SALES AND DISTRIBUTION MANAGEMENT

- *Approach*: Making initial contact and building rapport with

MODULE-1 the prospect.

- *Presentation*: Demonstrating how the product or service

meets the prospect’s needs.
1. Sales Management: Objectives and Functions
- *Handling Objections*: Addressing any concerns or
*Objectives*:
objections the prospect may have.

- *Revenue Generation*: The primary objective is to generate

- *Closing the Sale*: Finalizing the deal and securing the
sales and drive revenue growth.
commitment.

- *Market Share Expansion*: Increasing market share by

- *Follow-up*: Ensuring customer satisfaction and nurturing
targeting new customers or markets.
long-term relationships.

- *Customer Relationship Management*: Building and

[Link] of Sales Force
maintaining strong relationships with customers to foster
loyalty and repeat business. - *Recruitment & Selection*: Attracting and selecting the right
talent based on skills, experience, and cultural fit.
- *Profit Maximization*: Balancing costs and revenue to
maximize profitability. - *Training*: Providing ongoing training to improve product
knowledge, sales techniques, and customer relationship
- *Sales Force Efficiency*: Ensuring the sales team operates
management skills.
efficiently and meets targets.
- *Motivation*: Keeping the sales force motivated through
*Functions*:
incentives, recognition, and career development opportunities.

- *Sales Planning*: Setting sales targets, developing

- *Compensation*: Developing a compensation plan that
strategies, and forecasting sales.
balances base salary, commission, bonuses, and other
incentives to drive performance.
- *Organizing the Sales Force*: Structuring the teamto align
with organizational goals and market needs.
- *Evaluation*: Regularly assessing the performance of the
sales force to ensure they meet or exceed sales targets and
- *Sales Force Recruitment and Training*: Attracting, hiring,
contribute to company goals.
and developing a skilled sales team.
[Link] Forecasting
- *Sales Forecasting and Budgeting*: Predicting future sales
and allocating resources accordingly.
- *Definition*: Predicting future sales based on historical data,
market trends, and economic conditions.
- *Sales Performance Evaluation*: Monitoring and assessing
the sales team’s performance against targets.
- *Techniques*: Common methods include trend analysis,
regression models, and qualitative forecasting based on expert
[Link] Up a Sales Organization
opinions.
- *Structure*: The sales organization can be structured by
- *Importance*: Accurate forecasting helps in resource
geography, product line, customer type, or a combination of
allocation, budgeting, and setting realistic sales targets.
these.
[Link] Design and Management
- *Roles and Responsibilities*: Clearly define roles (e.g., sales
managers, account executives, sales reps) to ensure alignment
- *Territory Design*: Dividing the market into distinct
with company goals.
geographical areas to ensure optimal coverage and minimize
overlap.
- *Integration with Marketing*: Coordinate closely with the
marketing teamto ensure consistent messaging and strategy.
- *Factors*: Consider customer concentration, potential sales
volume, and the geographic spread when designing territories.
- *Technology and Tools*: Implement CRM systems and sales
tools to enhance efficiency and data management.
- *Management*: Regularly reviewing and adjusting territories
to reflect changes in market conditions or sales force capacity.
[Link] Process
[Link] of Sales Force
- *Prospecting*: Identifying and qualifying potential customers.
- *Key Metrics*: Sales volume, conversion rates, customer
- *Pre-approach*: Researching and understanding the
satisfaction, and profitability.
prospect’s needs and challenges.
 SALES AND DISTRIBUTION MANAGEMENT
- *Methods*: Performance appraisals, 360-degree feedback, - *Motivation and Compensation*: Implementing incentive
and key performance indicators (KPIs). programs, commissions, and other motivational tools to
encourage high performance and maintain morale.
- *Purpose*: Identify strengths and weaknesses, provide
constructive feedback, and guide career development. - *Performance Evaluation*: Regularly assessing the
performance of sales personnel against targets, using metrics
[Link] Budget such as sales volume, conversion rates, and customer
satisfaction.
- *Definition*: A financial plan that estimates revenue and
allocates resources for achieving sales targets. - *Sales Forecasting and Planning*: Predicting future sales and
setting realistic targets, ensuring the team is aligned with
- *Components*: Includes projections for sales revenue, costs, organizational objectives.
and expected profit margins.
- *Territory Management*: Allocating and managing sales
- *Importance*: Helps in setting realistic goals, managing territories to maximize coverage and minimize overlap,
expenses, and tracking financial performance. optimizing the use of resources.

