Escolar Documentos
Profissional Documentos
Cultura Documentos
collective
exploration
Sales and Distribution
Management
Faculty:-
Veena Kumar
Assessment
Term End Exam – 70
Internal Assessment – 30
•Case Presentation – 10
•Field Project - 20
•Advertising
•Sales Promotion
•Direct Marketing
•Public Relations
•Publicity
• Tele Marketing
• Cyber / Web Marketing
• Personal Selling
• Mail Marketing
• Multi Level Or Network Marketing
•Reach
•Message – Standardised Vs. Customised
•Feedback from the Customer
•Type of Interaction - Personal
•Effectiveness Evaluation
•Cost to the Company
•
12/10/10 Sales and Distribution Management 5
Current Trends
•Intense Foreign Competition
•Higher Customer Expectations
•Customer’s are empowered with more
knowledge
•Emerging Technologies
•Innovative ways of reaching out to the
customers – MLM, e-Choupal, Project
Shakti, Sangam etc.
•Controlling Costs
12/10/10 Sales and Distribution Management 6
When Is Direct-Selling the Low-
Cost Alternative ?
High
Single Tiered Direct
Distribution Selling
Price
High
•Amount of Communication
•Degree of Negotiation
•Time Involved
•Number of Visits required
•Number of People present during the interactions
•Degree of Co-ordination
•Standardised Vs. Customised
•Customer’s awareness about the product
12/10/10 Sales and Distribution Management 9
Selling Vs. Managing
Activity Selling Managing
Pre-call planning
Negotiating
Opening a Call
Closing the sale
Developing a call
Follow-up
Presentation and
Demonstrations
Steps Involved
– Identifying
– Qualifying
– Targeting
1 . Clients
2 . Market
3 . Your Company
4 . Your Product
Assert
Address
Assess
Acknowledge
12/10/10 Sales and Distribution Management 20
Fundamental Of Successful Calls
• A Aim
• C Content
• M Methodology
• E Execution
• E Evaluation
Nationally
Channel High Awareness Makes Higher
advertised easier to sell Profits
Members consumer product
Lower
Individual Product made Replacement
Customer of stainless Will not Rust
Cost, Always look
steel new
1 . Defining
Performance
Standards
2 . Designing formats
for recording
performance
3 . Analysing Sales
Performance
12/10/10 Sales and Distribution Management 29
Targets - Types
Ø Profitability Targets
Ø Expense Targets
Ø Average Order Size
Ø Average Order Call Cost
Ø Demo’s organised
Ø Order Call ratio
Ø Market Development
Ø Sales Reports
453 / ???
Merchandizing 5%
Ta rg e t a c h ie ve m e n t .
Be h a vio rs wit h re t a ile rs .
Effic ie n c y.
Sa le s re p o rt .
Crit ic a l in c id e n c e .
Ma rke t c o ve ra g e .
Nestle
Outlet Expansion
Product penetration
Turnover growth – value
Volume growth - ton
Market share
Mukherjee 95 93 98%
Singh 115 117 102%
Sinha 110 109 99%
- 106 110 104%
- 108 107 99%
- 110 112 102%
Gulani 130 106 82%
Reddy 116 116 100%
890 870 98%
12/10/10 Sales and Distribution Management 48
Sales Person: Gulani’s Sales
Banks 2 2 100%
Fin. Insti. 1 1 100%
Educ. Insti 1 1 100%
Govt. Deptt 24 0 0%
Ind.undertak. 1 1 100%
Private parties 1 1 100%
Total 30 6 20%
ADVANTAGES DISADVANTAGES
C Aggressive CLittle Financial
Productivity Control
CHigh Level CPush on easiest to
volume sell low margin
CNon performance items
burnout
ADVANTAGES DISADVANTAGES
•Planning Tool
•Co-ordination Tool
•Controlling Tool
• Affordability
• Percentage of Sales
• Competitive Parity
• Zero-base
• Objective & Task Method
C C
BASE
C C
C C
C C
12/10/10 Sales and Distribution Management 64
Territory Shapes
First Call
Base
C C
C
12/10/10 Sales and Distribution Management 65
Setting up Sales Organisation
Define Organisation Objectives •Define the relationship
•Growth / Survival between positions
•Market Share
•Market Leadership •Nature of authority for
•Customer Relations each position
•Assign personnel to each
position
Mgr. Ind.
Sales Ind. Mkt.
Mgr.
Dealer
Dealers
Sales
Branch Manager
Sales Manager
Sales Executive
12/10/10 Sales and Distribution Management 69
12/10/2010 Distribution Management 69
Goodlass Nerolac Ltd. (S C….2)
Sales Structure
V.P. Sales
Regional General
Manager
Regional Sales
Manager
Assistant Sales
12/10/10
Manager
Sales and Distribution Management 70
12/10/2010 Distribution Management 70
Modern Engineering Works
sales
vContest vMotivation
vCompensation
•Time Utility
•Assortment Utility
•Breaking the Bulk
•Economic Reasons
•Economy of Effort
•Information
•Financing
•Promotion
•Risk taking
•Negotiation
•Cash flow
•Ordering
•Title flow
•Warehousing
Types Levels
Ways to reach The number of
the customer intermediaries
between the
manufacturer and
the customer
Central Warehouse
CFA
Authorised Dealers
Customers
Retailers
C & S Agents
Cash Distributors
Retailer Re -distributor
Consumer
12/10/10 Sales and Distribution Management 80
12/10/2010 Distribution Management 80
Channel Structure
LG India
Company
Retailer
Customer
12/10/10 Sales and Distribution Management 81
12/10/2010 Distribution Management 81
Channel Structure
Factory
Mother Godown
CSD /
CFA Institutions
Redistributor Stockist
Wholesaler
Retailer Customers
Step 1
Identify the desired service output levels of the target
customers wrt waiting time, payment terms, availability,
lot size, freshness etc.
Step 2
Convert these service output levels into quantified
channel objectives
Step 3
Identify channel alternatives:
Exclusive / Selective / Intensive / Extensive
Step 4
Evaluate each channel alternative
Criterion Weightage
Investment 28%
Vehicle ownership 7%
personal involvement 5%
Good entrepreneurial
drive
Excellent managerial
&
administrative
qualities
12/10/10 Sales and Distribution Management 88
Britania
•
•
Proper , Appropria
and te
timely Returns
delivery Distribut and
of its or rewards
goods expects a for
to the sense of their
channel belonging efforts
members ness by
the
company
• Specialty Stores
• Department Stores
• Supermarkets
• Convenience Stores
• Discount Stores
• OFF- Price retailers- factory outlets ,
Warehouses
• Superstores – Combination stores
hypermarkets
• Catalog Showrooms
12/10/10 Sales and Distribution Management 110
12/10/2010 Distribution Management 110
Retailing Problems
z Property
z Personnel
z Systems – Internal
z Inefficiencies in the distribution systems
-Labeling, Volumes , Distribution
z Margin / Profits
z Inventory Management (SS keeps 150,000
SKU’s with different brands )
• Physical Distribution :
• Physical supply :
• Manufacturing Planning and Control :
•Distribution :