Introduction to Sales and
Distribution Management
Evolution, Nature and Importance of Sales
Management
Evolution of Sales Management
Situation before industrial revolution in U.K.
(1760AD)
Situation after industrial revolutions in U.K., and
U.S.A.
Marketing function splits into sales and other
functions like market research, advertising, physical
distribution
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.
Nature of Sales
Management
Its integration with marketing management
Head-
Marketing
Manager- Manager – Manager – Manager – Manager –
Promotion Market Sales Market Customer
Research Logistics Service
• Relationship Selling
Transactional Value – added Collaborative /
Relationship / Relationship / Partnering
Selling Selling Relationship /
Selling
Varying Sales Responsibilities / Positions / Jobs
Sales Position Brief Description Examples
n Delivery salesperson n Delivery of products to business n Milk, newspapers to households
customers or households.
n Also takes orders. n Soft drinks, bread to retail stores.
n Order taker (Response selling) n Inside order taker Behind counter in a garment shop
n
• Pharma products’ orders from
• Telemarketing salesperson takes nursing homes
orders over telephone Food, clothing products’ orders
Outside order taker. Also performs from retailers
other tasks
n Sales support n Provide information, build Medical reps. in pharma industry
• Missionary selling goodwill, introduce new products
• Technical selling n Technical information, assistance Steel, Chemical industries
n Order-getter (Creative, Problem- n Getting orders from existing and Automobiles, refrigerators,
solving, Consultative selling) new household consumers insurance policies
n Getting orders from business Software and business solutions
customers, by solving their business
and technology problems
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
Roles and Skills of a Modern Sales Manager
Some of the important roles of the modern sales manager
are:
• A member of the strategic management team
• A member of the corporate team to achieve objectives
• A team leader, working with salespeople
• Managing multiple sales / marketing channels
• Using latest technologies (like CRM) to build superior buyer-
seller relationships
• Continually updating information on changes in marketing
environment
Skills of a Successful Sales Manager
People skills include abilities to motivate, lead,
communicate, coordinate, team-oriented
relationship, and mentoring
Managing skills consist of planning, organizing,
controlling and decision making
Technical skills include training, selling,
negotiating, problem-solving, and use of computers
Types of Sales Managers / Levels of Sales
Management Positions
CEO /
President
V. P. Sales / Top-Level Sales Managers /
V. P. Marketing Leaders
National Sales Manager
Regional / Zonal / Divisional
Middle-Level Sales Managers
Sales Managers
District / Branch / Area Sales Managers First / Lower Level Sales Managers
Sales Trainee / Sales Person / Sales Representative
Sales Objectives, Strategies and
Tactics
The main components of planning in a company are
objectives, strategies and tactics. Their relationship is
shown below
Decide / Set Evolve Tactics /
Develop Strategies Action Plans
Objectives
E.G. A company wants to increase sales of electric
motors by 15 percent, as one of the sales
objectives. (see next slide)
To illustrate the relationship between sales objectives, strategies and
tactics, consider:
Sales Goals / Marketing Sales and Distribution Strategy Tactics /
Objectives Strategy Action plans
Increase sales Enter export Identify the countries Marketing / sales head to get
volume by 15 markets relevant information
percent Decide distribution channels Negotiate and sign agreements
in 3-5 months with
intermediaries
Penetrate Review and improve salesforce Add channels and members
existing training, motivation and Train salespeople in deficient
domestic compensation areas
markets Use effective and efficient Train field salesmanagers in
channels effective supervision
Link sales volume quotas to
the incentive scheme of the
compensation plan
Emerging Trends in Sales Management
Global perspective
Revolution in technology
Customer relationship management (CRM)
Sales force diversity
Team selling approach
Managing multi-channels
Ethical and social issues
Sales professionalism
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
This will be illustrated by considering some sales
management actions and corresponding role of
distribution management (in the next slide), as well as
by discussing a few integrated cases given at the end
of the book
Role of Distribution Management for some of the Sales
Management Actions / Tasks
Sales Management Actions / Distribution Management Role
Tasks
Strategy for effective coverage Follow call plan / beat plan
of markets and outlets Make customer call productive
Use multi-channel approach
Strategy for handling customer Prompt action at the customer interface level
complaints If the problem persists, involve senior sales
and service people
Planning of local advertising Co-ordination with distribution channels
and sales promotion Responsibility of execution with distribution
channels
Expenses are shared between the company and
intermediaries