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CHAPTER 1
Introduction
The word sales management is a combination of two words- sales and management. Sales is the art of
planning in the mind of another a motive which will induce favourable action. The committee of American
Marketing Association has defined it as- “Selling is the personal or impersonal process of assisting and or
persuading a prospective customer to buy a commodity or a service or to act favourably upon an idea that
has commercial significance to the seller.”
On the other hand controlling is any common activity to achieve a per determined goal. Hence, “sales
management is the planning, direction and control of selling of business unit including recruiting, selecting,
training, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to the
personnel of sales force”.
Sales management originally referred exclusively to the direction of the sales force. Later the term took on
broader significance in addition to the management of personal selling.
Sales management meant all marketing activities, including advertising, sales promotion, marketing
research, physical distribution, pricing and product merchandising.
According to the definition committee of the American marketing association sales management meant “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 sales force”.
Many believed that marketing would make sales superfluous ultimately. But this belief proved wrong. The
sunrise sectors like insurance, financial products, information technology are all sales driven. In this age of
commodity brands and mass retailing even traditionally marketing-driven industries like FMCG and white
goods have rediscovered sales.
Initially, sales management was equated with salesforce management. As time rolled on, sales management
became broader. Apart from the management of personal selling, it encompassed other marketing activities
like advertising, sales promotion, marketing research, physical distribution, pricing, merchandising and so
on. However, the comprehensive broad function later got labelled as “Marketing Management. “Sales
management, according to the above definition, is the management of the salesforce. This is a personnel-
type function.
Sales management also organizes the selling effort. To do so, it creates a suitable organisational structure,
with appropriate communication system. Sales management interfaces with the distribution channels, and
external publics.
Sales management provides critical inputs for the key marketing decisions like budgeting, quotas and
territory management. Sales management interfaces with other marketing functions while policies of these
functions are being formulated According to Zoltners, Sinha and Lorimar (Building a Winning Salesforce),
the sales process is the most dynamic corporate undertaking. Market conditions constantly change, as do
customers’ wants, needs and expectations. A company’s salesforce must be equally dynamic to stay
competitive. Therefore, business now invests enormous sums to develop their sales departments.
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Meaning-
Sales is the only function in an organization that generates revenue or income for a company and hence it
needs to be managed properly. The financial results of a company depend upon the performance of the sales
department.
There are couple of aspects observed that should be motivating for the potential sales people. The first is
that sales people are ‘often the best paid people in the business and sales is often considered the fastest and
surest route to top management.
It is important for organizations to develop and maintain an effective sales force. This is because a sales
manager is not only entrusted with managing the sales force to derive target-based sales outcomes but also
perform managerial functions comprising planning the sales efforts and organizing, directing, motivating,
coordinating, and controlling the sales force to achieve sales goals. Sales management operates within the
periphery of marketing management. In a broad sense, marketing management decides the role of various
promotional activities including personal selling.
Definition –
According to American Marketing Association, sales management is “the planning, direction and control of
professional selling including recruiting, selecting, equipping, assigning, routing, supervising, paying and
motivating to the personal sales force.” It is also often referred to as management of the personal selling part
of a company’s marketing function.
According to B.R. Canfield “Sales Management involves the direction and control of salesmen, sales
planning, Budgeting, policy making, coordination of marketing research, advertising, sales promotion and
merchandising and The integration in the marketing programme of all business activities that contribute to
the increased sales and Profits.”
Hain- R. Tosdal. -Sales Manag Ement is the part of the management in which the aim of an Organisation is
to make provision for the sale of the produced commodities
4.Performance Monitoring: It allows for continuous monitoring of sales performance, enabling adjustments
to tactics and strategies to meet changing market conditions.
5.Team Development: Through proper sales management, the sales team can be trained, motivated, and
guided to improve skills, productivity, and morale.
6.Market Adaptation: Sales managers gather market insights from their team and customers, helping the
business adapt to new trends, customer needs, and competitor actions.
