Sales and Distribution

Management
 Nature of Personal Selling
The term salesperson covers a wide spectrum of positions from:
– Order taker (department store salesperson)
– Order getter (someone engaged in creative selling)
– Missionary salesperson (building goodwill or educating
buyers)
Involves Two-Way, Personal Communication Between Salespeople
and Individual Customers Whether:
 face to face,
 by telephone,
 through video conferencing,
 or by other means.
 The Role of the Sales Force

Represent the
Company to
Customers to Produce
Company Profit
Sales Force
Serves as a Critical Link
Between a Company and its Customers Since They:

Represent Customers
to
the Company to
Produce Customer
Satisfaction
The Role of the Sales Force

• Personal selling is effective because

salespeople can:
– probe customers to learn more about their
problems,
– adjust the marketing offer to fit the special
needs of each customer,
– negotiate terms of sale, and
– build long-term personal relationships with key
decision makers.
 Characteristics of Personal
Selling

Flexibility Builds
• Identify best Relationships
prospects • Long term
• Adapt to situations • Assure buyers
• Engage in dialogue receive appropriate
services
• Solves customer’s
problems
Personal Selling Limitations

• Can not reach

mass audience
• Expensive per
contact
• Numerous calls
needed to
generate sale
• Labor intensive
 Steps
Steps in
in the
the Selling
Selling Process
Process

Step
Step1.1. Prospecting
Prospectingand
and Step
Qualifying Step5.
5. Handling
HandlingObjections
Objections
Qualifying

Step
Step 2.
2. Pre-approach
Pre-approach
Step
Step 6.
6. Closing
Closing

Step
Step3.
3. Approach
Approach

Step
Step7.
7. Follow-Up
Follow-Up
Step
Step4.
4.Presentation/
Presentation/
Demonstration
Demonstration
 Alternative Steps:

Find ’em
Find ’em
Grab ‘em
Grab ‘em

Show ‘em
Show ‘em

Answer ‘em
Answer ‘em

Sell ‘em
Sell ‘em
Keep ‘em
Keep ‘em
 Sales Management

Setting Organizing
objectives Planning Organizing activities

Recruit,
Motivate, select,
evaluate, train,
& control develop,
Controlling Directing
manage, &
motivate
Organizing Sales Activities

Sales
Sales Territor
Territory:
y:
•• Geographic
Geographic divisions
divisions
•• Customer
Customer types
types
•• Product
Product lines
lines
•• Selling
Selling task
task
 Directing the Sales Force
• Recruiting and selecting
• Training & develop
• Compensating

• Motivating
Compensation
Compensation Methods

Straight
salary or
wage
Salary plus Straight
commission commission

Quota-bonus Commission
plan with draw
Evaluation and Control
• Required reports
• Measurement
against plan or
sales standards
• Expense control
• Productivity
• New account
development
 Ethical Issues
• Kickbacks, bribes
and “gifts”
• Price discrimination
• Cheating on
expense accounts
• Misrepresentation
Distribution Channel Design
and Management
What is a Distribution Channel?

• A set of interdependent organizations

(intermediaries) involved in the process of
making a product or service available for
use or consumption by the consumer or
business user.
• Marketing Channel decisions are among the
most important decisions that management
faces and will directly affect every other
marketing decision.
 Distribution

P C
R O
O N
D S
U DISTRIBUTION U
C M
E E
R R
 Typical Channels of
Distribution

ANUFACTURE ONSUME
R R

GENT

ETAILER

ETAILER
HOLESALER
 Conventional Distribution Channel vs.
Vertical Marketing Systems
Conventional Vertical
marketing marketing
channel channel

Manufacturer
Manufacturer

Wholesaler
Wholesaler

Retailer Retailer

Consumer Consumer
Vertical Marketing Systems
• Corporate systems - total ownership

• Contractual - legal relationships

• Administered - strong leadership

Customers’ Desired Service
Levels
• Lot size
• Waiting time
• Spatial convenience
• Product variety
• Service backup
Choosing a Distribution
System

Intensive
Intensive
Distribution
Distribution

Exclusive
Exclusive Distribution
Distribution Distribution
Distribution Intensity
Intensity

Selective
Selective
Distribution
Distribution
 Distribution
Distribution Channel
Channel
Functions
Functions
Information
Information
Transfer
Transfer Communication
Communication

Payments
Payments Negotiation
Negotiation
Physical
Physical
Distribution
Distribution Ordering
Ordering

Risk
Risk Taking
Taking Financing
Financing
 Physical Distribution
Inventory
Inventory Order
Control OrderProcessing
Processing
Control Received
Received
When
Whento
toorder
order Processed
How Processed
Howmuch
muchto
toorder
order Shipped
Shipped

Physical
Distribution
Transportation Functions Warehousing
Warehousing
Rail, Water, Number
NumberNeeded
Needed
Trucks, Air, Where
Where
Pipeline, Internet What
WhatType
Type
Materials
MaterialsHandling
Handling
Moving
MovingProducts
ProductsInto,
Into,
Within,
Within,and
and
Out
Outof
ofWarehouses
Warehouses
Developing Distribution
Tactics

Selecting
Selecting Channel
Channel Partners
Partners

Managing
Managing the
the Channel
Channel of
of Distribution
Distribution
Channel
ChannelLeader
LeaderPower
Power

Reward
Reward or
or
Economic
Economic Legitimate
Legitimate Coercive
Coercive
Power
Power Power
Power Power
Power

Distribution
Distribution Channels
Channels &
& the
the Marketing
Marketing Mix
Mix
 Channel Relationships
• Cooperation

• Conflict

• Power
– Coercive
– Expert
– Legitimate
 Evolution
• Physical distribution
• Logistics
• Supply Chain Management