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INDIAN INSTITUTE OF MANAGEMENT JAMMU

Master of Business Administration


Sales and Distribution Management (SDM)
Term-IV

Course Rationale:
The course is designed for to learn the principles of managing a field sales organization and understanding the elements
constituting sales and distribution management. You will learn to appreciate the relationships between both sales and
distribution and their mutual interdependence.
Customer acquisition and revenue growth are the determinant of success, which in turn depend on the quality of selling
and sales management. Although some businesses sell directly to their customers using a client acquisition team or
company sales force, many sales organizations utilize a channel for going to the market. The use of a channel makes it
incumbent on members of the marketing and sales team to have a good understanding of distribution management.
This course intends to bridge the gap between classroom learning and business world realities by discussing the real-
world application of the principles. You will begin to appreciate the challenges involved in dealing with the real world
outside the organization. A sales manager has a number of degrees of freedom, leading to complexity of operations and
decision making.
Modern retailing (Modern Trade) has made its presence felt in India even though the size is still small. From the
organization’s perspective, the concept of Key Account Management (KAM) and Category Management (CATMAN)
will be discussed. Participants will have to do ample research (primary and secondary) and project work in concluding
about the trends in retailing (details of the project are given later in the course outline).
Finally, the course attempts to emphasize how the function of sales and channel management fits in the overall gamut
of marketing activities. By the end of the course the knowledge you will acquire will be the stepping stones, enabling
you to build a successful sales career.
Course Objectives:
1. Understand the principles of managing a field sales organization and the elements constituting sales and
distribution management.
2. To understand the human resource aspects of sales management – managing sales teams and channel partners, in
order to serve and retain long-term customers.
3. Appreciate challenges involved in dealing with the real world outside the organization, in terms of managing a
business.
4. Develop skills and abilities to manage sales territories, clients and apply the tools & skills learnt
Learning Outcomes:
After completion of the course, students would be able to:
1. Develop an understanding of the ability to handle sales and channel management responsibilities
2. Understand choices available in the selling process of products or services and how to select the best alternatives
including the right channels
3. Build and nourish sales teams and marketing channels
4. Understand any limitations under which sales people operate
5. Develop a pragmatic approach for selection, growth and evaluation of channel partners
Prerequisite(s):
Marketing Management (Core Course)

Pedagogy:
The course would utilize a variety of tools- Textbook chapters, Journal Papers, Popular Readings, Case study and videos.
The classroom sessions would involve discussion of the critical concepts, case study and discussions. This would be
supplemented with assignments and exams.
• Extra readings and cases will be provided separately by the instructors or the PGP office.
• Instructions will be given in class on the preparation required before and after each session. The examinations
will be based on class discussions, cases and the readings in addition to the text book.
• The instructors will follow participative methods in class. The instruction predominantly will be through
interactive lectures and case discussions.
• The students are expected to come prepared to the class whenever a case or a reading is prescribed. The
instructors can call upon any student for his/ her comments (cold call) during the case discussions.
Class Participation has two main criteria:
Depth and Quality of Contribution - High quality comments, consistency of argument, and realism. To perform well
on these criteria, it is important that you come prepared to class and have a definite action plan to build on your peer’s
points.
Moving Your Peers' Understanding Forward – Relevance, clarity, conciseness, clarity and involvement.

Text Book:
Sales and distribution Management: Panda, T. K., & Sahadev, S. (2019). Sales and distribution management Oxford
University Press.

