Sales and Distribution Management- Introduction

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SALES and

DISTRIBUTION

MANAGEMENT

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INTRODUCTION

to

Part One - SALES MANAGEMENT

andPart Two - LINKAGE

with

DISTRIBUTION MANAGEMENT

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Definition - Sales Management

Sales Management means..

The planning, direction, and control of personal

selling,including

recruiting,selecting,equipping,assigning,

routing,supervising,paying and motivating as

these tasks apply to the personal salesforce.

In short, The Management of a Salesforce.

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Nature and Importance of Sales Management

1.Integration with Marketing Management2. Relationship Selling

3. Varying Sales Responsibilities.

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Integration with Marketing Management

Sales Management is A PART of Marketing Management

So, Sales Planning should be integrated with Marketing Planning.

A Companys Marketing Team consists of TWO basic groups:

(a) Marketing Team at Headquarters

(b) Field Selling (or Personal Selling) Team

Field Selling Teams are in their territories (or branches / regions), contacting

existing and prospective customers.

The Marketing Team performs support and service functions,or activities to

assist or help field salespeople in their jobs.

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The Headquarters based Service

and Support Functions

a) Promotion: Advertising, Sales Promotion, Public RelationsPublicity, Direct Marketing.

b) Marketing Research: Collecting and Interpreting informatioon Customers,Competitors,Products,Market.

c) Marketing Logistics: Physical Distribution of FinishedGoods including Warehousing, Inventory,

Transportation, and Order Processing.

Customer Service: Pre-Sales and Post Sales Service aswell as Delivery Service to existing and prospective Customers

Co-ordination: Between Customers, Company's

Salespeople,Production,Operations, by employing HQSalespeople.

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Relationship Selling

Buyers and Salespeople, who do business together,have some type of business (or working) relationships.

These Relationships have a Range or Spectrum

a) Transactional Relationshipb) Value Added Relationship

c) Collaborative / Partnering Relationship

Each Relationship is an exchange,which is the process ofobtaining a desired product or service by offering

something in return.

Customer Relationship Management is a Topic of greatrelevance today, and will be dealt with much later.

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Varying Sales Responsibilities

1. Takes Customer Orders

2. Takes Customer Orders AND Delivers

3. Supports Sales by Educating the Decision Maker

4. Provides Technical Sales Support

5. Creates Demand

6. Provides a Solution to the Customers Problem

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Importance of Personal Selling

and Sales Management

Personal Selling (or Sales) is

tough,challenging,tests endurance and patience

yet,exciting,and one of the fastest routes toTop Management.

Sales reflect the Top Line in the Financial

Results of a Company.

Profits are the Bottom Line that result from theFulfillment of the Sales Orders efficiently.

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Roles and Skills of Modern Sales Managers

Playing a Strategic Role providing Inputs for

Marketing and Sales Plans

Working as a Key Member of the Corporate Team

Working as a Team Leader with the Salespeople

Managing Multiple Sales Channels

Using latest Technologies

Continually updating information, understandingchanges in marketing environment.

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The specific duties and

responsibilities of a Sales Manager Determining Sales Force Objectives and Goals Finalizing Salesforce Organization,Size,Territory,and

Quota

Forecasting and Budgeting Sales Selecting,recruiting,and training the salesforce

Motivating and leading the salesforce

Designing compensation and plan and control

systems

Designing career growth plans and buildingrelationship strategies with key customers

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Skills of a Sales Manager

People Skills-Ability tomotivate,lead,communicate,and coordinate

Salespeople. Coach and Mentor to improve

Performance. Managing Skills - Planning, Organizing,

Directing and Controlling.

Technical SkillsTraining,Selling,Negotiating,ability to use

Computers, and Problem - solving

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Sales Objectives, Strategies and Tactics

Sales Objectives are Statements of Intent, quantified

to SPECIFIC and MEASUREABLE Targets.

Strategies are WAYS to achieve Objectives.

Tactics are ACTIONS that should be carried out toimplement the Strategies.

Decide Objectives > Develop Strategies >Evolve Tactics

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Emerging Trends in Sales Management

Global Perspective Global competition is intensifying. Digital Management of Information.

Customer Relationship Management (CRM).

Salesforce Diversity Women in Sales, educated

Salespersons. Team Selling Approach

Managing Multi - Channels using two or more Marketing orDistribution Channels to reach one or more Customer

segments. Ethical and Social Issues

Sales Professionalism

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Differences between Selling and Marketing

Selling MarketingEmphasis on Product Emphasis on Consumer Needs and Wants

Company manufactures the product firstand THEN decides to sell it

Company FIRST determines theCustomers needs and wants and THEN

decides on how to deliver a product to

satisfy these wants

Management is sales -volume oriented Management is profit -oriented

Planning is short term oriented, in terms

of Today's products and markets

Planning is long- term oriented, in terms of

new products, tomorrow's markets, and

future growth

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Differences between Selling and

Marketing contd.

Views business as a goods producing

process

Views business as a Customer

satisfying process

Emphasis is on staying with existing

technology and reducing costs

Emphasis is on innovation in every

sphere, on proving better value to the

customers.

Different departments work as

separate watertight compartments

All departments operate in an

integrated manner, the sole purpose

being generation of consumer

satisfaction

Cost determines price Consumers determines price, pricedetermines cost

Selling views Customers as the LAST

LINK in business

Marketing views the Customers as the

VERY BEGINNING of a business

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Linking Sales and Distribution Management

Distribution Management serves the primaryfunction of ensuring that the product or service ismade available to the consumer.

It is the Sales Managers who decide the

organization which is responsible for thedistribution effort.

Normally, this organization is a combination ofthe companys own salesforce and a set of

marketing channels. Sales Management and Distribution

Management are two sides of the same coin.

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Linking Sales and Distribution Management

Distribution is an integral part of Sales Management.

It is the HEARTBEAT of Sales Management.

Sales Management and Distribution Management

CANNOT exist or perform without each other. Planning and Execution is a Team Effort between

Sales Managers and the Distribution Channels.

Distribution Management has the responsibility ofphysical movement and storage also.

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Distribution Channels 1. Own Salesforce

2. C & F As or Depots

3. Distributors,Dealers,Agents, Stockists

4. Transporters, Warehouse Operators

5. Independent Wholesalers in the Market

6. Independent Retailers in the Market

Distribution Channels can be In - House too.

Experience has shown that it is more cost effective to

outsource the distribution function.

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Maximizing Customer Service

Sales Management and Distribution ManagementTOGETHER take certain actions to ensure that theCustomer Service objectives are fully met.

1. Demand Management : A critical step in getting SalesVolumes and Earning Revenues. Both Sales Managers andtheir Channel Members help this activity through Forecasts,and securing Orders to meet set volume targets.

2. Supply Management : This isthe major responsibility ofthe Distribution Channels.

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Sales Operations Planning

The planning of the Sales Operations is ALWAYS done JOINTLY by the

Sales Managers and the Channel Members.

1. List of Markets to be covered and the Schedule.

2. Market Share Objectives to be achieved,and How

3. Tracking Competition 4. Designing Coverage Beat Plans / Call Plans

5. Ensuring Highest Call Productivity 6. Market working methods and tools

7. Sales Promotion Efforts 8. New Product Launches

9. Shelf Space maximization and merchandising

10. Reports and Records