum of positions from: Order taker (department store salesperson) Order getter (someone engaged in creative

selling) Missionary salesperson (building goodwill or

educating buyers)


What is Personal Selling?

Involves Two-Way, Personal Communication Between

Salespeople and Individual Customers Whether:

face to face, by telephone, through video conferencing, or by other means.


The Role of the Sales Force

Personal selling is effective because salespeople can: probe customers to learn more about their

problems, adjust the marketing offer to fit the special needs of

each customer, negotiate terms of sale, and build long-term personal relationships with key

decision makers.


The Role of the Sales Force

Sales Force Serves as a Critical Link

Between a Company and its Customers Since They:

Represent Customers to

the Company to Produce Customer

Satisfaction

Represent the Company to

Customers to Produce Company Profit


Characteristics of Personal Selling

FlexibilityIdentify best

prospectsAdapt to situationsEngage in dialogue

Builds Relationships

Long termAssure buyers receive

appropriate servicesSolves customer’s

problems


Personal Selling Limitations

Can not reach mass audience

Expensive per contact

Numerous calls needed to generate sale

Labor intensive


Personal Selling Tasks

Order taking Routine

writing up orders checking invoices assuring prompt

order processingSuggestive selling



Order gettingSeeking out

customersCreative sellingPioneeringAccount

management



Missionary Detailer Goodwill “Closers”

• Cross-functional• Account service rep


Some Traits of Good Salespeople


Step 1. Prospecting and Qualifying

Step 1. Prospecting and Qualifying

Identifying and Screening For Qualified Potential Customers.

Steps in the Selling ProcessSteps in the Selling Process

Learning As Much As Possible About a Prospective Customer

Before Making a Sales Call.

Learning As Much As Possible About a Prospective Customer

Before Making a Sales Call.Step 2. Pre-approachStep 2. Pre-approach

Step 3. ApproachStep 3. Approach Knowing How to Meet the Buyerto Get the Relationship Off

to a Good Start.

Knowing How to Meet the Buyerto Get the Relationship Off

to a Good Start.

Step 4. Presentation/ Demonstration

Step 4. Presentation/ Demonstration

Telling the Product “Story” to the Buyer, and Showing the

Product Benefits.

Telling the Product “Story” to the Buyer, and Showing the

Product Benefits.


Steps in the Selling ProcessSteps in the Selling Process

Step 5. Handling Objections Step 5. Handling Objections

Step 6. Closing Step 6. Closing

Step 7. Follow-Up Step 7. Follow-Up

Seeking Out, Clarifying, and Overcoming

Customer Objections to Buying.

Asking the Customerfor the Order.

Following Up After the Sale toEnsure Customer Satisfaction

and Repeat Business.


Alternative Steps:

Find ’emFind ’em

Grab ‘emGrab ‘em

Show ‘emShow ‘em

Answer ‘emAnswer ‘em

Sell ‘emSell ‘em

Keep ‘emKeep ‘emBy: Ankit Bajpai www.uptunotes.com

Identify and Qualifying Prospects

Prospecting: Identifying likely new customers Leads

Qualifying: Evaluating a prospect’s potential

Identify and Qualifying Prospects

Prospecting: Identifying likely new customers Leads

Qualifying: Evaluating a prospect’s potential

Creative Selling Process



Approaching the ProspectContactRapport“Only one chance to

make a first impression”

Approaching the ProspectContactRapport“Only one chance to

make a first impression”



Sales PresentationPersuasive communicationAttentionInterestDesire“Tell the product’s story”

Sales PresentationPersuasive communicationAttentionInterestDesire“Tell the product’s story”



