Introduction To Sales and Distribution Management: SDM-Ch.1 1
Introduction To Sales and Distribution Management: SDM-Ch.1 1
SDM-Ch.1 1
Learning Objectives
• To understand evolution, nature and importance
of sales management
• To know role and skills of modern sales
managers
• To understand types of sales managers
• To learn objectives, strategies and tactics of
sales management
• To know emerging trends in sales management
• To understand linkage between sales and
distribution management
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Evolution, Nature and Importance of
Sales Management
Evolution of Sales Management
• Situation before industrial revolution in U.K.
(1760AD) – focused in manufacturing
• Situation after industrial revolutions in U.K., and
U.S.A. – manufacturing, finance, and sales
• Marketing function splits into sales and other
functions like market research, advertising,
physical distribution
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What is Sales Management?
• One definition: “The management of the
personal selling part of a company’s marketing
function.”
• Another definition: “The process of planning,
directing, and controlling of personal selling,
including recruiting, selecting, equipping,
assigning, supervising, paying, and motivating
the personal sales force.
• In short: “the management of salesforce”
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Nature and Importance of Sales Management
The nature or characteristics of sales
management can be explained by:
a) Its integration with marketing management,
b) Relationship selling, and
c) Varying sales responsibilities.
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Integration with Marketing Management
Two Basic Groups of a Marketing Team
a) Field selling (or personal selling) team, and
b) Headquarter marketing team
Field selling teams (or Field Salesforce)
-in their territories (or branches, or regions)
contacting existing and prospective (or new)
customers
Headquarter marketing team
- Performs support and service functions or
activities to assist or help field salespeople in their
jobs
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Nature of Sales Management
• Its integration with marketing
management Head-
Marketing
• Relationship Selling
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Relationship Selling
• Salespeople concentrate their team selling
efforts on building trust and service on a
few carefully selected customers over a
long period with a aim of becoming a
preferred or sole supplier
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Transactional Relationship / Selling:- one type of
relationship marketing in which salespeople make one-
time sales to price-oriented customers ,who are not
contacted again
Value – added Relationship / Selling:- understanding
current and future needs of customers and meeting
those needs better than competitors with value – added
solution to their problems
Collaborative relationship :- a type of relationship
marketing in which a selling organization works
continuously with its large customers to improve the
customer performance in terms of operations , sales and
profit
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Varying Sales Responsibilities / Positions / Jobs
Sales Position Brief Description Examples
• Delivery salesperson • Delivery of products to business • Milk, newspapers to households
customers or households.
• Also takes orders. • Soft drinks, bread to retail stores.
• Order taker (Response selling) • Inside order taker • Behind counter in a garment
shop
• Telemarketing salesperson takes • Pharma products’ orders from
orders over telephone nursing homes
• Outside order taker. Also • Food, clothing products’ orders
performs other tasks from retailers
• Order-getter (Creative, Problem- • Getting orders from existing and • Automobiles, refrigerators,
solving, Consultative selling) new household consumers insurance policies
• Getting orders from business • Software and business solutions
customers, by solving their
business and technology problems
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Importance of Personal Selling and Sales
Management
• The only function / department in a company that
generates revenue / income
• The financial results of a firm depend on the
performance of the sales department /
management
• Many salespeople are among the best paid
people in business
• It is one of the fastest and surest routes to the top
management
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Roles and Skills of a Modern Sales Manager
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Types of Sales Managers / Levels of
Sales Management Positions
CEO /
President
District / Branch / Area Sales Managers First / Lower Level Sales Managers
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Sales Objectives, Strategies and
Tactics
The main components of planning in a company are
objectives, strategies and tactics. Their relationship
is shown below
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To illustrate the relationship between sales objectives,
strategies and tactics, consider:
Sales Goals / Marketing Sales and Distribution Strategy Tactics /
Objectives Strategy Action plans
Increase Enter export Identify the countries Marketing / sales head to get
sales volume markets relevant information
by 15 Decide distribution channels Negotiate and sign
percent agreements in 3-5 months
with intermediaries
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Linking Sales and Distribution
Management
• Either sales management or distribution
management cannot exist, operate or
perform without each other
• To achieve the sales goals of sales revenue
and growth, the sales management plans the
strategy and action plans (tactics), and the
distribution management has the role to
execute these plans
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Role of Distribution Management for some of
the Sales Management Actions / Tasks
Sales Management Actions / Distribution Management Role
Tasks
Strategy for handling customer Prompt action at the customer interface level
complaints If the problem persists, involve senior sales
and service people
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Activity No. 1 – Application Questions
2. Assume you are a sales manager. You
will be opening a new branch for which you
intend to promote one of the existing
salespersons as a branch sales manager.
What criteria or qualities you would look for
in selecting a person for the position of
branch sales manager?
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Thank you for
pretending that you
are listening…
GOD BLESS US ALL
- Sir Zoren
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