NIFT

MFM - II

Subject: Sales & Distribution

Management

Date : 18/03/2015

Submitted to : Dr. Sanjeev Malage

Submitted By :

Srishti Raut (MFM/14/188)

Table Of Contents

Question 1: Prepare a report on emerging trends in Sales Distribution Management.3

Question 2: Identify a company and develop Sales Presentation methods / Strategies 11

Bibliography 19

Question 1: Prepare a report on emerging trends in Sales Distribution

Management.

Clients make decisions within the first 12 seconds of meeting the sales team/represenative

whether to invest their money and time in a particular product of service. This makes it

very important to understand what are the merging trends within Sales & distribution

management field, as selling is the pillar on which the success of any company is defined.

With the opening up of economies and the lightning speed at which technological

advancements are taking place which are shaping the new trends in this field. The world's

challenges are changing the very manner of selling. New issues await today's

professional. These trends require flexibility, tenacity, and the opportunity to educate

ourselves in a variety of disciplines. To be successful in a changing market environment, it

is important that sales managers understand the importance of emerging trends in the

following areas :

1. Global Perspective & understanding of new markets & growing competition

2. The growing importance of Customer Relationship Management

3. The new emerging channels & managing Multi-Channel sales

4. Emerging trends in Sales force management

5. Technological revolution

1.Global Perspective : Competition & Market

The competition within any industry is no more limited to the national players , or the giants

that have grown locally as most of the economies witness the emergence of global

players. This is posing a great threat to many of the domestic players making profitability

of business the main objective for many domestic players. To do this they must fortify their

sales strategies and double their efforts towards it. This does not work particularly one

way, as the marketeers have taken a dramatic shift from domestic client bases to a

multinational one has taken place. The challenges that present themselves during this

course is that of language barriers , cultural shifts & communication gaps that occur. What

will soon become an asset to many domestic companies as they engage in international

clientele is to have a sales force that is well equipped in the cultural tastes & preferences

of the International audience, which will give a better understanding of what the audience

is truly liking versus their dislikes. Also the ability to engage & communicate cross

culturally will soon give the companies an edge over their competitors.

2.Decline of Mass marketing as market grows more fragmented

The growth of niche markets has caused the emergence of niche sales and marketing

strategies becoming the norm. This is causing the market to become more fragmented,

which has made mass marketing a more or less volatile approach. Marketeers & Sales

managers now have a very fragmented marketed which has been segmented at multiple

levels making it important for them to join forces and work together. Companies now need

to pay more attention to the consumers behaviour to understand where they are choosing

to spend their money. The growth of new consumer markets demanding different ways of

doing business means sales teams will need to be even more targeted in their sales

planning and prospecting efforts – no more scatter gun approach. The need is to have an

external buyer-seller ‘we’ approach to tackle consumer demands which a company targets

to meet or expects to perish.

3.Customer Relationship Management (CRM) & its growing importance

A successful sale to a great extent depends on how a sales person can build a relationship

with the potential consumer. Competitive differentiation stems from the perceived customer

value. Customers desire to be with those they trust; this is the key differentiator in a

marketplace cluttered with vendors. The goal of CRM is to drive growth (i.e. revenue) and

maximise efficiencies (i.e. profit) in business practices, processes, and relationship

management (sales). Now the market demands that the consumer becomes the central

focus of all its efforts. With the emergence of excellent technologies & new platforms like

Social media, CRM is no more about just relationship marketing , but also about constant

engagement with the consumer through Integrated marketing communications. The use of

databases to not just recognise the most profitable consumer , but to convert the majority

into a cash cow. Many banks are now engaging in building a separate unit for Relationship

Managers , whose one simple goal is to build upon the consumer to buy & invest more into

a bank. An excellent example of this practice is HDFC who has invested a great deal in

their Data base & CRM efforts using the software CRMNext. The software helps the bank

achieve the following:

• A Single 360° customer view by integration with data warehouse and other core banking

applications.