7.Resource Allocation: It ensures that the right resources (time, effort, budget) are allocated to high-potential
opportunities, maximizing sales effectiveness.
8.Forecasting and Planning: Sales management helps in accurate forecasting and strategic planning, which is
essential for inventory management, marketing, and financial planning.
Overall, effective sales management ensures a structured, disciplined approach to selling, which enhances
both short-term performance and long-term business sustainability.
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CHAPTER 2
Distribution network –
A distribution network can be seen as the flow of goods from a producer or supplier to an end consumer. The
network consists of storage facilities, warehouses, and transportation systems that support the movement of
goods until they reach the end consumer. The process of ensuring the consumer receives the product from
the manufacturer is done through direct sales or by following a retail network. Depending on the size of an
enterprise or business, distribution networks vary in structure and size. Companies like Amazon or Apple are
likely to own more sophisticated and complicated distribution networks, transportation, and logistics
systems. When defining the structure of a distribution network, the most crucial factors are the product
demands of the end customer, customer experience, product variety and product availability, response time,
and finally, product return ability. A distribution network can be seen as the flow of goods from a producer
or supplier to an end consumer. The network consists of storage facilities, warehouses, and transportation
systems that support the movement of goods until they reach the end consumer. When defining the structure
of a distribution network, the most crucial factors are the product demands of the end customer, customer
experience, product variety and product availability, response time, and product return ability.
The distribution of networks In marketing refers to the various channels, pathways, or networks through
which a company delivers its products or services to consumers. Several authors and scholars have defined
and analyzed this concept in different ways, often relating it to the role of marketing channels, supply chain
management, and distribution strategies. Below are a few perspectives:
Meaning –
A distribution network is a system of storage facilities and transportation systems that moves goods from a
manufacturer to the end consumer. A distribution network is the process of distributing goods within an
interconnected group of storage facilities through the interconnection of transportation mode. Each facility
performs specialised duties to facilitate the delivery of goods to the final consumer.
Definition –
1.Stern and El-Ansary -They see distribution channels as both physical and virtual networks through which
products are transferred from producers to consumers. Their work often emphasizes logistics and supply
chain management within the distribution networks, focusing on efficiency and effectiveness.
2. Rosenbloom In his book Marketing Channels: A Management View, Rosenbloom emphasizes the
management of distribution channels and networks in marketing. He describes the marketing channel as a
“network of intermediaries” that work together to move products from producers to consumers efficiently
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the flow of goods, reduce bottlenecks, and ensure that products are available when and where they are
needed.
9. Market Information and Feedback - Distribution networks provide businesses with valuable insights into
customer preferences, market trends, and feedback. By working closely with distributors, retailers, and other
intermediaries, companies can gather real-time data on sales patterns, consumer behaviour, and inventory
needs, which can then be used to improve product offerings, marketing strategies, and supply chain
operations.
10. Risk Mitigation- A diversified and well-organized distribution network helps businesses spread risk. By
relying on multiple distribution channels (e.g., physical stores, online platforms, wholesalers), companies are
less vulnerable to disruptions in any single channel. For instance, if a particular retailer faces supply chain
challenges, other channels can still continue to distribute products, minimizing the risk of revenue loss.
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A distribution network performs several critical functions to ensure the effective and efficient movement of
products from producers to consumers. These functions help streamline supply chain operations, optimize
the flow of goods, and improve customer satisfaction. Here are the key functions of a distribution network:
1. Transportation - The primary function of a distribution network is the physical transportation of
goods from the point of production (manufacturer) to various intermediaries (warehouses,
distributors, retailers) and ultimately to the end consumer. This involves choosing the most
appropriate transportation methods, such as road, rail, air, or sea, depending on the nature of the
product and the distance to be covered.
2. Warehousing and Storage - Distribution networks include warehousing facilities where goods are
stored before they are moved to their final destination. Warehouses help maintain a steady inventory
supply to meet market demand, ensuring that products are available when customers need them. In
some cases, warehouses also handle product sorting, packaging, and labelling.