Reference Books:
1. Sales & Distribution Management – Text & Case, 2e, Krishna K Havaldar and Vasant M Cavale & McGraw
2. Marketing Channels,7e, Anne Coughlan, Erin Anderson, Louis W. Stern & Adel El-Ansary, Pearson, 2013
3. Marketing Channels – A Management Perspective, 8e, Bert Rosenbloom, Cengage, 2013
Journals:
• Journal of Marketing
• Journal of Consumer Research
• Journal of Marketing Research
• Journal of Personal Selling and Sales Management
• Journal of Retailing
• International Journal of Physical Distribution & Logistics Management

Evaluation Scheme:
• Class participation 15%
• Class tests/ quizzes 15%
• Project/ Assignment 20%
o Phase I: One Page write up
o Phase II: Project Report
o Presentation: Session 19 & 20
• Mid-term 20%
• End-term 30%
2
TOTAL 100%
Project:
Option 1: Students are expected to choose a company in groups of 5-6 and do thorough analysis of its marketing and
sales and distribution strategies. The objective of the same will be to appreciate the link between the two and if the
chosen company has been able to establish that or not and if not, what are the suggestions from your side. This should
be like a review paper based on both secondary and primary data collected by the group.
Option 2: Groups are expected to critically comment on the sales force management & channel Management of any
one company. As far as possible the data should be collected via means of interview with the company officials and
survey of dealers and distributors of the respective company. The Project report should have commentaries on the
following:
1. Sales management: a. Sales Organization
a. Recruitment & Induction Process
b. Territory allocation Process & Strategy
c. Reporting structure and systems
d. Compensation structure
e. System of Evaluation
f. Training & Development
2. Channel Management
a. Channel environment
b. Channel strategy
c. Channel Design & structure
d. Managing the channel members and conflict
e. Appraisal and evaluation of channel members

In your Project Report please ensure to have the following sections:


1. Disclaimer
2. Introduction
3. Objective of the study
4. Methodology
5. Description of the Sales & Distribution System of the company
6. Analysis/critique
7. Recommendations, if any
8. Limitations
Project will be evaluated on the content/coverage, flow, originality, quality of critique and analysis. Groups should
take care that they submit original work.
th
Each group is expected to give a one page write up on project they want to undertake by 4 session. This should
include the details of the company as well.

3
Session Plan:

Sess Topic (including Learning Outcomes Pedagogical Textbook Chapters &


ion subtopics) Tool Readings
1 Introduction Sales • Managing Sales – an Case: Textbook:
Management introduction Deighton, J. & Chapter - 1
Changing world of • Understand what role Abbott, S. Article:
Sales Management Sales Management as (2011):
a function plays in Designs by Managing sales Interfaces:
Importance of sales An Introduction – Frank V.
organization and its marketing and in an Kate: The
Organization Power of Cespedes,
role
Direct Sales. #: 592068-PDF-ENG
#: 4284-PDF-
ENG
2 Selling Process and • Understanding selling Case: Textbook:
Building selling skills Hill, Linda A., Chapter- 2 & 3
skills
• Personal selling – To and Alisa Article:
To understand comprehend the Zalosh. "Wendy
alternative process of building Peterson." Sprint Sell to Close Sales
approaches to effective Quickly – Benson P.
#: 913560- Shapiro
personal selling communication and PDF-ENG
persuasive skills #: 999004-PDF-ENG
• Clearly understand
the difference
between Effectiveness
and Efficiency
• Importance of
characteristics of
salespeople
3&4 What are selling • To understand what Case: Textbook:
strategies and sales are selling strategies Siebel systems: Chapter - 3
operations. and how they are Anatomy of a
designed Articles:
Sale, Part 1
• Apply the basic steps How strategic is your sales
How to manage and #: 503021- strategy – Theodore Kinni
optimize the sales in the selling process PDF-ENG (Harvard Management
effort • Appreciate the link of Siebel systems: Update)
field level sales to Anatomy of a
business mission #: U0402B-PDF-ENG
Sale, Part 2
Strategic Sales Management
#: 503022- - A Boardroom issue –
PDF-ENG Benson P. Shapiro (HBS)
#: 595018-PDF-ENG
5 Managing Sales • To understand the Case: Textbook:
Territories and principles and Dolan, R., Chapter – 7 & 8
Quotas procedures of quota Shaprio, B.
(target) selling (1983) Milford
Designing sales • Appreciate the Industries (A).
territories and importance of #: 585138-
deployment of sales ‘people’ consideration PDF-ENG HBS
persons in sales force
deployment

