ROLE OF SALESPERSON

We mentioned in the beginning of this chapter the important contribution of a salesperson

to the society and to the organization ,Let us now further elaborate and examine the role
that he or she plays or is expected to play in the contemporary market situation the outset
it is necessary to note that the salesperson has an obligation to the customer and his
organization Hence , we see his role as shown in the figure

Diagnostic

This involves a salesperson in probing and finding the cause of a problem .Like an expert
doctor, a sales person diagnoses the needs of his or her customers ..He or she also
diagnoses the competitive forces present in the territory and their impact on his or her
product’s share. Another area of diagnoses is the strength and weakness of the competitors
sales team and distribution in the territory. Further more, he or she diagnoses the major
development in the territory and their implication to his or her firm’s marketing.

For example, migration of people from one area to another are; or the increasing popularity
of cable T.V. in his or her are ;or the opening of a new shopping plaza, etc are some of the
trends which an alert salesperson is able to perceive .Not only is the salesperson able to
perceive these trends but is also able to understand their implications for his or her
organization.

Analyst

Having diagnosed the need or the market forces the salesperson needs to analyse customer
needs and market trends and identify the linkages, if any. For example , he or she needs to
analyse the customer situation and its implication for his or her organization .Likewise , he
or she needs to analyse the t5rends in the market share of competitors and his or her
organization over the last several time periods.

Information Provider

The salesperson is expected to play the role of an intelligence agent .In this role he or she is
expected to keep the management posted of any significant developments in the territory
.For example ,has there been any shift in the competitor’s strategy or tactics? Has any new
competitor entered the territory? Has the competitor announced any new trade incentive
policy? Any changes in customer situation like expansion or diversification? Or any change
in persons responsible for buying? The management looks upon salespeople to provide them
with these and several other such customer and competitor information.

The customer also wants the salesperson to provide information on the product, competition
; new developments in the product area. etc Thus the customer wants to keep abreast of
developments and he sees salespersons as a provider of information in all those areas.

Strategist

Another role of the salesperson is that of a strategist. He or she being the “soldier in the
field” or the “ man in command” .has to evolve a strategy that can help him or her to be a
market leader. Since all other elements of the marketing mix are outside of his or her
decision arena., the only element that he or her can control are the time and route planning
.For example ,a salesperson may time the announcement of a price change in his or her
territory in such a way that it will give the firm maximum benefit, Likewise evolving a
strategy to sell to an aggressive customer is the role of a salesperson.

Tactician

A salesperson is also a tactician In the sense that he or she evolves tactics to win over the
customer or to enhance dealer satisfaction. Tactics are short-term action plan flowing from
the strategy , which is a long0term action plan. For example choice of words in the face to
face negotiation with the customer is a matter of tactics ,Or how much and when to give in
is again a matter of tactic, So, a salesperson has to be good at tactics if he or she wants to
succeed.

Change Agent

Last, we see a salesperson as a change agent in the market or the territory in which hen or
she operates ,For it is he or she who introduces new product ideas and influences the life-
styles and consumption patterns by making new products and services available in the
territory and influencing opinion leaders to accept them and recommend the same to
others .As we said earlier , the modern society owes a lot to salespeople , for it is they who
help upgrade lifestyle and the quality of living.

Thus, the role of a salesperson in today’s world is much more than the conventional role of
order taking.

more at http://www.citesales.com/78-role-salesperson.html#ixzz0d1qjhjF4

salesperson role in reducing buyer dissonance

Reducing pre-and post decision anxiety or dissonance is an important function of the salesperson.
Recognizing that the buyer’s dissonance varies both according to whether the product is an
established or a new one, and whether the salesperson client relation is ongoing or new, these are
four types of cases involving the salesperson’s role.

1. An established product – an ongoing salesperson – client relationship. Unless the market is

unstable, the buyer tends toward automatic response behavior, in which no learning is involved and
thus experiences little, if any, dissonance; but insofar as it does occur, the salesperson is effective
because the salesperson is trusted by the buyer.
2. An established product – a new salesperson – client relationship. The salesperson, being new,
is less effective in reducing dissonance.
3. A new product and ongoing salesperson-client relationship. Unless the buyer generalizes from
personal experience with an established similar product, the buyer experiences dissonance, especially
if it is an important product. Because of the established relationship with the buyer, the salesperson
can reduce dissonance.
4. A new product-a new salesperson-client relationship. The buyer needs dissonance reduction,
and the salesperson is less capable of providing it.