3. Inventory Management - An important function of a distribution network is managing inventory at
various points along the supply chain. This involves monitoring stock levels, ensuring the right
quantities are available to meet demand, and minimizing excess inventory to reduce storage costs.
Efficient inventory management prevents both stock outs (when products are unavailable) and
overstocking (when excess inventory leads to higher costs).
4. Order Processing and Fulfilment- A key function is processing customer orders and ensuring they are
fulfilled accurately and efficiently. This includes receiving orders, verifying product availability,
preparing the order for shipment, and coordinating the delivery process to ensure timely arrival at the
customer’s location.
5. Demand Forecasting- Distribution networks play a crucial role in demand forecasting, helping
businesses predict future demand for products. This involves analysing sales data, market trends, and
customer behaviour to estimate how much inventory is needed in different regions or channels.
Accurate demand forecasting helps in maintaining optimal stock levels and reduces the risk of
overproduction or underproduction.
6. Channel Management - Distribution networks involve coordinating and managing different
distribution channels, such as direct sales, retail outlets, wholesalers, e-commerce platforms, and.
This ensures that products are distributed across the appropriate channels based on customer needs,
market trends, and business goals. Effective channel management helps optimize sales and market
reach.
7. Communication and Coordination- A well-functioning distribution network ensures clear
communication and coordination between various stakeholders, including manufacturers,
distributors, suppliers, logistics providers, and retailers. This coordination ensures that everyone
involved is aware of order statuses, inventory levels, and delivery timelines, leading to smoother
operations.
8.
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1. Wider Market Reach- Distribution networks enable businesses to extend their reach to broader
geographic regions, including areas that may not be accessible directly. By partnering with local
distributors, retailers, and wholesalers, businesses can tap into new markets, both locally and
internationally, and increase their customer base.
2. Cost Efficiency - An effective distribution network can lower operational costs by optimizing the
transportation, storage, and handling of goods. The use of intermediaries and regional warehouses
helps in consolidating shipments, reducing transportation costs, and ensuring cost-effective inventory
management.
3. Improved Delivery Speed - Distribution networks facilitate faster delivery times, ensuring that
products reach consumers or retailers quickly. Efficient transportation logistics, strategic warehouse
locations, and multiple distribution channels help minimize delays, especially in industries where
prompt delivery is crucial, such as e-commerce and perishables.
4. Enhanced Customer Satisfaction - A reliable distribution network ensures that products are available
when and where customers need them. When products are delivered on time and without
complications, customer satisfaction increases. Consistently meeting or exceeding customer
expectations strengthens brand loyalty and reputation.
5. Risk Diversification - By using multiple distribution channels (e.g., direct sales, retail outlets, online
platforms), businesses reduce their dependence on any single channel. This diversification helps
mitigate risks like supply chain disruptions, shipping delays, or failures in specific distribution
outlets.
6. Better Inventory Management- An organized distribution network can lead to more efficient
inventory management. By optimizing inventory levels at various points in the supply chain,
businesses can reduce the risks of both overstocking and stock outs. This leads to better forecasting,
order fulfilment, and inventory turnover.
7. Increased Sales and Profitability - With greater availability of products in different regions and
across various channels, businesses can drive higher sales volumes. Increased product availability
can lead to more frequent purchases, ultimately enhancing overall profitability. Well-placed
distribution networks help businesses get the right products to the right places at the right times,
driving more revenue.
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customer. This is the most common type of distribution network, especially for businesses that need
to reach a large, diverse customer base.
3. Selective Distribution Network- In a selective distribution network, the manufacturer chooses a
limited number of intermediaries or retailers to sell the product. This type of network is often used
for products that require a higher level of customer service or that target a specific market segment
(e.g., luxury goods or high-end electronics).
