Definition of sales and distribution

Sales and Distribution Management Sales and Distribution Strategy Sales involves delivery and transfer of ownership of the product or service to the customer It forms the beginning of the latter part of the supply chain post manufacture Sales constitutes the direct and most intimate contact of the firm makes with its customers Sales is responsible for the fulfillment of the promise made to the customer by its predecessor function-marketing While marketing is responsible for creation of a customer, sales and after sales service are responsible for servicing and retention of the customers

Areas of Sales Management Responsibilities:

Areas of Sales Management Responsibilities. Forecasting of aggregate and product wise sales, using past data and incorporating current and future trends. Designing and managing the sales workforce to meet the forecast and build long term relations with associates. Decide on critical aspects of sales policy including pricing, credit terms to customers and settlement of claims To closely liaise with After Sales service to present a united customer care front to associates and consumers.

Role of Sales Management:

Role of Sales Management. The larger concept of marketing is the creation, servicing and retention of customers and markets. This comprises identifying customer wants, designing and developing products/services to meet these wants. Designing products, deciding initial pricing, building awareness, persuasion-role of marketing function Sales role-Actual delivery of products/services to the customer maximizing convenience and ensuring satisfaction. Finally fulfilling the promise made to the customer through sincere and effective after sales service.

Role of Sales Management Marketing covers want identification and development of appropriate products/services Sales involves transfer of ownership and possession to the customer in exchange for the price she pays. Retention of the customer takes place in the after sales and customer service part of the larger marketing chain.

Role of Sales Management Effective transfer of possession and ownership to the customer This has to be done in the right place, right time and the right manner. Choice of channel members, deciding the terms of engagement with channel partners, Sales promotion and merchandising are key responsibilities Effective liaising with Marketing and manufacturing are essential ingredients for successful selling.

Role of Sales Management. Timely and accurate information on gross sales and by product, studying current sales trends and projecting future trends are important responsibility elements. Sales has to be the secondary/tertiary sales which represents consumer off take and not as is usually the case reflect primary i.e. “push sales”. Sales constitutes the first point contact with primary and secondary customers. Image of a company and its business prospects are critically impacted by the attitude and the performance of the sales force.

The Steps of a Sale

-Preapproach

-Approaching the customer

-Determining needs

-Presenting the product

-Handling questions and objections

-Closing the sale

-Suggestions selling

-Reassuring and following up

14.2 Managing the sales force:

Managing the sales force. Three fundamental issues: the right organization, the right sales force and the right evaluation and compensation system. Key to sales force organization is the level of aggregation over product lines and choice of geographical coverage. Most Indian companies have common sales force for all product categories. A few like Philips have segmented sales force viz. audio and video products have separate sales force. Deciding the mix between specialized segmental skills and the cost benefit analysis to justify the decision is key to sales force organization.

Sales force strength and organization:

Sales force strength and organization. No of persons required at various levels and positions is decided based on geographical coverage and intensity of coverage of channel outlets (Break bulk, distributor and retail). Benchmarking with key competitors is useful for new sales force as well as updating existing sales force. Back office and infrastructural support are key inputs in determining the sales force composition. Establishing performance standards, being “best in the class” should be the objective Qualification should include aptitude as well as attitudinal requirements. Learning curve inputs also vital.

Compensation and Incentive Systems:

Compensation and Incentive Systems Compensation should be competitive both externally and internally. In India “in hand” is relevant An effective incentive system sets aggressive but achievable and transparent targets (most Indian companies fail here) Should reflect business priorities, be simple and easy to administer Supporting requirements are reliable forecasts and rational budgeting Most important- focus to be on secondary i.e. consumer sales and not primary i.e. Invoice numbers.

Managing the Sales Force:

Managing the Sales Force Deploy according to desired territorial configuration: ensure adequate coverage breadth wise and depth wise Continuous interaction with all channel members to be ensured. Partnership is the focus Role of senior and top management crucial. Every senior/top person to make sales visits. Helps to be in touch with market realities. Sales persons whereabouts to be continuously monitored. Regular sales visit and performance reports a must Training both class room and on the job to be a continuous and evolving initiative. Mentorship to be institutionalized Regular periodic transfers between marketing, sales and after sales service personnel helps to improve integration and versatility between the three arms of the larger marketing function.

Sales Strategy-choice among several options:

Sales Strategy-choice among several options Relationship strategy aims at developing a holistic partnership with all those involved in the buying decision e.g. computers and industrial marketing Double win strategy ensures outcomes for both buyer and seller, requires empathizing from both, is essential part of any selling strategy Heroic sales strategy involves money back, free replacement and persistent after sales contact. Most successful in maximizing loyalty and retention Customer centric instead of product centric strategy shifts emphasis towards customer and away from short term sales person strategy which is increase numbers.