SDM MIX

BY : VINAY SABHARWAL
PGDM II YR.
IME
 Marketing Channel Defined
• It is a set of practices or activities necessary to transfer the
ownership of goods, and to move goods, from the point of
production to the point of consumption and, as such, which
consists of all the institutions and all the marketing activities in
the marketing process……

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 Marketing Channel
Functions

Information
Risk Taking Promotion

Marketing
Contact Channel Financing
Functions

Physical
Matching
Distribution
Negotiation

Student’s Activity 1`
S-23 Differentiate between product
3
and Service?
 Types of Marketing
Channels
• Intermediaries
• Wholesalers
• Retailers….

Student’s Activity 2
• List five differences between wholesalers and retailers?

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• Types of Marketing Channels
– In case of Consumer Goods (Zero to
Three)

 Business Goods
 Services

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 Participants in the Distribution
Channel
1. Retailers
2. Wholesalers
3. Agents and Brokers
4. Resident sales agents: They reside in
the country to which they sell products, but the
products come from a variety of foreign
manufacturers…….

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 Wholesaling
• Deals in bulk
• It involves selling goods or services to those who buy
goods with the intention to resale or redistribute (but not
directly to the ultimate consumers).
• It does not include farmers and manufactures because
basically they are engaged in production….
Retailing
• Retailing consists of selling merchandise from a
permanent location (a retail store) in small quantities
directly to the consumers.
• These consumers may be individual buyers or corporate.
• A retailer purchases goods or merchandise in bulk from
manufacturers directly and then sells in small quantities
are known as Retail stores or shops…….

Provides Through

– time utility -Store location

– place utility -Store environment
– possession utility -Merchandise
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 Student’s Activity 3
• Why retailers don’t buy from
manufacturers?

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Types of Retailing
Organized Retail and
Unorganized Retail………
Characteristics of Retailing
• Offers direct interaction with customers
• Customer service plays a vital role in
retailing success
• Sales promotions are offered at this point
only
• In almost all countries, retail outlets are
more than any other form of business.
• Location and layout are critical factors in
retail business.
• Offers employment opportunity to all age
groups…..
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 3 Types of Distribution
Channels
• Intensive distribution:
distribution Distributing a
product through a wide variety of outlets.
• Selective distribution:
distribution Selling through
limited intermediaries.
• Exclusive distribution:
distribution channel policy in
which a firm grants exclusive rights to a single
wholesaler or retailer to sell its products in a
particular geographic area…

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 Vertical Marketing Systems
• It is a system in which almost all the members of distribution channel such
as manufacturers, wholesalers and retailers work together to satisfy human
needs and wants.
• 2 Types
• Forward integration
• Backward integration….

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What is Training?
• It is a systematic programme of a sales organization aims at
increasing the aptitudes, skills and abilities of the selling staff.
• By training, the sales people will acquire new skills, technical
knowledge, problem solving ability or attitudes etc.
• All types of job from time to time require some sort of training due
to emerging business complexities…..
Significance of Training
1. Increase in productivity
2. Optimum utilization of resources
3. Reduced Supervision & Direction
4. Heightened Morale
5. Moulds employees’ attitude
6. Better understanding of competitive environment
7. Better understanding of products offered….

Training Methods
 The choice of any of the methods depends upon several factors like
cost of training, Objective of training, background of trainees etc…
 The various training methods are:
 On the job Method
 Off the job training….

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1- On the Job Training Method
• As the name suggest, it is imparted on the job and at the place
where the employee is expected to perform his duties.
• Following systems are included:
1. Training by Supervisor/Seniors (Orientation)
2. Understudy System
3. Position Rotation…….
2- Vestibule Training
• Here training is not given on the job but sales people are trained on
specific jobs in a special training rooms with the help of models.
• Training is given in classroom where selling conditions are created
which are similar to the actual selling environment…..
3- Class Room Method
• Here concepts, attitudes, styles, theories, product specifications, problem solving
attitudes, grievance solving techniques are learnt under typical classroom
instruction method. It includes
• Formal Lecture
• Conference/Seminars
• Workshops/Training days
• Role Playing
• Business Games
• Cases Study…..
4- Apprenticeship Training
• Training that is mandatory by the law….

