sales and distribution mgt
TRANSCRIPT
UNIT I
Sales and
Distribution management
What Marketing Is?What Marketing Is?
Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in a way that benefit the organization and its stake holders
The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself
Exchange Process
Exchange: Value creating process At least 2 parties Each party has something of value to other Each is capable of communication and
delivery Free to accept or reject the offer Each party believes it is appropriate to deal
Transaction: Trade of values between two or more parties
Transfer
Exchange Process
Ways by which exchange can take place Directly (through its own sales force) Indirectly through (through middlemen,
retailers and wholesalers) Jointly
Value Value
Value= Benefits/Cost
Marketing vs. SellingMarketing vs. Selling
Selling focus on need of seller, marketing need of the buyer. Selling is preoccupied with seller’s need to convert his product into cash, marketing is preoccupied with the idea of satisfying the needs of customers by means of the product and the whole cluster of things associated with creating, delivering and finally consuming it.
Selling vs. Selling vs. MarketingMarketing
Emphasis on product
Sales volume oriented
Based on needs of seller
Short term Cost decides price
Emphasis on customer needs
Determines customer needs and how to deliver a product to satisfy needs
Profit orientation Based on need of the buyer Long term Consumer decides price,
price decides cost
Sales Management (Evolution)Sales Management (Evolution)
Pre industrial revolution period
Small scale enterprises dominated
Manufacturing received most importance
Single supervisor was required to manage
firms
Poor working conditions & low wages
Sales Management Sales Management (Evolution)(Evolution)
Post industrial shifts in social structure Great expansions in the area of sales
coverage Sales department grew it importance Technological development
Textile manufacture Mining steam power Effect on agriculture
Sales Management ConceptsSales Management Concepts
Objectives of Sales management Sales Volume Contribution to profit Continuing Growth
Primary goal of Marketing department is to position and differentiate a product so as to pull customers to the firm
Sales Department has always attempted to sell and push the products through the channels
American Marketing association” Sales management meant the planning, direction, and control of personal selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to personal sales force”
Sales management TrendsSales management Trends
Traditional face to face has become one key selling options
In modern concept the personal selling includes Telemarketing Key Account management Team selling Independent representatives Part- time sales force Network marketing Net marketing
Technology Base: ERP(SAP) and Sales automation packages
Objectives of sales management
Quantitative objectives (short term) To retain and capture market share To determine sales volume in ways that
contributes to profitability To obtain new accounts To keep personal expenses within
specified limits
Objectives of sales management
Qualitative Objectives of long term
To search and maintain customer cooperation
To provide technical advice wherever necessary
To assist in training of middleman’s sales
personnel
To collect and report market information of
interest and use to the company management
Sales Management FunctionsSales Management Functions
Account Management Policy
Sales Force Organization
Sales planning, Forecasting and Quota Setting
Sales force deployment, territory design and route planning
Responsibilities of sales manager
Building the right sales strategy
Hiring the right team
Creating the right compensation
plans, territories and quotas.
Setting the right sales projections.
Motivating your team
Responsibilities of sales manager
Tracking revenue against goals
Resolving conflicts
Training and coaching sales reps
Managing sales process
Getting the sales
Distribution
Distribution or place is one of the four elements of marketing mix. An organization or set of organizations involved in the process of making a product or service available for use or consumption by a consumer or business user.
Distribution Management
Definition
The management of the efficient
transfer of goods from the place of
manufacture to the point of sale.
Interdependence of sales and
Distribution
All organizations use their own sales force or distribution network to reach out to their customers. Activities of the sales organization would have to be coordinated with channel operations if sales goals have to be ef.fectivley realized
Interdependence of sales and
Distribution
The decision to the organization to allocate certain responsibility in the exchange process to its channel members would define the scope of responsibility of its own sales force and thereby would determine the type of personnel and training required.
Interdependence of sales and
Distribution
Even though, an organization may decide to deal directly with its wholesaler, semi wholesaler, retailer or consumer, it is required to decide upon the type of help it will provide to the first and subsequent level of intermediaries.
Interdependence of sales and
Distribution
The choice before an organization to have direct distribution, indirect distribution or a combination of the two is of strategic importance and depends upon factors such as the degree of control, flexibility, costs and financial requirements etc.