4
6-7 Salesforce • To explain the Case: Textbook:
Compensation difference between Sales Force Chapter –5, 12, 13
Sales Force compensation rewards Integration at
and non- Article:
Automation FedEx (A),
compensation The high Impact Sales force
rewards; financial and #: 506030- – The investment you can’t
Understand the non-financial rewards PDF-ENG HBS afford not to make - Benson
intricacies of a • Appreciate the P. Shapiro
compensation plan importance of #: 999002-PDF-ENG
– incentive design ensuring a motivating
and compensation Motivating Salespeople:
sales compensation
structuring What Really Works –
plan
Thomas Steenburgh &
Michael Ahearne
Get useful insights #: R1207D-PDF-ENG
on ensuring a
performance
management system
which is a source of
power and strength
for your sales force

8 Building and • To understand the Case: Textbook:


Sustaining a elements of a Petit Chapter – 9-11
Potent High- successful culture Playthings, Inc.,
Performance Sales Article:
• To identify and A
Culture Major Sales: Who Really
discuss the basic #: 584080-
ethical dilemmas that Does The Buying?
PDF-ENG
can arise in building by Thomas V. Bonoma
and sustaining buyer Petit
Playthings, Inc., #: R0607P-PDF-ENG
– seller relationships
B
• Describe the ethics
continuum and the #: 584081-
balance of interest PDF-ENG
between buyer and
sellers
9& Going to Market – • To understand the type Case: Textbook:
10 Role of Channels of functions that Oversight Chapter 14, 15.
To see how distribution channels Systems
perform Article:
marketing channels #: 817015-
relate to other • To describe the PDF-ENG Channel Management, Frank
strategic variables in various distribution V. Cespedes
the marketing mix channels in India #: 590045-PDF-ENG
Going to Market, Robert J.
Dolan
#: 599078-PDF-ENG
11 Deciding/ Selecting • Comparing various Case: Textbook:
& pathways – channel designs Goodyear: The Chapter – 7, 15
12 Selecting new
• Understanding the Aquatred Strategic Channel Design –
channels Launch
relation between Anderson, Day & Kasturi
Territory channel member (Condensed) Rangan, George S. Day
Management selection and #: 500039-
distribution intensity #: SMR030-PDF-ENG
PDF-ENG

5
Choosing different • Recognize the need
and new ways of for adopting selection Natureview
reaching consumers criterion to the needs Farm
of particular firm
#: 2073-PDF-
• Learn a financial ENG
approach to selecting,
lengthening or
shortening a channel
• Managing channel
conflict
13 Adding new • Choosing different Case: Textbook:
& channels and new ways of Arrow Chapter 15 & 19
14 reaching consumers Electronics, Article:
• Managing channel Inc.
conflict Citation: Mallen, Bruce
#: 598022- (1967) “Conflict and
• Managing channel PDF-ENG Cooperation in Marketing
partners Channels,” inThe Marketing
• To understand how to Channel: A Conceptual
manage channel Viewpoint, Bruce E. Mallen,
conflict ed., New York: John Wiley
and Sons Inc., 124–134.

15- Profitable • Ensuring Case: Textbook:


16 intermediaries intermediaries earn BMW's Project Chapter - 16
and remain profitable Switch (A):
• Understanding the Importers vs.
dynamics of getting a National Sales
channel intermediary Companies.
to invest more #: 509023-
PDF-ENG
17- Adding ecommerce • To understand doing Case: Textbook:
18 to your ecommerce business Clique Pens: Chapter - 17
distribution
o Business models The Writing
Implements
o Role of
Division of
intermediaries
U.S.
o Commercials
#: 914525-
• To discuss the PDF-ENG
criticality of demand
generation and other
nuances of this new
format in terms of
doing business online
• Examine the channel
conflict that might
arise – co-existence;
Omni-channel

6
19 Distribution • To acquire an Teracom Textbook:
Selection and understanding of new Limited: Chapter – 19, 20
performance distribution network Appointing a
Evaluation Consumer
Distributor

20 Project Lectures and


Presentations & Class
Wrap-Up Of Discussion
Concepts and
Frameworks

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