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SALES AND DISTRIBUTION MANAGEMENT
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Sales management Sales management is defined as “the planning, direction, and control of personal selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks, apply to personal sales force”
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Objectives of sales management
Corporate objectives Sales volume Profitability Growth Marketing management Sales management
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Sales management function
1.Selection of sales force 4.Controlling of sales force SALES MANAGER 2.Trainin of sales force 3.Motivating of sales force
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Sales management as profession/sales manager
The nature of sales management positions Sales manager (SM) (at field office) General sales manager (GSM) (at corporate office) District sales manager (DSM) (at field operation/ regional office)
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Function of sales manager
Planning function -lay dawn sales objectives, policies and strategies. -prepare a sales plan & programme -design &administer suitable sales organization -design sales territories -formulation of personal selling objectives -deciding size of sales force -sales force selection, training, promotion, and transfer.
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Operation function -Fixing sales quotas/target -Manage sales force by proper direction and control. -Liaison with other organization and coordinate their activities affecting sales. -Control sales performance, sales activities and expenditure. -Liaison with marketing department and direct marketing -Prepare sales communication and report
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Duties and responsibility of sales manager
The GSM perform the following duties 1.secure maximum sales volume 2.develop and implement effective sales policies and plan for all product Duties of other team managers in sales -sales programme -Organization of individual duties -sales force management -liaison function -communication with top management -control -performance evaluation
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Regional sales manager
Team of sales manager General manager Marketing manager General sales manager Regional sales manager Sales persons
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Diversity of personal-selling situations
It is helpful to distinguish between service and development selling. service selling aims to obtain sales from exiting customer whose habits and patters of thought are already conducive to such sales. Personal selling situations Group A (Service selling) -inside order taker -delivery salesperson -route or merchandising salesperson -missionary -technical salesperson
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Group B (developmental selling)
-creative salesperson of tangibles -creative salesperson of intangibles Group C (basically developmental selling but requiring unusual creativity) -political, indirect, back—door sales person -sales persons engaged in multiple sales
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Prospecting Prospecting is the process of identifying prospective buyers of the product. There are different ways to identify prospecting. Steps in prospecting Formulating prospect definitions Searching out potential accounts Qualifying prospects and determining probable requirement Relating company product to each prospect’s requirements
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Sales Resistance Sales resistance by pointing out real or imagined obstacles, and by voicing objections, sincere or insincere. The sales resistance on following aspect. Obstacles to sales Sales objections
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Closing of sales The closing signs from the customer, and their physical actions and statements are judged for their acceptance and satisfaction The customer’s order is reiterated and the points of agreement are recapitulated.
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The selling process Prospecting Customer contact Presentation
Demonstration Handling objection Closing Exit/follow up
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Personal selling
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Personal selling objectives
To do the entire selling job To service existing account To search out and obtain new customers To secure and maintain customer cooperation To keep customers informed on changes in the product line To assist customer in selling the product line. To provide technical advice and assistance To collect and report market information.
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Market potential:-A market potential is an estimate of the maximum possible sales opportunities present in a particular market segment and open to all sellers of a good or service during a stated future period. Sales potential:- a sales potential is an estimate of the maximum possible sales opportunities present in a particular market segment open to a specified company selling a good or service during a stated future period. Sales forecast:- a sales forecast is an estimate of sales, in rupees or unit, in a future period under a particular marketing program.
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Sales forecasting method
Jury of executive opinion The Delphi technique Poll of sales force opinion Projection of past sales -time series analysis -exponential smoothing -evaluation of past sales projection Survey of customer’s buying plan Regression analysis Economic model building and simulation
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Recruiting, Selection and Training of sales personnel
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Sources of sales force recruitment
Sources within the company -company sales personnel -company executive -internal transfer Source outside the company -direct unsolicited application -employment agencies -salespeople making call on the company -employees f customers -sales executive’s clubs -sales forces for competing co’s. -educational institutions
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A SELECTION SYSTEM Preliminary interview & Pre-Interview Screening.
Formal Application. Interview . References & Credit Check. Testing. Physical Examination. Employment Offer.
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AIMS OF SALES TRAINING Knowledge of the company
Knowledge of the company’s products Knowledge of the customers knowledge of the sale and other procedures Training in the art of selling or salesmanship
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Training methods for sales force
On the job method -demonstration and example Off the job methods -lectures -conference method -seminar -case study -role playing
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Personal sale supervision
Essentials of sales supervision establishing standards for performance Identifying and evaluating reasons for performance under or above the laid down standards. To adopt measures to correct deficiencies leading to the lower performance and evaluate method for for the improvement.
