6655779 7 Sales and Distribution Management

8/8/2019 6655779 7 Sales and Distribution Management

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Sales and DistributionManagement


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Nature of Personal Selling

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 educatingbuyers)

Involves Two-Way, Personal Communication Between Salespeopleand Individual Customers Whether:

face to face,

by telephone,

through video conferencing,

or by other means.


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The Role of the Sales Force

Personal selling is effective becausesalespeople can:

probe customers to learn more about theirproblems,

adjust the marketing offer to fit the specialneeds of each customer,

negotiate terms of sale, and

build long-term personal relationships with keydecision makers.


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Characteristics of PersonalSelling

Flexibility

Identify bestprospects

Adapt to situations

Engage in dialogue

BuildsRelationships

Long term

Assure buyersreceive appropriateservices

Solves customersproblems


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Personal Selling Limitations

Can not reachmass audience

Expensive per

contact Numerous calls

needed togenerate sale

Labor intensive


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Step 1. Prospecting and

Qualifying

Step 1. Prospecting and

Qualifying

Steps in the Selling ProcessSteps in the Selling Process

Step 2. Pre-approachStep 2. Pre-approach

Step 3. ApproachStep 3. Approach

Step 4. Presentation/

Demonstration

Step 4. Presentation/

Demonstration

Step 5. Handling ObjectionsStep 5. Handling Objections

Step 6. ClosingStep 6. Closing

Step 7. Follow-UpStep 7. Follow-Up


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Alternative Steps:

Find emFind em

Grab emGrab em

Show emShow em

Answer emAnswer em

Sell emSell em

Keep emKeep em


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PlanningPlanning OrganizingOrganizing

DirectingDirectingControllingControlling

Setting

objectives

Organizing

activities

Recruit,

select,

train,

develop,

manage, &

motivate

Motivate,

evaluate,

& control

Sales Management


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Organizing Sales ActivitiesOrganizing Sales Activities

Sales Territory:

Geographic divisions Customer types

Product lines

Selling task

Sales Territory:

Geographic divisions Customer types

Product lines

Selling task


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Directing the Sales Force

Recruiting and selecting

Training & develop

Compensating

Motivating


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Compensation MethodsCompensation Methods

StraightStraight

salary orsalary orwagewage

StraightStraight

salary orsalary orwagewage

Salary plusSalary plus

commissioncommission

Salary plusSalary plus

commissioncommissionStraightStraight


StraightStraight


CommissionCommission

with drawwith draw

CommissionCommission

with drawwith drawQuota-bonusQuota-bonus

planplan

Quota-bonusQuota-bonus

planplan


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Evaluation and Control

Required reports

Measurementagainst plan or

sales standards

Expense control

Productivity

New accountdevelopment


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Ethical Issues

Kickbacks, bribesand gifts

Price discrimination

Cheating onexpense accounts

Misrepresentation


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Distribution Channel Design

and Management


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What is a Distribution Channel?

A set of interdependent organizations(intermediaries) involved in the process ofmaking a product or service available for

use or consumption by the consumer orbusiness user.

Marketing Channel decisions are among themost important decisions that management

faces and will directly affect every othermarketing decision.


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Distribution

PR

ODUCER

CO

NSUM

ER

DISTRIBUTION

i l Ch l f


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Typical Channels ofDistribution

ANUFACTURE

R

ONSUME

R

HOLESALER

ETAILER

GENT

ETAILER


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Conventional Distribution Channel vs.

Vertical Marketing Systems

VerticalVerticalmarketingmarketingchannelchannel

Manufacturer

Retailer

ConventionalConventionalmarketingmarketingchannelchannel

Consumer

Manufacturer

Consumer

Retailer

Wholesaler

Wholesaler


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Vertical Marketing Systems

Corporate systems - total ownership

Administered - strong leadership

Contractual - legal relationships


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Customers Desired Service

Levels Lot size

Waiting time

Spatial convenience

Product variety

Service backup


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Intensive

Distribution

Intensive

Distribution

Exclusive

Distribution

Exclusive

Distribution

Selective

Distribution

Selective

Distribution

Distribution

Intensity

Distribution

Intensity

Choosing a DistributionSystem


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Distribution ChannelDistribution ChannelFunctionsFunctions

Distribution ChannelDistribution ChannelFunctionsFunctions

OrderingOrdering

PaymentsPayments

CommunicationCommunication

TransferTransfer

NegotiationNegotiation

FinancingFinancingRisk TakingRisk Taking

PhysicalDistribution

PhysicalDistribution

InformationInformation


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Materials HandlingMoving Products Into,

Within, and

Out of Warehouses

Materials HandlingMoving Products Into,

Within, and

Out of Warehouses

WarehousingNumber Needed

Where

What Type

WarehousingNumber Needed

Where

What Type

InventoryControl

When to orderHow much to order

InventoryControl

When to orderHow much to order

Order ProcessingReceived

ProcessedShipped

Order ProcessingReceived

ProcessedShipped

PhysicalDistributionFunctionsTransportation

Rail, Water,Trucks, Air,

Pipeline, Internet

Physical Distribution


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Developing DistributionTactics

Selecting Channel PartnersSelecting Channel Partners

Reward orCoercive

Power

Reward orCoercive

Power

Legitimate

Power

LegitimatePower

Economic

Power

EconomicPower

Managing the Channel of DistributionChannel Leader PowerManaging the Channel of DistributionChannel Leader Power

Distribution Channels & the Marketing MixDistribution Channels & the Marketing Mix


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Channel Relationships

Cooperation

Conflict

Power Coercive Expert

Legitimate


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Evolution

Physical distribution

Logistics

Supply Chain Management

Documents

6655779 7 Sales and Distribution Management