[Link] Quota - *Sales Strategy Implementation*: Translating broader

company strategies into actionable plans that the sales force
- *Definition*: Specific sales targets assigned to sales teams or can execute, ensuring alignment with company goals.
individuals within a set timeframe.
2. Recruitment of Salesforce
- *Types*:
Recruitment of the salesforce is crucial to building a capable
- *Volume Quota*: Based on the number of units sold. and effective sales team. The process includes:

- *Revenue Quota*: Based on the total sales revenue - *Job Analysis*: Defining the roles and responsibilities of the
generated. sales positions to identify the skills and qualifications required.

- *Profit Quota*: Focused on achieving a certain profit margin. - *Sourcing Candidates*: Using various channels such as job
portals, recruitment agencies, social media, and employee
- *Purpose*: Motivates the sales force to achieve specific
referrals to find potential candidates.
goals and provides a benchmark for performance evaluation.
- *Screening and Selection*: Evaluating resumes, conducting
[Link] Analytics
interviews, and using assessment tools to select candidates
who best match the job requirements.
- *Definition*: The use of data and analytical tools to measure,
manage, and improve sales performance.
- *Onboarding*: Integrating new hires into the organization,
providing them with the necessary resources, and ensuring
- *Applications*: Analyzing sales trends, customer behavior,
they understand the company’s sales processes and culture.
and sales force effectiveness to make informed decisions.

3. Objectives of Sales Training Program

- *Importance*: Helps in identifying opportunities, optimizing
sales strategies, and improving overall sales efficiency.
A sales training program is designed to improve the
knowledge, skills, and abilities of the sales team. The key

Selection objectives include:

- *Product Knowledge*: Ensuring that salespeople are

well-versed in the products or services they are selling,
1. Functions of Salesforce Management including features, benefits, and competitive advantages.

Salesforce management involves overseeing the sales team to - *Sales Techniques*: Teaching effective sales techniques,
ensure they perform effectively and meet organizational goals. such as closing strategies, objection handling, and relationship
The key functions include: building, to enhance sales performance.

- *Recruitment and Selection*: Identifying and hiring individuals - *Market Awareness*: Providing insights into market trends,
with the right skills, experience, and cultural fit to ensure a customer needs, and competitor activities to enable
strong sales team. salespeople to position products effectively.

