1.
M R . A N K I T B A J P A I
A N K I T B A J P A I S @ G M A I L . C O M
Sales and Distribution
Management
By: Ankit Bajpai www.uptunotes.com

2.
Nature of Personal Selling
 Most salespeople are well-educated, well-trained
professionals who work to build and maintain
long-term relationships with customers.
 The term salesperson covers a wide spectrum of
positions from:
 Order taker (department store salesperson)
 Order getter (someone engaged in creative selling)
 Missionary salesperson (building goodwill or
educating buyers)
By: Ankit Bajpai www.uptunotes.com

3.
What is Personal Selling?
Involves Two-Way, Personal
Communication Between Salespeople
and Individual Customers Whether:
face to face,
by telephone,
through video conferencing,
or by other means.
By: Ankit Bajpai www.uptunotes.com

4.
The Role of the Sales Force
 Personal selling is effective because salespeople can:
 probe customers to learn more about their problems,
 adjust the marketing offer to fit the special needs of each
customer,
 negotiate terms of sale, and
 build long-term personal relationships with key decision
makers.
By: Ankit Bajpai www.uptunotes.com

5.
The Role of the Sales Force
Sales Force
Serves as a Critical Link
Between a Company and its Customers Since They:
Represent Customers to
the Company to Produce
Customer Satisfaction
Represent the Company
to Customers to Produce
Company Profit
By: Ankit Bajpai www.uptunotes.com

6.
Characteristics of Personal Selling
Flexibility
 Identify best prospects
 Adapt to situations
 Engage in dialogue
Builds Relationships
 Long term
 Assure buyers receive
appropriate services
 Solves customer’s
problems
By: Ankit Bajpai www.uptunotes.com

7.
Personal Selling Limitations
 Can not reach mass
audience
 Expensive per contact
 Numerous calls
needed to generate
sale
 Labor intensive
By: Ankit Bajpai www.uptunotes.com

8.
Personal Selling Tasks
Order taking
 Routine
 writing up orders
 checking invoices
 assuring prompt order
processing
 Suggestive selling
By: Ankit Bajpai www.uptunotes.com

9.
Personal Selling Tasks
Order getting
 Seeking out customers
 Creative selling
 Pioneering
 Account management
By: Ankit Bajpai www.uptunotes.com

10.
Personal Selling Tasks
 Missionary
 Detailer
 Goodwill
 “Closers”
• Cross-functional
• Account service rep
By: Ankit Bajpai www.uptunotes.com

11.
Some Traits of Good Salespeople
By: Ankit Bajpai www.uptunotes.com

12.
Step 1. Prospecting and
Qualifying
Identifying and Screening For
Qualified Potential Customers.
Steps in the Selling Process
Learning As Much As Possible
About a Prospective Customer
Before Making a Sales Call.
Step 2. Pre-approach
Step 3. Approach Knowing How to Meet the Buyer
to Get the Relationship Off
to a Good Start.
Step 4. Presentation/
Demonstration
Telling the Product “Story”
to the Buyer, and Showing the
Product Benefits.
By: Ankit Bajpai www.uptunotes.com

13.
Steps in the Selling Process
Step 5. Handling Objections
Step 6. Closing
Step 7. Follow-Up
Seeking Out, Clarifying,
and Overcoming
Customer Objections to
Buying.
Asking the Customer
for the Order.
Following Up After the Sale to
Ensure Customer Satisfaction
and Repeat Business.
By: Ankit Bajpai www.uptunotes.com

14.
Alternative Steps:
Find ’em
Grab ‘em
Show ‘em
Answer ‘em
Sell ‘em
Keep ‘em
By: Ankit Bajpai www.uptunotes.com

15.
Identify and Qualifying Prospects
 Prospecting: Identifying likely
new customers
 Leads
 Qualifying: Evaluating a
prospect’s potential
Creative Selling Process
By: Ankit Bajpai www.uptunotes.com

16.
Creative Selling Process
Approaching the Prospect
 Contact
 Rapport
 “Only one chance to make a
first impression”
By: Ankit Bajpai www.uptunotes.com

17.
Creative Selling Process
Sales Presentation
 Persuasive communication
 Attention
 Interest
 Desire
 “Tell the product’s story”
By: Ankit Bajpai www.uptunotes.com

18.
Creative Selling Process
Handling Objections
 Questions
 Reservations
 Understand Concern
 Counterarguments
 Acknowledge concern
 Clues to process
By: Ankit Bajpai www.uptunotes.com

19.
Creative Selling Process
Closing the Sale
 Closing signals
 Trial close
 Ask for the sale
By: Ankit Bajpai www.uptunotes.com

20.
Following Up
 Commitments met
 Shipment
 Performance
 Reinforce relationship
 Satisfied customers rebuy
& recommend
Creative Selling Process
By: Ankit Bajpai www.uptunotes.com

