mm303- sales and distribution management

MM303-SALES AND

DISTRIBUTION MANAGEMENT

MARKETING SPECILIZATION

COURSE CONTENTS

Module-1Introduction to Sales & Distribution Management

Module-2Personal Selling Process, Sales Territories & Quotas

Module-3Sales Force Management

Module-4Distribution Management

Module-5Market logistics and supply chain Management

Module-1Introduction to Sales &

Distribution Management

What is sales management

American Marketing Association defined as Sales management is “The planning, direction, and control of personal selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks, apply to personal sales force.

Nature of sales management

• Its integration with marketing management • Relationship selling • Varying sales responsibilities

Importance of sales management

• Sales is most exiting, rewarding and challenging careers.

• More position available then other professional occupations.

• Sales career is one of the fastest and surest route to the top management.

• Sales management only function that generates revenue, all other department spend the money.

• Financial result of an organization depends on sales management.

Objectives of sales management

Corporate objectives

Sales volume Profitability Growth

Marketing management

Sales management

Personal selling objectives

• Building product awareness • Creating Interest • Providing information • Stimulating demand• Reinforcing the brand

Types of sales management positions

SALES TRANNE/SALES PERSON/SALES REPRESENTATIVE

BRANCH/AREA/DITRICT SALES MANAGER

REGIONAL/ZONAL /DIVISION SALES MANAGER

NATIONAL SALES MANAGER

V.P SALES/V.P MARKETING

CEO/PRESIDENT

STRATEGIC/TOP LEVEL MANAGERS

TACTICAL /MIDDLE-LEVEL SALES MANAGERS

OPERATION/FRIST-LEVEL SALES MANAGERS

Theories of Personal Selling

• AIDAS Theory • Right set of circumstances theory• Buying formula theory • Behavioral Equation theory

AIDAS THEORY

• A Potential customer undergo five sequential mental states before he becomes an actual customer, by buying the product.

• A-Attention• I-Interest• D-Desire• A-Action• S-satisfaction

Right set of circumstances theory

• In this theory the salesman induces the right type of “stimuli” in the customer which leads to the right types of “response”.

• This theory is based on the psychological frame called “ stimuli-Response”

Buying formula Theory

• This is theory given by late E.K. Strong.• This theory focus on buyers- the prospects.

buyers needs and problems are being solved.• The salesman acts as a catalyst in satisfying

the customer.• Need(Problem) -> Solution -> Purchase -

>Satisfaction

Behaviour Equation Theory

• B=P x D x K x V• B= Response, the act of purchasing a brand of

product.• P= Predisposition or force of habit• D= Drive or amount of motivation.• K=Incentive potential or its potential satisfaction

to the buyer.• V=Intensity of cues or these are weak stimuli

which determine when to buy.

Personal selling strategies

• To address all the unique needs customers, you have to design your personal selling strategy to have three key elements: a knowledgeable salesperson or sales team, an understanding of your client, and a sales structure designed to give the salesperson enough power to make an irregular sale but still get rewarded for it.

• The Salesperson The salesperson is the key to your personal sales strategy. So when you're recruiting salespeople, you should be willing to recruit the best and expect to pay them a premium.

• The Client Throughout the marketing section, we've used the phrase "Know your client." It is just as important here as anywhere else. By understanding what your client needs in a product, you can better give the salesperson the tools they can use to fulfill that need. By understanding what a customer wants in a salesperson, you can tune your sales team to be just that.

• The Sales Structure In personal selling strategy your sales person is your best friend. But, depending on the system you've set up for them, that person can also be your worst enemy. Determining an appropriate incentive system for a sales force can be the most difficult job you'll have as a business person.

Emerging trends in sales management

• Global perspective• Revolution in technology • Customer relationship management (CRM)• Sales force diversity • Team selling approach • Managing multi-channels• Ethical and social issues • Sales professionalism.

Sales Forecasting and

Budgeting Decisions

What is sales forecasting

• Sales forecasting according to cundiff and still, is “ An estimate of sales during a specified future period which is tied to a proposed marketing plan and which assumes a particular set of uncontrollable and competitive forces.”