- *Training and Development*: Providing ongoing education on - *Process Familiarization*: Training on the company’s sales
products, sales techniques, and market trends to enhance the process, CRM systems, and other tools to ensure efficiency
team's effectiveness and adaptability. and consistency in sales activities.
 SALES AND DISTRIBUTION MANAGEMENT
- *Behavioral Skills*: Developing soft skills like communication, - *Prospecting*: Identifying potential customers through
negotiation, and emotional intelligence to improve interactions research, networking, and lead generation activities.
with customers and team members.
- *Pre-approach*: Gathering information about prospects to
tailor the sales approach, including understanding their needs,
preferences, and pain points.
4. Designing Sales Territory
- *Approach*: Making initial contact with the prospect, often
Sales territory design involves creating distinct geographical or through a phone call, email, or face-to-face meeting, to
customer-based areas for sales representatives to manage. introduce the product or service.
Key considerations include:
- *Presentation*: Demonstrating the value of the product or
- *Market Potential*: Assessing the potential sales volume in service to the prospect, focusing on how it meets their specific
different areas to ensure territories are sized according to needs and solving their problems.
market opportunity.
- *Handling Objections*: Addressing any concerns or
- *Customer Concentration*: Evaluating the distribution of reservations the prospect may have, providing additional
existing and potential customers to minimize travel time and information, and reassuring them about the product’s benefits.
optimize coverage.
- *Closing the Sale*: Asking for the order and finalizing the sale,
- *Workload Balance*: Ensuring that the workload within each using techniques such as the assumptive close, trial close, or
territory is manageable, avoiding overburdening some sales direct close to secure commitment.
reps while others are underutilized.
- *Follow-up*: Maintaining contact with the customer
- *Competition*: Considering the presence of competitors in post-purchase to ensure satisfaction, address any issues, and
each territory to allocate resources where they can be most encourage repeat business or referrals.
effective.
7. Salesforce Compensation Plan
- *Geographical Boundaries*: Defining clear and logical
boundaries based on geography, customer type, or industry to A salesforce compensation plan is designed to incentivize
avoid overlap and confusion. salespeople and align their efforts with company goals. Key
components include:
5. Factors to Be Considered During Sales Quota Setting
- *Base Salary*: A fixed amount paid regularly, providing
Setting sales quotas involves establishing specific targets that financial stability to salespeople.
sales teams or individuals are expected to achieve. Key factors
to consider include: - *Commission*: Variable pay based on the sales achieved,
motivating salespeople to increase their performance.
- *Historical Sales Data*: Analyzing past sales performance to
set realistic and achievable quotas based on trends and - *Bonuses*: Additional rewards for meeting or exceeding
patterns. specific targets, such as quarterly sales goals, new customer
acquisition, or high-margin sales.
- *Market Conditions*: Considering current economic
conditions, industry trends, and competitive landscape to - *Incentives*: Non-monetary rewards such as trips, gifts, or
adjust quotas accordingly. recognition programs to further motivate the sales force.

- *Salesperson Experience*: Taking into account the - *Equity or Profit Sharing*: Offering a stake in the company’s
experience and capabilities of each salesperson, as more success to align long-term interests and reward exceptional
experienced reps may handle higher quotas. performance.

- *Territory Potential*: Evaluating the potential of each sales - *Benefits*: Health insurance, retirement plans, and other
territory to ensure quotas are proportional to the opportunity perks that contribute to overall compensation and job
available. satisfaction.

- *Company Objectives*: Aligning quotas with broader 8. Tasks Carried Out by Marketing Intermediaries
company goals, such as revenue targets, market share growth,
or product launches. Marketing intermediaries are entities that help move products
from the manufacturer to the final consumer. Their tasks
6. Selling Process in Detail include:

The selling process is a systematic approach to converting - *Distribution*: Ensuring products are available at the right
prospects into customers. The stages include: locations, managing logistics, warehousing, and transportation.
 SALES AND DISTRIBUTION MANAGEMENT
- *Promotion*: Participating in promotional activities, such as
in-store promotions, advertising, and product demonstrations,
to boost sales.

- *Financing*: Offering credit or financing options to retailers or

consumers, making it easier for them to purchase products.

- *Risk-taking*: Assuming risks associated with carrying

inventory, such as obsolescence, damage, or price fluctuations.

- *Market Information*: Providing valuable market data and

feedback to manufacturers, helping them adjust their products
or strategies to meet consumer demand.

- *Negotiation*: Facilitating the negotiation of terms between

manufacturers and retailers, ensuring mutually beneficial
agreements.
 SALES AND DISTRIBUTION MANAGEMENT
Cooperation ensures that all channel members work toward

MODULE-2 common goals and deliver a seamless experience to end

customers.

Competition may arise between channel members for market

1. Designing Customer-Oriented Marketing Channels
share or sales, leading to innovative solutions but sometimes
straining relationships.
Customer-oriented marketing channels focus on tailoring
distribution channels to meet customers' needs, preferences,
Balancing cooperation and competition within channels can
and behaviors.
enhance efficiency and customer satisfaction.

