WELCOME

to the
4 Semester, 2008
th

sessions on
SALES & DISTRIBUTION
MANAGEMENT
06/13/08 1
 SALES & DISTRIBUTION
MANAGEMENT
constitutes one of the most
important aspects of
Marketing Management

06/13/08 2
 “SALES”…. or……’SELLING’…
the only function in an
organization that generates
revenue

06/13/08 3
 What are Marketed / Sold?
• Goods • Places
• Services • Properties
• Events • Organizations
• Experiences • Information
• Persons • Ideas

06/13/08 4
To you, the Student….
• Primary benefit of studying Sales Mgt is
related to your Career Aspirations;
• More positions (hence more jobs) available
in Sales than in other professions;
• Salary earnings are usually much higher
than in other areas of management;
• Even at entry level, there could be scope for
doing managerial tasks
06/13/08 5
Historical Evolution of Sales Mgt
• Pre-Industrial Revolution:
– Small scale industries
dominated;
– Production was main concern;
– Selling not a problem, &
handled on part-time basis;

06/13/08 6
Contd…
• Post Industrial.& American Revolution:
– Manufacturing capacity proliferated;
need to find new markets
– Sales managers began focusing on
other aspects such as co-ordination
etc.
– Increasing resort to Channel members
– Leading to further communication
gap with customers, & loss of control
over market efforts
– Advertising & Sales Promotion
06/13/08 7
aspects added complexity to Sales
 20%
40%
60%
80%
100%

0%06/13/08
Product Explanation

Proposal Development

Competitive Reporting

Expense Reports

Prospecting

Order Entry
8
Percentage of Companies Using the Internet for Sales Activities
 1. Introduction to
SALES & DISTRIBUTION
Management

2. Nature, Importance &

Dimensions of
PERSONAL SELLING &
SALES MANAGEMENT
06/13/08 9
 “Exchange”
is the core of
Marketing Management

“Exchange” involves obtaining

a desired product for
something in return

06/13/08 10
 It is
Sales & Distribution
Management
that facilitates
“Exchange”

06/13/08 11
Tasks for consummating “exchange”
- Contacting
–Prospecting
–Negotiation &
Transaction
–Promotion
–Physical distribution
06/13/08 12
 Sales - Distribution

• Sales Management is about

management of a “firm‘s
‘direct’ selling function”,
while,
• Distribution Management is
about the management of the
firm’s ‘indirect’ selling efforts
06/13/08 13
 Most Organizations get the
functions performed through
a combination of:
Own Sales Force, and

The Channel

06/13/08 14
 SALES MANAGERS ARE RESPONSIBLE
FOR BOTH FUNCTIONS

06/13/08 15
Sales Management is also
referred to as Management of
Personal Selling Efforts, or
as, Management of a sales
force

06/13/08 16
 Nature & Role
OF

PERSONAL SELLING

06/13/08 17
MARKETING MIX PERSPECTIVE
• PRODUCT
• PRICE
• DISTRIBUTION
• PROMOTION (Communication Sub-
mix)
– Advertising
– Sales Promotion
– PERSONAL SELLING EFFORTS
– PR
– Publicity
06/13/08 18
 The Nature of Personal Selling
Transaction Selling Relationship Selling
– Get new accounts – Retain existing
– Get the order accounts
– Cut price to get sale – Become the
– Manage all accounts to preferred supplier
maximize short-term – Price for profit
sales – Manage each
– Sell to anyone account for long-
term profit
– Concentrate on
high profit-
potential accounts
06/13/08 19
 Role in Relationship Selling
• Contribute to Customers’ success, by
identifying their problems & helping solve
them;
• Value-added selling since Product-based
Competitive advantages are difficult to
achieve/sustain;
• long-term relationships - To understand
Customers’ needs

06/13/08 20
 Selected Activities of
Salespeople
Salesperson

Generate Territory Company

sales
management service
Provide
service to
Professional
customers
development

06/13/08 21
 Nature of Sales Jobs
• Wide variety of Sales Responsibilities
– Sales development
– Sales support
– Sales maintenance
• Wide variety of Companies, Products &
Customers
– Selling directly to customers
– Selling through Channels
– Using combination approach

06/13/08 22
How Sales Jobs differ from other jobs:
• Operate in the ‘field’ and generate
Revenue
• Among few employees authorized to
spend company’s money
• Represent Co. to Customers & Society
• Represent Customers to the Co.
• Operate with little supervision &
require high level of motivation
06/13/08 23
contd…..
• Frequently required to develop
innovative solutions to difficult
problems
• Need more tact & social intelligence
• Require frequent travel & time away
from family
• Have large ‘role sets’
• Face Ambiguity, Conflict & Stress of
Role
06/13/08 24
 NATURE & ROLE
OF

SALES MANAG (ER) EMENT

06/13/08 25
 3 General Objectives of Business
delegated to Sales Management

• Sales Volume

• Contribution to Profits

• Continuing Growth
06/13/08 26
Sales Management Responsibilities

Strategic
Planning
1 Organizing
Performance
the sales
Evaluation
force
6
2
Communication
Coordination
Integration
Motivation Recruiting,
and selection,
supervision assimilation
5 3
Training and
development
06/13/08 4 27
 Role & Skills of a Sales Manager
• Developing a detailed understanding of
Customers’ business;
• Working with Salespeople to achieve
Profitability & Customer-satisfaction;
• Applying flexible motivational tools to a
hybrid sales force of tele-sellers, direct
marketers & field sales people;
• Working as a member of corporate team
seeking to achieve customer satisfaction;

06/13/08 28
contd….
• Keeping up-to-date on the latest
technologies affecting buyer-seller
relationships;
• Continually seeking ways to exceed
customer expectations, and bringing added
value to the buyer-seller relationship;
• Creating a flexible learning & adapting
environment

06/13/08 29
 Key Qualities desired for a Sales
Manager’s position
• Willingness to share information;
• Structure & discipline in work habits;
• Ability to work well in teams / groups;
• Skill at selling internally;
• An ego that is not overly inflated.

06/13/08 30
 Sales Management
Classical definition :
“.. Attainment of Sales
Force goals in an
effective & efficient
manner, through
Planning, Staffing,
Training, Leading and
Controlling
06/13/08 31
 PLANNING
• Planning is the conscious,
systematic process of
making decisions about:
– Goals & Activities that an
individual, group, work unit,
or organization will pursue in
the future, and,
– about the use of resources
needed to attain them.
06/13/08 32
 STAFFING

Staffing refers to activities

undertaken to attract,
develop, and maintain
effective sales personnel
within the Organization

06/13/08 33
 TRAINING
Sales training is the effort
put forth by an employer
to provide the salesperson
job-related culture,skills,
knowledge, and attitudes
that result in
improved performance in
the selling environment
06/13/08 34
 LEADING
• Leading is the ability to influence other
people toward the attainment of
Objectives.
• Leading also means:
– Communicating goals to people throughout the
sales group;
– Motivating & guiding them to perform at a high
level
– Rewarding good performance
06/13/08 35
 CONTROLLING
•Controlling means
monitoring sales
personnel’s activities,
determining whether the
company is on target
towards its goals, and
making corrections as
necessary.
06/13/08 36
 Challenges in the 21st Century
• CRM : Customer Relationship Management
• Sales Force diversity
• Electronic Communication system and
Computer-based Technology
• Selling teams
• Complex Channels of Distribution
• An International Perspective
• Ethical behavior & Social responsibility
06/13/08 37