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24934261 Sales Distribution and Supply Chain Management

Oct 26, 2014

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MK 0001Sales, Distribution and Supply Chain ManagementContents Unit 1 Personal Selling and Sales Management Overview Unit 2 Organizing the Sales Department Unit 3 Sales Force Management Unit 4 Directing and Controlling Sales Efforts Unit 5 Logistics of Distribution Unit 6 Channel Management Unit 7 Recent Trends in Channel Management Unit 8 Introduction to Supply Chain Management Unit 9 Planning and Designing Supply Chain Unit 10 Co-ordination in Supply Chain Unit 11 Issues Regarding Information Technology and Supply Chain ReferencesEdition: Fall 2007 BKID B0773 8 Nov. 2007th

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Brig. (Dr). R. S. Grewal VSM (Retd.) Pro Vice Chancellor Sikkim Manipal University of Health, Medical & Technological Sciences Board of Studies Mr. Rajen Padukone Member Academic Senate, Sikkim Manipal University Ms. Vimala Parthasarathy Prof. K. V. Varambally HOD Director Convener Manipal Institute of Management Department of Management & Commerce Manipal Directorate of Distance Education Sikkim Manipal University Prof. Raj Dorai Industry Consultant and Visiting Faculty, IBA, IFIM and BIM, Bangalore Mr. Umesh Maiya Assistant Professor Department of Management & Commerce Directorate of Distance Education Sikkim Manipal University Content preparation Team Content Writing and Compilation Dr. Tribhuvan J. Professor, Garden City College Bangalore Format Editing Mr. Umesh Maiya Assistant Professor Department of Management & Commerce Directorate of Distance Education Sikkim Manipal University Edition: Fall 2007 This book is a distance education module comprising of written and compiled learning material for our students. All rights reserved. No part of this work may be reproduced in any form by any means without permission in writing from Sikkim Manipal University of Health, Medical and Technological Sciences, Gangtok, Sikkim. Printed and Published on behalf of Sikkim Manipal University of Health, Medical and Technological Sciences, Gangtok, Sikkim by Mr. Rajkumar Mascreen, GM, Manipal Universal Learning Pvt. Ltd., Manipal 576 104. Printed at Manipal Press Limited, Manipal. Mr. Jagadeesh Assistant Professor Department of Management & Commerce, Directorate of Distance Education, Sikkim Manipal University Mr. R. Ravindra Rao Senior Faculty Manipal Institute of Management Manipal

Language Editing Mr. Sridhar Bhatt Lecturer in English Government College, Udupi

SUBJECT INTRODUCTIONThe focus of management has changed over time. Business thinking in the 70s was driven by strategic planning and product portfolio approach. Success was dependent upon the ability of an organization to meet the demand at the lowest cost, leading to economies of scale approach. The 80s exposed the weakness of this approach and saw an upsurge in quality consciousness, leading to an increased emphasis on TQM, product reliability and customer satisfaction. Flexibility and responsiveness have become key business drivers for the 21st century, forcing businesses to orient themselves along processes instead of functions. Selling products to the customers has become a challenging task amidst tough competition. In case of financial services and commercial banking, any position that deals in sales management, commercial and industrial sales will prove to be very challenging. It is in this regard that good sales personnel must be regarded as an asset to any organization. A sales executive requires the ability to successfully prospect for new sales opportunities in the mid-market sector across various vertical markets. Additionally, one must be competent in developing and executing a winning sales strategy. Businesses must be willing to change their attitudes, routines and their ideas of how things need to run. Supply chains can be tremendous assets to companies and their vendors. A supply chain consists of all of the entities necessary to transform ideas into delivered products and services. Supply chain management directs and transforms a firm's resources in order to design, purchase, produce, and deliver high-quality goods and services. This courseware has been carefully designed to incorporate all essential aspects of sales management and supply chain management. This book comprises 11 units: Unit 1: Personal Selling and Sales Management Overview Deals with the meaning and objectives of personal selling. Also discusses methods to design new sales and marketing process.

