1. Sales and Distribution Management
Mr. Ankit Bajpai
By: Ankit Bajpai 1

2. Nature of Personal Selling
Most salespeople are well-educated, well-trained professionals who work to build and maintain long-term relationships with customers.
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 educating buyers)
By: Ankit Bajpai

3. What is Personal Selling?
Involves Two-Way, Personal Communication Between Salespeople and Individual Customers Whether:
face to face,
by telephone,
through video conferencing,
or by other means.
By: Ankit Bajpai

4. The Role of the Sales Force
Personal selling is effective because salespeople can:
probe customers to learn more about their problems,
adjust the marketing offer to fit the special needs of each customer,
negotiate terms of sale, and
build long-term personal relationships with key decision makers.
By: Ankit Bajpai

5. The Role of the Sales Force
Represent the Company to Customers to Produce Company Profit
Sales Force
Serves as a Critical Link
Between a Company and its Customers Since They:
Represent Customers to
the Company to Produce Customer Satisfaction
By: Ankit Bajpai

6. Characteristics of Personal Selling
Flexibility
Identify best prospects
Adapt to situations
Engage in dialogue
Builds Relationships
Long term
Assure buyers receive appropriate services
Solves customer’s problems
By: Ankit Bajpai 6

7. Personal Selling Limitations
Can not reach mass audience
Expensive per contact
Numerous calls needed to generate sale
Labor intensive
By: Ankit Bajpai 7

8. Personal Selling Tasks
Order taking
Routine
writing up orders
checking invoices
assuring prompt order processing
Suggestive selling
By: Ankit Bajpai

9. Personal Selling Tasks
Order getting
Seeking out customers
Creative selling
Pioneering
Account management
By: Ankit Bajpai

10. Personal Selling Tasks
Missionary
Detailer
Goodwill
“Closers”
Cross-functional
Account service rep
By: Ankit Bajpai 11

11. Some Traits of Good Salespeople
Persistence
Enthusiam
Job Commitment
Self-Confidence
Initiative
By: Ankit Bajpai

12. Steps in the Selling Process
Step 1. Prospecting and Qualifying
Steps in the Selling Process
Step 2. Pre-approach
Identifying and Screening For Qualified Potential Customers.
Step 3. Approach
Learning As Much As Possible
About a Prospective Customer
Before Making a Sales Call.
Step 4. Presentation/ Demonstration
Knowing How to Meet the Buyer
to Get the Relationship Off
to a Good Start.
Telling the Product “Story”
to the Buyer, and Showing the
Product Benefits.
By: Ankit Bajpai

13. Steps in the Selling Process
Step 5. Handling Objections
Steps in the Selling Process
Step 6. Closing
Seeking Out, Clarifying, and Overcoming Customer Objections to Buying.
Asking the Customer
for the Order.
Step 7. Follow-Up
Following Up After the Sale to
Ensure Customer Satisfaction
and Repeat Business.
By: Ankit Bajpai

14. Alternative Steps: Find ’em Sell ‘em Keep ‘em Grab ‘em Show ‘em
Answer ‘em
Sell ‘em
Keep ‘em
By: Ankit Bajpai

15. Creative Selling Process
Identify and Qualifying Prospects
Prospecting: Identifying likely new customers
Leads
Qualifying: Evaluating a prospect’s potential
By: Ankit Bajpai

16. Creative Selling Process
Approaching the Prospect
Contact
Rapport
“Only one chance to make a first impression”
By: Ankit Bajpai

17. Creative Selling Process
Sales Presentation
Persuasive communication
Attention
Interest
Desire
“Tell the product’s story”
By: Ankit Bajpai

18. Creative Selling Process
Handling Objections
Questions
Reservations
Understand Concern
Counterarguments
Acknowledge concern
Clues to process
By: Ankit Bajpai

19. Creative Selling Process
Closing the Sale
Closing signals
Trial close
Ask for the sale
By: Ankit Bajpai

20. Creative Selling Process
Following Up
Commitments met
Shipment
Performance
Reinforce relationship
Satisfied customers rebuy & recommend
By: Ankit Bajpai

