SALES AND DISTRIBUTION MANAGEMENT

1. Connection of EDI and Supply Chain.

The primary application of electronic data interchange (EDI) within supply chain
management (SCM) business process focuses on the electronic exchange of
business transactions. Examples include purchase orders, shipment
authorizations, shipment acknowledgements, advanced shipment notices, or
invoices.
SCM EDI transactions must adhere to standardized document formats that are
outlined in international standards. The decision about which standard to
adopt is determined by factors of global business, industry, or by mutual
agreement with a trading partner. There are four main technical standards:
 UN/EDIFACT -- the main standard supported by the United Nations
 ANSI X12 -- common standard adopted in the US, Canada and
Australia
 TRADACOMS -- predominantly used in the United Kingdom
 ODETTE -- developed in the United Kingdom for the motor industry.
The first two on the list are the most widely adopted within SCM.
Benefits of supply chain EDI
The most obvious is the reduction in large volumes of paperwork. But even
more important is the enhanced speed of transactional and information flow
among various SCM processes and supporting software applications. The
elimination of paper-based purchasing and receipt transactions alone has saved
companies significant amounts of money.
EDI-enabled processes are implemented either internally with resident
technical teams or with the assistance of a specialized vendor. EDI software can
either be incorporated in a standard "behind the firewall" implementation or
be contracted with an outsourced EDI or B2B electronic message broker which
hosts the software and messaging infrastructure in a third-party arrangement.
The criteria in selecting which option to utilize depends on a company's
inhouse technical expertise, the geographic and business scope of the
implementation, or the cost and timing parameters associated with the
implementation.
Selecting a vendor or service provider to support an EDI implementation should
be determined by the vendor's knowledge and expertise within your industry,
the track record of successful and cost-effective implementations
demonstrated by that vendor, as well and the vendor's knowledge of
integration needs with the various upstream and downstream processes
incorporated within SCM.

2. Buyer-Seller Dyads.
Fundamental to understanding salesmanship is recognition that it involves
buyer-seller interactions. Sociologists use the term “dyad” to describe a
situation in which two people interact. The salesperson and the prospect,
interacting with each other, constitute one example of a “buyer-seller dyad”.
It is this interaction that is usually referred to as business dyads. Sellers can
range from an individual salesperson to advertisements or a combination of
both that would lead to push and pull strategy as a way of reaching out and
selling a product or service to the customer. It is this particular interaction that
is commonly known as buyer seller dyad.
The intention of most of the marketers is ensuring that they utilize the buyer
seller dyads to optimum levels as a way of ensuring that the interaction
between them and the customers is efficient and results to purchase
the products or services.
Most companies have made sure that their sales personnel undergo a thorough
training and understanding of the market research concepts as a way of
enhancing interaction between the marketers and the potential customers.
Marketing implications of buyer-seller dyads- SELLERS EYEVIEW:
It is imperative to ensure that you match the sales agents with their particular
area of operation. The reason for this is that it helps in enhancing interaction
between the sales agent and the customers have given that they seem, share a
lot in common hence making the connection comparatively easy.
 It is not advisable to hire a sales agent in one particular demography to sell the
company’s products or services to a different demography. It simply shows that
there are disparities in some aspects hence making it difficult for the business
interaction to be effective between the two parties.
There is also a mindset cultivated from childhood that sales are all about
tricking the customer into buying the product. This is a critical element because
it affects the interaction between the buyer and the seller in a great way. The
approach that the marketer uses to get the attention of the potential client is
what determines whether the customer will listen to the agent with a mindset
of trickery or listen with the intention of understanding the presentation.
It is therefore important for the buyers not to be overzealous when selling a
product to customers because the client may interpret the obsession as a way
of tricking them into buying the particular products.
Several stereotypes often compromise the interaction between the sales
executives and potential customers. This often happens even the moment
before they start pitching up hence making relatively difficult for them to be
able to maintain positive interaction. It is thus significant to ensure that the
sales personnel undergo a comprehensive and continuous training on matters
regarding ways of overcoming resistance.
This will help them in ensuring that such stereotypes do not affect them when
presenting a particular product or service to the client. It will also enable them
to understand various ways of maintaining a constructive interaction that
would generate sales.

3. Recruitment and Selection of Salesforce.

Recruitment and Selection
The organization of recruiting and selection of sales personnel varies from
company to company. Company size, executive’s personalities, and
departmental structure all influence the organization uses. Companies with
small sales forces sometimes assign sole responsibility for recruiting and
selection of sales personnel to the company personnel manager. It is more
common for the personnel department to handle certain but not all, aspects of
recruiting and preliminary screening and for the sales department to handle
other aspect of recruiting and screening and to make the hiring decisions.
Sources of Sales Force Recruits
Internal Sources
i) Company Sales Personnel
Many individuals apply for sales jobs because they know company sales
personnel, and salesperson’s recommendations may constitute an excellent
source. Often such applicants already know something about company policies,
and the fact that they apply indicates a favorable disposition toward the
company. Salespeople have wide circles of acquaintances, since both on and off
the job; they continually meet new people and have many friends with similar
interests. Many of their contacts have potential as sales personnel – indeed,
many now sell for other firms. Salespeople are a particularly valuable source of
recommendations when jobs must be filled in remote territories; sales
personnel in the same or adjacent areas may know more about unique
territorial requirements and local sources of personnel than home office
executives.
ii) Company Executives
Recommendations of the sales manager, and other company executives are an
important sources. Sales executives’ personal contact may yield top-caliber
people because of their understanding of the needed qualifications.
iii) Internal Transfer
Two additional internal sources are other departments and non-selling section
of the sales department. Employees desiring transfers are already familiar with
company policies, and the personnel department has considerable detailed
information about them. While little is known about their aptitude for selling,
they often possess excellent product knowledge. Aptitude for selling, of course,
can be tested formally or by trial assignment to the field positions whenever
product knowledge makes up a substantial portion of sales training.

Sources Outside the Company

i) Direct Unsolicited Applications
All companies receive unsolicited “walk-in” and “write-in” applications for sales
positions. Some sales managers favor immediate hiring of applicants who take
the initiative in seeking sales jobs, the reasoning being that this indicated
selling aggressiveness. Others reject all direct application because they believe
the proportion of qualified applicants from this source is low. The most logical
policy is to treat volunteer applications the same as solicited applications-
applicants not meeting minimum requirements as set forth in job specifications
should be eliminated; those meeting these requirements should be processed
together with other applicants. The aim should be to recruit the best qualified
applicants regardless of the sources from which they come. Direct unsolicited
applications do not provide a steady flow of applicants; the volume fluctuates
with changing business conditions.
ii) Employment Agencies
Sales managers traditionally regard employment agencies as unpromising
sources. Many use agencies only after exhausting other sources. Many believe
that good salespeople neither need nor will use an agency’s services.
Experience, unfortunately, tends to reinforce such attitudes, because
frequently agency referrals fail to meet sales job specifications. Sometimes this
traces to agency deficiencies (such as the overzealous desire to receive
placement fees), but often the fault is that of prospective employers, who may
be using unrealistically high job specifications, may not make the company’s
requirements clear, and so on. When an agency is used, it should receive a
clear statement of the job’s objectives and a complete rundown of job
specifications.
iii) Salespeople Making Calls on the Company
The purchasing director is in contact with sales personnel from other
companies and is in a position to evaluate their on-the-job performances. The
purchasing director meets high-caliber salespeople for who jobs with the
company would be attractive both financially and in other respects. In well-
managed companies, the purchasing director, serving as a “center of influence”
contributes names to the persecuting reservoir.
iv) Employees of Customers
Some companies regard their customers as a recruiting source. Customers
recommend people in their organizations who have reached the maximum
potential of their existing jobs. Such transfers may have a favorable effect upon
morale in the customer’s organization. A customer’s employees should be
recruited only with the prior approval of the customer.
v) Sales forces of Other Companies
Individuals currently employed as salespersons for noncompeting companies
are often attractive recruiting prospects. Such people have selling experience,
some of it readily transferable, and for those who have worked for companies
in related industries, there is the attraction of knowing something about the
product line. For salespeople in dead-end jobs and those seeking to upgrade
their employment, this source provides a channel for career advancement.
Because of their experience in selling similar products to similar markets,
personnel recruited from competitors even though they now are either
working somewhere else or are unemployed In considering the recruitment of
individuals currently employed by competitors, a key question to answer is why
does this person want to leave his or her present position? When the new job
will not improve the applicant’s pay, status, or future prospects, the desire to
change companies may trace to personality conflicts, or instability. But
dissatisfaction with a present job may not mean that the fault is the applicant’s.
vi) Educational Institutions
This source includes colleges and universities, vocational-technical institutes,
business colleges and high schools. It is reasonable to expect that graduates
have attained certain educational levels, the amount depending upon the type
of school. Many have training in general business, marketing, and sales
techniques. Schools are fruitful sources of new sales personnel at graduation
time, and some maintain year round placement services for their graduates.
Recent graduates are new to the labor market and, consequently, need not be
attracted away from other jobs.
vii) Indirect Recruiting
Newspapers carry numerous advertisements publicizing openings for sales
personnel. Such advertisements appear both in classified (want-ad) sections
and as display advertising. So great is the number of prospective job candidates
reached by a single advertisement that companies often try to reduce the
volume of applications. If the employer publishes details about the company
and job, fewer obviously unqualified persons will reply. Specific job details vary
with the company and its situations, and these should be in the ad if it is to
attract good applicants. Most sales managers favor open over blind
advertisements although mixed practice exists. An open advertisement reveals
the company identity; a blind advertisement hides company identity.
viii) Recruiting Brochures
Some companies distribute brochures outlining sales career opportunities to
applicants answering recruiting advertisements, as well as those contact
through such centers of influence as career counselors in educational
institutions. Effective brochures are written from the viewpoint of the
prospective sales recruit. Besides describing the company and its history, the
brochure details the qualifications required for sales jobs, and the salesperson’s
duties, responsibilities, and cautions required for sales jobs, and the
salesperson’s duties, responsibilities, and advancement opportunities.

