Module 3 – Marke ng Decisions II
Detailed Summary
1. Physical Distribu on
Meaning: Movement of goods/services from producer → consumer.
Ensures the right product, at the right place, at the right me, at the right cost.
Factors Influencing Physical Distribu on:
1. Nature of product (perishable vs durable).
2. Market loca on & size.
3. Cost of transporta on.
4. Compe tors’ distribu on channels.
5. Availability of intermediaries.
Marke ng Channels:
o Tradi onal: Manufacturer → Wholesaler → Retailer → Consumer.
o Contemporary: Online pla orms, direct selling, mul -channel marke ng.
2. Supply Chain Management (SCM)
Defini on: Coordina on of suppliers, manufacturers, warehouses, distributors, and retailers
to deliver goods efficiently.
Components of SCM:
1. Planning – demand forecas ng, resource alloca on.
2. Sourcing – selec ng suppliers & managing rela onships.
3. Making – manufacturing, assembling, quality control.
4. Delivering – logis cs, warehousing, distribu on.
5. Returning – handling product returns, a er-sales service.
Importance: Reduces costs, increases customer sa sfac on, improves compe veness.
3. Promo on
Meaning: Ac vi es to inform, persuade, and remind customers about products.
Importance: Creates awareness, builds brand loyalty, s mulates demand.
Elements of Promo on Mix:
1. Adver sing – paid, non-personal communica on (TV, social media).
2. Sales Promo on – short-term incen ves (discounts, coupons, freebies).
3. Public Rela ons (PR) – goodwill, publicity, press releases.
4. Personal Selling – direct interac on with customers.
5. Direct Marke ng – SMS, emails, telemarke ng.
4. Integrated Marke ng Communica on (IMC)
Defini on: Coordinated use of different promo onal tools for consistent messaging.
Scope: Adver sing, PR, personal selling, social media, sponsorships.
Importance:
o Provides clarity & consistency.
o Builds stronger brand image.
o Cost-effec ve (avoids duplica on).
o Improves customer rela onships.
5. Sales Management
Defini on: Planning, direc on, and control of personal selling ac vi es.
Components:
1. Sales Planning – se ng sales goals, quotas, strategies.
2. Sales Organiza on – structuring sales force.
3. Sales Force Management – recruitment, training, mo va on.
4. Sales Control – monitoring & evalua ng performance.
Emerging Trends in Selling:
o Digital selling (e-commerce, social media).
o Customer Rela onship Management (CRM) tools.
o Use of AI & data analy cs in sales forecas ng.
6. Personal Selling
Defini on: Face-to-face interac on to persuade customers.
Process of Personal Selling:
1. Prospec ng – finding poten al customers.
2. Pre-approach – gathering informa on.
3. Approach – first contact with customer.
4. Presenta on & Demonstra on – explaining product benefits.
5. Handling Objec ons – resolving doubts.
6. Closing the Sale – securing customer commitment.
7. Follow-up & A er-sales Service – maintaining rela onship.
Skills Required for Effec ve Selling:
o Communica on skills.
o Product knowledge.
o Persuasion & nego a on.
o Confidence & pa ence.
o Customer service orienta on.
Quick Recap (Keywords)
Physical Distribu on = right product, place, me, cost.
SCM = planning, sourcing, making, delivering, returning.
Promo on Mix = adver sing, sales promo, PR, personal selling, direct marke ng.
IMC = consistent, integrated promo on.
Sales Management = planning, organizing, mo va ng, controlling sales force.
Personal Selling = 7-step process + skills.