CH- 1 TO 7 SALES &

MKTNG
PEARL KALRA,
PGD SALES&MARKETING, TISS 15-16
History of Sales & its Evolution
 In the Beginning People Bartered
(Around 5000 BC metal objects introduced as money)
 1700’s-1800’s: The Industry Revolution changed
business.
the way we do

aims *Sales People often made

exaggerated
*Bulk buying and selling concept introduced
Cl
 Starting 1900’s : Sal es People were encouraged to ea rn

customer’s trust.
 1950’s-1960’s : Sales People held power o ver the c ustomer

* Fast Talking Salesman c ame knockin g .

* TV promotion ads & P rint Media Ads
 1970’s-1980’s : Spin & Solution Selling st arted.
* Customer became more involved.
* Align Solution with an Customer need.
* Demo Why it is better than the Competitor’s.
 1990’s: Rise of Partnerships
Power Base, Target Account, Complex Selling
 2000’s : Rise of Cloud based & Saas CR
M Soln
Power Sh ifted from Salesman to Customer.
 2010’s: ise of Intelligent Sales Automati on
R Age of the Informed Customer
What is Distribution

 Distribution is the process of making a product or

service available for use or consumption by a consumer
or business user, using direct means, or using indirect
means with intermediaries.

1) Intensive -basic supplies, snack foods, magazines and soft

drink beverages.
2) Selective -more specialised goods that are carried through specialist
dealers, for example, brands of craft tools, or large appliances.
3) Exclusive - typical of luxury goods retailers such as Gucci

*
Channels (Sales) :

A
 Consumer, Service & Industrial .B
 Basically there are Two Channels :

INDIREC
T .

• the vendor of a product or offloads sales activities to

service sells directly to the individuals and organizations
customer. known as intermediaries.
• Direct sales approach requires e.g value-added resellers
vendors to take on the expense of , consultants, wholesalers etc.
hiring and training a sales team.
Consumer Channels

 Manufacturers may reach out to consumers

either directly, i.e., without using distribution
channels, or by using one or more
distribution
channel
members.
Consumer Channels Cont.

 Manufacturer to consumer: Direct marketing includes

use of personal selling, direct mail, telephone selling and internet. Avon
cosmetics, Tupperware, Aqua guard and Amazon.com are examples of
companies engaged primarily in direct marketing.
 Manufacturer to retailer to consumer:
supply directly to retailers rather than through
wholesalers.
Supermarket chains and corporate retailers e.g Big Bazaar, Natures Basket
etc.
 Manufacturer to wholesaler to retailer to
consumer:
For small retailers with limited order quantities the use of wholesalers makes
economic sense. Wholesalers dominate where retail monopolies are not
dominant.
 Manufacturer to agent to wholesaler to
retailer to consumers: A company uses this channel
when it enters foreign markets. The agent contacts wholesalers
in the foreign market and receives commission on sales to sell to
Industrial Channels:

 Industrial channels are usually shorter than consumer

channels. Direct selling is prevalent due to closer
relationship between the manufacturer and the customer,
as well as due to the nature of the product sold.
Industrial Channels Cont.

 Manufacturer to industrial customers:

common channel for expensive industrial products like heavy
equipments and machines. Close & Continuing relationship
between the manufacturer and the customer. E.g JINDAL STEEL
– HERO CYCLE
 Manufacturer to agent to industrial
customer: A company that sells industrial products
employ the services ofcanan agent who may sell a range of
products from several producers on a commission basis. JINDAL
STEEL – AGENT – HERO CYCLE.
 Manufacturer to distributor to industrial
customer: For less expensive, more frequently purchased
products, distributors are used. Distributors enable customers
to buy small quantities locally.
 Manufacturer to agent to distributor to
industrial customers: The manufacturer employs an
agent rather than a dedicated sales force & agent may sell the
goods of several suppliers to an industrial distributor, who further
Service Channels

 Distribution channel for services are

usually short, and are either direct or use
an
agent. Since stocks are not held, the role of wholesalers, retailers or
industrial distributors does not apply.

 Service provider to consumer or industrial customer: Close

relationship between service provider and customer means that service
supply has to be direct, for instance, healthcare, banks etc.
 Service provider to agent to consumer or industrial customer: Agents
are used when the service provider is geographically away from customers
and when it is not economical for the provider to establish its own local
sales team.
 Service provider via internet to consumer or industrial customer:
Increasingly, services like music, software solutions and financial
information are being distributed via the internet. E.g e-tickets
Role of Channels

A manufacturer creates value utility in the

product or service but time and place utilities
are created by distribution channels.
Distribution channels help in the
following ways:
(i) Enhance Efficiency: Distributor/agents
(ii) Smooth Flow of Goods and Services:
Merchant
(iii) Reducing Cost of Transactions:
Intermediates
(iv) Facilitate Search: Facilitator, Dealer

(v) Less Stocks of Goods: Broker, Facilitator,

MR, OEM
(vi) Proximity to Consumers: Dealer, Serive
Center etc.
Primary & Secondary Sales

 Primary Sales is some what easy to manage and monitor

rigorously with the help of different Sales and Distribution solutions
available but as far as the secondary sales is concerned there is
risk that companies have to depend on unverified assumptions.

With Example:
 PRIMARY SALES MEANS WHEN THE ORGANISATION SELLS
OR MAKE FLOW OF PRODUCT OR SERVICES TO THE
CHANNEL PARTNERS. EX : IN FMCG : F&C AGENTS,
DISTRIBUTORS , DEALERS EX : IN FINANCIAL SERVICE :
BUSINESS PARTNERS, FRANCHISEES.

 SECONDARY SALES MEANS WHEN THE ORGANISATION

SELLS OR MAKE FLOW OF PRODUCT OR SERVICES TO END
USERS. EX : IN FMCG : RETAILERS , TRADE FAIRS ,
PROMOTIONAL SALES EX : FINANCIAL SERVICES : SALES
DIRECTLY BY COMPANY EMPLOYEES.
Case Study : PharmaNET
Solution
THANK YOU