4. Selling Process.
The selling process is the interaction between a seller and a potential buyer or
client. It's generally a method business can replicate for consistent
performance among salespeople. Businesses use the common seven steps of
the selling process to complete sales and ensure continued profits.
The 7 steps are:
1. Prospecting
Prospecting involves finding and qualifying potential buyers or clients. At this
stage, you determine whether your prospective customer has a particular need
or want that your business can fulfil. You might also decide on varying factors
such as affordability.
This stage of the selling process often involves research to identify your ideal
customer. You can start compiling a list of leads or potential clients. You might
screen them based on qualifying questions, such as whether they’re a business
owner or homeowner or if their average monthly profits or income are suitable
for the product price. This helps narrow your buyer pool.
You can also use the screening process to determine buyers’ current needs. For
instance, if you’re selling insurance to individuals over age 65, then you
probably won't target someone in their 30s.
2. Preparation or pre-approach
Before making initial contact with your prospects, you want to prepare. It's
important to have all your information ready, such as product descriptions,
prices, payment options, competitor rates and dates for specific sales. You also
want to know as much as possible about your prospects so you can better
connect with them.
This stage of the selling process might also involve preparing your initial sales
presentation. Be ready to answer any questions your prospects could have with
supporting data. Practice what you're going to say out loud, and have someone
present you with potential questions so you can rehearse your response.
3. Approach
During the approach stage of the selling process, you’ll make your first personal
connection with your prospect or prospects. This step involves getting the
potential buyer or client to interact with you by personalizing your meeting or
otherwise establishing rapport. Ask questions to get the client involved in the
conversation.
4. Presentation
At this point in the selling process, you have established an understanding of
your prospect's individual needs and wants. You can then tailor your
presentation or demonstration to show how your product or service can best
fulfill those needs or wants. To complete this step effectively, focus on
personalizing it and frame your product as a solution to their problem.
Your presentation might involve a tour, product demonstration, video
presentation or other visual or hands-on experience. This step is when you can
apply all your research. For instance, if you’re trying to sell a house to a
growing family, you likely would show them a larger home with a yard in a
family-friendly neighbourhood rather than a second-story condo.
5. Handling objections
After you complete your presentation, your prospect might have some
questions, concerns or objections. This is a normal and important part of the
selling process. View objections as an opportunity to learn more about your
prospect. When you research and prepare appropriately, you’ll have all the
information needed to overcome objections.
This step might involve listening to your prospect's concerns and asking
additional questions to better identify and understand their objections. You
might want to then reframe your sales pitch to address those concerns.
Example: If a customer says they won't be able to make an investment until
next month, you could offer them additional savings or promotions if they
follow through with their purchase. While in the handling objections step of the
selling process, you might also reiterate the cost or loss of value if the prospect
decides to completely forgo the purchase.
6. Closing
Once you've convinced the prospect that your product or service can meet
their needs, it's time to close the sale. It's important to actually ask the
prospect if they want to make the purchase and ensure they fully understand
all the terms of the sale.
Closing the sale might involve drafting a proposal, negotiating terms or pricing,
signing contracts, completing a monetary transaction or even overcoming
additional concerns or objections. You want to make sure your buyer
understands the terms and restrictions included in the contract, such as any
refunds, guaranteed customer satisfaction clauses or ongoing purchases or
billing for monthly memberships.
At this stage, you can also use upselling techniques, such as offering additional
products that complement their original purchase, upgrades or a higher-end
version of your product. After completing the transaction, always thank the
customer and be sure not to instantly drop the connection.
7. Follow-up
The follow-up, which takes place after the sale, is one of the most important
steps in the selling process. It’s a continuation of the relationship between the
seller and the buyer that ensures customer satisfaction, retains customer
loyalty and helps prospect for new customers. The idea is not to continue
selling at this stage, but instead to nurture the existing relationship.

The follow-up might involve sending a thank-you note or calling the customer
to ask about their experience with their new product or service. You might also
ask your customer to rate your service or post a review on one of your social
media or business pages. Sometimes, the follow-up includes completing the
logistics of a sale, such as signing additional contracts, making deliveries or
installing products. When done well, this stage can often lead you back to step
one in the selling process with additional sales, referrals or reviews that bring
new customers to you.

5. 5 theories of Motivation.
(1) Maslow’s Theory:
Maslow's hierarchy of needs is a theory of motivation which states that five
categories of human needs dictate an individual’s behavior. Those needs are
physiological needs, safety needs, love and belonging needs, esteem needs,
and self-actualization needs.
Maslow's theory presents his hierarchy of needs in a pyramid shape, with basic
needs at the bottom of the pyramid and more high-level, intangible needs at
the top. A person can only move on to addressing the higher-level needs when
their basic needs are adequately fulfilled.
1. Physiological needs: The first of the id-driven lower needs on Maslow's
hierarchy are physiological needs. These most basic human survival needs
include food and water, sufficient rest, clothing and shelter, overall health, and
reproduction. Maslow states that these basic physiological needs must be
addressed before humans move on to the next level of fulfillment.
2. Safety needs: Next among the lower-level needs is safety. Safety needs
include protection from violence and theft, emotional stability and well-being,
health security, and financial security.
3. Love and belonging needs: The social needs on the third level of Maslow’s
hierarchy relate to human interaction and are the last of the so-called lower
needs. Among these needs are friendships and family bonds—both with
biological family (parents, siblings, children) and chosen family (spouses and
partners). Physical and emotional intimacy ranging from sexual relationships to
intimate emotional bonds are important to achieving a feeling of elevated
kinship. Additionally, membership in social groups contributes to meeting this
need, from belonging to a team of coworkers to forging an identity in a union,
club, or group of hobbyists.
4. Esteem needs: The higher needs, beginning with esteem, are ego-driven
needs. The primary elements of esteem are self-respect (the belief that you are
valuable and deserving of dignity) and self-esteem (confidence in your
potential for personal growth and accomplishments). Maslow specifically notes
that self-esteem can be broken into two types: esteem which is based on
respect and acknowledgment from others, and esteem which is based on your
own self-assessment. Self-confidence and independence stem from this latter
type of self-esteem.
5. Self-actualization needs: Self-actualization describes the fulfillment of your
full potential as a person. Sometimes called self-fulfillment needs, self-
actualization needs occupy the highest spot on Maslow's pyramid. Self-
actualization needs include education, skill development—the refining of
talents in areas such as music, athletics, design, cooking, and gardening—caring
for others, and broader goals like learning a new language, traveling to new
places, and winning awards.
Maslow referred to self-actualization as a “growth need,” and he separated it
from the lower four levels on his hierarchy, which he called “deficiency needs.”
According to his theory, if you fail to meet your deficiency needs, you’ll
experience harmful or unpleasant results. Conditions ranging from illness and
starvation up through loneliness and self-doubt are the byproducts of unmet
deficiency needs. By contrast, self-actualization needs can make you happier,
but you are not harmed when these needs go unfulfilled. Thus, self-
actualization needs only become a priority when the other four foundational
needs are met.
(2) Herzberg’s 2 factor theory:
The two-factor motivation theory, otherwise known as Herzberg’s motivation-
hygiene theory or dual-factor theory, argues that there are separate sets of
mutually exclusive factors in the workplace that either cause job satisfaction or
dissatisfaction.