Handling Objections Questions Reservations

Understand ConcernCounterargumentsAcknowledge concernClues to process

Handling Objections Questions Reservations

Understand ConcernCounterargumentsAcknowledge concernClues to process



Closing the SaleClosing signalsTrial closeAsk for the sale

Closing the SaleClosing signalsTrial closeAsk for the sale


Following UpCommitments met

Shipment Performance

Reinforce relationshipSatisfied customers

rebuy & recommend

Following UpCommitments met

Shipment Performance

Reinforce relationshipSatisfied customers

rebuy & recommend



Planning Organizing

DirectingControlling

Settingobjectives

Organizingactivities

Recruit, select, train, develop, manage, &motivate

Motivate,evaluate, & control

Sales Management


Organizing Sales ActivitiesOrganizing Sales Activities

Sales Territory:Geographic divisionsCustomer typesProduct linesSelling task

Sales Territory:Geographic divisionsCustomer typesProduct linesSelling task


Geographic DivisionGeographic Division

Sales RepCalifornia

Sales RepPacific NW

Sales RepSoutheast

Sales RepNortheast

District SalesManager




Regional SalesManager

Regional SalesManager

Vice-PresidentMarketing


Customer TypeCustomer Type

New Account#1

New Account#2

ExistingAccount #1

ExistingAccount #2

New AccountsManager

Existing AccountsManager

Vice-PresidentSales


Product LineProduct Line

Sales RepEastern Region

Sales RepWest’n Region

Sales repEastern Region

Sales RepWest’n Region

Snack FoodsSales Manager

BeveragesSales Manager

Vice-PresidentSales


Directing the Sales Force

Recruiting and selectingTraining & developCompensating

• Motivating


Compensation MethodsCompensation Methods

Straight salary or

wage

Straight salary or

wage

Salary pluscommissionSalary pluscommission

Straightcommission

Straightcommission

Commissionwith draw

Commissionwith draw

Quota-bonusplan

Quota-bonusplan


Evaluation and Control

Required reportsMeasurement against

plan or sales standards

Expense controlProductivityNew account

development


Ethical Issues

Kickbacks, bribes and “gifts”

Price discrimination

Cheating on expense accounts

Misrepresentation


Distribution Channel Design and Management


Distribution’s Function

The major purpose of marketing is to satisfy human needs by delivering products of various types to buyers when and where they want them and at a reasonable cost.

The “when and where” is the function of Distribution


What is a Distribution Channel?

A set of interdependent organizations (intermediaries) involved in the process of making a product or service available for use or consumption by the consumer or business user.

Marketing Channel decisions are among the most important decisions that management faces and will directly affect every other marketing decision.


Why are Marketing Intermediaries Used?

The use of intermediaries results from their greater efficiency in making goods available to target markets.

Offer the firm more than it can achieve on it’s own through the intermediaries: Contacts, Experience, Specialization, Scale of operation.

Purpose: match supply from producers to demand from consumers.


Distribution

PRODUCER

CONSUMER

DISTRIBUTION


Distribution Channel Functions

Distribution Channel Functions

OrderingOrdering

PaymentsPayments

CommunicationCommunicationTransferTransfer

NegotiationNegotiation

FinancingFinancingRisk TakingRisk Taking

PhysicalDistribution

PhysicalDistribution

InformationInformation


Typical Channels of Distribution

ANUFACTURER

ONSUMER

HOLESALER

ETAILER

GENT


Business-to-Business Channels

Direct

Wholesaler

Agent


Business-to-Business Channel Trends

Infomediaries & Vertical ExchangeBy: Ankit Bajpai www.uptunotes.com

Conventional Distribution Channel vs. Vertical Marketing Systems

Verticalmarketingchannel

Manufacturer

Retailer

Conventionalmarketingchannel

Consumer

Manufacturer

Consumer

Retailer

Wholesaler

Wh

ole

sale

rBy: Ankit Bajpai www.uptunotes.com

Types of Vertical Marketing SystemsTypes of Vertical Marketing SystemsCorporate

Common Ownership at Different Levels of the Channel

CorporateCommon Ownership at Different

Levels of the Channel

ContractualContractual Agreement Among

Channel Members

ContractualContractual Agreement Among

Channel Members

AdministeredLeadership is Assumed by One or

a Few Dominant Members

AdministeredLeadership is Assumed by One or

a Few Dominant Members


Vertical Marketing Systems

Corporate systems - total ownership

• Administered - strong leadership

• Contractual - legal relationships


Planning the Channel of Distribution

Determining the structure Marketing mix strategy Organizational resources External environmental factors Market characteristics Consumer preferences and behavior The nature and availability of Intermediaries Other environmental factors


