Sales and Distribution Management: Lecturer Suraj Rouniyar Zenith International College

Sales and Distribution
Management
Lecturer
Suraj Rouniyar
Zenith International College
Introduction
Concept of Sales Management
• Sales encompasses all activities involved in selling a product or service
to a consumer or business.
• Sales management is the process of managing all the marketing
activities including advertising, sales promotion, market research,
physical distribution, pricing and product merchandising.
• Sales includes recruiting, training, motivating their sales personnel
Definition of sales management
• According to American Marketing Association (AMA)-
• Sales management as 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.
Distribution Management
• Distribution Management serves the primary function of ensuring that product or
services is made available to the consumer’s within an arm’s length of his/her
desire.
• Distribution management takes the of the availability and the visibility.
• It provides time, place and possession utility to the consumer
• It is the sales managers who decide the organization which is responsible for the
distribution effort
• Conclusion: Distribution management refers to the process of overseeing the
movement of goods from supplier or manufacturer to point of sale. It is an
overarching term that refers to numerous activities and processes such as
packaging, inventory, warehousing, distributors, retailers and final consumers
Personal Selling and Sales promotion
• Personal selling is when a salesperson meets a potential buyer or buyers face-to-face
with the aim of selling a product or service
• Personal selling is also known as face-to-face selling in which one person who is the
salesman tries to convince the customer in buying a product. It is a promotional
method by which the salesperson uses his or her skills and abilities in an attempt to
make a sale
• The salesperson tries to highlight various features of the product to convince the
customer that it will only add value
• However, getting a customer to buy a product is not the motive behind personal
selling every time
• Often companies try to follow this approach with customers to make them aware of a
new product
Sales Promotion
• Sales promotion is defined as activities which include advertising and
publicity aimed at stimulating consumer purchasing and effective
selling by dealers.
• Sales promotion includes free samples, a premium on sale and
incentive, contests, fairs and exhibitions, public relations activities etc.
• The basic purpose is to stimulate on the spot buying by potential
customers through short-term incentives.
Channel Institutions
• There are different channel institutions which are managed by sales
team.
• Channel institutions-Wholesalers, Retailers
Wholesaling- is concerned with the activities of those persons or
establishments that sell to retailers and other merchants and / or
industrial, institutional and commercial users but do not sell in large
amounts to consumers
Retailing- Any business entity selling to consumers directly is retailing
– in a shop, in person, by mail, on the internet, telephone or a vending
machine
Managing Channel Conflicts
Managing channel conflicts can be defined in three broad phases
1. Use of power bases
2. Identifying and resolving channel conflicts
3. Channel co-ordination
Uses of power bases
Channel system has a set of players:

• Not equally motivated to implement the ideal channel design
• Whose expectations from the system differ
Use of the 5 power bases brings diversity
• channel partners in line for effective implementation
• 5 power bases are: reward, coercion, legitimate, expert and referent
"Power” of Motivation
• Reward– incentives for good performance
• Coercion– threat of punishment for non-performance
• Referent– benefit of sheer association with a strong company
• Legitimate–arise out of a contract
• Expert- specialized knowledge
• Support -additional benefits for better performers only
Identifying and resolving channel conflicts
• Situation of discord or disagreement between partners in the same
channel system – has negative connotations and is driven more by
feelings than facts
• Each channel member wants to pursue his own goals
• Each wants to retain his independence
• There are limited resources which all of them want to utilize in
achieving their goals
Resolving channel conflicts
• Four stage process
1. Understanding nature and intensity
2. Tracing the sources of the conflict
3. Understand the impact of the conflict
4. Strategy and plan of action for resolution
Nature and Importance of Sales Management
The nature or characteristics of sales management can be explained by
a) Its integration with marketing management
b) Relationship selling
c) Varying sales responsibilities
Importance of Sales Management
• Sales management is the only function or department in an
organization that generates revenue
• Financial results of an organization depend on the performance of the
sales management
• Net profit or bottom line of a company is considered as good, if the
sales revenue or the top line is good
Objective of Sales Management
• Objectives are the statements of intents and when they are quantified
to specific and measurable targets with respect to time periods
• The sales objective and goals are derived from the company’s
marketing objectives and goals, which in turn depend on the
company’s (or corporate) objectives and goals
• The company’s objective is to increase revenue
• To decease sales expenses
• To increase market share
Relationship between sales and marketing
Varying Sales responsibilities/sales positions
CEO/
Presi
dent
Strategic/Top Level
VP Sales/V.P. Marketing Sales Leader/
Managers
National Sales Manager
Regional/Zonal/Divisional Sales Manager Tactical/Middle-level Sales Managers
Branch/Area/District Sales Manager Operational/First-level Sales Managers
Sales Trainee/Sales Person/Sales Representative

Varying Sales responsibilities/sales positions
1. Top level(Strategic) Sales Mangers
2. Middle (Tactical) Sales Managers
3. First-Line (Operational) Sales Managers
• Top-Level (Strategic) Sales Mangers
The highest level in sales management is often called vice president (Sales), or National Sales
Manager. They are responsible for long-term marketing/Sales planning including external
environment, setting long term and short-term objectives and goals, developing strategies for
achieving them.
• Middle-Level (Tactical) Sales Managers
These positions mostly carry the title of regional, zonal or divisional sales manager whose
major responsibilities are to manage several branches or districts reporting to them and also to
implement the strategies and action plans approved by the top management
• First-Level (Operational) Sales Managers
This is the first level of sales management with titles such as branch sales managers, area sales
managers or districts sales managers. Sales Training Manager, customer service manager, or
sales co-ordination manager are some of the examples of staff sales management positions
Elements of market logistic management and
Supply Chain Management
1. Minimum Inventory level
2. Rapid Response
3. Customer order cycle
4. After Sales Services
5. Competitive Advantage

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Sales and Distribution

Channel system has a set of players:

National Sales Manager

Regional/Zonal/Divisional Sales Manager Tactical/Middle-level Sales Managers

Branch/Area/District Sales Manager Operational/First-level Sales Managers

Sales Trainee/Sales Person/Sales Representative

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