Steps include identifying target customers, assessing channel

6. Omni-Channel
objectives, analyzing different types of channels (direct,
indirect), and optimizing distribution to ensure efficient and Omni-channel involves integrating various distribution
accessible delivery. channels (online, in-store, mobile) to provide a unified and
seamless customer experience.
Emphasis is placed on customer satisfaction, convenience,
and providing added value at each touchpoint. Strategies involve synchronizing inventory, consistent branding,
and ensuring a smooth transition for customers across
2. Own Sales Channel vs. Intermediary
channels.

An own sales channel involves directly reaching the customers

Benefits include increased customer loyalty, greater
without third-party intermediaries, while intermediaries (like
convenience, and higher sales, as customers can engage with
wholesalers or retailers) handle distribution.
the brand anytime, anywhere.

Pros of own sales channels include better control, direct

7. Distribution Analysis: Depth and Width of Distribution
customer relationships, and higher profit margins.
Depth of distribution refers to the level of stock a brand
Using intermediaries can expand reach and reduce distribution
maintains in a given market, while width refers to the number
costs but may dilute brand control.
of locations or intermediaries that carry the product.

3. Managing Channel Member Behavior

A deep and wide distribution strategy is suitable for consumer
goods, while niche products may prioritize depth over width.
Involves coordinating, motivating, and monitoring channel
members to ensure smooth operations and alignment with the
Analysis helps companies optimize market coverage and
company’s objectives.
resource allocation.

Effective management includes regular communication,

8. Per Dealer Stocking
providing training, setting performance metrics, and offering
incentives to encourage optimal performance. Refers to the quantity of stock each dealer or retailer maintains
for a specific brand or product.
Key focus areas include addressing conflicts, fostering
cooperation, and promoting channel loyalty. Tracking per dealer stocking helps businesses assess stock
levels, manage replenishment cycles, and optimize inventory.
4. Channel Conflict
9. Percentage Dealer Stocking
Channel conflict arises when there are disagreements between
different channel members (like manufacturers and retailers) A metric indicating the percentage of a brand’s products
about goals, roles, or performance. stocked by dealers within a specific region or market.

Types of channel conflict include vertical (conflict within the Helps gauge market penetration and distribution efficiency,
same supply chain), horizontal (among intermediaries at the aiding in the identification of high- and low-performing dealers.
same level), and multi-channel (across different distribution
channels). 10. Per Dealer Off-Take

Conflict resolution strategies involve setting clear roles, Refers to the quantity of a product that each dealer sells within
fostering open communication, and possibly realigning a given time period.
incentives.
This metric helps assess sales performance, gauge product
5. Cooperation & Competition demand, and plan inventory based on sales trends.

11. Stock Turnover Ratio

 SALES AND DISTRIBUTION MANAGEMENT
Stock turnover ratio measures how often a company’s
inventory is sold and replaced within a specific period.

A higher turnover ratio indicates strong demand, while a low

ratio may suggest overstocking or weak sales.

Important for inventory management, ensuring optimal stock

levels, and minimizing holding costs.

12. Weighted Distribution

Weighted distribution measures a product’s distribution

weighted by the sales volume of outlets that carry it.

It provides insight into the quality of distribution by focusing on

high-traffic or high-revenue stores, allowing companies to
prioritize premiumlocations.

13. Vertical Marketing System

A vertical marketing system (VMS) is a unified distribution

channel where producers, wholesalers, and retailers work
closely to achieve efficiency and economies of scale.

Types include corporate (single ownership), contractual

(franchises), and administered (coordination without
ownership).

A VMS reduces conflict and increases control over the

distribution process.

14. Horizontal Marketing System

A horizontal marketing system involves collaboration between

companies at the same level of the distribution channel to
achieve greater efficiency or expand market reach.