• Scalable and fault tolerant technology for hosting more than 25 million customers and

400 million related records which enhances productivity

• Empower customer service and sales teams with automated cross selling and up selling

opportunities through intelligent segmentation of customers.

The results of a successful CRM approach for HDFC has helped them achieve a 208%

increase in lead conversion with 40% increase in cross sell & 93% improvement in sales

turn-around-time.They have witnessed a 92% Increase in customer loyalty index &

decrease of customer complaints by 30%.

4.Managing Multi-Channels with new emerging channels & approaches

Many organisation are using multiple channels to engage their consumers. Not limiting

themselves to self owned outlets but Multi brand retailers & also new age plat forms like E-

commerce. Major benefits of multi-channel marketing system are:

• Lower channel cost

• Increased market coverage

• Customised selling

The use of Multi channels can also create conflicts in terms of control & co-ordination

between channels. Therefore it is a challenge for Sales manager to efficient handle

conflicts and ensure maximum profits through the optimum use of these channels. There

are also some new approaches to multi channel selling that seem to have emerged :

• Team Selling Approach

The practice of team selling is more widely followed by most Information Technology

companies in recent years. This type pf approach is used by companies when they want to

build a relationship with a consumer which is mutually beneficial to both parties. Major B2B

consumers who have high sales and profitable potential. It is used for selling a technically

complex product or a service to a potential customer. The composition of team may vary

depending upon the customer from top management, technical specialist, customer

service, etc… Benefits that companies can draw from this approach are :

- A team is more likely to as enough questions to identify the consumers real needs.

- Having more individuals present increases the likelihood of a consumer connecting with

someone on the team.

At Wipro ,the conduct team selling wherein the team consists of a Business development

executive , a solution expert & a domain expert; the goal is the address all doubts and

objections raised by the consumer while building a relationship with them.

• Social Selling

Social selling refers to using Social Media as a platform to conduct sales and engage with

consumers. As reported by Mark Fidelman in Forbes online, the article shows the actual

numbers on social selling, and how it really empowers sales activity of a company:

- 78% of social sellers sell above average

- Social sellers are on average 23% more likely to beat sales quotas

- 54% of study respondents say they have used social media for a sales success

- 40% link social media use to multiple closed deals

The most valuable benefit of social selling is instead of just pounding a general target

audience with a heavy-handed message over and over again, the company gets an

opportunity to engage a particular individual who is expressing a need or talking about a

given industry. And then craft a time-sensitive message that appeals to what that person

has already said. The beauty lies in the fact that social media matches a need with the

supply, time and time again, in precise ways thxat make sales easier for both parties, the

salesperson and the customer.The data tracking for this happens through metadata

analysis; wherein the consumers internet footprint is collected to understand where all the

potential consumer is surfing and what he/she is looking for .

5.Emerging trends in Sales force:

• Sales Force Diversity

There are crucial changes taking place in the demographic characteristics of sales force

as it becomes more varied & valuable. As there is a growth in number of women who are

joining the sales force, the quality of the sales force is also improving with higher

standards of educational qualifications. with this trend, the challenge that companies face

is to sustain the quality & reduce turnover of employees. The constant drive for profit has

disabled the organisations' capability to acquire the best talent. A frightening thought, for

the largest asset of any organisation is talent—especially sales talent.Talent management

and sales effectiveness needs to be at the top of every manager's list in every

organisation. As per the CSO Insights' 2009 Annual Sales Effectiveness Report:

- The percentage of salespeople failing to hit their sales quota rose from 38.8 percent to

41.2 percent.

- Overall revenue plan attainment dropped from 88.2 percent to 85.9 percent.

- Seventy percent of firms report the ramp-up time for new salespeople is seven months

or greater.