Customers’ Desired Service Levels

Lot sizeWaiting timeSpatial convenienceProduct varietyService backup


Steps in Distribution Planning


IntensiveDistribution

IntensiveDistribution

Exclusive Distribution


SelectiveDistribution

SelectiveDistribution

DistributionIntensity

DistributionIntensity

Choosing a Distribution System


Intensive DistributionIntensive Distribution

Seeks to obtain maximum product

exposure at the retail level

Seeks to obtain maximum product

exposure at the retail level

Producer

Retailer RetailerRetailer

Retailer

Retailer Retailer

Retailer

Retailer

Retailer Retailer Retailer

Retailer



Selective DistributionSelective Distribution

Product is sold in a limited number of

outlets

Product is sold in a limited number of

outlets

Producer

Retailer RetailerRetailer



Product is sold in only one outlet in

a given area

Product is sold in only one outlet in

a given area

Producer

Retailer



Developing Distribution Tactics

Selecting Channel PartnersSelecting Channel Partners

Reward orCoercive

Power

Reward orCoercive

Power

LegitimatePower

LegitimatePower

EconomicPower

EconomicPower

Managing the Channel of DistributionChannel Leader Power

Managing the Channel of DistributionChannel Leader Power

Distribution Channels & the Marketing MixDistribution Channels & the Marketing Mix


Materials HandlingMoving Products Into,

Within, andOut of Warehouses

Materials HandlingMoving Products Into,

Within, andOut of Warehouses

Warehousing Number Needed

WhereWhat Type

Warehousing Number Needed

WhereWhat Type

Inventory Control

When to orderHow much to order

Inventory Control

When to orderHow much to order

Order ProcessingReceived

ProcessedShipped

Order ProcessingReceived

ProcessedShipped

Physical DistributionFunctionsTransportation

Rail, Water, Trucks, Air,

Pipeline, Internet

Physical Distribution


Rail Cost-effective for shipping bulk products,

piggy-back, fishyback, birdyback.

Rail Cost-effective for shipping bulk products,

piggy-back, fishyback, birdyback.

WaterLow cost for shipping bulky, low-value,

non perishable goods, slowest form.

WaterLow cost for shipping bulky, low-value,

non perishable goods, slowest form.

TruckMost important carrier for consumer

goods, flexible.

TruckMost important carrier for consumer

goods, flexible.

AirHigh cost, ideal when speed is needed or

distant markets have to be reached

AirHigh cost, ideal when speed is needed or

distant markets have to be reached

PipelineCarry petroleum based products,

very low cost, requires little energy.

PipelineCarry petroleum based products,

very low cost, requires little energy.

Transportation Modes

InternetWeb sites have products available, used

especially for services.

InternetWeb sites have products available, used

especially for services.


Channel Relationships

Cooperation

• Conflict

• Power– Coercive– Expert– Legitimate


Decision Making Framework

Prospects of Destructive Conflict

Importance of threatenedchannel in terms of current or potential volume or profitability High Low

High (FIRE) Act to avert or address conflict

Allow threatened channel to decline

Low (Smoke)

Look for opportunities to reassure threatened channel and leverage your power

Do nothing


Channel Conflict: Identifying Threats

First, are the channels really attempting to serve the same end users?

Second, do channels mistakenly believe they are competing when in fact they are benefiting from each other's actions?

Third, is the deteriorating profitability of a griping player genuinely the result of another channel's encroachment?

Fourth, will a channel's decline necessarily harm a manufacturer's profits?


Managing Channel Conflict

WHEN TWO OR MORE CHANNELS TARGET THE SAME CUSTOMER SEGMENT

Differentiate the Channel offer

Define Exclusive TerritoriesEnhance or Change the Channels Value



CHANNEL ECONOMICS DETERIORATEChange the channels economic formula:

(Grant rebates if an intermediary fulfill certain requirements; Adjust margins between products to support different channel economics; and Treat channels fairly to create level playing field)

Create Segment Specific Programs (certain services not available via direct channels)

Complement value proposition of the existing channel by introducing a new channel

Foster consolidation among intermediaries in a declining channel



THREATENED CHANNEL STOP PERFORMING OR RETALIATE AGAINST THE SUPPLIER

Leverage Power (eg. Strong Brand) against the channel to prevent retaliation

Migrate volume to winning channel Back off


Other Distribution Management Issues

Reverse distribution

One Coca Cola Distributor

One thousand retailers

OK

Difficult• Ethical, Political, &

Legal


Download - MR. ANKIT BAJPAI [email protected] Sales and Distribution Management By: Ankit Bajpai

Top Related