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Sales & Distribution

This document provides an overview of sales and distribution management. It defines sales management as planning, directing, and controlling personal selling activities. Sales management is integrated with marketing management and involves relationship selling. The roles of sales managers include being part of strategic planning, leading sales teams, and using technologies like CRM. Sales objectives, strategies, and tactics are interconnected, with objectives informing strategies which determine tactics. Distribution management supports sales management through activities like effective market coverage, handling customer complaints, and coordinating local advertising.

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Vicky Lilani
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© © All Rights Reserved
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Download as PPT, PDF, TXT or read online on Scribd
125 views

Sales & Distribution

This document provides an overview of sales and distribution management. It defines sales management as planning, directing, and controlling personal selling activities. Sales management is integrated with marketing management and involves relationship selling. The roles of sales managers include being part of strategic planning, leading sales teams, and using technologies like CRM. Sales objectives, strategies, and tactics are interconnected, with objectives informing strategies which determine tactics. Distribution management supports sales management through activities like effective market coverage, handling customer complaints, and coordinating local advertising.

Uploaded by

Vicky Lilani
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Chapter 1

Introduction to Sales and Distribution Management

SDM-Ch.1

What is Sales Management?


One definition: The management of the personal selling part of a companys marketing function. Another definition: The process of planning, directing, and controlling of personal selling, including recruiting, selecting, equipping, assigning, supervising, paying, and motivating the personal sales force.

SDM-Ch.1

Nature of Sales Management


Its integration with marketing management
HeadMarketing

ManagerPromotion

Manager Market Research

Manager Sales

Manager Market Logistics

Manager Customer Service

Relationship Selling
Transactional Relationship Selling Value added Collaborative / Relationship / Partnering Selling Relationship Selling / /

SDM-Ch.1

Varying Sales Responsibilities / Positions / Jobs


Sales Position Delivery salesperson Brief Description Examples Delivery of products to business Milk, newspapers to households customers or households. Also takes orders. Soft drinks, bread to retail stores. Inside order taker Behind counter in a garment shop Telemarketing salesperson takes Pharma products orders from orders over telephone nursing homes Outside order taker. Also Food, clothing products orders performs other tasks from retailers Provide information, build Medical reps. in pharma industry goodwill, introduce new products Technical information, assistance Steel, Chemical industries

Order taker (Response selling)

Sales support Missionary selling Technical selling

Order-getter (Creative, Problem- Getting orders from existing and Automobiles, refrigerators, solving, Consultative selling) new household consumers insurance policies Getting orders from business Software and business solutions customers, by solving their business and technology problems

SDM-Ch.1

Importance of Personal Selling and Sales Management The only function / department in a company that generates revenue / income The financial results of a firm depend on the performance of the sales department / management Many salespeople are among the best paid people in business It is one of the fastest and surest routes to the top management
SDM-Ch.1

Changing Role of a Sales Force


Value creation for customers Value = Benefits Cost Give more benefits, or Reduce cost Value addition to the organization Importance to profit Attention to terms of payment. Give credit to credit-worthy customers only.
SDM-Ch.1

Roles and Skills of a Modern Sales Manager


Some of the important roles of the modern sales manager are:
A member of the strategic management team A member of the corporate team to achieve objectives A team leader, working with salespeople Managing multiple sales / marketing channels Using latest technologies (like CRM) to build superior buyer-seller relationships Continually updating information on changes in marketing environment
SDM-Ch.1

Skills of a Successful Sales Manager


People skills include abilities to motivate, lead, communicate, coordinate, team-oriented relationship, and mentoring Managing skills consist of planning, organizing, controlling and decision making Technical skills include training, selling, negotiating, problem-solving, and use of computers

SDM-Ch.1

Types of Sales Managers / Levels of Sales Management Positions


CEO / President V. P. Sales / V. P. Marketing

Top-Level Sales Managers / Leaders

National Sales Manager

Regional / Zonal / Divisional Sales Managers


District / Branch / Area Sales Managers

Middle-Level Sales Managers

First / Lower Level Sales Managers

Sales Trainee / Sales Person / Sales Representative

SDM-Ch.1

Sales Objectives, Strategies and Tactics


The main components of planning in a company are objectives, strategies and tactics. Their relationship is shown below
Decide / Set Objectives
Evolve Tactics / Action Plans

Develop Strategies

Eg. A company wants to increase sales of electric motors by 15 percent, as one of the sales objectives.

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To illustrate the relationship between sales objectives, strategies and tactics, consider:
Sales Goals / Objectives Marketing Strategy Sales and Distribution Strategy Tactics / Action plans

Increase sales volume by 15 percent

Enter export markets

Identify the countries Decide distribution channels

Marketing / sales head to get relevant information Negotiate and sign agreements in 3-5 months with intermediaries

Penetrate existing domestic markets

Review and improve salesforce training, motivation and compensation Use effective and efficient channels

Add channels and members Train salespeople in deficient areas Train field sales managers in effective supervision Link sales volume quotas to the incentive scheme of the compensation plan

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Emerging Trends in Sales Management


Global perspective Revolution in technology Customer relationship management (CRM) Salesforce diversity Team selling approach Managing multi-channels Ethical and social issues Sales professionalism E-Selling
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SDM-Ch.1

Linking Sales and Distribution Management


Either sales management or distribution management cannot exist, operate or perform without each other To achieve the sales goals of sales revenue and growth, the sales management plans the strategy and action plans (tactics), and the distribution management has the role to execute these plans

SDM-Ch.1

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Role of Distribution Management for some of the Sales Management Actions / Tasks
Sales Management Actions / Tasks
Strategy for effective coverage of markets and outlets

Distribution Management Role


Follow call plan Make customer call productive Use multi-channel approach Prompt action at the customer interface level If the problem persists, involve senior sales and service people

Strategy for handling customer complaints

Planning of local advertising and sales promotion

SDM-Ch.1

Co-ordination with distribution channels Responsibility of execution with distribution channels Expenses are shared between the company and 14 intermediaries

THE END

SDM-Ch.1

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