Role of Sales personnel in the

channels of distribution
 Sales person and the channel.
• Though the nature and constitution of the
channels of distribution have changed, the
role of sales personnel in servicing the
channel has become only stronger.

• The sales personnel work along with the

channel mechanism in order to facilitate
the smooth movement of goods in one
direction and the flow of money and
information in the opposite direction.
 Marketing Channels
• The channel used by a manufacturer to reach the
ultimate customer is called the marketing channel.

Channels are constituted by the following:

1. Communication Channel : To deliver Information and

receive feedback.
2. Distribution channel : physical routing of goods and
services down the line
Manufacturer>Wholesaler>Retailer>Customer
An agent can act between the components at any level.
3. Service channel : Provide support and ancillary
services like transport companies, warehouses,
insurance and banks.
 Distributor
• The most important component of a
marketing chain in the case of consumer
and industrial products is the distributor,
also referred to as a stockist and as a
wholesaler

• The distributor normally is in charge of a

definite territory and is assigned a group
of customers.
 Functions of the distributor
• Provides forecast data for the company’s
products.
• Buys the required product mix from the company
in bulk and stores it in a convenient location of
the target market for further distribution.
• Consolidates the orders from retailers and
supplies them and collects money from them
and remits the net proceeds to the company in a
timely manner.
• The distributor has its own facility for transport
which is related to their part of selling.
 Role of the sales personnel in the channel
• Sales personnel are important components of
the channel and work very closely with the
distributor. Very often they have workstations at
the distributors office itself.

• The company sales personnel works in tandem

with the distributor's sales personnel

• Thus salesperson is an important interphase

between the company and its distributor.
 Role of the sales person at the distributors office:
• They are the interphase between the sales manager and
the distributor.
• Gives timely feedback to the company on the
performance and effectiveness of the distributor.
• Implements the marketing requirements as well as sales
promotion tasks.
• Participates in the sales forecast activity on an yearly
basis.
• Performs along with the distributors sales force to
promote the products as required .
• Makes regular visits to the retailers and implements the
company’s regulations as regards the display of goods,
stock rotation and sales promotions.
• The salesperson has to identify problems
related to market situations/distribution/
retailer based and take necessary
corrective action wherever possible.

• In case of necessity the problem should be

communicated to the superior for action

• Sales personnel should monitor the sales

of the territory on a product by product
(SKU) level.
 Order placements:
• One of the most important duties of the sales
person is to prepare and consolidate the
routine orders from the distributor and pass it on
to the company.
• The payments due on earlier orders are closely
observed and monitored.
• The salesman also monitors the dispatch of
goods and ensures that there are no stock outs.
• The sales man also regulates the order so that
the product mix is profitable and does not cause
over stocking.
 Distribution centers:
A major manufacturer may have three or four
manufacturing centers and hundreds of
distributors located all over the country.
Thus it is impossible to send the goods in the
right product/pack mix directly from the factories
to the distributors location.
This the manufacturer has distribution centers in
all major zones where goods are received in
advance and stored conveniently. Whenever
orders come from the distributors these orders
are made up and despatched to the distributor
on time.
 Clearing and forwarding agent:
• If the distribution center is run by a third
party then it is referred to as the clearing
and forwarding agent.
• The sales people have an important role to
play in the management, monitoring and
controlling of the distribution center/C&F
agency.
 Sales personnel in Industrial selling:

• With most companies involved in industrial

selling the channel is as follows:
• Manufacture> distributor>consumer or
Manufactures> consumer.
In these cases the role of the salesperson
becomes very critical and assumes the
role of personal selling.
 Sales personnel in Industrial selling:

• If in industrial selling the customer is very

large then it is classified as a key account
And the salesperson is considered to be a
relations manager for that account.
In this case the salesperson will have to be
Proficient with proactive and partnership
marketing.
 Sales person and CRM:
• In this era of Customer centric marketing
concept, finding ,rewarding ,retaining and
reviving customers have become vital.
• Customers have to be monitored and
cared for in all phases of the customer life
cycle.
• More and more sales personnel have
started involving themselves in CRM.
 Sales person and CRM:
• Sales person should be in touch with the
customer during all phases of the
customer life cycle.
• Constant monitoring of the events after
sale of the product upto the point of
replacement should be implemented.
• Sales personnel should strive to create
Brand loyalty and increase the Brand
equity of the company.