• Coaching is the key to an effective Sales force

As sales force becomes the greatest asset of a company after its customer , it is important

to invest in them. The use of an efficient Coaching program has resulted in a dramatic and

positive difference to sales people and their sales results. Sales managers are slowly

seeing merit in coach training for team engagement and improved bottom line. The

organisations need to know the need to recruit in and develop their sales teams to be

educators and facilitators not product sales people. Their investment in their sales people

will result in a whole new skill set including patience, listening, creative problem solving

and dealing with ambiguity and complexity. Constant development of skills can help the

sales force achieve their targets in a more efficient manner as the customers face a better

trained & skilled representative of the company. Customers will come to value the new and

improved sales approach as they are at the heart of the sale and they will trust the sales

person who will help them make the right Decisions moving forward.

• Ethical and Social Issues

The growing awareness about ethical codes is an important aspect which is changing the

way most sales organisations are functioning. This trends is majorly affecting business

which engage B2B clients as they face ethical issues like bribery, deception (or

misleading) and high pressure sales tactics. It is important to educate the sales force

about the need of these ethical codes & to take ample measures to ensure the ethical

codes are followed.

6. Technological Revolution

Information system have greatly increased the capabilities of consumers and marketing

organisations. To compete effectively, sales person and managers will have to adopt the

latest technology. The technology revolution has bought about multiple trends:

• Knowledge management.

As computer software developed, spreadsheets enabled end-users to take data and gain

useful information, such as buying patterns and favored products. The data collected at

various levels during the sales process like - at the point-of-sales level & at the internet

level helps understand the consumers better & the use of this data helps companies

maintain a competitive edge over its competition.

• Using scientific data to predict B2B buying behaviour

In 2012 smart organisations, large and small, will follow the lead of business-to-consumer

(B2C) retailers such as Amazon.com by making smarter use of customer data to predict

behavior, drive sales, and deepen relationships. Companies are now faced with an

increasing availability of knowledge and an opportunity to exploit it. As available data

grows around buyers’ preferences and habits, emerging trends, new values sets and ways

of living, businesses will find new ways to understand their customers and new metrics to

access.

While change is good, it requires adjustment. The future of selling requires changes to

keep pace with generational and cultural shifts creating behavioural changes in decisions.

The selling representative of tomorrow must work efficiently and quickly to maintain this

pace to keep up with the growing competition.

Question 2: Identify a company and develop Sales Presentation

methods / Strategies

The company : Apple

Apple, Inc. designs, manufactures, and markets mobile communication and media

devices, personal computers, portable digital music players, and sells a variety of related

software, services, and third-party digital content and applications. Its products and

services include iPhone, iPad, iPod, Mac, iPod, a portfolio of consumer and professional

software applications, the iOS and OS X operating systems, iCloud, and accessories,

service and support offerings. The company ideology of ‘Think Different’ reflects clearly in

its products & the sales experience that they provide. The current CEO of Apple Tim Cook

who took the reins of the company recently revealed the Apple Watch, the latest offering of

Apple.

The Product : Apple Watch (price)

The watch is by far the most personalised product ever created by Apple. It represents a

new chapter in the relationship people have with technology.These smart watches been

defined by their ability to keep unfailingly accurate time,it keeps time within 50 milliseconds

of the definitive global time standard. It delivers on the promise of compact design which is

aesthetic & tailor made to cater many kinds of audiences.

Product benefits:

- Customised user interface : Lets you customize your watch face to present time in a

more meaningful, personal context that’s relevant to your life and schedule.

- Easy Communication & connect : Making communication more convenient as it sits right

on your wrist, it can add a physical dimension to alerts and notifications.

- Health & Fitness : The three rings of the Activity app show your daily progress and help

motivate you to sit less, move more, and get some exercise. It’s also an advanced

sports watch, giving you real-time stats for a variety of the most popular workouts.

- Design : You can customise the design of the watch right from the size of the dial one

prefers (32mm , 42mm) to the kind of bands that they would like to use : rubber band

to , aluminium alloys in multiple colour choices. The grooves in each case are precision

engineered and CNC machined to ensure a perfect fit with any band. You can even

personalise the interface to choose what suits your mood and style.