How can a salesperson facilitate the buyer’s dissonance reduction? Two ways are

(1) to emphasize the advantages of the product purchased, while stressing the disadvantages of the
forgone alternatives, and

(2) to show that many characteristics of the chosen item are similar to products the buyer has
forgone, but which are approved by the reference groups.

In other words, the buyer experiencing cognitive dissonance needs reassuring that the decision is or
was a wise one; the salesperson provides information that permits the buyer to rationalize the
decision

Sales obstacles

You signed up to become a distributor in a quickly growing business. You could hardly contain
yourself as you thought about all of the success you were going to have. You started marketing
and soon a couple of prospect started to show real interest. You figured they would just sign up
and become a part of the team. One of the prospects is right on the edge you can feel it.
However, there's one problem. He wants to talk one on one to you about the opportunity. Yikes!

People avoid these interactions at all cost because they just aren't comfortable presenting
themselves and their opportunity in a professional manner. If the prospect does not decide to join
you don't take it personal. It's only business. You don't want to be rejected so you never try to
talk to anyone until they've joined your group.

Here are a couple of things you need to avoid in order to successfully convince your prospect to
join your team.

* Talking way to much: This is a big no-no. If you hear yourself talking during most of the
conversation chances are you aren't addressing the true needs of your prospect. The prospect will
tell you what you want to hear and get off the phone with you. That's the last time you'll hear
from them.

* Poor Preparation: If you aren't properly prepared you will lose people. You must anticipate
the concerns and barriers your prospect may have. Think about the questions and concerns you
had before joining the business. Be ready to help your prospect overcome them.

* Failing to ask Open Ended Questions: Open ended questions force your prospect to enter
into a dialogue with you. Remember the more they talk the better the interaction. An example of
an open ended question may be.What are your long term financial goals?
 * Giving the Solution to Quickly: Make no mistake about it people buy solutions to problems.
If you help the prospect identify a problem they are having and they articulate it you are way
ahead in the game. Once they start talking about problems and frustrations then you can provide
the solutions in the form of your products or services.

* Poor Listening Skills: Even if you ask good questions you can sabotage your presentations by
not listening fully to your prospect. If it helps you can take notes. This will help you bring up key
statements they were made early in the conversation.

Physical Distribution

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Physical distribution is the set of activities concerned with efficient movement of finished goods
from the end of the production operation to the consumer. Physical distribution takes place
within numerous wholesaling and retailing distribution channels, and includes such important
decision areas as customer service, inventory control, materials handling, protective packaging,
order procession, transportation, warehouse site selection, and warehousing. Physical distribution
is part of a larger process called "distribution," which includes wholesale and retail marketing, as
well the physical movement of products.

Physical distribution activities have recently received increasing attention from business
managers, including small business owners. This is due in large part to the fact that these
functions often represent almost half of the total marketing costs of a product. In fact, research
studies indicate that physical distribution costs nationally amount to approximately 20 percent of
the country's total gross national product (GNP). These findings have led many small businesses
to expand their cost-cutting efforts beyond their historical focus on production to encompass
physical distribution activities. The importance of physical distribution is also based on its
relevance to customer satisfaction. By storing goods in convenient locations for shipment to
wholesalers and retailers, and by creating fast, reliable means of moving the goods, small
business owners can help assure continued success in a rapidly changing, competitive global
market.

A SYSTEM APPROACH

Physical distribution can be viewed as a system of components linked together for the efficient
movement of products. Small business owners can ask the following questions in addressing
these components:

 Customer service—What level of customer service should be provided?

 Transportation—How will the products be shipped?
 Warehousing—Where will the goods be located? How many warehouses should be
utilized?
  Order processing—How should the orders be handled?
 Inventory control—How much inventory should be maintained at each location?
 Protective packaging and materials handling—How can efficient methods be developed
for handling goods in the factory, warehouse, and transport terminals?