21. Sales Management Planning Organizing Controlling Directing Setting
objectives
Organizing
activities
Organizing
Controlling
Recruit, select, train, develop, manage, &
motivate
Directing
Motivate,
evaluate,
& control
By: Ankit Bajpai

22. Organizing Sales Activities
Sales Territory:
Geographic divisions
Customer types
Product lines
Selling task
By: Ankit Bajpai

23. Geographic Division By: Ankit Bajpai www.uptunotes.com Vice-President
Marketing
Regional Sales
Manager
District Sales
Manager
Sales Rep
California
Pacific NW
Southeast
Northeast
By: Ankit Bajpai

24. Customer Type By: Ankit Bajpai www.uptunotes.com Vice-President Sales
New Accounts
Manager
Existing Accounts
New Account #1 #2
Existing
Account #1
Account #2
By: Ankit Bajpai

25. Product Line By: Ankit Bajpai www.uptunotes.com Vice-President Sales
Snack Foods
Sales Manager
Beverages
Sales Rep
Eastern Region
West’n Region
Sales rep
By: Ankit Bajpai

26. Directing the Sales Force
Recruiting and selecting
Training & develop
Compensating
Motivating
By: Ankit Bajpai

27. Compensation Methods Straight salary or wage Salary plus commission
Quota-bonus
plan
Commission
with draw
By: Ankit Bajpai

28. Evaluation and Control
Required reports
Measurement against plan or sales standards
Expense control
Productivity
New account development
By: Ankit Bajpai 30

29. Ethical Issues Kickbacks, bribes and “gifts” Price discrimination
Cheating on expense accounts
Misrepresentation
By: Ankit Bajpai 31

30. Distribution Channel Design
and Management
By: Ankit Bajpai

31. Distribution’s Function
The major purpose of marketing is to satisfy human needs by delivering products of various types to buyers when and where they want them and at a reasonable cost.
The “when and where” is the function of Distribution
By: Ankit Bajpai 2

32. What is a Distribution Channel?
A set of interdependent organizations (intermediaries) involved in the process of making a product or service available for use or consumption by the consumer or business user.
Marketing Channel decisions are among the most important decisions that management faces and will directly affect every other marketing decision.
By: Ankit Bajpai

33. Why are Marketing Intermediaries Used?
The use of intermediaries results from their greater efficiency in making goods available to target markets.
Offer the firm more than it can achieve on it’s own through the intermediaries:
Contacts,
Experience,
Specialization,
Scale of operation.
Purpose: match supply from producers to demand from consumers.
By: Ankit Bajpai

34. Distribution PRODUCER CONSUMER DISTRIBUTION
By: Ankit Bajpai 3

35. Distribution Channel Functions
Information
Distribution Channel Functions
Transfer
Communication
Payments
Negotiation
Physical
Distribution
Ordering
Risk Taking
Financing
By: Ankit Bajpai

36. Typical Channels of Distribution
ANUFACTURER
ONSUMER
GENT
ETAILER
HOLESALER
By: Ankit Bajpai 14

37. Business-to-Business Channels
Direct
Wholesaler
Agent
By: Ankit Bajpai 21

38. Business-to-Business Channel Trends
Disintermediation
Infomediaries & Vertical Exchange
By: Ankit Bajpai 21

39. Conventional Distribution Channel vs. Vertical Marketing Systems
Manufacturer
Manufacturer
Wholesaler
Wholesaler
Retailer
Retailer
Consumer
Consumer
By: Ankit Bajpai

40. Common Ownership at Different
Corporate
Common Ownership at Different
Levels of the Channel
Types of Vertical Marketing Systems
Administered
Leadership is Assumed by One or
a Few Dominant Members
Contractual
Contractual Agreement Among
Channel Members
By: Ankit Bajpai

41. Vertical Marketing Systems
Corporate systems - total ownership
Contractual - legal relationships
Administered - strong leadership
By: Ankit Bajpai 23

42. Planning the Channel of Distribution
Determining the structure
Marketing mix strategy
Organizational resources
External environmental factors
Market characteristics
Consumer preferences and behavior
The nature and availability of Intermediaries
Other environmental factors
By: Ankit Bajpai 26