- Technology : Taptic Engine, a linear actuator inside Apple Watch that produces haptic

feedback. what it does is it taps you on the wrist whenever you receive an alert or

notification, or press down on the display. Now even your heart beat is being used to

collect vital data to help you understand how your body functions & help you gain better

fitness. Force Touch - Use of extremely sensitive sensors that can differentiate between

a tap & a swipe. A digital crown which is traditional to watch i.e. the crown can be now

use to navigate , communicate and enjoy the whole Apple watch experience.Also the

watch has a single chip which configures an entire computer system ; It is an industry

first and represents a singular feat of engineering and miniaturization.

- Built-in Apps: The HeathKit which is a utility app in the iPhone becomes an integral part

of the Apple watch experience.

Prospective Audience:

Apple is know for its Niche market targets.

- The similar strategy is being used here as the sales are Targeted towards the 20 - 45

years of age group

- With household income more than 15 Lacs P.A they belong to the Upper Middle Class &

Upper class of the social class.

- By VALS segmentation they are the Thinkers whose primary motivators are their ideals .

Know to be conservative, they are practical consumers who look for durability,

functionality, and value in the products that they buy.They have abundance of

resources, yet seek information before indulging into a purchase.

- Market Segment Profiles: Business professional, Travellers , Athletes

- Specific Target Market Segments: Current loyal Apple consumers; Y o u n g u r b a n

Professionals into new wearable technology ; Business / travel users into portable

technology ; Active athletes – runners, walkers, marathoners , Joggers

Approach:

The approach towards the Sales presentation becomes very crucial to have a successful

sales. But with Apple the one thing that is important during the process of Sales

presentation is to build a relationship with the consumer.

The approach that is best suited for Apple Watch is the Product approach , as it is a new

product and the curiosity surrounding it is high. Using this approach i.e letting the

consumer feel & enjoy the uniqueness of the product through self experience gives the

sales person an opportunity to understand how to begin the pitch. For e.g. Once the

consumer wears the Apple Watch , if they ask about the battery life, the sales person

knows that the longevity & performance concerns of the consumer must be first addressed

to convert a prospect into a definite sale. the idea behind using this approach is to give the

consumer a chance to lead the conversation.

Sales Presentation & Demonstration technique:

Need-Satisfaction Method:

Apple recognised the need of the consumers to have a wearable technology that is

personal & is an amalgamation of the Apple ecosystem , iPod & the iPhone. The vision for

the sales presentation is simple : The focus is on WHY the consumer needs the Apple

Watch & HOW it is going to benefit them ? What about the Apple Watch will be beneficial ?

Why

How

What

• The reason on initiating a sales pitch starting with a question of Why is to understand

where does the need for a smart watch arise for the consumer. What features are driving

the purchase.

• Giving the consumer a lead and trying to understand the source of the demand, can give

the sales person an insight into what concerns of the audience must be addressed. Also

it becomes crucial to do the same as the consumer that walks in is someone who

already has gained certain amount of information regarding the product. They are visiting

the store to take the final call of whether to purchase or not.

• Specific to the Indian consumer scenario, when making a high stake purchase i.e. a

watch that costs 50,000; the consumer has already built a certain notion regarding the

product. By asking why we know what is the information that is pre gathered & what are

the perceived notions vis a vis the product. An insight of the features that are truly

attracting the consumer towards the product.

• This brings us to the How. Once we have the consumer insight as to Why the Apple

Watch , we can move on to conversing as to How the Apple Watch truly makes a

difference versus its competitors.

• The How is where we talk about the advantages of the features that the consumer has

addressed in the initial question.

• The What adds further to the How by informing about the true benefits of owning the

Apple Watch. The various benefits that the consumer would otherwise be unaware of.