These components are interrelated: decisions made in one area affect the relative efficiency of
others. For example, a small business that provides customized personal computers may
transport finished products by air rather than by truck, as faster delivery times may allow lower
inventory costs, which would more than offset the higher cost of air transport. Viewing physical
distribution from a systems perspective can be the key to providing a defined level of customer
service at the lowest possible cost.

CUSTOMER SERVICE

Customer service is a precisely-defined standard of customer satisfaction which a small business

owner intends to provide for its customers. For example, a customer service standard for the
above-mentioned provider of customized computers might be that 60 percent of all PCS reach
the customer within 48 hours of ordering. It might further set a standard of delivering 90 percent
of all of its units within 72 hours, and all 100 percent of its units within 96 hours. A physical
distribution system is then set up to reach this goal at the lowest possible cost. In today's fast-
paced, technologically advanced business environment, such systems often involve the use of
specialized software that allows the owner to track inventory while simultaneously analyzing all
the routes and transportation modes available to determine the fastest, most cost-effective way to
delivery goods on time.

TRANSPORTATION

The United States' transportation system has long been a government-regulated industry, much
like its telephone and electrical utilities. But in 1977 the deregulation of transportation began
with the removal of federal regulations for cargo air carriers not engaged in passenger
transportation. The deregulation movement has since expanded in ways that have fundamentally
altered the transportation landscape for small business owners, large conglomerates and,
ultimately, the consumer.

Transportation costs are largely based on the rates charged by carriers. There are two basic types
of transportation rates: class and commodity. The class rate, which is the higher of the two rates,
is the standard rate for every commodity moving between any two destinations. The commodity
rate is sometimes called a special rate, since it is given by carriers to shippers as a reward for
either regular use or large-quantity shipments. Unfortunately, many small business owners do not
have the volume of shipping needed to take advantage of commodity rates. However, small
businesses are increasingly utilizing a third type of rate that has emerged in recent years. This
rate is known as a negotiated or contract rate. Popularized in the 1980s following transportation
deregulation, contract rates allow a shipper and carrier to negotiate a rate for a particular service,
with the terms of the rate, service, and other variables finalized in a contract between the two
parties. Transportation costs vary by mode of shipping, as discussed below.
TRUCKING—FLEXIBLE AND GROWING The shipping method most favored by small
business (and many large enterprises as well) is trucking. Carrying primarily manufactured
products (as opposed to bulk materials), trucks offer fast, frequent, and economic delivery to
more destinations in the country than any other mode. Trucks are particularly useful for short-
distance shipments, and they offer relatively fast, consistent service for both large and small
shipments.

AIR FREIGHT—FAST BUT EXPENSIVE Because of the relatively high cost of air transport,
small businesses typically use air only for the movement of valuable or highly-perishable
products. However, goods that qualify for this treatment do represent a significant share of the
small business market. Owners can sometimes offset the high cost of air transportation with
reduced inventory-holding costs and the increased business that may accompany faster customer
service.

WATER CARRIERS—SLOW BUT INEXPENSIVE

There are two basic types of water carriers: inland or barge lines, and oceangoing deep-water
ships. Barge lines are efficient transporters of bulky, low-unit-value commodities such as grain,
gravel, lumber, sand, and steel. Barge lines typically do not serve small businesses. Oceangoing
ships, on the other hand, operate in the Great Lakes, transporting goods among port cities, and in
international commerce. Sea shipments are an important part of foreign trade, and thus are of
vital importance to small businesses seeking an international market share.

RAILROADS—LONG DISTANCE SHIPPING Railroads continue to present an efficient mode

for the movement of bulky commodities over long distances. These commodities include coal,
chemicals, grain, non-metallic minerals, and lumber and wood products.

PIPELINES—SPECIALIZED TRANSPORTERS

Pipelines are utilized to efficiently transport natural gas and oil products from mining sites to
refineries and other destinations. In addition, so-called slurry pipelines transport products such as
coal, which is ground to a powder, mixed with water, and moved as a suspension through the
pipes.

