SALES and DISTRIBUTION

SALES and DISTRIBUTION - Transcript

SALES DISTRIBUTION MANAGEMENT
SESSION 1

VIJAI CAPRIHAN Ph D

Learning Objectives
Understanding Personal Selling Sales Management and Salesmanship Relationship Importance of Sales Management Buyer Seller Dyads Selling Theories Process
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Sales Executive Responsibilities
SOCIETY CUSTOMER

SALES EXECUTIVE
SALES VOLUME

FAMILY
BUSINESS GROWTH

ORGANISATION

PROFIT CONTRIBUTION

VIJAI CAPRIHAN Ph D

Sales Management Personal Selling Salesmanship
SALES MANAGEMENT
DIRECTS

PERSONAL SELLING EFFORT
LARGELY THROUGH SALESMANSHIP

ACHIEVE SALES OBJECTIVES VIJAI CAPRIHAN Ph D

Definitions
Personal Selling Personal presentation by firms sales force for purpose of making sales and building relationships Kotler Armstrong Salesmanship Art of successfully persuading prospects or customers to buy products or services from which they can derive suitable benefits thereby increasing their total satisfaction Sales Management Planning direction control of personal selling including recruiting selecting equipping assigning routing supervising Paying and motivating as these tasks apply to personal sales force SIMPLY Management of Sales Force AMA VIJAI CAPRIHAN Ph D

Sales Managers Responsibilities
Organising Sales Effort Within Company builds organisation structures formal informal Outside Company Key contact with customers publics develop build distribution structure Also play role in preparing information for marketing decisions e g budgets quotas territories etc
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Sales Management Objectives
Sales Volume

Contribution to Profits

Continuing Growth
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Importance of Sales Management
Financial Results sales cost of sales gross margin

gross margin expenses net profit As a coordinator with organisation marketing programme distributive network overall marketing strategy As control policy sales budgets
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Buyer Seller Dyad

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Diversity of Personal Selling Situations
SERVICE SELLING
INSIDE ORDER TAKER e g salesman at ARROW counter at Shoppers Stop DELIVERY SALESPERSON e g milk bread eggs ROUTE MERCHANDISING VAN SALESPERSON e g Britannia Amul Coca Cola Nestle MISSIONARY SALESPERSON e g Mico TECHNICAL SALESPERSON e g Voltas Central Air Conditioning HMT

VIJAI CAPRIHAN Ph D

Diversity of Personal Selling Situations Contd
DEVELOPMENTAL SELLING
CREATIVE SALESPERSON FOR TANGIBLES e g Eureka Forbes Maruti Car Encyclopedia Britannia

CREATIVE SALESPERSON FOR INTANGIBLES e g ICICI Prudential Max Life Insurance Brilliant Tutorials Lintas

VIJAI CAPRIHAN Ph D

Diversity of Personal Selling Situations Contd
DEVELOPMENTAL SELLING REQUIRING CREATIVITY
POLITICAL INDIRECT BACK DOOR SALESPERSON e g Commodities with personalized service like at golf clubs health clubs cricket matches MULTIPLE SALES SALESPERSON e g selling to committees and One person can say YES but all say NO Accounts Executive of Lintas

VIJAI CAPRIHAN Ph D

Theories of Selling
AIDAS Situation Response Theory Buying Formula Theory
need
Adequacy

solution

purchase relationship
Adequacy

satisfaction

product service trade name
Pleasant feelings Pleasant feelings

VIJAI CAPRIHAN Ph D

Theories of Selling Contd
Behavioral Response Theory J A Howard explained buyer behavior in terms of the purchasing decision process viewed as phases of learning process Elements being Drives strong internal stimuli impels response Innate Drives comes from physiological needs Learned Drives like status Acquired when paired with satisfying innate drive In high income groups
VIJAI CAPRIHAN Ph D

Behavioral Response Theory Contd
Cues weak stimuli that determine when buyer will respond Triggering cues activate purchase process Non triggering cues influence process but do not activate Are product cues and informational cues Some product informational cues can operate as triggering cues e g price
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Behavioral Response Theory Contd
Response action taken by buyer Reinforcement any event that strengthens buyers tendency to make a particular response

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Salesperson Reducing Buyer Dissonance
An established product an ongoing salesperson client relationship automatic buyer response An established product a new sales personclient relationship difficult to reduce dissonance A new product an ongoing salesperson client relationship Buyer experiences dissonance but salesman can reduce it A new product a new salesperson client relationship buyer needs dissonance reduction and salesman has difficulty in doing so
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Prospecting
Elimination of non buyers PROSPECTING STEPS Formulating Prospect Definitions Searching for Potential Accounts Qualifying Prospects Ascertaining Requirements Relating Company Products to Each Prospect s Requirement
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Sales Resistance
Obstacles to Sales cash Sales Objections needs appropriateness personality terms etc FINALLY Close the sale low pressure vs high pressure

VIJAI CAPRIHAN Ph D

Personal Selling Objectives
Depending upon promotional mix personal selling s qualitative objectives could be 1 Do entire selling job 2 Service existing customers 3 Search for new customers 4 Secure maintain customer cooperation in stocking and promoting company s products 5 Inform customers about changes in products policies

VIJAI CAPRIHAN Ph D

Personal Selling Objectives Contd
6 7 8 9 10 Assist customers in generating sales To provide technical advice to customers Train channel member sales personnel Assist middlemen solve their problems To collect and communicate relevant market information

VIJAI CAPRIHAN Ph D

Personal Selling Objectives Contd
The quantitative objectives could be 1 Market share oriented 2 Achieve sales volumes in ways to achieve profitability 3 Add new accounts of specified categories 4 Operate within specified budgets to keep expenses under control 5 To get target of specified accounts business

VIJAI CAPRIHAN Ph D

Market Potential
An estimate of the maximum sales opportunities present in a particular market segment and open to all sellers of goods services during a particular period
MARKET IDENTIFICATION MARKET MOTIVATION ANALYSIS OF MARKET POTENTIAL

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Sales Potential
An estimate of maximum possible sales opportunities in a particular market segment open to a specified company selling a good or service during a stated future period

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Sales Forecast
An estimate of sales in Rupees or physical units in a future period under a particular marketing programme and an assumed set of economic and other macroenvironmental factors

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Sales Forecasting Methods
Jury of executive opinion Delphi technique Poll of sales force opinion Projection of past sales
next years sale this years sale X this years sale last years sale

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Sales Forecasting Methods Contd
Time series analysis involves isolating and measuring four chief types of sales variation long term trends cyclical changes seasonal variations irregular fluctuations not useful for yearly forecasts Exponential smoothing used for short range forecasts Is a type of moving average that represents a weighted sum of all past numbers in time series with heaviest weight placed on most recent data
next years sale a this year sale 1 a this years forecast a is smoothing constant a set between 0 0 and 1 0 Actual sale 400 forecast was 450 smoothing constant would be 0 5

VIJAI CAPRIHAN Ph D

Sales Forecasting Methods Contd
Survey of consumer buying plans Regression Analysis determines and measures association between company sales and other variables Major steps 1 Identify variables casually related to company sales 2 Estimate the values of these variables related to sales 3 Derive the sales forecast from these variables
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Sales Forecasting Methods Contd
Econometric Model Building Simulation S R N S total sales R replacement demand N new owner demand

VIJAI CAPRIHAN Ph D