43. Customers’ Desired Service Levels
Lot size
Waiting time
Spatial convenience
Product variety
Service backup
By: Ankit Bajpai

44. Steps in Distribution Planning
By: Ankit Bajpai

45. Choosing a Distribution System
Intensive
Distribution
Exclusive
Selective
Intensity
By: Ankit Bajpai

46. Intensive Distribution
Producer
Seeks to obtain maximum product exposure at the retail level
Retailer
By: Ankit Bajpai

47. Selective Distribution Product is sold in a limited number of outlets
Producer
Product is sold in a limited number of outlets
Retailer
By: Ankit Bajpai

48. Exclusive Distribution
Producer
Product is sold in only one outlet in a given area
Retailer
By: Ankit Bajpai

49. Developing Distribution Tactics
Selecting Channel Partners
Managing the Channel of Distribution
Channel Leader Power
Developing Distribution Tactics
Distribution Channels & the Marketing Mix
Economic
Power
Legitimate
Power
Reward or
Coercive
Power
By: Ankit Bajpai

50. Physical Distribution
Order Processing
Received
Processed
Shipped
Inventory
Control
When to order
How much to order
Physical DistributionFunctions
Warehousing
Number Needed
Where
What Type
Transportation Rail, Water, Trucks, Air, Pipeline, Internet
Materials Handling
Moving Products Into,
Within, and
Out of Warehouses
By: Ankit Bajpai

51. Transportation Modes By: Ankit Bajpai www.uptunotes.com Rail Water
Cost-effective for shipping bulk products,
piggy-back, fishyback, birdyback.
Water
Low cost for shipping bulky, low-value,
non perishable goods, slowest form.
Truck
Most important carrier for consumer
goods, flexible.
Air
High cost, ideal when speed is needed or
distant markets have to be reached
Pipeline
Carry petroleum based products,
very low cost, requires little energy.
Internet
Web sites have products available, used
especially for services.
By: Ankit Bajpai

52. Channel Relationships
Cooperation
Conflict
Power
Coercive
Expert
Legitimate
By: Ankit Bajpai 28

53. Decision Making Framework
Prospects of Destructive Conflict
Importance of threatened
channel in terms of current or potential volume or profitability
High Low
High (FIRE)
Act to avert or address conflict
Allow threatened channel to decline
Low (Smoke)
Look for opportunities to reassure threatened channel and leverage your power
Do nothing
By: Ankit Bajpai

54. Channel Conflict: Identifying Threats
First, are the channels really attempting to serve the same end users?
Second, do channels mistakenly believe they are competing when in fact they are benefiting from each other's actions?
Third, is the deteriorating profitability of a griping player genuinely the result of another channel's encroachment?
Fourth, will a channel's decline necessarily harm a manufacturer's profits?
By: Ankit Bajpai

55. Managing Channel Conflict
WHEN TWO OR MORE CHANNELS TARGET THE SAME CUSTOMER SEGMENT
Differentiate the Channel offer
Define Exclusive Territories
Enhance or Change the Channels Value
By: Ankit Bajpai

56. Managing Channel Conflict
CHANNEL ECONOMICS DETERIORATE
Change the channels economic formula: (Grant rebates if an intermediary fulfill certain requirements; Adjust margins between products to support different channel economics; and Treat channels fairly to create level playing field)
Create Segment Specific Programs (certain services not available via direct channels)
Complement value proposition of the existing channel by introducing a new channel
Foster consolidation among intermediaries in a declining channel
By: Ankit Bajpai

57. Managing Channel Conflict
THREATENED CHANNEL STOP PERFORMING OR RETALIATE AGAINST THE SUPPLIER
Leverage Power (eg. Strong Brand) against the channel to prevent retaliation
Migrate volume to winning channel
Back off
By: Ankit Bajpai

58. Other Distribution Management Issues
Reverse distribution
One Coca Cola Distributor
One thousand retailers OK
Difficult
Ethical, Political, & Legal
By: Ankit Bajpai 29