Professional Documents
Culture Documents
Module 1
Module 1
Module 1
1 Lectures
TOPICS
1 Why Study Sales and Distribution Management 1
2 Organization framework of the field sales force: Types and 1
methods of Field Sales Organization
3 Career in Field Sales Management 1
4 Field Sales Manager – His tasks and responsibilities 1
5 Relation with sales man and relationship with the top management 1
Evaluative Case study on Hindustan Unilever Ltd. sales team management & 1
Assignment strategy
Sales refers to the exchange of goods/ commodities against money or service. Sales is the only
function in an organization that generates revenue or income for a company and hence it needs to
be managed properly. The financial results of a company depend upon the performance of the
sales department.
Distribution is the process of making a product or service available for use or consumption to
the end consumer or business. A distribution channel is the route through which goods or
services move from the company to the customer or the transfer of payment happens from the
customer to the company.
Distribution channels can mean selling of products directly or selling through wholesalers,
retailers etc. The same applies for payment transfer from customers to company; it can move
through a path or can be sent directly to the company. As per Philip Kotler, “Marketing
channels can be viewed as sets of interdependent organizations involved in the process of
making a product or a service available for use or consumption”.
Features of DC:
Gather information about potential and current customer competitions, other factors and
forces of the environment
Provide distributional efficiency by bridging the gap between the manufacturer and the
user efficiently and economically
Maintain records
Standardize transaction
Distribution could be of the following two types −
Direct Distribution
It can be defined as expanding or moving from one place to another without changing direction
or stopping. For example, Bata has no distribution channel; it sells its products directly to the
end consumers.
Indirect Distribution
It can be defined as means that are not directly caused by or resulting from something. For
example, LG sells its product from the factory to the dealers, and it reaches the consumers
through dealers.
There are basically Four levels of distribution. To understand them, read this article on industrial
and customer channels. I have given a brief summary below.
1. Zero level channel – Where the distribution happens from company to end customer.
2. One level channel – Distribution happens with a single agent in between. Example – From
manufacturer to E-commerce companies. And from E-commerce to customer.
3. Two Level channel – Distribution happens with 2 business entities in between. Example –
Goods flowing from manufacturer to Distributor >> Distributor to Retailer >> And
Retailer to customer.
4. Three level channel – Distribution happening with 3 business entities in between. Example
– Goods flowing from Manufacturer to C&F >> C&F to Distributor >> Distributor to
Retailer >> And Retailer to customer.
Zero level channel is also known as Direct Channel while One level to Three levels
are also known as Indirect channels.
(1) Order Processing: Order processing is the starting point of any distribution activity. Order
processing includes activities like receiving the order, handling the order, granting credit,
invoicing, dispatching, collecting bills, etc. Each customer expects that the order placed by him
is implemented without delay, and as per the specifications of the order.
Thus, order processing becomes very important. Marketer should make effort to maintain the
order cycle time i.e. the time period between the time of placement of an order by the customer
to the time of arrival of goods at his destination. Standard procedure should be laid down for
processing of order.
Storage means making proper arrangements for retaining the goods in proper condition till they
are demanded by customers. There are many products which are seasonally produced but are
used throughout the year, they can be stored and later released.
Similarly, there are products which are produced throughout the year but are seasonally used like
umbrella, fans, heaters, etc. Here also storing plays an important role.
Warehousing provides the storage function. Places where the goods are stored are known as
warehouse. Goods are stored in warehouses to be released in time of demand. Apart from storing
function, warehouses also perform other functions like sorting and assembling the goods.
(3) Inventory management:
(4) Material Handling:
Material handling includes all those activities which are associated in moving products when it
leaves the manufacturing plant but before it is loaded on the transport.
It involves moving the goods from manufacturing point to warehouses and from warehouses to
place of loading in transport modes. Proper management of material handling helps in avoiding
unnecessary movement of goods, avoiding damage to the goods, facilitate order processing and
efficient movement of goods.
(5) Transportation:
Correct form of transportation mode is very essential as it directly affect the price of the product.
Proper choice facilitates smooth movement of goods on time and in good condition. Different
modes of transportation are Road transport, railways, Airways, Water transport and pipeline.
Each has its own share of merits and demerits. Normally a combination of different mode is
chosen and integrated in a sequential order to move the product economically and faster.
