It has been defined as the management of a firm’s personal selling function while distribution is the management of the indirect selling effort i.e.selling through extra corporate organizations which form the distribution network of the firm. The sales management task thus includes analysis, planning, organizing, directing and controlling of the company’s sales effort.
Distribution (or place ) is one of the four elements of marketing mix. An organization or set of organizations (go-betweens) involved in the process of making a product or service available for use or consumption by a consumer or business user.
Distribution Management comprises management of channel institutions as well as physical distribution functions.
It is the sale and delivery of goods/services from the manufacturer to the consumer can be consummated directly i.e. by the firm itself through its own sales force or indirectly through a network of middleman such as wholesalers and retailers.
Essential tasks need to be performed in order to consummate successful exchange
Contact- finding and communicating with prospective buyer
Prospecting- Bringing together the marketers offering and the prospective buyer
Negotiation- Reaching an agreement on price and other terms of the offer so that ownership and possession can be transferred.
Promotion- Of the marketers offerings, and his satisfaction generating potential
Physical distribution- Actual transfer of possession
Collection- Of relevant consumers information and revenue in exchange of goods or services
All organizations use their own sales force or distribution network to reach out to their customers.Activities of the sales organization would have to be coordinated with channel operations if sales goals have to be effectively realized.
The decision of the organization to allocate certain responsibility in the exchange process to its channel members would define the scope of responsibility of its own sales force and thereby would determine the type of personnel and training required.
Even though, an organization may decide to deal directly with its wholesaler, semi wholesaler, retailer or consumer,it is required to decide upon the type of help it will provide to the first and subsequent level of intermediaries.
The choice before an organization to have direct distribution, indirect distribution or a combination of the two is of strategic importance and depends upon factors such as the degree of control, flexibility, costs and financial requirements etc.The scope of distribution would define that of the other.
To implement overall marketing strategy, the manufacturers need the cooperation of distribution outlets in terms of adequate stock maintenance, in-store displays, local advertising, point of purchase promotion.Within the corporation, the sales organization is the initiator as well as the implementer of these dealer support operations.This would mean that the sales management has the responsibility of structuring organizational relationship within their own department and with interacting organizational entities.
Key decision areas in Sales Management relevant to strategy formulation
Deciding upon type and quality of sales personnel required
Step1- Assessment of the competitive situation and the corporate goals to determine the output that sales management is expected to give.
Step2- Define sales management objectives in terms of delivering these outputs both quantitative and qualitative.
Step3- Design sales strategy by deciding upon: type of sales effort required, type of sales personnel required, size of the sales force, territory design, channel support & coordination
Framework for joint decision making in sales and distribution management Distribution channels Achievement of sales Goals through Company’s sales force Distribution channels Distribution channels Personal & Prospecting through Personal & Non-personal Promotion through Company’s sales force Company’s sales force
Framework for joint decision making in sales and distribution management Distribution channels Maintaining Inventory through Corporate organization Distribution channels Corporate sales organization Distribution channels Company’s own sales force Accounts Receivables through Information feedback through
BLOCK-1 SALES MANAGEMENT:BASIC FUNCTIONS UNIT-2 PERSONAL SELLING & UNIT-3 SALES PROCESS
The Personal Selling Process PROSPECTING: IDENTIFYING POTENTIAL CUSTOMERS Pre approach: QUALIFYING PROSPECTS APPROACHING THE PROSPECT FOLLOWING UP CLOSING THE SALE HANDLING OBJECTIONS MAKING THE SALES PRESENTATION
The advocates of this theory define that all the circumstances, which led to the sales were appropriate for the sales to have taken place. In other words, if the sales person is successful in securing the prospect’s attention, maintaining his interest and inducing his desire to buy the product, the sales will result. Moreover, if the sales person is highly skilled, he will take control of the presentation, which would lead to sales.
This theory emphasize on the buyer. This theory emphasizes on the needs or problems of the buyer.The sales person assist the buyer in finding an appropriate solution to the problem.This solution may be in terms of a product or service.This theory is based on the analysis of the sequence of events that goes in the buyer’s mind during the sales presentation.The theory is based on the presumption that the sales person will take care of the external factors.