How to manage sales And Distribution?

* Sales management : 

It means management of all the marketing activities including advertising, sales promotion, marketing research, physical, distribution, pricing and product sale.

Objective of sales management -  

1. Achieving sales volume - sales volume should be achieved by more sales.
2. Contribution to profit - to sale the product at optimum price.
3. Continue growth

* Personal selling : 

Personal selling is selling between technique involved between buyer to seller with direct communication.

Personal selling process -

1. Location prospective customers.
2. Determining customer needs and wants that are not being satisfied.
3. Recommending a way to satisfy.
4. Change the capability of the firm and its product for providing satisfaction.
5. Closing the sales and taking order.
6. Following up and serving the account.

Objective of personal selling  -

1. Building product awareness.
2. Creating interest.
3. Providing information.
4. Stimulating demand - Convince customers to make a purchase.
5. Reinforcing the brand - build a long term relationship with customers.

Advantages of personal selling -

1. Two way form of communication 
2. Effective in building personal relationship 
3. Important in international sales

Disadvantages of personal selling -

1. Negative perception of salespeople.
2. Expensive to maintain a sales force.
3. High job turnover.

* Theories of selling : 

1. AIDAS theory 

A - Attention (securing attention)

I -  Interest ( Gaining interest)

D - Desire (Kindling desire)

A - Action (including action)

S - satisfaction (building satisfaction)

2. Write set of circumstance -

situation - response

3. Buying formulas -

Need - solution - purchase or,

Need - product / service - purchase - satisfaction

4. Behavioral equation 

* Sales budget : 

Estimate of expected volume of sales and selling exposes are know as selling budget.

Objective of sales budget -

1. Planning 
2. Coordination
3. Control
4. Evaluation

Process of sales budget -

1. Select a period for your sales budget.
2. Collect historical sales data for your company
3. Locates sales and industry information from outside source.
4. Compare sales with past sales
5. Research current market trends.
6. Speak with your customer.
7. Create the forecast.
8. Compare result with your forecast.

* Determine the size of sales force : 

It determine the extract number of salesperson that a particular company should have.

Staffing the sales force -

1. Preliminary interview

• First stage
• Qualification 
• Education 
• Experience

 2. Formula application 

• Candidate responce

3. Interview

• Taken by expects
• To check the ability

4. Testing 

• Application 
• Intelligent
• Knowledge

5. Reference 

6. Physical examination 

• Good health 

7. Employment offer

* Motivation of sales force :     

Motivate is the efforts the sales person make to complete various activity of the sales job 10 to 15 % sales people are self motivated.

Way of motivating the sales force -

1. Foster a team environment.
2. Coach and mentor them.
3. Creating some friendly competitive 
4. Listen to their pain point.
5. Give them the tool they need to succeed
6. Show them the money and appreciation

* Sales force compensation :

The purpose of the sales force compensation is to determine the mix of salary, bonus and commission that will maximize sale generated by the sales force.

Importance -

1. To attract best salesmen
2. To keep sales force contented (satisfied) 
3. To have longing loyalty (trust worthy staff)
4. To have sand employer and employee relation.

Sales force compensation means giving monitory and non monitory benefits in return for the service render  by sales person.

Component of sales force compensation.

• Fixed - Salary
• Variable - Commission 

* Management of sales territories :

Sale territories means grouping of customers and prospects assigned to an individual sales person.

Reason for establishing sales territory -

1. To provide proper market coverage.
2. Controlling selling expenses.
3. Aiding in coordination of personal selling and advertising.
4. Enable better evaluation of sales force performance.
5. Improve customer relationship.
6. Increase sales force effectiveness.
7. Improve sales and profit performance.

* Sales quotas :  

It refers to a time bound sales target set by a management for a particular reason, sales team or individual.

Types -

1. Sales volume - sale a particular volume
2. Budget quotas - fixed a budget
3. Activity - how much time we allocate for sale
4. Combination and other point system quotas (control over selling and non selling)

* Sales contest :

It is a motivational program in which rewards are offered to sales people based upon their sales or results.

Types -

1. Direct competition - sales person complete each other.
2. Team competition.
3. Goal

Objective -

1. To improve the performance of distributors.
2. To obtain new customer.
3. To get re - order
4. To promote special deals to distributor
5. To obtain large order per sale call

* Evaluating and controlling the performance of sale people :   

Objective -

1. To check sales person performance.
2. To check strength and weakness of sales people.
3. Determining training need.
4. Identifying sales people for promotion.
5. Deciding salary increment and incentive payment.

Procedure -

1. Set policies on performance evaluation and control.
2. Decide the bases of salespeople performance evaluation.
3. Establish performance standard
4. Compare actual performance with the standard.
5. Review performance evaluation with salesperson
6. Decide sales management actions and control

* Ethical responsibilities of sales personnel : 

1. You can not sale product exceeding MRP.
2. You can not communicate the wrong information to public.
3. You can not sale the ban product.
4. You can not cheat any channel members.
5. You can not harm animal.

* Distribution management :

The management of the efficient transfer of goods from the place where they are manufacture to the  place where they are sold or used is called distribution management. It involves warehousing material handling, packaging, stock control order processing and transport.

* Marketing mix :

A combination of factor that helps market a product. 

* Marketing channel :   

It is the people, Organisation and activity necessary to transfer the ownership of goods from the point of production to point of consumption.

Why channel needed -

1. Bring buyer and seller together.
2. Make producer can't deal directly with customer.
3. Awareness creation.
4. More profitable sale.

Function of marketing channel -

1. Facilitation
2. Information
3. Promotion
4. Negotiation
5. Transform ownership 
6. Holding inventory
7. Sharing risk
8. Market feedback and intelligence

* Distribution channel : 

1. Business to business
2. Business to customer
3. Direct V/S indirect

* Channel format :  

It refer to the format which is clarify that who will drive the channel system.

