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SADMA Session 1 - 11th Jan

The document discusses key concepts in sales and distribution management including: 1. It outlines the framework for sales and distribution management including marketing strategy, selling strategy, advertising support, role of sales force, selling style, and channel design. 2. It compares sales versus marketing, noting that marketing makes people want a product while sales ensure people can get the product. 3. It discusses the evolution of marketing channels from manufacturers directly contacting retailers to the introduction of wholesalers.

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Amisha Lal
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61 views28 pages

SADMA Session 1 - 11th Jan

The document discusses key concepts in sales and distribution management including: 1. It outlines the framework for sales and distribution management including marketing strategy, selling strategy, advertising support, role of sales force, selling style, and channel design. 2. It compares sales versus marketing, noting that marketing makes people want a product while sales ensure people can get the product. 3. It discusses the evolution of marketing channels from manufacturers directly contacting retailers to the introduction of wholesalers.

Uploaded by

Amisha Lal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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SADMA

Sales and Distribution Management


Framework for business
Marketing
Strategy

Selling
Strategy

Advertising Role of sales Role of


Support force. distribution

Selling Style Channel

Effort Design

Territory
Selection
Managemen

Motivation of
Motivation
sales force
Sales Vs Marketing

• Market orientation: the firm tries to get the company to produce


what the customer wants

• Listens to target market to determine future needs

• Sales orientation: the firm focuses on the skills of selling rather than
on the needs of the buyer

• Making customer demand match current offerings of the company


Sales Vs Marketing

Marketing makes people want your product

Sales ensure that all those people who want your product
should get your product

Identify needs Create products Promote & Advertise

Product already created for needs persuasion to buy


Evolution of channel
• Reduction in number of contacts

Manufacturers

Retailers

Manufacturers

Wholesaler

Retailers
Marketing Channels
• Marketing Channels :A set of interdependent organizations involved in the process of
making a product or service available for use or consumption.
Importance
• Gatekeeper
• Important asset of marketing strategy
• Differentiator
• Difficult to replicate
• End-user satisfaction
• Overall brand image
• Awareness of channel importance is low
• Opportunity for competitive advantage
• Difficult to create and maintain channel
• Difficult and costly to change
• Right the first time
Demand-Side Factors
• Facilitation of search
• Adjustment for assortment discrepancy
• Sorting
• Accumulation
• Allocation (breaking bulk)
• Assorting
Marketing Flows
• The Eight Universal Marketing Channel Flows
1. Physical possession
2. Ownership
3. Promotion
4. Negotiation
5. Financing
6. Risking
7. Ordering
8. Payment
• Flow of information
Channel Members
• Manufacturers
• Intermediaries
• CFA
• Distributors
• Retailers
• Wholesalers
• End-users
Retail Structures

• Organized and unorganized


• New medium : Internet shopping
• Formats
• Malls
• Speciality Store
• Kirana Store
• Super Market
• Hyper market
• Category killer
Marketing Channels for consumer products
Channels : Control Vs Cost
Existence of channel ?
• Transaction cost
• Monitoring cost
• Value addition
• Search cost
• Time utility
• Place Utility
Functions of channel
• Demand generation
• Carrying Inventory
• Physical Distribution
• After sales services
• Extending credit
Channel Members (India)
• C & F Agents
• Distributors
• Retailers
• Wholesalers
• Agents
• Brokers
Mapping the Channel
Steps of executing strategy
Growth from strategy
Distribution in rural India
Reality Check
• High growth
• Poor Infrastructure
• 4 A’s
• Availability
• Affordability
• Acceptability
• Awareness
Sales Management Issues :
• Sales structure
• Sales skill
• Sales process
• Sales compensation
Flat Sales Organization
National
Sales

Management Levels
Manager

District District District District District


Sales Sales Sales Sales Sales
Manager Manager Manager Manager Manager

Span of Control
Tall Sales Organization

National Sales
Manager

Management Levels
Regional Sales Regional Sales
Manager Manager

District District District District District District


Sales Sales Sales Sales Sales Sales
Manager Manager Manager Manager Manager Manager

Span of Control
Salesperson
Key Skills
• Analytical Skills
• Planning Skills
• Communication skill ( Listening is important )
• People Skill
• Team worker
How we can grow sales ???

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