Motivation Factors
Herzberg et. al. (1959) argues that motivation factors are necessary to improve
job satisfaction. These motivators, according to Herzberg, are intrinsic to the
job and lead to job satisfaction because they satisfy needs for growth and self-
actualization (Herzberg, 1966).
In his original paper, Herzberg examines 14 motivational and hygiene factors,
of which these are notable examples:

 Advancement: Herzberg defined advancement as the upward and

positive status or position of someone in a workplace. Meanwhile, a
negative or neutral status at work represents negative advancement
(Alshmemri et al., 2017, 2017).
  The work itself: The content of job tasks in itself can have positive or
negative effects on employees. The job’s difficulty and level of
engagement can dramatically impact satisfaction or dissatisfaction in the
workplace (Alshmemri et al., 2017, 2017).
 Possibility for growth: Possibilities for growth exist in the same vein
as Maslow’s self actualization; they are opportunities for a person to
experience personal growth and promotion in the workplace. Personal
growth can result in professional growth, increased opportunities to
develop new skills and techniques, and gaining professional knowledge
(Alshmemri et al., 2017, 2017).
 Responsibility: Responsibility encompasses both the responsibilities
held by the individual and the authority granted to the individual in
their role. People gain satisfaction from being given the responsibility
and authority to make decisions. Conversely, a mismatch between
responsibility and level of authority negatively affects job satisfaction
(Alshmemri et al., 2017, 2017).
 Recognition: When employees receive praise or rewards for reaching
goals at their job or for producing high-quality work, they receive
recognition. Negative recognition involves criticisms or blame for a
poorly-done job (Alshmemri et al., 2017, 2017).
 Achievement : Positive achievement can involve, for example,
completing a difficult task on time, solving a job-related problem, or
seeing positive results from one’s work. Negative achievement includes
failure to make progress at work or poor job-related decision making
(Alshmemri et al., 2017, 2017).

Hygiene Factors
Hygiene factors are those which decrease job dissatisfaction. Herzberg,
Mausner and Snyderman used the term hygiene in reference to “medical
hygiene…[which] operates to remove health hazards from the environment”
(1959; Alshmemri et al., 2017).
Herzberg also states that hygiene factors are extrinsic to the job, and function
in “the need to avoid unpleasantness” (Herzberg, 1966).
Hygiene factors, rather than relating to the content of the job in itself, tend to
relate to contextual factors such as interpersonal relations, salary, company
policies and administration, relationship with supervisors and working
conditions:

 Interpersonal relations: Interpersonal relationships involve the

personal and working relationships between an employee and his
supervisors, subordinates, and peers. This can manifest in, for example,
job-related interactions as well as social discussions in both the work
environment and during informal break times.
  : Salary Salary includes wage or salary increases, and negatively,
unfulfilled expectations of wage or salary increases (Alshmemri et al.,
2017).
 Company policies and administration: Company policies and
administration includes factors such as the extent to which company
organization and management policies and guidelines are clear or
unclear. For example, a lack of delegation of authority, vague policies
and procedures and communication may lead to job dissatisfaction
(Alshmemri et al., 2017).
 Supervision: Supervision involves an employee’s judgements of the
competence or incompetence and fairness or unfairness of the
supervisor or supervisions. For example, this could include a
supervisor's willingness to delegate responsibility or to feach, as well as
their knowledge of the job at hand. Poor leadership and management
can decrease job dissatisfaction (Alshmemri et al., 2017).
 Working conditions: Finally, working conditions involve the physical
surroundings of the job and whether or not they are good or poor.
Factors leading to a good or poor workspace could involve the amount of
work, space, ventilation, tools, temperature, and safety (Alshmemri et
al., 2017).

The two-factor theory has not been well supported by research. Generally,
criticisms of the theory focus on Herzberg’s methodology and assumptions.
Critics have also noted that if hygiene and motivational factors are equally
important to a person, then both should be capable of motivating employees

(3) Goal Setting Theory:

Goal-setting theory is a theory based on the idea that setting specific and
measurable goals is more effective than setting unclear goals. Edwin A. Locke
developed this theory in 1968 in his article, "Toward a Theory of Task
Motivation and Incentive.” In this article, Locke showed how employees are
more motivated by well-defined goals and constructive feedback and are more
likely to accomplish these goals when they are specific and measurable.
In addition to setting clear goals, Locke emphasized the fact that employees
work well when they are faced with challenging goals. Tackling these more
difficult goals forces employees to work hard and develop their skills, and, as a
result, receive positive feedback and an overall sense of achievement. This, in
turn, may result in improved employee engagement, productivity and
satisfaction in the workplace.
Principles of the goal-setting theory
According to Locke's goal-setting theory, there are five main principles of
setting effective goals:

Clarity: Goals must be clear and specific. When employees understand project
objectives and deadlines, there is much less risk for misunderstandings.
Challenge: Goals should be sufficiently challenging to keep employees engaged
and focused while performing the tasks needed to reach each goal. Goals that
are too tedious or easy have a demotivating effect and will, therefore, result in
less achievement satisfaction.
Commitment: Employees need to understand and support the goal they are
being assigned from the beginning. If employees don't feel committed to the
goal, they are less likely to enjoy the process and ultimately achieve the goal.
Feedback: Feedback is an important component of the goal-setting theory.
Regular feedback should be provided throughout the goal-achieving process to
ensure tasks stay on track to reach the goal.
Task complexity: Goals should be broken down into smaller goals. Once each
smaller goal is reached, a review should be performed to update the employee
on the overall progress towards the larger goal.
(4) Expectancy theory:
Expectancy theory, initially put forward by Victor Vroom at the Yale School of
Management, suggests that behavior is motivated by anticipated results or
consequences. Vroom proposed that a person decides to behave in a certain
way based on the expected result of the chosen behavior. For example, people
will be willing to work harder if they think the extra effort will be rewarded.
In essence, individuals make choices based on estimates of how well
the expected  results of a given behavior are going to match up with or
eventually lead to the desired results. This process begins in childhood and
continues throughout a person’s life. Expectancy theory has three components:
expectancy, instrumentality, and valence.
 Expectancy is the individual’s belief that effort will lead to the intended
performance goals. Expectancy describes the person’s belief that “I can
do this.” Usually, this belief is based on an individual’s past experience,
self-confidence, and the perceived difficulty of the performance standard
 or goal. Factors associated with the individual’s expectancy perception
are competence, goal difficulty, and control.
 Instrumentality is the belief that a person will receive a desired outcome
if the performance expectation is met. Instrumentality reflects the
person’s belief that, “If I accomplish this, I will get that.” The desired
outcome may come in the form of a pay increase, promotion,
recognition, or sense of accomplishment. Having clear policies in place—
preferably spelled out in a contract—guarantees that the reward will be
delivered if the agreed-upon performance is met. Instrumentality is low
when the outcome is vague or uncertain, or if the outcome is the same
for all possible levels of performance.
 Valence is the unique value an individual places on a particular outcome.
Valence captures the fact that “I find this particular outcome
desirable because I’m me.” Factors associated with the individual’s
valence are needs, goals, preferences, values, sources of motivation, and
the strength of an individual’s preference for a particular outcome. An
outcome that one employee finds motivating and desirable—such as a
bonus or pay raise—may not be motivating and desirable to another
(who may, for example, prefer greater recognition or more flexible
working hours).
Expectancy theory, when properly followed, can help managers understand
how individuals are motivated to choose among various behavioral
alternatives. To enhance the connection between performance and outcomes,
managers should use systems that tie rewards very closely to performance.
They can also use training to help employees improve their abilities and believe
that added effort will, in fact, lead to better performance.
(5) Job Design Theory:
Job design theory is based on creating a suitable job that can encourage and
motivate employees to perform to their best and be empowered in the process
in a way that they feel their input is valued and they are capable of bringing
changes to the company. There are four main aspects of job design: job
rotation, job enlargement, job enrichment, and job simplification.
 Job Rotation: This refers to having a role that includes new tasks or
responsibilities at times that will challenge the employee's existing skills
 and encourage them to acquire new skills or knowledge. This can also
take the form of rotating employees to different departments.
 Job Enlargement: This can be done by adding tasks or responsibilities
that are in the same line as what the employee is already doing. This can
increase variety in the work and allow the employee to use their existing
skills in more than one way.
 Job Enrichment: This refers to adding motivations or support to the
employees' existing roles. For example, the company may provide extra
mentorship, create a work team, or allow experienced employees more
room to design their own workflow under the existing framework of the
company.
 Job Simplification: This can be done by removing tasks from an
employee's existing role. Usually, this is done in order to facilitate the
employee to focus more on tasks they are strongest in or to cut out tasks
that are less impactful to the outcome.
Strategies for Job Design
There are many ways to implement these job design elements in ways that can
empower employees. Three effective strategies are job redesign, quality work
circles, and teams.
 Job Redesign: This can be done by involving the employee's input on
what they need or how the company can help them to achieve more or
be more productive at work. Through this method, the employee can
have a sense of empowerment as they can decide on how to get the
tasks done in a way that can lean on their strength. The company can
also learn more about the employee and use their ability to the fullest.
 Quality Work Circles: These are groups designed to invite employees to
raise their concerns or suggestions to the company with the goal of
facilitating their work and improving job satisfaction. These groups can
be arranged to meet up at a designated time so that employees can have
a chance to provide feedback on the changes in their roles or any
roadblocks they have encountered. This can be empowering as the
employees know that management and other colleagues are there to
bounce ideas off of and to listen to their input. Employees can make
 improvements in the workflow or work environment so that they can
conduct their work more efficiently.
 Teams: Teams allow groups of employees to work together and learn
from one another. This is best used when there are new elements
introduced into the workplace and the employees have to learn how to
navigate the changes. In a team setting, employees will have more
chances to interact with one another, which can facilitate their learning
and allow them to solve problems together. For the management team,
they can address questions from employees all at once instead of
answering their questions about the changes one by one and risk wasting
time when the questions repeat.

6. Salesforce Management Compensation Types.

A Salesforce compensation plan is a payment strategy of the sales organization
to its salespeople which includes salary, commission, bonus, incentives, and
different pay ranges.
Types of Sales Commission Plans
There is no one-size-fits-all sales commission plan. But there are many types of
commission plans you can choose from. Here are some of the most commonly
implemented types of sales commission plans used today:
1. Straight Salary/No Commission
This is the most common type of compensation plan used today in most
industries. It’s exactly as it sounds – you are provided with an annual salary
with no commission. There may be an annual bonus attached to company
performance. While it’s easy for the company to structure payroll, it does little
to incentivize employees to sell more.
2. Salary Plus Commission
This is one of the most common types of commission plans used in the sales
industry. Employees are provided with a base salary and are then paid a
commission for each sale. They are incentivized to sell more to increase their
pay. The commission rate can be a percentage or fixed fee per sale. Salary and
commission structure varies by company.
3. Commission Only
Commission only plans do not have a base salary. Sales reps are only paid when
they make a sale. There is no guaranteed income. If a sales rep doesn’t make
any sales, they do not get paid. While they are simple enough to manage, it can
be challenging to attract salespeople to work in these roles. The reps who do
take on these roles often have a ‘sales at all costs’ mentality, which could hurt
your relationships with your customers.
4. Draw Against Commission
This is a type of commission only plan. Employees are provided with a pay
advance at the beginning of each pay period, which acts like a form of base
pay. At the end of the pay period, this amount is deducted from the
commission the employee has generated. It operates as a form of a cash
advance. The main issue with this plan is employees could actually owe money
if they don’t sell enough.
5. Profit Margin
Sales reps are paid a commission based on how well the company is doing.
Your salary can fluctuate up and down based on overall company performance.
6. Territory Volume
This is common in companies that take a team-based sales approach. Total
sales for a given territory are tallied up at the end of the sales period and sales
reps are paid commission equally. For example, if a company has 5 reps
working in a territory and they sell $100,000 of business during a pay period,
each rep receives $20,000.
7. Capped Commission
Sales reps are provided with a base salary and the opportunity to earn a
commission. However, the commission amount is capped at a certain level. It
limits how much commission you can make. While it makes it easier for
companies to budget, once sales reps reach their cap, there is no incentive for
them to keep selling.
8. Performance Gate
You will receive a higher commission rate the more you sell. There are a
number of compensation tiers and you are rewarded for better performance.
9. Set Rate
You receive a specific dollar amount per sale. For example, you will receive
$100 for each sale of product A, and $50 per sale of product B.

7. Objectives of Physical Distribution.

According to the eminent marketing guru Philip Kotler “Physical distribution
involves planning, implementing and controlling the physical flow of materials
and final goods from the point of origin of use to meet consumer needs at a
profit.”
Physical distribution is concerned with the physical movement of the goods
from the producer to the consumer. It includes all those activities which help in
efficient movement of goods from producer to consumer, such as
transportation, warehousing, material handling, inventory control, order
processing, market forecasting, packaging, plant and warehouse location and
customer service.
Physical distribution has two broad objectives viz. consumer satisfaction and
profit maximisation. Apart from these, there are other objectives too. A
satisfied consumer is the biggest asset that a company has. A firm can provide
satisfaction to consumers by making available right quantity of right goods at
right place and time, at lowest costs. Prompt and dependable distribution
enhances consumer satisfaction. At the same time, by offering better service at
lower price of the product, the firm can attract additional consumers and make
more profits. This can be done by improving the efficiency and effectiveness of
physical distribution activities, firm can bring in economy which will have an
effect on profit margin i.e., by lowering the physical distribution costs, profit
position can be improved.
Apart from these two broad objectives, physical distribution has other
objectives as follows:
i. To make available the right goods in right quantity at right time and right
place at least cost.
ii. To achieve minimum inventory level and speedier transportation.
iii. To establish price of products by effective management of physical
distribution activities.
iv. To gain competitive advantage over rivals by performing customer service
more effectively.

