MM303SALES AND
DISTRIBUTION
MANAGEMENT
MARKETING SPECILIZATION
COURSE CONTENTS
Module-1
Introduction to Sales & Distribution Management
Module-2
Personal Selling Process, Sales Territories & Quotas
Module-3
Sales Force Management
Module-4
Distribution Management
Module-5
Market logistics and supply chain Management
Module-1
Introduction 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
Marketing management
Sales management
Growth
Personal selling objectives
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Building product awareness
Creating Interest
Providing information
Stimulating demand
Reinforcing the brand
Types of sales management positions
CEO/
PRESIDENT
STRATEGIC/TOP
LEVEL MANAGERS
V.P SALES/V.P MARKETING
NATIONAL SALES MANAGER
REGIONAL/ZONAL /DIVISION SALES MANAGER
BRANCH/AREA/DITRICT SALES MANAGER
SALES TRANNE/SALES PERSON/SALES REPRESENTATIVE
TACTICAL
/MIDDLE-LEVEL
SALES MANAGERS
OPERATION/FRISTLEVEL SALES
MANAGERS
Theories of Personal Selling
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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
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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.”