INTERMODAL SERVICES Small business owners often take advantage of multi-mode deals
offered by shipping companies. Under these arrangements, business owners can utilize a given
transportation mode in the section of the trip in which it is most cost efficient, and use other
modes for other segments of the transport. Overall costs are often significantly lower under this
arrangement than with single-mode transport.

Of vital importance to small businesses are transporters specializing in small shipments. These
include bus freight services, United Parcel Service, Federal Express, DHL International, the
United States Postal Service, and others. Since small businesses can be virtually paralyzed by
transportation strikes or other disruptions in small shipment service, many owners choose to
diversify to include numerous shippers, thus maintaining an established relationship with an
alternate shipper should disruptions occur. Additionally, small businesses often rely on freight
forwarders who act as transportation intermediaries: these firms consolidate shipments from
numerous customers to provide lower rates than are available without consolidation. Freight
forwarding not only provides cost savings to small businesses, it provides entrepreneurial
opportunities for start-up businesses as well.

WAREHOUSING

Small business owners who require warehousing facilities must decide whether to maintain their
own strategically located depot(s), or resort to holding their goods in public warehouses. And
those entrepreneurs who go with non-public warehousing must further decide between storage or
distribution facilities. A storage warehouse holds products for moderate to long-term periods in
an attempt to balance supply and demand for producers and purchasers. They are most often used
by small businesses whose products' supply and demand are seasonal. On the other hand, a
distribution warehouse assembles and redistributes products quickly, keeping them on the move
as much as possible. Many distribution warehouses physically store goods for fewer than 24
hours before shipping them on to customers.

In contrast to the older, multi-story structures that dot cities around the country, modern
warehouses are long, one-story buildings located in suburban and semi-rural settings where land
costs are substantially less. These facilities are often located so that their users have easy access
to major highways or other transportation options. Single-story construction eliminates the need
for installing and maintaining freight elevators, and for accommodating floor load limits.
Furthermore, the internal flow of stock runs a straight course rather than up and down multiple
levels. The efficient movement of goods involves entry on one side of the building, central
storage, and departure out the other end.

Computer technology for automating warehouses is dropping in price, and thus is increasingly
available for small business applications. Sophisticated software translates orders into bar codes
and determines the most efficient inventory picking sequence. Order information is keyboarded
only once, while labels, bills, and shipping documents are generated automatically. Information
reaches hand-held scanners, which warehouse staff members use to fill orders. The advantages of
automation include low inventory error rates and high processing speeds.

INVENTORY CONTROL

Inventory control can be a major component of a small business physical distribution system.
Costs include funds invested in inventory, depreciation, and possible obsolescence of the goods.
Experts agree that small business inventory costs have dropped dramatically due to deregulation
of the transportation industry.

Inventory control analysts have developed a number of techniques which can help small
businesses control inventory effectively. The most basic is the Economic Order Quantity (EOQ)
model. This involves a trade-off between the two fundamental components of an inventory
control cost: inventory-carrying cost (which increases with the addition of more inventory), and
order-processing cost (which decreases as the quantity ordered increases). These two cost items
are traded off in determining the optimal warehouse inventory quantity to maintain for each
product. The EOQ point is the one at which total cost is minimized. By maintaining product
inventories as close to the EOQ point as possible, small business owners can minimize their
inventory costs.

Role of Warehousing in Logistics

Keith Spillman on October 7, 2010 — Leave a Comment

Many organizations are using this different types of warehouses according to their requirement.
For storing different types of goods and for transporting different goods, these warehouses are
used rapidly. The main requirement of the logistics is the warehouse management functions. In
logistics, the management of the goods is done. The management of the goods include
controlling the flow of goods, and information about the goods.

Different warehouse systems are used in logistics for making it effective. The different systems
are warehouse management system and the warehouse control systems. For maximizing the
efficiency, these systems are used a lot.

These are the different operations which are done using the warehouses in logistics.

They provide various services like labeling, ticketing, configuring and testing. They provide the
services very rapidly.

These warehouses act as the control centers for monitoring the goods. For customer satisfaction
one has to use the warehouses.