8. Vertical Marketing System.

A vertical marketing system is when producers, wholesalers and retailers work
in unison to meet their customers' needs. It allows one company to have
control over the entire process of producing and selling a product.
There are three main types of vertical marketing systems that you might
consider for your business’ distribution process:
Corporate:
A corporate vertical marketing system controls the processes, budgets and
deadlines of its producers, wholesalers and retailers. They are responsible for
the entire production and distribution process: creating their products,
marketing them and then selling them to consumers. They do not depend on
any other entities to get their products to the end-user.
Example: John’s Dairy Freeze makes ice cream and sells it directly to its
customers.
Contractual:
In a contractual vertical marketing system, producers, wholesalers and retailers
work together for the same profit and goals, but each entity is separate. They
are bound by a contractual agreement to meet common goals according to
costs, time and product, but how they manage their own teams and workflow
is often up to them. Often, businesses will create partnerships to cut overhead
costs and provide more competitive prices. By working together, they can get a
further market reach and leverage each other's capabilities.
Example: Consider if John’s Dairy Freeze was a franchise, owned and managed
by the original owner, but with multiple locations responsible for their own
location’s workflow, budget and process.
Administered:
In an administered vertical marketing system, one member of the production
and distribution chain wields considerably more power. This is often due to its
large size and market influence. With this power, it can organize the system
structure without a formal agreement. Smaller businesses typically need to
work under their terms and conditions in regards to branding, price points and
stock.
Example: As a large company, John’s Dairy Freeze decides that each one of its
locations can only carry 100 gallons of ice cream per store, annually.
9. Evaluation and Controlling Salesforce Steps.
Sales force control involves measuring sales force performance, comparing it
with standards, detecting deviations and causes, and, if necessary, taking
corrective actions so that performance takes place as per plan.
Sales force controlling process involves four steps:
Setting Sales Force Standards.
Measuring Actual Sales Force Performance.
Comparing Actual Performance with Standards.
Correcting Deviations and Taking Follow-up Actions.
Sales Force Controlling Methods:
Several methods are used for controlling sales force efforts. Methods depend
on areas, criteria, or aspects used for measuring and comparing. In every
method, the same steps are followed.
1. Establishing sales territories
2. Allocating of sales quota
3. Maintaining continuous contact with salesmen
4. Determining authorities and rights of salesmen
5. Routing and scheduling sales personnel
6. Salesmen’s reporting
7. Complaint and objection notes
8. Analyzing sales expenses
9. Observation and visits or field trips
10. Stages of channel Management Process.
1. Identification of sources
The first step of the channel management process is the identification of
references. When you are new in the market, then you are required to do
research to identify sources through different methods. For example, you can
approach trade associations and take part in trade exhibitions or can enquire in
the market to learn about the reputation of distributors and their customers.
On the other hand, a well-established manufacturer is approached by different
distributors themselves. Make sure that you do a proper background check of
the distributors before signing a contract with them. The things that a
manufacturer must verify are views of customers about the distributor, their
sales force, and their enthusiasm to sell products.
2. Preparing a selection criterion
The next step of the process of channel management is the preparation of
selection criteria. A selection criterion is essential for effective channel
management. There are various factors that a manufacturer should consider
before selecting channel intermediaries.
These factors are knowledge of the market, knowledge of the product,
understanding of customers, competitiveness, market coverage, the reputation
of intermediaries in the market, and managerial competence, etc. Different
intermediaries have different qualities.
For example, a well-established distributor might have a good reputation
among the customers, but he might be selling products of your several
competitors and might be less enthusiastic about his methods of selling. On the
other hand, a smaller distributor might be less popular and have a lower sales
force, but he can be more enthusiastic in his approach to selling.
A manufacturer should consider the criteria like reputation in the market,
knowledge about market and product, and enthusiasm of carrying the products
in the market. In addition to this, also determine that the distributor is not
selling the products of your competitors.
3. Selection of intermediaries
The right choice of channel intermediaries is essential for the success of the
business. There are several intermediaries of different sizes available in the
market. Small-scaled and new intermediaries might be inexperienced, but they
can sell your products with enthusiasm and might have better selling skills and
resources. In addition to this, these sellers will sell your products at a lower
margin and fewer incentives.
On the contrary, you might need to give proper incentives to convince large-
scaled and well-established intermediaries to distribute your products in the
market. You need to identify the right intermediaries for your business based
on your requirements of business and your future goals.
As your channel management partners will be beneficial in realizing your future
goals.
4. Providing required training to intermediaries to sell
Once you have selected your channel management partners, the next step that
you are required to follow is to provide necessary training to them so that they
can sell your products effectively and efficiently. Through training, you can
provide essential information about your products and your organization.
So that your channel partners can make the use of that information to sell your
products effectively. Make sure that you cover essential areas such as financial
management, marketing, sales, personnel management, and stock control, etc.
Smaller distributors will appreciate training in these areas as they might not
have well-established processes to manage these areas.
5. Motivating intermediaries whenever required
The next step in the process of channel management is to drive your channel
partners. Motivation could be in financial form, or it could be in non-financial
form. For example, some distributors will get motivation when you provide
them an increased margin on the sales of the products, whereas; some
distributors might like to have territorial rights for some areas.
In addition to this, you can motivate your channel partners with verbal
appreciation and recognition for their efforts, by providing them up-to-date
products, providing solutions to their problems, and keeping regular personal
contact with them.
Don’t make a mistake to avoid this step as the success of your business
depends mainly on the performance of your channel partners.
6. Assessment of intermediaries
The last step of the channel management process is the assessment of
intermediaries. It is essential to assess the performance of all intermediaries.
The output of the evaluation process will help you in deciding which channel
partner to retain and who to drop. There are various criteria of assessment of a
channel partner such as sales skills, competencies, customer’s response, quality
of service provided to customers, the quantity of stock purchased, the position
of display in-store, etc.
Once you have assessed all these criteria thoroughly, then based on the
information obtained, you can decide whether you want to continue business
with your channel management partner or not.

11. Warehouse Inventory.

Warehouse inventory management is the process by which stock stored in a
warehouse or other storage facility is received, tracked, audited and managed
for order fulfilment. Warehouse management also includes the replenishment
of stock when predetermined minimum quantities are reached, refreshing your
stock to optimal levels based on historical sales data. Much like broader
inventory management processes, warehouse management is focused on
managing incoming and outgoing products, all the while knowing where
individual pieces are located.
Warehouse inventory management software offers several key features to help
you monitor the goods within your storage facilities and oversee inventory
control. In some cases, warehouse management software is built into broader
enterprise resource planning (ERP) software solutions; in other cases,
warehouse management software serves as a stand-alone system. It is best to
purchase a seamlessly integrated process if you want to manage your inventory
across the entire ecosystem of your company.
Inventory management software covers the acquisition, tracking, and shipping
of products, ensuring you know what products are where at what time. They
can also serve as forecasting tools, helping you to order items based on
expected customer demand according to historical sales data. Some also offer
alerts and notifications to improve the operational process of your warehouse,
indicating when it is time to perform cycle counts, for example.
These four steps are key to setting up your warehouse for success and
efficiency. When first creating your warehouse, ensure these processes are in
place in order to maximize efficiency and quickly move products when needed.
1. Appoint a warehouse manager.
Running an efficient warehouse starts with appointing someone capable to
lead; your business should recruit a warehouse manager who has extensive
experience operating a warehouse similar to the type you will be running.
“If you have an actual warehouse, you need a warehouse manager,” Singletary
said. “The job of a warehouse manager is to make sure everything is running
smoothly … they’re the quarterback of the warehouse. [You need] someone
who is organized, familiar with warehouse operations and not afraid of
technology.”
Your warehouse manager will monitor your workers in their day to day
positions, ensuring that items are being scanned and cataloged properly. They
will also regularly engage with your warehouse inventory management
software to maintain a bird’s eye view of your inventory. Finally, any anomalies
or issues that arise will be handled by your warehouse manager, so they should
be able to respond dynamically whenever your warehouse employees identify
a problem.
2. Determine the warehouse layout.
The physical layout of your warehouse will either help or hinder your
warehouse employees in quickly picking, packing and shipping items out when
a sale is made or a transfer order is placed. According to Holton, separating
warehouses into zones or lots and numbering aisles and bins can help
warehouse workers navigate the storage facility more effectively.
Not every warehouse is set up the same way, but an organized warehouse is a
prerequisite to efficient operations. How you design your warehouse space
could vary depending on what types of products you store. For example, a
warehouse storing large machinery might have specific zones but is unlikely to
have bins and aisles, like a warehouse storing smaller retail products.
You should consider how a warehouse employee will move throughout your
warehouse when you’re designing the physical space. Make sure your high-
value and high-transaction-volume items are easily accessible, Davidson said.
“You would typically have … rows of racks, and you might organize those into
different zones,” he said. “Maybe you reorganize your warehouse as your
business changes. Part of that is identifying the items moving quickly through
your warehouse and positioning those in locations that are easier to get to.”
3. Establish a workflow.
With a leader appointed to monitor the operations of your warehouse and a
system of organization in place, you will also need to put in place a specific
workflow. The warehouse manager should have experience in this area, so
work with them closely on how to establish a warehouse workflow that makes
sense for your business. According to Singletary, your workflow should address
several key points:
How do I receive new inventory?
When new inventory is received, where does it go?
How is inventory tracked when it arrives, when it is moved and when it leaves
the warehouse?
“When it’s time to sell that piece, knowing [its location] is very helpful,”
Singletary said. “You need a system to tell you to go to the exact place where
the product lives. You need to track it as it gets moved from its location all the
way out the door to delivery to the customer.”
In addition, you should discuss several operational considerations with your
warehouse manager, including:
Inventory location tracking: Determine whether you need serial tracking, lot
tracking or a mix of both. Tracking is a key part of inventory control, helping
operators to know precisely where a product is when it comes time to pick it.
Serial tracking is useful for high-value items that sell in low quantities, while lot
tracking is effective for low-value, high-quantity items. Barcoding features can
be employed to automate the updating of tracking information for individual
items within a warehouse inventory management software. Tracking is
especially important when selling on multiple sales channels, preventing you
from overselling and running into negative quantities by mistake.
Cycle counts and regular inventory audits: Performing regular cycle counts is
important for loss prevention and inventory control. Without regular cycle
counts, units could be lost or stolen unbeknownst to your warehouse manager.
If you only conduct inventory counts once a year, you could quickly recognize
that you’ve lost a lot of inventory over time. It’s especially important to
implement regular cycle counts when dealing with goods that expire. Run
inventory counts more frequently on your highest-value or bestselling items.
Accounting methods: Depending on how your warehouse operates, you might
prefer to use first in first out (FIFO), last in first out (LIFO), or average costing
methods. These accounting methods are important to your warehouse
management, because most inventory management software integrates with
your accounting software to prevent the need for double entry and eliminates
the risk of human error. Your warehouse inventory management software
should have a costing method compatible with the rest of your accounting.
Data reporting: Warehouse managers are responsible for generating and
distributing data reports, which can be generated and customized in your
warehouse inventory management software. These reports include information
like product quantities, sales data, requisition data from vendors and
information about any lost or expired products.
4. Implement warehouse inventory management software.
A warehouse inventory management software can help automate and simplify
a number of warehouse management tasks, as well as update a record of all
existing stock in real time. As long as your warehouse team properly scans and
catalogs items as they come into your warehouse and move throughout it, your
warehouse inventory management software will reflect all your existing stock
and its specific location in the warehouse.
“Most information should be available in the ERP software,” Davidson said.
“The information tells you which items should be cycle counted and how often
they need to be counted – that comes from transactional data.”
“It should also look at trends over time, like how many packages did you ship
this month versus last month and the month before,” Davidson added. “Look
for trends to see if something is happening on the operational side of your
business to prevent shipping and receiving.”
Additionally, warehouse inventory management software can be set up to
automatically reorder stock when products reach a predetermined minimum
quantity. The best software automatically analyzes historical sales data to
determine optimal minimum quantities for automatic reordering, as well as to
which quantities it should replenish each product.
Key takeaway: To efficiently operate a warehouse, hire a reliable warehouse manager,
implement effective inventory management software and devise a workflow that
includes regular cycle counts, inventory tracking and robust data reporting.