4. Exclusive Distribution Network- In an exclusive distribution network, the manufacturer grants
exclusive rights to a single or very few intermediaries to distribute the product in a specific
geographic region or market. This strategy is commonly used for premium, luxury, or highly
specialized products that require close collaboration with the distributor.
5. Multi-Channel Distribution Network -In a multi-channel distribution network, businesses use a
combination of several distribution methods (e.g., direct and indirect) to reach different customer
segments. This network is commonly used by businesses that want to maximize their reach by
engaging with customers through a variety of channels (e.g., physical stores, e-commerce platforms,
and direct sales).
6. . Digital/E-Commerce Distribution Network - With the growth of e-commerce, digital distribution
networks have become increasingly important. Products are sold directly to consumers via online
platforms, often bypassing physical intermediaries. This model is especially common in industries
like retail, technology, and entertainment.
A distribution network is essential for businesses for several key reasons, as it plays a vital role in efficiently
moving products from manufacturers or suppliers to the end consumers. Here are the main needs and
benefits of having a robust distribution network:
1. Efficient Delivery of Goods- A well-structured distribution network ensures that products are
delivered to retailers, wholesalers, or directly to consumers in a timely and cost-effective manner. It
minimizes delays and ensures goods reach their destination quickly, improving customer satisfaction.
2. Cost Efficiency- By optimizing transportation routes, warehousing, and inventory management, a
distribution network helps reduce operational costs. It allows businesses to balance supply and
demand effectively, avoiding overstocking and minimizing waste.
3. Market Expansion- A strong distribution network enables businesses to expand their reach into new
geographic areas and markets. It provides the infrastructure needed to serve remote locations and
grow customer bases in different regions.
4. Customer Service and Satisfaction- A reliable distribution network helps businesses meet delivery
timelines and ensures products are always available where needed. Quick and accurate deliveries
lead to higher customer satisfaction, enhancing brand loyalty.
5. Inventory Management - An efficient distribution network improves inventory control, helping
businesses maintain the right levels of stock across different locations. It reduces the risk of stock
outs or excess inventory, ensuring smooth supply chain operations.
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6. Competitive Advantage- A business with a robust distribution network can respond faster to market
demands and outpace competitors. It ensures that products are available to consumers sooner,
providing a competitive edge in the market.
CHAPTER 3
Company Profile
Name – JSW Cement LTD
Owner Name – Chandrakant Jahganure
AGE – 47
Establishment – 2017
Founder – Chandrakant Jahganure
Education – B.COM
Location – Market yard Gadhinglaj
Product – Cement, AAC Blogs, Tiles adivise, Paints
Employees – 1- Manager, 1- CA, 8 Labours
Turn over – 2 lakh monthly
Phone number - 7756934088
Objectives of company –
The overall objective of the company is more round quality products
1. To increase the distribution channel of JSW Cement ltd.
2. Increase sales volume
3. Development of distribution network
4. Improve customer services
5. To build good relationship with Dealers & customers.
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1. Cement
2. AAC Blogs
3. Tiles Adivise
4. Paints
Area of operations -
Chandgard
Ajara
Gadhinglaj
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12. How do you ensure time delivery to your retailers and customers?
The time of delivery is ensure by how far is the location of delivery made .and how much time it will
take .
13. How do you handle customers complaint or issue related to distribution?
By understanding them what problem is regarding product or delivery’s and trying to solve it .and
provide better service to them. So the relationship does not get broken
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Conclusion
In conclusion it is said that the service provided to customers and retailers are satisfied. And it is
concluded that feed backs are taken from the customer so that they can develop their promotional
activity and service to customers . the service is provided to customer for free delivery of the products .
and it is said that they provide fast delivery services on based on locations how far it is . and it say that
the cement sold by company is good for constructions works and good quality. And it is concluded that
they want expand their distribution more widely around the regions etc…
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Bibliography
Reference books:
1. Author : Sunil Sahadev
Book : Sales and distribution management
2. Author : prof . Abhishek Rai
Book : Sales and distribution management
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