Also at this juncture we try and add the prospects of building a relation with the

consumer. It not just till the sale , but the after sales service. Factors such as a training

session , or helping with the unboxing of the Apple Watch etc.

• It is consumer engagement that will help us make the sale. Sound knowledge of the

product & understanding of the consumers concern & need is the key to making the sale.

The Sales Presentation

The Setting : The Apple Store

The Sales aid : The Financial scheme brochure & Feature brochure

The Pitch : When the consumer is aware about a particular feature of the Apple

Watch

When the consumer walks in to the apple store the most important part is to give the

customer the freedom to experience the product. Once you spot that the consumer is

going ahead towards the Apple Watch and has experienced it & shows a certain query on

their face, this is when the Apple genius (Sales representative) approaches.

Things to remember while talking to a prospect :

• Understand what do the customers already know about the Apple Watch.

• See if their iPhone is compatible. Probe further into understanding what feature of the

iOS8 does the prospect like and build on that liking towards the adb=vantage of using

the Apple Watch.

• And what kind of utility are they looking for a formal or casual or fitness.Understand what

is their personal style and put forth the features of the watch in that perspective for the

prospect.

• Incase the consumer is not an iPhone user , then the pitch must focus on elevating the

consumer to upgrade themselves to the iPhone experience and then showcase how the

Apple Watch will benefit them further.

Participant Response

Apple genius Hi Sir / Ma’am can I help you ?

Consumer I have been reading quite a bit about the Apple Watch , and I would like to understand how does the digital crown work?

Apple genius Sir the Apple Watch is purely about personalisation through relevant technology. So unlike the regular watch the crown is not purely to manage the time , it can be used to navigate easily through the phone. You could see it for yourself, it helps you navigate precisely & nimbly without obstructing your view of the dial.The watch interface turns on as you raise your wrist, and the user interface can over as personal as your heartbeat sir. The reason for it to be so responsive is the fact that the watch is a simple device which you wear everyday. Sir tell me what is it that you love about your iPhone?

Consumer I love the user interface & the easy yet efficient technology it provides to me …

Apple genius Precisely sir , the Apple Watch takes this to a whole new level with its force touch technology ,Apple Watch senses force, adding a new dimension to the user interface. Force Touch uses tiny electrodes around the flexible Retina display to distinguish between a light tap and a deep press, and trigger instant access to a range of contextually specific controls. With Force Touch, pressing firmly on the screen brings up additional controls in apps like Messages, Music, and Calendar

Consumer Hmmm, so how personal can I make the device

Apple genius Right from the right use of the apps like if you need your weather , news and music on the go , the Apple Watch Flashes technology will do that for you. To personalising the dial of your watch to the picture you like & connecting with your close friends. The apple watch is technology that inhibits rather than enabling you. The Taptic technology will tap on your wrist to notify you about any new messages.

Consumer But is it compatible with other devices like Android ??

Participant

Beyond this point , the Apple genius must know that they have one foot of the customer in

for the purchase. The goal now is to simplify the process of the sales , and avoid causing

any trouble to the consumer. The financial options that is most viable to the consumer & is

outlined by the company must be advised and you should make it as convenient a process

possible. Uncomplicated the paper work & ensure a speedy process with the fastest

possible delivery of the product.

Apple genius Sir , you for one I am sure have enjoyed the Apple devices , this is about completing the whole apple experience of relevant and personal technology by creating a complete eco system. The apple watch will definitely add a new joyful dimension to the Apple device experience that you have had till date.

Consumer What about the Durability ?

Apple genius Diamond is the toughest substance, and we have used Sapphire which is the second-hardest transparent substance. That’s why we chose it to cover the Apple Watch and Apple Watch Edition faces, and to make the lenses of the heart rate sensor as you can use it in all purposes even while going out for a run or a trek. Also the battery life is of 18 hours that helps you use the watch to its maximum potential.

Consumer Ok, so what are my financial options ?

ResponseParticipant

Bibliography