SDM session 2

Shelendra K. Tyagi

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When you become a manager…….

 Of a sales team, you have been trained to get results through

other people rather than , as a sales person, getting them for
yourself and by your own efforts

 the sales team you manage want to help you to achieve your
planned sales objectives

 By helping you to achieve your planned objective, the

individual , very personal and often private motivational needs
of your sales people will be met

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The Place of a Sales Manager

 He is the direct link between the company, management, the

sales force and the customer

 For the sales force he is the management

 His management knowledge , skills and competence largely

determine the productive efficiency of the sales force, the
quality and quantity of the selling results produced

 He controls the selling costs, whether sales targets are met,

and above all the character and morale of the sales force

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Linkages between Sales & Distribution Management
 A marketing channel is a set of interdependent organizations involved in the
process of making a product or service available for use or consumption

 Either Sales Management or distribution management can not exist,

operate or perform without each other

 To achieve the twin objective of sales revenue & growth, the sales
management plans the strategy and action plans (tactics) and distribution
management has the role to execute these plans

 The distribution channels are your interface with your customer

 A well defined channel strategy is needed to achieve your segmentation

objectives

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Distribution Channels

Needs Wants Exchange

Why do we need intermediaries

Temporal discrepancy
Spatial Discrepancy

Need to break the bulk

Need for assortment

Role of Intermediaries:
 Intermediaries facilitate searches on both ends of channel

 Independent intermediaries in a marketing channel perform the valuable function of

sorting goods.

 Sorting Out
 Accumulation
 Allocation (Breaking Bulk)
 Assorting

 Intermediaries can be viewed as creating utility for the end user.

 Routinization of Transactions

 Reduction in number of contacts

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Role of Distribution Management for some of the
Sales Management Actions/Tasks
 Sales Management Tasks
 Strategy for effective coverage of
markets and outlets
 Strategy for handling customer
complaint
 Planning for local advertising and
sales promotion
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 Distribution Management Role
 Follow Call Plan
 Make customer call productive
 Use multi-channel approach
 Prompt action at the customer
interface level
 If the problem persists, involve
senior sales & service people
 Co-ordination with distribution
channels
 Responsibility of execution with
distribution channels
 Expenses are shared between the
company and intermediaries
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 Flows in a Channel

Physical Possession

Information
Promotion

Negotiation

Financing

Risking

Ordering

Payment
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 Channel Flows

Manufacturer Money

Goods Bank

Money
Distributor
Goods

Money
Retailer.3
Retailer.1 Retailer.2

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 Case Study-DELL Computers

Suppliers Shipping 2 days

DELL 3 days
WAREHOUSE
Assembly
Customer Customs
2 days
3 days
Local Shipping
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Buying decision process

 Five basic steps in the buying decision:

1.Need arousal
2.Collection of information
3.Information evaluation
4.Purchase decision
5.Post purchase:
 Satisfaction

 Dissonance

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 Personal, Psychological, Cultural and Social Forces that
Influence Consumers’ Buying Behavior

Cultural Influences Personal Influences Psychological Influences Social Influences

Age & Lifecycle stage Motivation
Culture Occupation
Perception Reference Groups
Subculture Economic Situation
Learning Family
Lifestyle
Social Class Personality & Self concept Beliefs & Attitudes Roles & Status

Consumer buying decision process

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OBB - Personal & Organizational Needs

Personal Goals Organizational Goals

 Want a feeling of Power  Control Cost in product use

situation
 Seek Personal Pleasure
 Few breakdown of products
 Desire Job Security
 Dependable delivery for repeat
 Want to be well liked purchases

 Want respect  Adequate supply of product

 Cost within budget limit

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Buying Situations

The Three Classes of

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Business Buying Process
 Problem Recognition
 Can occur from internal or external stimuli

 General Need Description

 In this stage company describes the general characteristics and quantity of the needed item.

 Product Specification

 The stage of the business buying process in which the buying organization decides on and specifies the best
technical product characteristics for needed item

 Supplier Search

 Proposal Solicitation
 The stage of the business buying process in which the buyer invites qualified suppliers to submit the proposals.

 Supplier Selection
 The stage in which the buyer reviews proposals and select a supplier or suppliers

 Order-Routine Specification

 The stage in which the buyer writes the final order with the chosen supplier(s), listing the technical specifications,
quantity needed, expected time of delivery, return policies, warranties and payment terms.

 Performance Review

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Summary of Major Selling Issues

 As a salesperson, be knowledgeable.

 Understand the characteristics of the target market and how these

characteristics relate to the buyer’s behavior.

 The individual goes through various steps in the three buying situations
of routine decision making, limited decision making, and extensive
decision making.

 Uncover who is involved in the buying decision and the main factors
that influence the decision.

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Summary of Major Selling Issues, cont…
 Psychological factors include the buyer’s motives,
perceptions, learning, attitudes, beliefs, and personality.

 Not all prospects will buy your products due to the many
factors influencing their buying decision.

 You will need to uncover buyer’s needs, solve buyer’s

problems, and provide the knowledge that allows them to
develop personal attitudes toward the product.

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