1.
Sales and Distribution
Management

2.
SALES MANAGEMENT
The only business function that
generates revenue.

3.
LEARNING OBJECTIVES
 To
understand evolution, nature and
importance of sales management
 To know role and skills of modern sales
managers
 To understand types of sales managers
 To learn objectives, strategies and tactics of
sales management
 To
know emerging trends in sales
management
 To understand linkage between sales and
distribution management

4.
EVOLUTION, NATURE AND IMPORTANCE OF
SALES MANAGEMENT
Evolution of Sales Management
 Situation before industrial revolution in U.K.
(1760AD)
 Situation after industrial revolutions in U.K., and
U.S.A.
 Marketing function splits into sales and other
functions like market research, advertising,
physical distribution

5.
WHAT IS SALES MANAGEMENT?
definition: “The management of the
personal selling part of a company‟s
marketing function.”
 One
definition: “The process of
planning, directing, and controlling of
personal selling, including recruiting,
selecting, equipping, assigning, supervising,
paying, and motivating the personal sales
force.
 Another

6.
NATURE OF SALES MANAGEMENT

Its integration with marketing management
HeadMarketing
ManagerPromotion
Manager –
Market
Research
Manager –
Sales
Manager –
Market
Logistics
Manager –
Customer
Service
• Relationship Selling
Transactional
Relationship
Selling
Value – added Collaborative
/ Relationship / Partnering
Selling
Relationship
Selling
/
/

7.
RELATIONSHIP SELLING

Salespeople concentrate their team selling efforts
on building trust and service on a few carefully
selected customers over a long period with a aim of
becoming a preferred or sole supplier

8.



Transactional Relationship / Selling:- one type of
relationship marketing in which salespeople make onetime sales to price-oriented customers ,who are not
contacted again
Value – added Relationship / Selling:- understanding
current and future needs of customers and meeting those
needs better than competitors with value – added
solution to their problems
Collaborative relationship :- a type of relationship
marketing in which a selling organization works
continuously with its large customers to improve the
customer performance in terms of operations , sales and
profit

9.

Varying Sales Responsibilities / Positions / Jobs
Sales Position
Brief Description
Examples
• Delivery salesperson
• Delivery of products to business • Milk, newspapers to households
customers or households.
• Also takes orders.
• Soft drinks, bread to retail stores.
• Order taker (Response selling)
• Inside order taker
• Pharma products’ orders from
nursing homes.
• Telemarketing salesperson takes
orders over telephone
• Food, clothing products’ orders
• Outside order taker. Also from retailers
performs other tasks
• Sales support
• Missionary selling
• Technical selling
• Provide
information,
build • Medical reps. in pharma industry
goodwill, introduce new products
• Technical information, assistance • Steel, Chemical industries
• Order-getter (Creative, Problem- • Getting orders from existing and • Automobiles,
refrigerators,
solving, Consultative selling)
new household consumers
insurance policies
• Getting orders from business • Software and business solutions
customers, by solving their
business and technology problems

10.
IMPORTANCE OF PERSONAL SELLING AND
SALES MANAGEMENT
 The
only function / department in a
company that generates revenue / income
 The financial results of a firm depend on the
performance of the sales department /
management
 Many salespeople are among the best paid
people in business
 It is one of the fastest and surest routes to
the top management

11.
ROLES AND SKILLS OF A MODERN SALES
MANAGER
Some of the important roles of the modern sales
manager are:
•
•
•
•
•
•
A member of the strategic management team
A member of the corporate team to achieve objectives
A team leader, working with salespeople
Managing multiple sales / marketing channels
Using latest technologies (like CRM) to build superior
buyer-seller relationships
Continually updating information on changes in
marketing environment

12.
SKILLS OF A SUCCESSFUL SALES
MANAGER
 People
skills include abilities to motivate,
lead, communicate, coordinate, teamoriented relationship, and mentoring
 Managing
skills consist of planning,
organizing, controlling and decision making
 Technical skills include training, selling,
negotiating, problem-solving, and use of
computers

13.
TYPES OF SALES MANAGERS / LEVELS OF
SALES MANAGEMENT POSITIONS
CEO /
President
V. P. Sales /
V. P. Marketing
Top-Level Sales Managers /
Leaders
National Sales Manager
Regional / Zonal / Divisional
Sales Managers
District / Branch / Area Sales Managers
Sales Trainee / Sales Person / Sales Representative
Middle-Level Sales Managers
First / Lower Level Sales Managers

14.
SALES TERRITORIES
 Definition
: A sales territory consists of
existing and potential customers
assigned to a sales person. The territory
may or may not have geographic
boundaries.