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Principle of personal supervision
Pragmatic Transparent Realistic Positive in spirit Informative Participative Flexible Specifics Cost effective
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Evaluating performance standard
Quantitative performance standards Quotas Selling expense ratio Gross margin ration Territorial market share Sales coverage effectiveness index Call-frequency ratio Calls per day Order call ratio Average cost per call Average order size Non-selling activities
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Compensating sales personnel
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Characteristics of a good compensation plan
A compensation plan must provide a living and fair wage. It should be integrated to the motivational programme. It should be fair ensure pay for equal work. Its should be easy to understand. It should be flexible enough to accommodate changes It should be economical to administer It should further the objective of sales orgn.
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Types of compensation plans
Straight salary plan Straight commission plan Combined salary and incentive plan Bonus Fringe benefits Psychic wages -make the salesman like you -respect his personal ego -allow him to participate
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Techniques of job evaluation
Simple ranking Job grading Point system -selection of job factors -construction of the yardsticks -evaluation of the job -wage survey -designing the wage structure -adjustment and operation of wage structure
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Steps in designing a compensation plan
Determine sales force and compensation objective Determine major compensation issues Implement long term and short-term compensation plans Relate rewards to performance Measurement of performance Appraise the compensation plan
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Motivating salesmen
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The factor influencing individual sales personnel to achieve given performance level
Nature of job Human nature Personal problem satisfaction motivation rewards effort Performance
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Dimensions of motivation
Intensity Persistence Direction
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Model of motivation process
Recognize need deficiency Search for ways to satisfy needs Establish goal directed behavior Performance Provide punishment or rewards Process needs
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Applications of various motivation theories
Using self-concept in motivating sales people Using Maslow’s theory Using Herzberg’s two factor theory Using McClelland theory Using expectancy model
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Non-financial factors and their impact on sales force motivation
Meeting between manager and sales force Clarity of job Sales contests Sales conference and conventions Positive feedback Reward and recognition persuasion
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Distribution Management
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Distribution system has two sub division
Channel of distribution- channel members such as mercantile agents, wholesalers, and retailers are middlemen in distribution and perform all marketing function. Physical distribution- looks after physical handling of goods and assures maximum customer services.
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Components of physical distribution
Distribution planning and accounting Inbound transport Receiving Inventory management In plant warehousing Order processing Packaging Dispatch of goods Outbound transport Field warehousing Customer service communication
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Function of physical distribution
Transportation management Inventory control Ware housing Packaging Material handling Order processing
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Importance of physical distribution management
Ever- increasing cost Broader scope of marketing The sales generating power Rising competitive demand Management science
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Climatic condition and distribution
Geographical factors affecting distribution – physical topographical and climatic condition. Territory selection -market –raw material and supplies –transportation facilities – manpower supply –infrastructure –legislation and taxation –climate Site / community selection community facilities –community attitudes –waste disposal –ecology and pollution –site size -topography –supporting industries and services –land cost.
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TRANSPORTATION
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Transportation Transportation attempts at fulfilling 3 R’s of physical distribution i.e. ensuring right product, at right time at right place. transportation attempts at solving this problem by ensuring that the product is moved as quickly and cost effectively and consistently as possible from point of value addition to point of consumption.
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Modes of transportation
Railways Water transport Road transport Airways
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Carrier’s liability The carriage of goods may take place either by land or by sea or by air. There are 3 categories of laws. Laws related to carriage by land Laws related to carriage by sea Laws related to carriage by air Laws related to carriage by LAND -The common carriers act 1865 -The Indian railways act 1890
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Definition carriers The party who undertake to carry the goods or people for payment is called carriers e.g. railway, aircraft company. Classification of carriers Common carriers Private carriers
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PACKING AND PACKAGING
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Elements are evaluating in packaging design.
Ease of packing or repacking at production line. Ease of closing or re-closing at these location Adaptability of product size, shapes, and structure. Adaptability to handling equipment Provision for manual handling without undue physical strain Accessibility for order picking from package. Provision for storing empty package and returning of used package. Vender capabilities design and service Cost of alternate packaging material and equipment
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The package design process
Briefing Agree procedure and price Fact finding Write the design platform Creative phase Consult suppliers First presentation Modification Test the design Final design phase Production design Seeing the job through
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Function of product’s package
Protecting the product Promoting to production line speed Promoting the product Increasing product density Facilitating the use of product Having re use value for the consumer
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Choosing the right materials
Protect the product adequately at low cost Have suitable handling characteristics Permit mechanized production, often at high speeds Have appropriate sales appeal
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Factors influencing the packaging material decision
Characteristics of the product Cost Destination Kind of transportation Climatic considerations Conditions of distribution and use Availability of the type of package Handling, stowage and storage consideration The second hand or re use value of the package
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