In any logistics system, transporting of the goods is done from one location to the other. For
checking whether the goods are transported to the customers at the right time and date, for this
warehousing is used. Before delivering the goods, the goods are replenished in the warehouse
initially.

Although the storage is done for a short period, they are widely used. The time which is needed
for transporting goods will also become less as the warehouses are placed near the centers. So,
the cost of the transportation gets reduced.

So, for any business the main integral part is the warehouse.
The Role of a Warehouse

It takes labor, capital, space, equipment, and complicated information systems to have a
Warehouse.  Unfortunately, most firms cannot avoid this expense all-together; reduce, yes, but
the Warehouse plays a really important role in the supply chain.  Namely, The Warehouse is a
strategic response to Supply & Demand, Transportation Costs, and Value-Added Processing.

Supply & Demand

A major challenge in managing supply chains is that demand can change very quickly, but
supply is takes longer to change — that is, supply is not as responsive because there is usually
some transformation that needs to happen, such as raw materials to finished goods, which takes
time. But, demand is not very forgiving or patient and can change almost instantly. Supply is
more “sticky”.

As a response to unknown or seasonal demand, the Warehouse plays a strategic role in assuring
that there is product available, so that customers don’t find themselves wanting and firm doesn’t
find itself unable to meet demand and face loss of sales, goodwill, and morale for the employees.

The Warehouse allows the firm to respond quicker when demand changes. The Warehouse acts
as a buffer to changing demand, unreliable transportation, congestion in any part of the supply
chain. As an added part of the complexity of supply chain management, the points of congestion
in the system must also be managed.

Some questions to consider:

1. Given the approximate location of 80% of the customers and considering costs, response time,
political climate of the country, and transportation reliability, what is the ideal geographical
location of material sourcing, manufacturing, assembly, and warehousing?
2. What inventory buffer stock levels are appropriate for The Warehouse to hold?  Replenishment
levels?  Use-to-Exhaust policies?

Consolidated Product Reduces Transportation Costs

There is a fixed cost every time product is transported.  Given the price of fuel currently and the
instability of the US Dollar to other currencies, this is especially true. To amortize or reduce the
pain of this fixed cost, it’s necessary to fill the carrier to capacity. In the industry, this is typically
called “Full-Truck-Load” and the opposite is “Less-Than-Truckload (LTL)”, regardless if
transportation is achieved by truck, plane, or boat.

Provide Value-Added Processing

The final assembly could be done at The Warehouse.  For example, if you produce a product that
is private-labeled for your customer, then the product differentiation could be done at The
Warehouse.  Generic parts can be shipped to The Warehouse and then labeled to the customer
specifications to achieve differentiation

3. Benefits of the warehouses

The following are some of the benefits of the warehouses.

a. It gives withholding power to the agriculturist to tide over difficulties and helps them to

secure better prices for their produce.

b. It gives purchasing power to traders.

c. It tends to cushion the price fluctuation and stabilize prices as it equates supply to demand.

d. It facilitates future trading.

e. It plays a very important role in implementing the agricultural price policy of the

Government

f. It obviates the need for unnecessary cross-transport.

g. Huge wastages which occur owing to improper storage of agricultural produce will be

minimized if warehousing develops on a large scale.

h. Warehouses render various subsidiary services, such as sorting and packing commodities

for shipment, cleaning and drying goods and preparing them for the market, acting as
 forwarding agents for exporters of good, purchasing goods on behalf of clients, and collecting

and disseminating marketing intelligence.