15.
REASONS FOR TERRITORIES
 Increase
/ improve customer coverage
 Control selling expenses
 Effective evaluation of salesman‟s
performance.
 Improve customer relations

16.
TERRITORY DESIGN

1.
2.
3.
4.
Main procedural steps:
Selection of a basic geographical control unit
Determination of sales potential present in each unit
Combining the basic units into tentative territories
Adjust for differences in coverage difficulty and
readjust the tentative territories ( build up / break
down method )

17.
SALES OBJECTIVES, STRATEGIES
AND TACTICS
The main components of planning in a company are
objectives, strategies and tactics. Their relationship
is shown below
Decide / Set
Objectives
Develop Strategies
Evolve Tactics /
Action Plans
E.G. A company wants to increase sales of electric
motors by 15 percent, as one of the sales
objectives.

18.
TO ILLUSTRATE THE RELATIONSHIP BETWEEN SALES
OBJECTIVES, STRATEGIES AND TACTICS, CONSIDER:
Sales Goals /
Objectives
Increase
sales volume
by 15
percent
Marketing
Strategy
Enter export
markets
Sales and Distribution Strategy
Identify the countries
Decide distribution channels
Penetrate
existing
domestic
markets
Review
and
improve
salesforce training, motivation
and compensation
Use effective and efficient
channels
Tactics /
Action plans
Marketing / sales head to get
relevant information
Negotiate
and
sign
agreements in 3-5 months
with intermediaries
Add channels and members
Train
salespeople
in
deficient areas
Train field salesmanagers in
effective supervision
Link sales volume quotas to
the incentive scheme of the
compensation plan

19.
EMERGING TRENDS IN SALES MANAGEMENT
 Global
perspective
 Revolution in technology
 Customer relationship management (CRM)
 Salesforce diversity
 Team selling approach
 Managing multi-channels
 Ethical and social issues
 Sales professionalism

20.
LINKING SALES AND
DISTRIBUTION MANAGEMENT
Either sales management or distribution management
cannot exist, operate or perform without each other
 To achieve the sales goals of sales revenue and growth, the
sales management plans the strategy and action plans
(tactics), and the distribution management has the role to
execute these plans


21.
ROLE OF DISTRIBUTION MANAGEMENT FOR SOME OF THE
SALES MANAGEMENT ACTIONS / TASKS
Sales Management Actions /
Tasks
Distribution Management Role
Strategy for effective coverage
of markets and outlets
Follow call plan / beat plan
Make customer call productive
Use multi-channel approach
Strategy for handling customer
complaints
Prompt action at the customer interface level
If the problem persists, involve senior sales and
service people
Planning of local advertising
and sales promotion
Co-ordination with distribution channels
Responsibility of execution with distribution
channels
Expenses are shared between the company and
intermediaries

22.
SALES MANAGEMENT

Planning, direction and control of personal selling
including recruiting, selecting, training, equipping,
assigning, supervising, compensating and
motivating as these tasks apply to the personal
sales force.
22

23.
SALES MANAGEMENT
Management of the personal selling task.
 Is there anything like „impersonal selling‟ or „nonpersonal‟ selling?
 Selling is an exchange transaction. Exchange of
Product or service for money
 Money is the revenue or the earnings of an enterprise
often called „turnover‟ or „top line‟
 Sales therefore is the only revenue generating
function in an enterprise.

23

24.
Line Sales Organization structure
Head –Marketing
Sales Manager
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force
Sales Force
Sales Force
Sales Force




Clear authority & Responsibility
Quick response & Decision, Low Cost
Weak on marketing inputs
Sales manager controlled

25.
Functional Sales Organization
Head -Marketing
Marketing
Services
Sales
Promotion Brand
Area Sales
Managers
Sales Force




Administrative Simplicity
Access to Specialists
Multiple reporting
HOD is Pressures to co-ordinate
Market Research

26.
DEFINITION
Value
 The
Delivery Network
network made up of the
company, suppliers, distributors, and
ultimately customers who “partner”
with each other to improve the
performance of the entire system.

27.
NATURE & IMPORTANCE OF MARKETING
CHANNELS
Channel choices affect other
decisions in the marketing
mix
 A strong distribution system
can be a competitive
advantage
 Channel decisions involve
long-term commitments to
other firms


28.
How Channel Members
Add Value

29.
Consumer
Marketing Channels

30.
Figure 13-2b:
Business
Marketing Channels

31.
NATURE & IMPORTANCE OF MARKETING
CHANNELS
 Number

of Channel Levels
The number of intermediary levels
indicates the length of a marketing
channel.
Direct Channels
 Indirect Channels


Producers lose more control and face
greater channel complexity as additional
channel levels are added.

32.
CHANNEL BEHAVIOR AND ORGANIZATION
 Channel
Conflict
Occurs when channel members disagree
on roles, activities, or rewards.
 Types of Conflict:

Horizontal conflict: occurs among firms at
the same channel level
 Vertical conflict: occurs among firms at
different channel levels


33.
Figure 13-3:
Conventional Versus Vertical
Marketing System

34.
Figure 13-4:
Multichannel Distribution
System