Examples include co-branding, joint ventures, or alliances

between competitors.

It allows firms to share resources, reduce costs, and enhance

competitive positioning.
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Supplier Coordination: Effective coordination with suppliers is
essential for inventory control, as reliable suppliers reduce lead
times and lower safety stock requirements.

3. Transportation Decisions

MODULE-3
Transportation is a critical component of logistics, and
decisions in this area focus on optimizing routes, costs, and
delivery times. Major considerations include:

Mode of Transportation: Choosing between road, rail, air, and

1. Objectives of Logistics
sea transportation depends on factors like cost, speed, and
The objectives of logistics revolve around ensuring the right product type.
products reach the right customers in a timely and
Carrier Selection: Deciding on third-party logistics providers or
cost-effective manner. Key objectives include:
in-house transportation involves cost and service trade-offs.
Cost Minimization: Logistics aims to minimize the cost of Reliable carriers can reduce delays and improve customer
transportation, warehousing, and inventory, which are satisfaction.
significant components of total costs in a company.
Route Optimization: Efficient routing minimizes fuel costs and
time, enhancing overall logistics efficiency. Companies often
Timely Delivery: Ensuring that goods arrive on time is critical
for customer satisfaction, especially in industries with high use GPS and software tools to optimize routes.
demand fluctuations.
Consolidation of Shipments: To reduce costs, logistics
Inventory Control: Logistics seeks to maintain optimal managers often consolidate multiple shipments to the same
inventory levels to meet customer demands without incurring location or from the same supplier. This practice lowers
per-unit transportation costs.
excess costs due to overstocking or stockouts.

Customer Satisfaction: A core objective is achieving high Risk Management: Transportation decisions include
customer satisfaction by delivering products in the desired contingency planning for disruptions, accidents, and other
condition, location, and time. risks. Insurance and diversified carriers help mitigate such
risks.
Efficient Use of Resources: Logistics optimizes resource use,
4. Supply Chain Management in Online Marketing and Retailing
including transportation, storage facilities, and labor, to
maximize productivity and profitability.
In the digital era, supply chain management (SCM) plays a
2. Logistics Planning and Inventory Management Decisions pivotal role in online marketing and retailing, adapting to
fast-paced customer expectations and global competition. Key
Logistics planning focuses on developing strategies for components include:
sourcing, production, and delivery to meet customer demand
efficiently. Key areas include: Integrated Digital Platforms: E-commerce relies on integrated
digital SCM platforms that connect suppliers, manufacturers,
Demand Forecasting: Accurate demand forecasting is warehouses, and customers in real-time.
essential for effective logistics planning. It helps in
determining the amount of inventory required and the Inventory Visibility and Tracking: Online retailers use
frequency of replenishment. technologies like RFID, GPS tracking, and automated
warehousing to improve inventory visibility and ensure timely
Inventory Levels and Reordering Policies: Inventory delivery.
management involves setting safety stock levels, reorder
points, and optimal order quantities to balance costs and Last-Mile Delivery: For e-commerce, last-mile delivery is crucial
service levels. for customer satisfaction. Companies invest in reliable
last-mile partners or develop in-house fleets to meet customer
Warehouse Management: Decisions related to warehouse expectations for fast delivery.
locations, capacity, layout, and management practices are
integral to logistics planning. Efficient warehouse operations Returns Management: Returns are more common in online
minimize handling costs and reduce lead times. retail, requiring a reverse logistics systemthat can handle
returns efficiently without impacting overall profitability.
Inventory Control Systems: Technologies like barcoding, RFID,
and inventory management software help track inventory Data Analytics and Customer Insights: Online retailers use data
levels in real-time and facilitate timely decision-making. analytics to understand consumer preferences, predict
demand, and manage inventory accordingly.
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Sustainability in SCM: Increasingly, online retailers adopt
eco-friendly practices in their supply chain, such as using
electric vehicles for delivery or implementing recyclable
packaging.