Choice of a particular mode of transportation depends upon various factors like cost of the
transport, availability of the mode of transport, speed, reliability, frequency, safety and suitability
of the mode to move the product.
Sales Planning or Forecasting: The sales-related activities need to be planned well in advance
through anticipation of future sales prospectives.
Sales Budgeting: The sales manager needs to determine or estimate the sales budget, i.e., the
expenses which will be incurred in carrying out the sales activities
Determining Structure and Size of Sales Organization: The department of a company which
is solely responsible for all the sales-related functions is termed as a sales organization.
Sales management provides for determining the size, composition and structure of a sales
organization.
Human Resource Planning: The sales management ensures a proper estimation of sales
personnel requirement in the organization.
Hiring Sales Personnel: It initiates the recruitment and selection of efficient and suitable
candidates for various vacant sales positions.
Training and Development of Salespeople: It also includes providing training and orientation
to the selected candidates to develop their skills and knowledge to match those required for the
job position.
Developing Salesperson’s Objectives: The sales manager set up achievable objectives or goals
for the salespeople appointed under him/her.
Fixing Sales Quotas: Also, the sales quota (monthly, quarterly or yearly) is fixed, either in terms
of volume or value of sales to set targets for the sales team.
Determining Sales Territories: Every sales team or salesperson is given a particular region or
area as a target market, where they need to penetrate for selling products or services.
Motivating Sales Personnel: It also emphasizes on reviewing the work of salespeople and
driving them frequently to perform better.
Controlling Salesforce: Exercising sufficient control by monitoring the performance of the sales
personnel is also a crucial function of sales management.
Branding, Labelling and Packaging: The sales personnel gathers customer feedback on the
acceptability of the product packaging, presentation, branding and labelling.
Sales Promotion: The product advertisements and other promotional tactics are also determined
through sales management functions.
Organizing and Support Service: It includes handling of queries and solving problems of the
sales personnel through proper guidance and support service.
After-Sale Services: The customer recognizes a company mostly through the effectiveness and
efficiency of the after-sale services it provides, which is the concern of sales management.
Conceptual Skills
Conceptual skill includes the formulation of ideas. Managers understand abstract relationships,
improve ideas, and solve issues creatively. The sales executive should be well versed with the
concept of the product he/she is selling.
People Skills
People skills involve the ability to interact effectively with people in a friendly way, especially
in business. The term ‘people skills’ involves both psychological skills and social skills, but
they are less inclusive than life skills. Every person has a different mindset, so a sales executive
should know how to present the product depending on the customer’s mindset.
Technical Skills
Technical skills are the abilities captured through learning and practice. They are often job or
task specific. In simple words, a specific skill set or proficiency is required to perform a specific
job or task. As a part of conceptual skills, a sales executive should also have a good grasp on the
technical skills of the product.
Decision Skills
Decision skills are the most important because to tackle the questions from consumers, sales
executive should always have the knowledge of competitors’ products and take a wise decision.
A sales manager plays a key role in the success and failure of an organization. He is the one who
plays a pivotal role in achieving the sales targets and eventually generates revenue for the
organization.
A sales manager is responsible for meeting the sales targets of the organization through
effective planning and budgeting.
A sales manager can’t work alone. He needs the support of his sales team where each one
contributes in his best possible way and works towards the goals and objectives of the
organization. So people management is another skill that a sales manager must possess.
A sales manager devises strategies and techniques necessary for achieving the sales
targets. He is the one who decides the future course of action for his team members.
It is the sales manager’s duty to map potential customers and generate leads for the
organization.
A sales manager is also responsible for brand promotion. He must make the product
popular amongst the consumers. A banner at a wrong place is of no use. Canopies must
be placed at strategic locations; hoardings should be installed at important places for the
best results.
Motivating team members is one of the most important duties of a sales manager. He
needs to make his team work as a single unit working towards a common objective.
It is the sales manager’s duty to ensure his team is delivering desired results.
Supervision is essential. Track their performances. Make sure each one is living up to the
expectations of the organization. Ask them to submit a report of what all they have done
through out the week or month. The performers must be encouraged while the non
performers must be dealt with utmost patience and care.
A sales manager is responsible for not only selling but also maintaining and improving
relationships with the client. Client relationship management is also his KRA. As a
sales manager, one should maintain necessary data and records for future reference.