4.
5. FUNCTIONS OF WAREHOUSING
6. 1. A balance between supply and demand
7. Goods that are seasonally produced are stored in large quantities in the warehouse so
that the supplies can be
8. spread out throughout the year to meet the regular demand for the goods, e.g. wheat,
paddy
9. 2. Storage of goods at various stages of production
10. Warehousing is required at every stage of production. Raw materials are stored in the
warehouse before
11. production starts.
12. 3. A place for product assembly, product aggregation and bulk breaking
13. Warehouses are located at convenient places where the products from different factories
are brought together
14. for bulk breaking.
15. 4. Specialized services
16. Activities like weighing, sorting, grading, blending, bottling, packing and branding can
be carried out in the
17. warehouse.
18. 5. A place for display of goods
19. Goods can be viewed and examined at the warehouse by potential buyers before placing
purchase orders, or
20. even by bankers, before giving out loans to the traders who use these goods as security.
21. IMPORTANCE OF WAREHOUSING
22. 1. Stability of prices of goods
23. This is possible because goods stored in the warehouse can be released whenever there
is a shortage of
24. goods to meet the excess demand, and the excess supply can be stored in the warehouse.
25. 2. Aids in production
26. Warehousing allows the manufacturer to continue with production in order to build up
stocks that are required to
27. meet the higher level of production during periods of rising demand.
28. 3. An opportunity for saving on transportation costs
29. The warehouse is conveniently located near the markets so that the goods can be
delivered promptly and at
30. low transport cost.
31. 4. Cost savings passed on to the consumers
32. Some wholesalers have turned warehouses into retail outlets where their
customers can purchase goods directly from them. The savings in costs by the
wholesalers (e.g. lower overheads, no transport costs, bulk purchases and cash
sales)
33. 5. Facilitation of foreign trade
34. Exporters have their goods ready in the warehouse near the port to await the arrival of
ships to take them
35. abroad. Warehouses are usually located near the harbour, airport or railway terminals.
36. TYPES OF WAREHOUSE
37. 1. Bonded warehouse
38. 1. Bonded warehouses store dutiable goods which cannot be removed until duty on
them has been paid. 2.
39. These warehouses are under the control of the Custom and Excise Authorities.
40. Functions of bonded warehouse
41. 1. They provide a space for imported goods to be stored until the duty is paid.
42. 2. They enable the Customs and Excise Authorities to check on the entry of goods
43. 1
44. 3. They facilitate commerce because businessmen can carry on trade easily.
45. Importance of bonded warehouse
46. To the trader
47. 1. Whilst goods are still in the bonded warehouse, the trader (importer) has access to
these goods to perform
48. the necessary operations like grading, packing and labeling,
49. 2. The trader need not remove all his goods at once until it is convenient for him to do
so.
50. To the manufacturer
51. 1. (a) The manufacturer is assured of regular orders from overseas buyers who are freed
from the financial
52. strain of paying at once for the import duties
(b) In this way, the manufacturer's turnover will increase
(c) He only withdraws and pays duty for those goods he requires.
53. To the government
54. 1. It enables collection and prevents evasion of customs duties.
2. It provides information on the goods imported and exported.
3. It gives the government some control over the goods imported and exported.
55. 2. Cold storage
56. 1. It is a special warehouse with refrigeration plants for storing perishables like meat,
fish, fruit, vegetables, etc.
57. 2. It is usually set up at terminal points like harbours, railway stations, airports.
58. 3. Cash-and-carry warehouse
59. 1. It is a self-service warehouse operated by manufacturers or wholesalers, where small
retailers or even
60. consumers can buy goods in bulk at low prices.
61. 2. The small retailers or consumers pay cash for goods purchased and pick up these
goods their own vans or
62. cars.
3. Goods are sold at low prices in these warehouses because of the following
reasons:
(a) Bulk purchases
(b) No credit facilities available
(c) No delivery facilities provided
63. 4. Retailers’ regional distribution centers
64. These are large warehouses usually at large road junctions which supply many branches
of a large-scale
65. retailer e.g. supermarket.
66. 5. Manufacturer's warehouse
67. 1. The manufacturer's warehouses store only the type of goods produced by the
manufacturer.
68. 2. Some manufacturers may have their own warehouses or depots to store raw materials
and finished products
69. 6. Retail warehouse or depot
70. 1. Some large-scale retailers, like supermarkets and departmental stores, make direct
bulk purchases from
71. manufacturers and may have their own warehouses or depots to store their goods.
72. 2. Goods can be packed and branded in these warehouses
73. 7. Wholesale warehouse
74. 1. The specialist wholesaler assumes the responsibility and undertakes the risk and work
of warehousing and
75. distribution of goods to their destinations.
76. 2. The wholesale warehouses store a variety of goods bought from many producers