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MANAGEMENT
RAVIMOHAN
OBJECTIVES OF THE MODULE
• The Sales Process, Sales Management, Nature and
Importance of Sales Management, Integration with
Marketing Management, Field Selling, Headquarter
Marketing Team, Relationship Selling, Importance of
Personal Selling and Sales Management, Role and
Skill of Modern Sales Managers, The Skills of a Sales
Manager, Levels in Sales Management-Organisational
Hierarchy, Sales Objectives, Strategies and Tactics,
Sales Objectives, Sales Strategies and Tactics, Sales
Strategies, Emerging Trends in Sales Management,
Linking Sales and Distribution Management,
Distribution Channels, Maximising Customer Service,
Sales Operation Planning.
THE SALES PROCESS
Prospecting and Qualifying
Approach
Overcoming Objections
CEO/
President Strategic/Top Level
Sales Leaders /
Managers
V.P.Sales/
V.P. Marketing
• Revolution in Technology.
• Salesforce Diversity.
• Managing Multi-channels.
• Sales professionalism.
LINKING SALES AND DISTRIBUTION
MANAGEMENT
• Distribution management serves the primary function of
ensuring that the product or service is made available to the
consumer within arm’s length of his desire. It takes care of the
availability (physical distribution) and visibility. It provides ‘time’,
‘place’ and ‘possession’ utility to the consumer. It is the sales
managers who decide the organisation which is responsible for
the distribution effort. Normally, it is the combination of the
company’s own salesforce and a set of marketing channels.
• Distribution is an integral part of sales management. It is the
heartbeat of sales management. Either sales management or
distribution management cannot exist, operate or perform
without revenue, growth or market shares, it is the distribution
part which executes these plans, of course, under the guidance
of sales managers. Planning and execution is team effort
between sales managers and distribution channels.
LINKING SALES AND DISTRIBUTION
MANAGEMENT
• As we said earlier, distribution management has the
responsibility of physical movement and storage also. The only
sensible and cost effective alternative of getting all these tasks
accomplished is through a sound distribution management with
the help of the marketing channels.
DISTRIBUTION CHANNELS
• The distribution channels to be managed by sales management
could be a combination of :
1. Own salesforce –recruited and trained to manage key
account and the distribution channels.
2. C&FAs or depots – to break bulk. Depots are the company’s
own warehouses. C&FA s are carrying and forwarding agents
who are primarily transporters with own or hired warehouses.
They break bulk and send company goods to its distributors,
dealers or stockists based on despatch orders given by the
DISTRIBUTION CHANNELS CONTD
salespeople. C&FAs work on a commission.
• Distributors, dealers, agents , stockists- the backbone of the
distribution system. They are the people who buy goods from
the company and sell it to the customers like wholesalers,
retailers and institutions. They may be exclusive to the
company like contracted distributors or also work for other
companies like dealers and stockists. All these channel
partners work on a mark-up.
• Transporters, warehouse operator- these channel members
ensure physical movement and safekeeping of goods. These
channel members are usually managed by the logistics function
and not sales management. They could be either on contract or
hired as necessary. Today a large number of Third party
Logistics (TPL) providers are available who provide an end to
end solution to all your logistics needs.
• Independent wholesalers in the market-They are already
DISTRIBUTION CHANNELS CONTD
operating in the markets and selling a variety of complementary
goods - like groceries, plumbing equipment, electrical accessories,
spare-parts or food items. They are not bound on contract with any
company. They operate on low volumes but high margins.
• Independent retailers in the market- More relevant for consumer
goods and pharmaceutical products. They could be the corner
store or modern retail format. Retailers are the most pampered lot
in the entire distribution network as they are closest to the end
user or customer.
• Distribution management can be done by the company itself. But
most companies today outsource the distribution effort as it is
possible to find competent distribution models to perform the
functions.
• Distribution channels can be in-house or outsourced. Experience
has taught sales management that it is more cost and effort
effective to outsource the distribution function.
DISTRIBUTION CHANNELS CONTD
• Example of own distribution channels include Eureka Forbes
and Bata.
• There are hundreds of examples of outsourced distribution like
Maruti, LG and Nestle.
MAXIMISING CUSTOMER SERVICE
Sales management and distribution function together take certain
actions to ensure that the customer service objectives of the
company are fully met. Some of the action points are mentioned
here.
• Demand Management- a critical step in getting sales volumes
and earning revenues. Both sales managers and their channel
members help this activity through forecasts, obtaining
business and securing orders to meet set volume targets.
• Supply Management- This is the major responsibility of the
distribution channel working under the guidance of sales
management.
MAXIMISING CUSTOMER SERVICE
• The company depot or the carrying and forwarding agent or
contract with the company receives orders from the field force
and processes them for despatch to the primary customers of
the company-distributors or institutions. They also collect the
value of the sales made. This is the primary sales.
• The distributor/dealer/stockist /agent receives orders from his
customers (traders or institutions) either directly or through the
salespeople and processes them for despatch. They collect the
value of the sales made. This is the secondary sales.
• Both the C&FA and the distributor provide storage space for
safekeeping of the goods till they are sold out.
• The C&FA and the distributor may use own transport vehicles
or hired transport to move the goods from their premises to that
of customers.
• The wholesaler or the retailer is the most important channel
partner for mass based consumer products. He is the one who
MAXIMISING CUSTOMER SERVICE CONTD
• is directly in touch with the end-users. He makes sure that he
buys the products, stocks them, displays and sells them to the
end users.
SALES OPERATION PLANNING
• The planning of the sales operations is always done jointly with
by the sales managers and the channel members. Some of the
points in the operations planning exercise are highlighted here:
• List of markets to be covered and the schedule – the
company would like to be represented in full strength in all the
potential markets and outlets.
• Market share objectives to be achieved and how- built into
the secondary sales targets agreed with the channel partners.
• Tracking Competition in order to always do better than them.
• Designing coverage beat plans/call plans using a milk-run
concept- How many outlets are covered in a day, frequency of
SALES OPERATION PLANNING CONTD
• of calls on an outlet and when a call is to be made. The milk-run
concept makes sure that there is no crisscrossing in the
coverage- the calls are made in a sequence.
• Ensuring highest call productivity- every call has to be made
to deliver results.
• Market working method and tools – whether to cover the
markets with the ready stocks or book orders and deliver stocks
later, how to run the call, how much credit to extend and to
whom.
• Sales promotion efforts- could include the power of the sales
call or the consumer and trade promotions occasionally run by
the company.
• New product/pack launches- each such small event has
important milestones in volume sales, placement of the
products and merchandising to be achieved. These are agreed
with the channel partners and then it is their responsibility to
SALES OPERATION PLANNING CONTD
achieve the same.