12. Internet as a medium for Order Processing and Information.

13. Order Processing System.

Order processing is the process or workflow that happens after a customer
place an order. This starts with confirming the products are in stock, then
picking the items from inventory and sending them to a sorting area. Next,
each individual order is compiled, carefully packed, labelled and shipped to the
customer’s address, either directly or through order consolidation.
Types Of OPS:
Order processing systems exist to help make order fulfilment more efficient
and more accurate. To do so, they capture and store all order-related data —
everything from available inventory to shipment tracking — in a central
database. For example, the shipping department can use the system to
determine which orders need to be shipped and where.
There are two main types of order processing systems:
 Traditional order processing systems rely on handwritten files and manual
labour. From writing order slips to dropping off hand-packaged orders to the
carrier company, all order processing is done by hand, usually by one person or
a small team. This person or team is also responsible for tracking all order and
inventory data, which can be a tall task in and of itself.
 Modern order processing systems are technology-centric. All data, including
inventory, customer profiles and tasks related to order processing, is fed into
specialized software. This minimizes the possibility of human error while
expanding a business’s capabilities and growth opportunities. For example, a
North American retailer could seamlessly accept European orders online and
coordinate shipping with a local fulfilment centre.

Order processing factors:

 The nature of the products. Perishable items such as food or flowers, for
example, generally need to be shipped in temperature and/or humidity-
controlled environments to uphold quality, whereas clothing may not.
 The number of items. Items ordered in bulk are packed and handled
differently than small orders. Small orders might be sent directly to a
customer’s address via the postal service, whereas bulk items might be freight
shipped to a distribution centre.
 Shipping packaging. Not all items can be shipped in the same packages, and
the size of packaging containers can affect how they’re handled. For example, a
vinegar producer that carefully boxes bottles and gallon containers for retail
must take a different packaging approach to commercial 55-gallon drums and
275-gallon totes, which must be packaged and palletized according to their
larger sizes.
 Productivity of workforce. Whether a workforce can keep up with order
processing needs can be a key element in deciding whether to incorporate
automation.
 Seasonality. Busy shopping seasons (around the holidays, for example) can
put stress on the entire order processing workflow. Workers have more orders
to pick, sort, pack and ship, meaning the process often takes longer than usual
and customers may receive orders later than they’re used to.

14. Horizontal Marketing System.

A Horizontal Marketing system is a form of distribution channel wherein two or
more companies at the same level unrelated to each other come together to
gain the economies of scale.
In other words, Horizontal marketing system is the merger of two unrelated
companies who have come together to exploit the market opportunities.
Generally, this type of marketing system is followed by companies who lack in
capital, human resources, production techniques, marketing programs and are
afraid of incurring the huge losses. In order to overcome these limitations, the
companies join hands with other companies who are big in size either in the
form of joint venture –that can be temporary or permanent, or mergers to
sustain in the business.
Horizontal marketing system has gained popularity in the recent times due to
an immense competition in the market where everybody is striving to gain a
good position in the market along with huge profits.
In this marketing system, the collaboration can be between:
Two or more Manufacturers- With an objective of making optimum utilization
of scarce resources.
Two or more Wholesalers-With the objective of covering a larger area of the
distribution of goods and services.
Two or more Retailers- With the objective of providing bulk quantities in a
particular area.
Examples of Horizontal Marketing:
Nike and Apple have entered into a partnership, with the intent to have a Nike+
footwear in which the iPod can be connected with these shoes that will play
music along with the display of information about time, distance covered,
calories burned and heart pace on the screen.
Johnson & Johnson, a health care company, have joined hands with Google,
with an objective of having a robotic-assisted surgical platform. That will help in
the integration of advanced technologies, thereby improving the healthcare
services.
Thus, two or more companies join hands to capitalize on the expertise of each
and capture a greater market share.