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 Essentials of Training
Programmes
1. Economical
2. Flexible
3. Time Saving
4. Preplanned
5. Multi-method
6. Motivative
7. Systematic
8. Satisfies both employees and employers
9. Well trained recruiters……

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 Job Analysis
• Systematic study of all the facts about a job.
• Studies individual elements and duties.
• Includes all information related to the salary and benefits,
working hours and conditions, typical tasks and responsibilities
etc.
• The results of job analysis are job description and job
specification…..
Collection of factual materials

Completing job description blank

Preparation of job specifications

Preparation of Report

Approval of Report

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 Collecting Factual Materials
1. Belonging to the job environment
 use of computers
 sitting arrangements
 comforts,
 lighting, restrictions etc;
 its financial obligations (salary, bonus, commission,
DA, TA, fringe benefits, incentive schemes etc);
 its social environment (whether job is individual or in
groups, shifts, working hours, team work)…..
2. Belonging to employees’ qualities
Physical demands: number of working hours, store
job/field job,
physical (muscular energy).
Intellectual demands: degree, diploma, working
experience, fresher, problem solving ability.
Personality demands: look, height, spoken language,
humbleness, ability to listen, working under stress,
employees’ complaint handling....

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 Preparing Job Description
• It is a written statement that defines the
duties, relationships and results expected of
anyone in the job.
• It is an overall view of what is to be done in
the job.
Preparing Job Specifications
It is an analysis of the kind of person it takes
to do the job. Typically this would include
• Degree of education
• Desirable experience
• Specific Skills required
• Health Considerations…..
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 Recruitment Defined…
• According to Werther and K. Davis:

“It is the process of finding and attracting

capable applicants for employment. The
process begins when new recruits are sought
and ends when their applications are submitted.
The result is a pool of applicants from which
new employees are selected”…

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 Sources of Recruitment
1. Internal
 Current Sales Personnel References
 Company Executives
 Internal Transfers…..

2. External…
 Direct Applications
 Advertisements
 Employment Agencies / Consultants
 Educational Institutions / Universities
 Employees of Customers
 Online Job Portals & Websites
 Sales Force of Competing Companies…

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 Selection Defined
• It is the process by which qualified and suitable
employees are selected and placed
• A tool in the hands of the management to differentiate
the suitable and unsuitable applicants by applying
various techniques such as group discussions,
personal interviews, game tests etc……..

Receipt of applications

Scrutiny of applications received

Employment test (written and psychological)
Selection/Interview
Reference check
Medical fitness check
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 Recruitment Vs Selection
Both are the two phases of the employment process.
1. Recruitment is searching and stimulating candidates
WHEREAS selection involves the series of steps by which
the candidates are screened for choosing the most suitable
persons for vacant posts.

2. Recruitment is a positive process i.e. encouraging more and

more employees to apply WHEREAS selection is a negative
process as it involves rejection of the unsuitable candidates.

3. Recruitment is concerned with tapping HR WHEREAS

selection is concerned with selecting the most suitable
candidate through various interviews and tests….

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 Salesmanship Defined
• It is considered to be a form of art that involves use
of skills and experience to sell something.
• No salesperson is successful unless he has the
ability to positively influence the mind of the
prospective customer to get the desired results;
the result is measured in the terms of sustaining
and growing business by rising sales…..
salesman
• A good salesman is one who proves beneficial to
both the sellers and the buyers. While ensuring that
the need of the customer is suitably met, a good
salesman ascertains a profit! …….

