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Welcome To Sales & Distribution Management

This document provides an introduction and overview of key concepts in sales and distribution management. It discusses [1] the evolution and changing role of sales management, [2] the importance of personal selling and sales management in generating revenue, and [3] how sales objectives, strategies, and tactics are developed and linked to distribution management for execution. The roles of sales and distribution management are interdependent, with distribution responsible for executing sales plans through effective market coverage and customer service.

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sai prasad
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80 views17 pages

Welcome To Sales & Distribution Management

This document provides an introduction and overview of key concepts in sales and distribution management. It discusses [1] the evolution and changing role of sales management, [2] the importance of personal selling and sales management in generating revenue, and [3] how sales objectives, strategies, and tactics are developed and linked to distribution management for execution. The roles of sales and distribution management are interdependent, with distribution responsible for executing sales plans through effective market coverage and customer service.

Uploaded by

sai prasad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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WELCOME TO

Sales & Distribution Management


Chapter 1

Introduction to
Sales and Distribution Management
Learning Objectives
• To learn changing role of a sales force
• To understand evolution, nature and importance of
sales management
• To know role and skills of modern sales managers
• To understand types of sales managers
• To learn objectives, strategies and tactics of sales
management
• To know emerging trends in sales management
• To understand linkage between sales and distribution
management
Evolution, Nature and Importance of Sales Management

Evolution of Sales Management


• Situation before industrial revolution in U.K. (1760AD)
• Situation after industrial revolutions in U.K., and
U.S.A.
• Marketing function splits into sales and other
functions like market research, advertising, physical
distribution
What is Sales Management?

• One definition: “The management of the personal selling part of a


company’s 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.
Nature of Sales Management

• Its integration with marketing management


Head-
Marketing

Manager- Manager – Manager – Manager – Manager –


Promotion Market Sales Market Customer
Research Logistics Service

• Relationship Selling

Transactional Value – added Collaborative /


Relationship / Relationship / Partnering
Selling Selling Relationship /
Selling
• Varying Sales Responsibilities / Positions / Jobs

Sales Position Brief Description Examples


• Delivery salesperson • Delivery of products to business • Milk, newspapers to households
customers or households.
• Also takes orders. • Soft drinks, bread to retail stores.

• Order taker (Response selling) • 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

• Sales support • Provide information, build • Medical reps. in pharma industry


• Missionary selling goodwill, introduce new products
• Technical selling • Technical information, assistance • Steel, Chemical industries

• 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
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
Changing Role of a Sales Force

Value creation for customers


• Value = Benefits – Cost
• Give more benefits, or
• Reduce cost
Value addition to the organisation
• Importance to profit
• Attention to terms of payment.
• Give credit to credit-worthy customers only.
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
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
Types of Sales Managers / Levels of Sales Management Positions

CEO /
President

V. P. Sales / Top-Level Sales Managers /


V. P. Marketing Leaders

National Sales Manager

Regional / Zonal / Divisional


Middle-Level Sales Managers
Sales Managers

District / Branch / Area Sales Managers First / Lower Level Sales Managers

Sales Trainee / Sales Person / Sales Representative


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 Evolve Tactics /


Develop Strategies Action Plans
Objectives

E.G. A company wants to increase sales of electric


motors by 15 percent, as one of the sales
objectives.
To illustrate the relationship between sales objectives, strategies and tactics, consider:

Sales Goals / Marketing Sales and Distribution Strategy Tactics /


Objectives Strategy Action plans

 Increase sales  Enter export  Identify the countries  Marketing / sales head to get relevant
volume by 15 markets information
percent  Decide distribution channels  Negotiate and sign agreements in 3-5
months with intermediaries

 Penetrate existing  Review and improve salesforce training,  Add channels and members
domestic markets motivation and compensation  Train salespeople in deficient areas
 Use effective and efficient channels  Train field salesmanagers in effective
supervision
 Link sales volume quotas to the
incentive scheme of the compensation
plan
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
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

• This will be illustrated by considering some sales management actions and


corresponding role of distribution management (in the next slide), as well as by
discussing a few integrated cases given at the end of the book
Role of Distribution Management for some of the Sales Management Actions / Tasks

Sales Management Actions / Tasks Distribution Management Role

 Strategy for effective coverage of markets  Follow call plan / beat plan
and outlets  Make customer call productive
 Use multi-channel approach

 Strategy for handling customer complaints  Prompt action at the customer interface level
 If the problem persists, involve senior sales and service people

 Planning of local advertising and sales  Co-ordination with distribution channels


promotion  Responsibility of execution with distribution channels
 Expenses are shared between the company and intermediaries

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