15. Behavioural Equation Theory.

Kurt Lewin (Luh-veen) was considered by some as the father of modern social
psychology due to his act of breaking new ground in employing scientific
methods and experimentation in the study of social behavior. His focus on
fusing psychology with the philosophy of science resulted in an extensive
number of empirical studies performed in the realms of child development,
motivation and social behavior, particularly having to do with observational
studies and experiments on children’s behavior.
Lewin not only adapted Gestalt principles but further applied them to a theory
of personality and development into what is now known as the Psychological
Field Theory. He translated Gestalt philosophy into social experience involving
people who should be considered as wholes instead of being composed of
discrete parts. A person is presented as a whole system consisting of
subsystems that are somewhat separate yet are still capable of interacting and
combining with each other.
He was one of the first psychologists to propose that the development of an
individual was the product of the interaction between inborn predispositions
(nature) and life experiences (nurture). This conception was presented by
Lewin in the form of a mathematical equation known as Lewin’s Equation for
behavior, stating that behavior is the function of the person interacting within
his environment or B = f (P,E).
As such, Lewin accounted for human behavior by emphasizing forces and
tensions that influence it. He asserted that the behavior of an individual is
always geared toward some goal or objective and it is precisely this intention
that matters most in the performance of behavior. These intentions supposedly
follow field principles and are influenced by psychological forces such as how
the individual perceives a situation.
According to Levin, behavior exists in a totality of interacting facts which
comprise a dynamic field. The circumstances or conditions in any part of the
field are influenced by and depend on every other part of the field. This
psychological field is otherwise known as the life space which comprises the
individual and his psychological or behavioral environment also known as facts
that affect the behavior or thoughts of the individual at a certain point in time.
Life space is most frequently determined by the physical and social
environment that the individual finds himself in. It may include places where he
goes, events that occur, feelings about places and people encountered, what
he sees on TV or reads in books, his imagined thoughts and goals. Encompassed
by a child’s life space are forces which the child may be aware of or not, in
addition to forces which are accepted by the child as true though they may not
be so.
For example, if a child is convinced that his sibling is more loved by their
parents, even if it were not true, the child’s perception would, for him, still be a
fact within his life space. Operating from this misconception, the child’s
behavior and attitudes would be influenced just as much as if what he knew
were indeed a fact. Facts in a child’s life space can stem from various sources
such as the current physiological state, e.g. hunger or excitement, his social
needs such as desire for approval, his past experiences, present realities and
future goals.
The development of a child is characterized by a personality system that
continually expands and differentiates to accommodate the learning of new
roles, norms and social codes. Lewin further offered an explanation as to why
same age children manifest differences in development. Each child experiences
a unique combination of facts that make up his life space that can never be
exactly the same as another child’s life space.
Some say that Lewin’s conceptions were more of an approach rather than a
theory, pointing out that Lewin failed to present an organized description and
elaboration of his views on child development.
In spite of criticisms, however, Lewin merits recognition for stimulating a vast
amount of innovative research on children. He was quite effective at motivating
other researchers to explore novel avenues of research. He unlocked new
perspectives on development by borrowing ideas from physics and
mathematics.
Lewin is also credited for contributing to American education through the
practice of cooperative learning, wherein two or more students assist each
other in learning a common subject matter resulting in more successful
learning. He also contributed other useful concepts that aided in leadership,
classroom management and discipline, and the field of action research. His
impact on psychology has firmly entrenched him as one of the most highly
revered psychologists of the twentieth century.

16. Marketing decisions and stages involved.

Stage 1: Need Recognition
The very first step, and indeed, often the most important one, in the consumer
decision-making process is need recognition. No purchase can happen unless
the consumer recognises that they have a need for your service or product.
That need could be triggered by either external or internal stimuli, but
whichever it is, the customer needs to be given a reason to think that they
want or need something which they don’t already have.
The key for marketers and retailers is to make the customer recognise they
have a problem which only they can solve. Once the consumer has gone
through the phase of problem recognition, they can then embark on the
purchasing process.
It’s important, however, to realise that not all types of need recognition are the
same. For example, if a company recognises that it has run out of printer ink, it
can simply reorder it. It will probably do this from the same supplier that it
always uses and this may even take place automatically, thus eliminating the
need/problem recognition element from the consumer decision-making
process completely.
Stage 2 – Information Gathering
The second stage of the buying process is information gathering. Once a
consumer has recognised their problem or need, the information gathering
process can begin. The buyer has acknowledged the issue and now they want
to find a suitable solution. It’s as simple as that.
Information-Gathering Techniques
There are several information-gathering techniques that can be employed by
consumers who want to find a solution to the problem that they have now
acknowledged. Over the last few years, there has been a change in these
techniques as technology has come more to the fore.
In the past, consumers relied heavily on physical sources for information that
would help them to make their buying decision. This may have been in the
form of flyers, magazine adverts, newspaper articles, word of mouth,
billboards, TV and radio ads.
Stage 3 – Evaluation of Alternatives
Even when your product stands out from the crowd, that doesn’t necessarily
mean that your business customers will definitely choose your service or
product. Research is more important to consumers than ever before, and they
will put lots of time into considering all their options before making a final
purchasing choice.
This evaluation of alternatives means that they will be comparing a range of
options just to make sure that they’ve made the right decision.
Over the last decade or so, this process has changed dramatically. Not so long
ago, it was difficult to get information about different products and services.
Buyers had to physically go to different stores or suppliers and make enquiries,
or make repeated telephone calls.
As it was more difficult to compare prices and value, it was easier for the first
business that the buyer found to make a sale. Today, this is far from the case.
With the power of the internet, it’s the work of minutes to go online and
compare the prices and services from different suppliers or providers.
Stage 4 – Assess the Evidence
Once buyers have evaluated all their options, they can then move onto the
stage of assessing the evidence that they have gathered. What does this
involve? In short, it means that the buyer looks at the information about the
products or services which they desire from all of the potential suppliers or
providers and determine which is the right one for them.
This element is about more than just price in most cases. Often, a B2B buyer
will choose a product that costs a little more than its rivals but which offers
better value, better customer service or which has better reviews. This is
therefore another area where marketers need to make their brand stand out
from its rivals.
Over the last decade, the process used to assess the evidence has changed
considerably. Ten years ago, assessing the evidence was a lot harder, especially
when it came to reviews and testimonials. Finding out information about just
how good a particular product or service provider was meant finding and then
contacting previous customers, or trawling through publications to find reviews
in printed format. Today, it is the work of moments to go online and check
testimonials and review sites and to make a decision based on what is found
there.
Stage 5 – Selecting An Option
It comes as a surprise to many retailers that the process of selecting an option
actually comes so late in the day. By this stage, the customer will have explored
many different options.
They will have come to an understanding about the payment options and
pricing and will know exactly what they will be getting for their money. They
will have weighed up the pros and cons and will have determined which of the
products and services is going to best meet the need that they have identified
in their company. They will have read reviews and testimonials and chosen the
supplier or service provider which is going to be most reliable and trustworthy.
Yet right up to this point, they could still have decided to forget all about the
purchase. When they reach stage five, they finally reach the point where they
make a final purchasing decision about which product or service they are going
to select. This is a key moment for both purchasers and retailers alike.
Over the last decade, there have been changes even to this stage in the
decision-making process. In the past, high importance purchasing decisions
tended to be left to the executive level of a company. When the managers or
directors decided that they had found the perfect product or service to suit
their business needs, the decision became final.
Stage 6 – Implement The Decision
This stage is the one that retailers and marketers have been waiting for – the
moment when the customer finally purchases the product or service. Every
stage which has led up to this conversion has now been completed. In this past,
this stage usually went without a hitch. The customer would call the company
or go into the store, put down their money and receive their product or service.
In 2019, even at this point, things could go wrong and the sale could be lost.
Marketing remains vital at this step of the proceedings too. Retailers need to
be certain that the buying process is simple and straightforward.
Can the purchase be made online? Is the loading time fast enough? Are there a
lot of steps that could put the purchaser off? Is the purchase process too
complicated? Is it possible to buy on mobile devices? Making sure that your
brand passes these tests is key to a successful sale.
Implementing the decision is further complicated these days by having so many
people involved in the process, at different hierarchy levels. It’s no wonder that
the sales process takes so long as disagreements and confusion are bound to
ensue. It’s therefore important as we move forward towards the end of the
decade to make sure that the purchasing process is smooth and convenient to
minimise these problems.
Stage 7 – Decision Review and Evaluation
Finally, you retailers and marketers can take a deep breath as the sale is finally
complete. Yet there is still a final stage to go – the post-purchase evaluation. At
this stage, the marketer needs to look at the sale and the purchasing decision
which the B2B consumer made to evaluate what went well and what could be
changed in the future to make the process even smoother and more efficient.
This stage is still very important to the selling process as it is key to retaining
customers, encouraging return business and further sales through word of
mouth. When customers are happy with the service you provide, brand loyalty
will follow and this will allow the information gathering and evaluation stage to
be eliminated from the equation, speeding up the purchasing decision-making
process exponentially.
Monitoring therefore needs to take place at this point. Customers will often
feedback either negative or positive comments and companies need to keep
track of their social media profiles, website and review sites to make sure that
they address any concerns and mitigate any damage caused by negative
reviews.
Staying in contact with customers following their purchase through follow-up
emails and surveys will help to reinforce the brand with the customer and give
a positive impression which could well result in future sales.