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 Salesmanship Skills
• Receiving and attending customers
• Identifying and determining customer needs
• Analyse customer motivation and behaviour
• Making Sales Promotion
• Ability to communicate effectively
• Ability to demonstrate the practice use of products
• Ability to explain and demonstrate the products
• Skill in assessing customers preference
• Skill of displaying goods
• Skill in packing the products
• Handling credit and collection

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 Qualities of good
salesman
• has good communication skills
• a good personality
• Friendly and good listener
• knowledge about customers (nature, types, habits and
buying motives),
• the technique of selling and terms and conditions of the
sale - delivery, prices, packing, credit facilities available
etc.
• he also answers questions and overcomes objections.
• he needs to know when is the right time to ask for the
sale and he needs to follow-up with potential
customers…...

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 Importance of Salesman to the
business
• A good salesman is a great source of value addition to the
product.
• He is the one who helps the prospective customers to find
correct products.
• He indirectly creates demand and imparts knowledge to his
customers and also provides product demonstration.
• The business is nothing without these demand creators
(and/or enhancers) salesman…..

Ways to enhance Salesmanship qualities

• By becoming more interactive with customers
• Speak less listen more; avoid being unstoppable speaker
• By having complete knowledge about the product
• Have good training course and never hesitate to learn
anything relevant about the job you are involved in.
• An effective salesmanship can help a business to grow and
an improper salesmanship can ruin a business…

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What are the goals of sales
manager?
 Sales
 Revenues
 Profits
 Market Share
 Controlling Internal Costs…

How do they obtain their goals?

• Knowledge of the sales environment
• Planning for sales
• Recruiting the sales force
• Training the sales force
• Motivating the sales force
• Supervising the sales force….

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 Ethical Issues
• Creating Ethical Corporate Structure
• Relationships with Customers
• Relationships with Competitors
• Relationships with the Firm
• Relationships with Society….
International Considerations
• Ethnic Composition
• Religious Orientation
• Social Class Environment
• Education
• Gender Bias
• Differences in Negotiation styles
• Differences in decision making
• Job Status and Company Protocol
• Perceptions of time
• Personal Relationships…..

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 DUTIES OF THE SALES
MANAGER
• Holds a unique position in the sales organisation.
• Plans, organises, directs, staffs & coordinates whole sales
organisation.
• He is the person who steers the wheels of sales
organisation.
• His status and power depends on the size of the
organisation in his charge.
• In small firms the general manager or managing director
performs this duty.
• But in big manufacturing firms there usually a sales
manger.
• In giant sized companies for some territories and/or
products sales managers are appointed.
• Whatever the position of the sales manager, he is the
guiding and driving force of the sales organisation.
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 Market Segmentation Defined
• It is the process to divide the market into distinct
groups who have distinct needs, wants, behavior or who
might want different products & services…..

Segmentation Strategies
• Mass marketing (undifferentiated marketing): offering
the same product to the entire consumer population
• Concentrated marketing (focused or niche
marketing): selecting one market segment, even
though the product may also appeal to others. E.g.
Doctors
• Differentiated marketing: selecting two or more
different segments

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 Basis for segmentation in Consumer Markets
1. Geographical
• region of the world or country, East, West, South, North, Central, coastal, hilly, etc.
• country size/country size : Metropolitan Cities, small cities, towns.
• Density of Area :Urban, Semi-urban, Rural.
• Climate: Hot, Cold, Humid, Rainy...
2. Demographic
• Age
• Gender Male and Female
• family size
• family life cycle
• education Primary, High School, Secondary, College, Universities.
• income
• occupation
• socioeconomic status
• religion
• nationality/race (ethnic marketing)
• Language……..
3. Psychographic
• Personality
• Life style
• Value
• Attitude…..
4. Behavioral
• benefit sought
• product usage rate
• brand loyalty
• product end use
• readiness-to-buy stage
• decision making unit
• profitability
• income status……

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 Things to do at home
Find out the meaning of :
• Co-operative Advertising
• Creative Strategy
• DAGMAR
• Eye Tracking
• FCC….

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