SALES and DISTRIBUTION MANAGEMENT

INTRODUCTION to Part One SALES MANAGEMENT and Part Two LINKAGE with DISTRIBUTION MANAGEMENT

Definition - Sales Management

Sales Management means.. 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 salesforce. In short, The Management of a Salesforce.

Nature and Importance of Sales Management

1.Integration with Marketing Management 2. Relationship Selling 3. Varying Sales Responsibilities.

Integration with Marketing Management

Sales Management is A PART of Marketing Management So, Sales Planning should be integrated with Marketing Planning. A Companys Marketing Team consists of TWO basic groups: (a) Marketing Team at Headquarters (b) Field Selling (or Personal Selling) Team

Field Selling Teams are in their territories (or branches / regions), contacting existing and prospective customers. The Marketing Team performs support and service functions,or activities to assist or help field salespeople in their jobs.

The Headquarters based Service and Support Functions

a) Promotion: Advertising, Sales Promotion, Public Relations Publicity, Direct Marketing.

b) Marketing Research: Collecting and Interpreting information on Customers,Competitors,Products,Market.

c) Marketing Logistics: Physical Distribution of Finished Goods including Warehousing, Inventory, Transportation, and Order Processing.

Customer Service: Pre-Sales and Post Sales Service as well as Delivery Service to existing and prospective Customers.
Co-ordination: Between Customers, Company's Salespeople,Production,Operations, by employing HQ Salespeople.

Relationship Selling

Buyers and Salespeople, who do business together, have some type of business (or working) relationships.

These Relationships have a Range or Spectrum a) Transactional Relationship b) Value Added Relationship c) Collaborative / Partnering Relationship Each Relationship is an exchange,which is the process of obtaining a desired product or service by offering something in return. Customer Relationship Management is a Topic of great relevance today, and will be dealt with much later.

Varying Sales Responsibilities

1. Takes Customer Orders 2. Takes Customer Orders AND Delivers 3. Supports Sales by Educating the Decision Maker 4. Provides Technical Sales Support 5. Creates Demand
6. Provides a Solution to the Customers Problem

Importance of Personal Selling and Sales Management

Personal Selling (or Sales) is tough,challenging,tests endurance and patience yet,exciting,and one of the fastest routes to Top Management. Sales reflect the Top Line in the Financial Results of a Company. Profits are the Bottom Line that result from the Fulfillment of the Sales Orders efficiently.

Roles and Skills of Modern Sales Managers

Playing a Strategic Role providing Inputs for Marketing and Sales Plans Working as a Key Member of the Corporate Team Working as a Team Leader with the Salespeople Managing Multiple Sales Channels Using latest Technologies Continually updating information, understanding changes in marketing environment.

The specific duties and responsibilities of a Sales Manager

Determining Sales Force Objectives and Goals Finalizing Salesforce Organization,Size,Territory,and Quota Forecasting and Budgeting Sales Selecting,recruiting,and training the salesforce Motivating and leading the salesforce Designing compensation and plan and control systems Designing career growth plans and building relationship strategies with key customers

Skills of a Sales Manager

People Skills - Ability to

motivate,lead,communicate,and coordinate Salespeople. Coach and Mentor to improve Performance.

Managing Skills - Planning, Organizing,

Directing and Controlling.

Technical Skills
Training,Selling,Negotiating,ability to use Computers, and Problem - solving

Sales Objectives, Strategies and Tactics

Sales Objectives are Statements of Intent, quantified to SPECIFIC and MEASUREABLE Targets. Strategies are WAYS to achieve Objectives. Tactics are ACTIONS that should be carried out to implement the Strategies.

Decide Objectives > Develop Strategies >Evolve Tactics

Emerging Trends in Sales Management

Global Perspective Global competition is intensifying. Digital Management of Information. Customer Relationship Management (CRM). Salesforce Diversity Women in Sales, educated Salespersons. Team Selling Approach Managing Multi - Channels using two or more Marketing or Distribution Channels to reach one or more Customer segments. Ethical and Social Issues Sales Professionalism

Differences between Selling and Marketing

Selling
Emphasis on Product

Marketing
Emphasis on Consumer Needs and Wants

Company manufactures the product first and THEN decides to sell it

Company FIRST determines the Customers needs and wants and THEN decides on how to deliver a product to satisfy these wants Management is profit -oriented

Management is sales -volume oriented

Planning is short term oriented, in terms of Today's products and markets

Planning is long- term oriented, in terms of new products, tomorrow's markets, and

future growth

Differences between Selling and Marketing contd.

Views business as a goods producing process Emphasis is on staying with existing technology and reducing costs Different departments work as separate watertight compartments Views business as a Customer satisfying process Emphasis is on innovation in every sphere, on proving better value to the customers. All departments operate in an integrated manner, the sole purpose being generation of consumer satisfaction Consumers determines price, price determines cost Marketing views the Customers as the VERY BEGINNING of a business

Cost determines price

Selling views Customers as the LAST LINK in business

Linking Sales and Distribution Management

Distribution Management serves the primary function of ensuring that the product or service is made available to the consumer. It is the Sales Managers who decide the organization which is responsible for the distribution effort. Normally, this organization is a combination of the companys own salesforce and a set of marketing channels. Sales Management and Distribution Management are two sides of the same coin.

Linking Sales and Distribution Management

Distribution is an integral part of Sales Management. It is the HEARTBEAT of Sales Management. Sales Management and Distribution Management CANNOT exist or perform without each other. Planning and Execution is a Team Effort between Sales Managers and the Distribution Channels. Distribution Management has the responsibility of physical movement and storage also.

Distribution Channels

1. Own Salesforce 2. C & F As or Depots 3. Distributors,Dealers,Agents, Stockists 4. Transporters, Warehouse Operators 5. Independent Wholesalers in the Market 6. Independent Retailers in the Market

Distribution Channels can be In - House too. Experience has shown that it is more cost effective to outsource the distribution function.

Maximizing Customer Service

Sales Management and Distribution Management TOGETHER take certain actions to ensure that the Customer Service objectives are fully met. 1. Demand Management : A critical step in getting Sales Volumes and Earning Revenues. Both Sales Managers and their Channel Members help this activity through Forecasts, and securing Orders to meet set volume targets. 2. Supply Management : This is the major responsibility of the Distribution Channels.

Sales Operations Planning

The planning of the Sales Operations is ALWAYS done JOINTLY by the

Sales Managers and the Channel Members.

1. List of Markets to be covered and the Schedule. 2. Market Share Objectives to be achieved,and How

3. Tracking Competition

4. Designing Coverage Beat Plans / Call Plans

6. Market working methods and tools

5. Ensuring Highest Call Productivity 7. Sales Promotion Efforts

8. New Product Launches

9. Shelf Space maximization and merchandising

10. Reports and Records