Types -

1. Producer drive - where producer set the price (Franchises)
2. Seller drive 
3. Service drive
4. Other - home shopping, window shopping.

* Prominent channel system :  

 1. Vertical marketing system -

2. Horizontal marketing system -

Where two or more totally unrelated companies operate together which provide benefit to both.

Example :- Apple, Nike shoes.  

3. Multi channel marketing system -

Which use two or more marketing channel to reach different customers segment.

* Retailing :   

It is process of selling consumers goods or service to customer through multiple channel of distribution to earn profit.

Role -

1. Retailing is one of largest employer.
2. He buy product in small quantity.
3. Sometime he give in credit.
4. Close introduction with customers.
5. Home delivery.
6. It is responsible for valid consumers complain.

Types of retailing -

1. Department stores
2. Super market stores
3. Mom and pop stores
4. Mall
5. Specificity stores

Retail strategies -

It is a holistic marketing plan for a product or service to reach and influence the consumer.

Retail marketing strategies -

1. Positioning - novelty in products
2. Store location - Convenience 
3. Product & Service - Decision of choice
4. Price - high or low
5. Promotion - advertising, display, events.
6. Store atmosphere - Design, layout, Color.

Retail performance measure -

1. Sales continue 
2. Profit margin
3. Return Products
4. ROI
5. Average transaction value 
6. Foot traffic
7. Sales per Sq feet.

* Electronic retailing :

Sale of goods and service through internet it include :

B 2 B

B 2 C

Process of E- Retailing -

1. Shop the product 
2. Checkout product
3. Payment information
4. Payment gateway.
5. Delivery of products

Characteristic of E - Retailing -

1. Handwork 
2. Entrepreneurial sprite
3. Careful business to take risk
4. Willingness to take risk
5. Need for achievement 
6. Self confidence
7. A little luck

* Wholesaling : 

Wholesaling is the process of selling goods & service to a client who will in turn resell those products to other consumers.

Function -

1. Assembling 
2. Storage 
3. Gracing and Packing 
4. Transplantation - take from other and mix together
5.  Risk bearing 
6. Market information 

* Major wholesaling decision :

1. Man power 
2. Promotional supply
3. Which product to sell
4. Credit and customer perception
5. Image and customers perception 
6. Warehouse location and design 
7. Inventory control
8. Which market to operate 

* Managing distribution :

1. Be an active participant 
2. Show your support
3. Realize its a two way street
4. Capitalize on service
5. Motivate them
6. Negative lower price
7. Appreciate their work
8. Communication openly
9. Ask for help
10. Get to know your salesperson.

* Channel management :

It is a process of managing all the channel in order to sell its inventory to various agents across the globe.

Process of channel management -

1. Formulating the channel strategy.
2. Designing the channel structure.
3. Selecting the channel members.
4. Motivating the channel members.
5. Co - ordering the channel strategy with the marketing mix.
6. Evaluating the channel members performance.

* Channel power :

It is ability to influence or modify the behavior of any channel member when you are very strong position in the market.

Type of channel power -

1. Reward (to influence them)
2. Coercive (to give them threat)
3. Expert (seminar)
4. Referent (connected with proud)
5. Legitimate (Reminder on activity)

* Channel conflicts :

It is arises when the channel partner compete against each other for the common sale with the same brand.

Types of channel conflicts -

 1. Vertical channel -

• It occur difference between different levels in channel.
• It occur due to the difference in goals, objective, misunderstanding and with poor communication. 

2. Horizontal conflicts -

It arises between the channel member at the same level.

3. Multi channel conflicts -

When the manufacture uses two or more channel arrangement.

Causes of channel conflicts -

1. Differences in perception.
2. Unclear roles and rights
3. Lack of communication
4. Manufacture dominating intermediate

Managing channel conflicts -

1. Regular communication 
2. Subordinate goals 
3. Exchange of employee 
4. Expert advice

* Channel information system :

It is basically used to collect store and interpreted information in a manner that adds value to an organisation function.

Process -

Source Of data -

1. Report & Record of channel members
2. Marketing Research
3. External source & Internal
4. It enable services
5. Information by sales people

* Channel performance evaluation :

1. Define sales objective 
2. Determine channel performance 
3. Set channel partner target
4. Manage channel performance 

* Market logistics :

Having the right good at place at right time for the least price.

Function -

1. Product delivery - delivery of the right product on time
2. Price - It includes shopping cost based on product
3. Promotion - it includes design of the box of the provide 

* Supply chain management :

It refers to flow of goods and service involves the movement and storage of raw material work in process inventory of finished goods from point of origin to point of consumers.

Benefits -

1. Providing good customers service
2. Eliminate rush activity
3. Minimize delays 
4. Proper inventory level in chain 
5. reduce uncertainty along the chain

Cycle -

Raw material - Components - Manufacturer - Wholesaler - Retailer - Consumers 

* International sales & distribution management :  

 International sales are selling of goods & service outside the domestic boundaries.

Country involved -

• Host - Franchise
• Home - Headquarter

Why go international -

1. Film new customers and market 
2. Partner with new supplier 
3. Increase quality of goods 
4. Increased quality product

Choosing the market -

1. Size of the market 
2. Language & culture
3. Competition 
4. Ease of doing business

Channel policies -

It is a way of performing sales or product in the market.

Multi channel marketing -

1. Personal selling 
2. Email
3. online advertising 
4. Search engine marketing
5. Telly marketing 
6. Social media 
7. Direct mail marketing (letter)

Way of channel policy -

1. Push strategy -

In Push strategy company aware the customer about the product

2. Pull Strategy -

Customers come to retail to ask about the product.

(V4)