21.
Planning Organizing
Directing
Controlling
Setting
objectives
Organizing
activities
Recruit,
select,
train,
develop,
manage, &
motivate
Motivate,
evaluate,
& control
Sales Management
By: Ankit Bajpai www.uptunotes.com

22.
Organizing Sales Activities
Sales Territory:
 Geographic divisions
 Customer types
 Product lines
 Selling task
By: Ankit Bajpai www.uptunotes.com

23.
Geographic Division
Sales Rep
California
Sales Rep
Pacific NW
Sales Rep
Southeast
Sales Rep
Northeast
District Sales
Manager
District Sales
Manager
District Sales
Manager
District Sales
Manager
Regional Sales
Manager
Regional Sales
Manager
Vice-President
Marketing
By: Ankit Bajpai www.uptunotes.com

24.
Customer Type
New Account
#1
New Account
#2
Existing
Account #1
Existing
Account #2
New Accounts
Manager
Existing Accounts
Manager
Vice-President
Sales
By: Ankit Bajpai www.uptunotes.com

25.
Product Line
Sales Rep
Eastern Region
Sales Rep
West’n Region
Sales rep
Eastern Region
Sales Rep
West’n Region
Snack Foods
Sales Manager
Beverages
Sales Manager
Vice-President
Sales
By: Ankit Bajpai www.uptunotes.com

26.
Directing the Sales Force
 Recruiting and selecting
 Training & develop
 Compensating
• Motivating
By: Ankit Bajpai www.uptunotes.com

27.
Compensation Methods
Straight
salary or
wage
Salary plus
commission
Straight
commission
Commission
with draw
Quota-bonus
plan
By: Ankit Bajpai www.uptunotes.com

28.
Evaluation and Control
 Required reports
 Measurement against
plan or sales standards
 Expense control
 Productivity
 New account
development
By: Ankit Bajpai www.uptunotes.com

29.
Ethical Issues
 Kickbacks, bribes and
“gifts”
 Price discrimination
 Cheating on expense
accounts
 Misrepresentation
By: Ankit Bajpai www.uptunotes.com

30.
Distribution Channel Design
and Management
By: Ankit Bajpai www.uptunotes.com

31.
Distribution’s Function
 The major purpose of marketing is to satisfy
human needs by delivering products of various
types to buyers when and where they want them
and at a reasonable cost.
 The “when and where” is the function of
Distribution
By: Ankit Bajpai www.uptunotes.com

32.
What is a Distribution Channel?
 A set of interdependent organizations
(intermediaries) involved in the process of
making a product or service available for use or
consumption by the consumer or business user.
 Marketing Channel decisions are among the
most important decisions that management faces
and will directly affect every other marketing
decision.
By: Ankit Bajpai www.uptunotes.com

33.
Why are Marketing Intermediaries
Used?
 The use of intermediaries results from their
greater efficiency in making goods available to
target markets.
 Offer the firm more than it can achieve on it’s
own through the intermediaries:
 Contacts,
 Experience,
 Specialization,
 Scale of operation.
 Purpose: match supply from producers to
demand from consumers.
By: Ankit Bajpai www.uptunotes.com

34.
Distribution
P
R
O
D
U
C
E
R
C
O
N
S
U
M
E
R
DISTRIBUTION
By: Ankit Bajpai www.uptunotes.com

35.
Distribution Channel Functions
Ordering
Payments
Communication
Transfer
Negotiation
Financing
Risk Taking
Physical
Distribution
Information
By: Ankit Bajpai www.uptunotes.com

36.
Typical Channels of Distribution
ANUFACTURER ONSUMER
HOLESALER
ETAILER
GENT
By: Ankit Bajpai www.uptunotes.com

37.
Business-to-Business Channels
Direct
Wholesaler
Agent
By: Ankit Bajpai www.uptunotes.com

38.
Business-to-Business Channel Trends
Infomediaries & Vertical Exchange
By: Ankit Bajpai www.uptunotes.com

39.
Conventional Distribution Channel vs.
Vertical Marketing Systems
Vertical
marketing
channel
Manufacturer
Retailer
Conventional
marketing
channel
Consumer
Manufacturer
Consumer
Retailer
Wholesaler
Wholesaler
By: Ankit Bajpai www.uptunotes.com

40.
Types of Vertical Marketing Systems
Corporate
Common Ownership at Different
Levels of the Channel
Contractual
Contractual Agreement Among
Channel Members
Administered
Leadership is Assumed by One or
a Few Dominant Members
By: Ankit Bajpai www.uptunotes.com

41.
Vertical Marketing Systems
 Corporate systems - total ownership
• Administered - strong leadership
• Contractual - legal relationships
By: Ankit Bajpai www.uptunotes.com