Unit 2: Organizing the Sales Department Discusses the essential duties and responsibilities of a sales executive. Also deals with sales department relations and distributive network relations. Unit 3: Sales Force Management Focusses on recruitment, selection and training of sales personnel. Unit 4: Directing and Controlling Sales Efforts Deals with the sales budget, sales territories, sales control and cost analysis. Unit 5: Logistics of Distribution Deals with the meaning, functions and the process of logistics. Unit 6: Channel Management Deals with the policies of marketing channels, designing channels, assessing channel performance and managing channel relationships. Unit 7: Recent Trends in Channel Management Discusses wholesaling and retailing, while dealing with the ethical and social issues in sales and distribution management. Unit 8: Introduction to Supply Chain Management Deals with the meaning and definition of supply chain as well as the objectives and the process of supply chain management. Unit 9: Planning and Designing Supply Chain Throws light on supply chain integration, forecasting in supply chain and managing demand and supply. Unit 10: Co-ordination in Supply Chain Discusses the obstacles in supply chain co-ordination. Also deals with managerial leverages to achieve co-ordination while discussing the need for outsourcing in supply chain management. Unit 11: Issues Regarding Information Technology and Supply Chain Deals with the use of Information Technology in supply chain management while throwing light on e-business and supply chain.

Sales, Distribution and Supply Chain Management

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Unit 1Structure: 1.1 Introduction Objectives 1.2

Personal Selling and Sales Management Overview

Sales Management, Personal Selling and Salesmanship Self Assessment Questions I

1.3 1.4

Setting Personal Selling Objectives Determining Sales-related Marketing Policies 1.4.1 Sales and Marketing Company Policy: Case Study

1.4.2 Methods to Design New Sales and Marketing Process 1.4.3 Control of Sales and Marketing Policy and Procedures Self Assessment Questions II 1.5 Formulating Personal Selling Strategy Self Assessment Questions III 1.6 1.7 1.8 Summary Terminal Questions Answers to SAQs and TQs

1.1 IntroductionWhen it comes to various positions in sales management, it is possible to get them in various companies and organizations including service-oriented institutions such as insurance, consulting agencies, banking and financial services, and even government institutions. In case of financial services and commercial banking, any position that deals in sales management, commercial and industrial sales will prove to be very challenging and at the same time a very rewarding experience, as there are wide opportunities such as technical training, broad management practices and system selling.Sikkim Manipal University Page No. 1

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Due to the varied market requirements and market opportunities, the engaged sales personnel will be in need of newer and sophisticated techniques and that too at constant intervals to match the market trends. The sales force will be required to be imparted with the latest interpersonal training techniques by duly taking into account their interests, background, academic training, technical skills, and enthusiasm in accepting newer roles or responsibilities. In any kind of sales and sales management training programs, situation will be different and one cannot have a standard set for time, format, length, etc. When it comes to the career path in sales, different companies will have different career paths and it is better to look into each and every system of the company individually. Sales management and the business enterprise: Sales management by itself is a very broad portfolio and it includes all levels and positions such as new business selling, technical selling, trade sales, and missionary sales. In new business selling the personnel responsible for sales will not be assigned any specific location or area and there is also no designated account. The sales force formed for the technical selling will have areas or specific geographical locations assigned for them and specific accounts will also be designated. In trade sales, the sales representatives are responsible for selling the manufactured goods to the wholesale dealers as well as retail traders to fulfill the manufacturers target or the companys target. Missionary salespersons represent the manufacturing companies and their responsibilities include contacting retail sellers and decision makers of other companies and making them to understand about the product and convince them to buy. The job of any missionary sales representative will be in the

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form of training or preparing personnel to take on actual sales work later on and there is no need for the representative to sell or close the deal. Persons holding sales management positions are required to show a very strong and favourable performance and track record within a year or two, and such a target-oriented approach will see them climbing the corporate ladder fast. It is a fact and as realized by many persons engaged in sales line, sales management is the most wonderful and challenging option fo