17. Causes of conflict.

Various causes for the occurrence of channel conflict can be well-understood
from points given below: –
1. Goal incompatibility: Incompatibility of goals among different channel
partners leads to conflict among them. When these partners such as
manufacturer and dealer do not have a same set of objectives then then
would work in distinct direction thereby resulting in clash. For example, a
manufacturer aims at grabbing large market share via offering their
products at low prices and generating higher profits in long run. On other
hand, the dealer is willing to sell products at higher price for making
profits in short run then it will create differences between the two. 
2. Ambiguous roles: The uncertain acts of channel partners when they do
not have a clear picture of their role may cause conflict among the
intermediaries. When partners are unaware regarding what they are
supposed to do, which pricing policy should be adopted or which market
should they cater to then all this uncertainty may disturb the whole
distribution channel. 
3. Different market perceptions: Variations in perception of channel
partners related to market conditions may create differences among the
intermediaries thereby hampering the whole business. Perception of
manufacturer regarding a potential market and penetration into a
particular region may vary from intermediary’s perception for same. This
will create dispute among them and reduce the interest of
intermediaries in capturing that specific market area. 
 4. Manufacturer dominance over intermediaries: All intermediaries like
wholesalers, dealers and retailers are hugely dependent upon the
manufacturer for carrying out their activities. Whenever manufacturer
makes any change in product, its price or marketing activity then it need
to implemented by all the intermediaries in the distribution channel. Any
change which is unfavorable for the channel partners may results in
differences among them.
5. Change resistant: Many times, the channel partners within the
distribution channel may restrain from adopting the changes. Whenever
the channel leader decides to bring any change in distribution channel
then the intermediaries may not support it leading to the condition of
discord.  
6. Lack of communication: Lack of efficient communication is one of the
major reason responsible for dispute among the channel partners. In
case if any of the partner of distribution channel is not informed of
changes on right time, it will disturb the process of distribution and leads
to disparity. For example, if a retailer needs a stock of products
immediately and wholesaler did not communicate him about the
availability of time, then it may cause dispute among them. 
7. Marketing mis-alignment: The mis-alignment of marketing strategies
among the channel partners may bring differences between them. When
a manufacturer’s product is promoted by two-channel partners in a
different manner then it may create a varying image of same product in
mindsets of consumer. 

18. Right set of circumstances theory.

“Everything was right for that sale” sums up the second theory
This theory, sometimes called the “situation-response” theory, had its
psychological origin in experiments with animals and holds that the particular
circumstances prevailing in a given selling situation cause the prospect to
respond in a predictable way. If the salesperson succeeds in securing the
attention and gaining the interest of the prospect, and if the salesperson
presents the proper stimuli or appeals, the desired response (that is, the sale)
will result.
The set of circumstances, included factors external and internal to the prospect
To use a simplified example, suppose that the salesperson says to the prospect,
“Let’s go out for a cup of coffee”. The salesperson and the remark are external
factors. But at least four factors internal to the prospect affect the response.
These are the presence or absence of desires: (1) to have a cup of coffee, (2) to
have it now, (3) to go out, and (4) to go out with the salesperson.
Proponents of this theory tend to stress external factors and at the expense of
internal factors. They seek selling appeals that evoke desired responses. Sales
personnel who try to apply the theory experience difficulties traceable to
internal factors in many selling situations, but the internal factors are not
readily manipulated. This is a seller-oriented theory: it stresses the importance
of the salesperson controlling the situation, does not handle the problem of
influencing factors internal to the project, and fails to assign appropriate
weight to the response side of the situation-response interaction.

19. Distinguish: Conflict and Competition.

20. AIDAS Theory.

AIDAS stands for Attention, Interest, Desire, Action, and Satisfaction. The AIDAS
theory simply states that a prospect goes through five different stages before
finally responding satisfactorily to any product. Thus he/s should be led
comfortably through all five stages.
1) Attention
Gaining attention is a skill and just like any skill, gaining attention can be
improved upon with practice. A common phrase applicable over here is “First
impression is last impression”. The initial attempt of the sales person must be
to put the customer completely at ease. Casual conversation is one of the best
openers after which the sales person can gain customer attention by leading
him onto the sale. to know more about gaining attention read my post on how
to gain customer attention.
2) Interest 
Once you have gained attention, it is very important to maintain interest. Some
sales people are very good in the opening but as the technicalities take over,
they become uncomfortable while explaining the product. Whereas others who
are strong in the product department might open bluntly but create interest in
the second stage. Maintaining interest is a crucial part of the sales process and
hence is included in the AIDAS theory
3) Desire 
Have you seen the commercials wherein you just have to get out of your house
and get the product? Perhaps a car, an ice cream or a house. The same has to
be done by the sales person in personal selling. He has to create enough desire
in the customers mind such that he immediately has to buy the product.
Imagine an aquaguard sales man or a tupperware sales person. They highlight
the product in such a manner that you might be thinking “Why didn't i buy this
product before”. Thus kindling that desire becomes an integral part of the
AIDAS selling theory.
4)Action
Although there may be desire for the product, the customer might not act on
it. He might want to buy the product but he might NOT buy it. In such cases the
customer needs to be induced. There are various ways to induce the customer
such that he buys the product. It is important for the sales person to
understand whether to directly induce the customer or whether to push subtle
reminders that you are there for a sales call. Both methods work, but you need
to know your customer.
5) Satisfaction 
What would you do after the customer has given the order? Will you stand up,
Point at him and shout “Fooled ya”. I dont think so. The customer has just
parted with his money. Just like you part your money and expect good service,
he expects the same too. So even after he has bought the product, you need to
reassure the customer that he has made the right decision. The product is good
for the customer and you only presented the product. It was his decision and
he is right about it. These small cues post the sales process really give
confidence to the customer and he then looks forward to your product rather
than thinking whether or not he has made the right decision. 
21. Types of retail formats in India.
1. Mom-and-pop stores
These are small family-owned businesses, which sell a small collection of goods
to the customers. They are individually run and cater to small sections of the
society. These stores are known for their high standards of customer service.
2. Department stores
Department stores are general merchandisers. They offer to the customers
mid- to high-quality products. Though they sell general goods, some
department stores sell only a select line of products. Examples in India would
include stores like Westside ;Lifestyle;--popular department stores.
3. Category killers
Specialty stores are called category killers. Category killers are specialized in
their fields and offer one category of products. Most popular examples of
category killers include electronic stores like Best Buy and sports accessories
stores like Sports Authority.
4. Malls
One of the most popular and most visited retail formats in India is the mall.
These are the largest retail format in India. Malls provide everything that a
person wants to buy, all under one roof. From clothes and accessories to food
or cinemas, malls provide all of this, and more. Examples include Spencers
Plaza in Chennai, India, or the Forum Mall in Bangalore.
5. Discount stores
Discount stores are those that offer their products at a discount, that is, at a
lesser rate than the maximum retail price. This is mainly done when there is
additional stock left over towards the end of any season. Discount stores sell
their goods at a reduced rate with an aim of drawing bargain shoppers.
6. Supermarkets
One of the other popular retail formats in India is the supermarkets. A
supermarket is a grocery store that sells food and household goods. They are
large, most often self-service and offer a huge variety of products. People head
to supermarkets when they need to stock up on groceries and other items.
They provide products for reasonable prices, and of mid to high quality.
7. Street vendors
Street vendors, or hawkers who sell goods on the streets, are quite popular in
India. Through shouting out their wares, they draw the attention of customers.
Street vendors are found in almost every city in India, and the business capital
of Mumbai has a number of shopping areas comprised solely of street vendors.
These hawkers sell not just clothes and accessories, but also local food.
8. Hypermarkets
Similar to supermarkets, hypermarkets in India are a combination of
supermarket and department store. These are large retailers that provide all
kinds of groceries and general goods. Saravana Stores in Chennai, Big Bazaar
and Reliance Fresh are hypermarkets that draw enormous crowds.
9. Kiosks
Kiosks are box-like shops, which sell small and inexpensive items like cigarettes,
toffees, newspapers and magazines, water packets and sometimes, tea and
coffee. These are most commonly found on every street in a city, and cater
primarily to local residents.