42.
Planning the Channel of
Distribution
 Determining the structure
 Marketing mix strategy
 Organizational resources
 External environmental factors
 Market characteristics
 Consumer preferences and behavior
 The nature and availability of Intermediaries
 Other environmental factors
By: Ankit Bajpai www.uptunotes.com

43.
Customers’ Desired Service Levels
 Lot size
 Waiting time
 Spatial convenience
 Product variety
 Service backup
By: Ankit Bajpai www.uptunotes.com

44.
Steps in Distribution Planning
By: Ankit Bajpai www.uptunotes.com

45.
Intensive
Distribution
Exclusive
Distribution
Selective
Distribution
Distribution
Intensity
Choosing a Distribution System
By: Ankit Bajpai www.uptunotes.com

46.
Intensive Distribution
Seeks to obtain
maximum product
exposure at the retail
level
Producer
Retailer Retailer
Retailer
Retailer
Retailer Retailer
Retailer
Retailer
Retailer Retailer Retailer
Retailer
Retailer Retailer Retailer
By: Ankit Bajpai www.uptunotes.com

47.
Selective Distribution
Product is sold
in a limited
number of
outlets
Producer
Retailer Retailer
Retailer
Retailer Retailer Retailer
By: Ankit Bajpai www.uptunotes.com

48.
Product is sold in
only one outlet in
a given area
Producer
Retailer
Exclusive Distribution
By: Ankit Bajpai www.uptunotes.com

49.
Developing Distribution Tactics
Selecting Channel Partners
Reward or
Coercive
Power
Legitimate
Power
Economic
Power
Managing the Channel of Distribution
Channel Leader Power
Distribution Channels & the Marketing Mix
By: Ankit Bajpai www.uptunotes.com

50.
Materials Handling
Moving Products Into,
Within, and
Out of Warehouses
Warehousing
Number Needed
Where
What Type
Inventory
Control
When to order
How much to order
Order Processing
Received
Processed
Shipped
Physical
Distribution
Functions
Transportation
Rail, Water, Trucks,
Air, Pipeline,
Internet
Physical Distribution
By: Ankit Bajpai www.uptunotes.com

51.
Rail
Cost-effective for shipping bulk products,
piggy-back, fishyback, birdyback.
Water
Low cost for shipping bulky, low-value,
non perishable goods, slowest form.
Truck
Most important carrier for consumer
goods, flexible.
Air
High cost, ideal when speed is needed or
distant markets have to be reached
Pipeline
Carry petroleum based products,
very low cost, requires little energy.
Transportation Modes
Internet
Web sites have products available, used
especially for services.
By: Ankit Bajpai www.uptunotes.com

52.
Channel Relationships
 Cooperation
• Conflict
• Power
– Coercive
– Expert
– Legitimate
By: Ankit Bajpai www.uptunotes.com

53.
Decision Making Framework
Prospects
of
Destructive
Conflict
Importance of threatened
channel in terms of current or
potential volume or profitability
High Low
High (FIRE) Act to avert or address
conflict
Allow threatened
channel to
decline
Low
(Smoke)
Look for opportunities
to reassure threatened
channel and leverage
your power
Do nothing
By: Ankit Bajpai www.uptunotes.com

54.
Channel Conflict: Identifying
Threats
 First, are the channels really
attempting to serve the same end users?
 Second, do channels mistakenly believe
they are competing when in fact they
are benefiting from each other's
actions?
 Third, is the deteriorating profitability
of a griping player genuinely the result
of another channel's encroachment?
 Fourth, will a channel's decline
necessarily harm a manufacturer's
profits?
By: Ankit Bajpai www.uptunotes.com

55.
Managing Channel Conflict
WHEN TWO OR MORE CHANNELS TARGET
THE SAME CUSTOMER SEGMENT
Differentiate the Channel offer
Define Exclusive Territories
Enhance or Change the Channels
Value
By: Ankit Bajpai www.uptunotes.com

56.
Managing Channel Conflict
CHANNEL ECONOMICS DETERIORATE
 Change the channels economic formula:
(Grant rebates if an intermediary fulfill certain
requirements; Adjust margins between products
to support different channel economics; and
Treat channels fairly to create level playing field)
 Create Segment Specific Programs (certain
services not available via direct channels)
 Complement value proposition of the existing
channel by introducing a new channel
 Foster consolidation among intermediaries in a
declining channel
By: Ankit Bajpai www.uptunotes.com

57.
Managing Channel Conflict
THREATENED CHANNEL STOP
PERFORMING OR RETALIATE
AGAINST THE SUPPLIER
 Leverage Power (eg. Strong Brand) against
the channel to prevent retaliation
 Migrate volume to winning channel
 Back off
By: Ankit Bajpai www.uptunotes.com

58.
Other Distribution Management Issues
 Reverse distribution
One Coca Cola
Distributor
One thousand
retailers
OK
Difficult
• Ethical, Political, &
Legal
By: Ankit Bajpai www.uptunotes.com