BBAE0201: Sales & Distribution Management

BBAE0201
SALES & DISTRIBUTION MANAGEMENT
Shashank Kathpal
Assistant Professor
Institute of Business Management (UG)
GLA University, Mathura
Introduction and Course Objective
• To enable the students to gain insight about the various
concerns as related to the fields of sales and distribution
management as found in today’s organizations.

Module
No.
Content
Course Contents
Teaching
Hours
Introduction & Concept of Sales Management: Nature,

meaning, scope and objectives of Sales Management.

Concept and Principles of Sales. Distinction between
marketing and sales Management. Objectives of sales.
Selling Process: Preparation, prospecting, pre-approach,
I sales presentation, closing of sales. Market
identification–sales forecasting – qualitative and
23
quantitative methods. Sales organization its functions

and forms.
Sales Manager and Sales Force: Qualities, types and their
functions/duties. Recruitment, Selection, Training and
Remuneration of Sales Force.
Teaching Pedagogy
• Traditional Lecture
• Power Point Presentation
• Case Study
• Group Discussion
• Assignment
• Video
Intended Outcomes
• Understand the basic concepts pertaining to Sales and Distribution.
• Understand the role of a sales manager and sales force.
• Develop awareness about the various concepts and principles

related to Sales.
• Develop a sales aptitude as well as attitude.

American Marketing Association
SM— is Planning, direction and control of Personal selling

including recruiting, selecting, equipping assigning, routing,
Supervising, paying and motivating as these task apply to
personal Salesforce.
Meaning &Nature of
Sales Management
Shashank Kathpal
Meaning of Sales
Management
• Sales management is a sub system of marketing
management.
• It is a sales management that translates the

marketing plan into marketing performance.
• That’s why sales management described as the

muscle behind marketing management.
BBAE0201: Sales & Distribution
9
Management
Definitions of
Sales Management
• According to American Marketing Association,
“Sales Management is the planning, direction and

control of the personal selling activities of a business
unit including recruiting, selecting, training, equipping,
assigning, routing, supervising, paying and motivating,
as these tasks apply to the personal sales-force.”
BBAE0201: Sales & Distribution Management 10

Definitions of Sales
Management
• In the words of Hampton and Zabin,
• “Sales Management is primarily the direction of men
• with all the management functions of organisation,
• control, recruitment, training, supervision and
motivation.”

11
Management
Sales Management
• So,
Sales Management is the part of
management in which the aim of an
organization is to make provision for
the sale of the produced commodities.

Objectives of Sales Management
• Sales Volume
• Contribution To Profits
• Continuing growth
13
Top Management
Marketing Management
Sales Management
14
Nature of Sales Management

15
Management
• Goal-Oriented
• Continuous Process
• Systematic Approach
• Relationship Selling

16
Management
• Marketing Management Integration
• Different Sales or Job Position
• Pervasive Function.

17
Management
Scope of Sales Management
• Sales Management is a part of total management of the enterprise.
• Responsible for a part of Marketing Activities.
• Responsible for the management of personal selling functions.

The scope of Sales Management are-
• Sales Force,
• Intermediaries,
• Logistics,
• Promotion and
• Product Space.

• Sales Force:
 Staffing, training, motivating, compensating, leading
and evaluating & controlling.
• Intermediaries:
Distributors or Dealers (Whole-sellers & Retailers).

• Logistics / Transportation:
 From company to warehouse,
From warehouse to distributors,
From distributors to retailers and retailers to
company.

• Promotion:
 Joining creative agency,
Starting a creative agency,
Promotional material manufacturing or supply,
Day to day campaigning and
Managing promotional force.

• Product Space:
 Storage of goods,
Commercial usage,
Retail outlets and
Promotional activities.

Topics Covered!
-To increase sales volume.

-Establishing Distribution set-up.
-Maximization of Sales.
-Maximization of Profits.
-Increasing Market share.
-Converting Prospects to Customers.
-Motivate the Sales Force
25
Selling as a part of Marketing
• Selling is an action which converts the product into cash,
• But marketing is the process of meeting and satisfying

the customer needs.

Selling as a part of Marketing
• Marketing consists of all those activities that are associated

with product planning, pricing, promoting and distributing
the product or service.
• Selling focuses on the seller needs whereas marketing

concentrates on the needs of the buyer.

Difference between Marketing & Selling

S.NO SELLING MARKETING
Difference between
1
Marketing and Selling
Emphasis is on the product. Emphasis is on the customer wants
Company first makes the product and then Company first determines customer wants and
2
figures out how to sell it. then figures out to make it
3 Management is sales volume oriented Management is profit oriented
4 Profit through Sales Volume Profits through Customer Satisfaction
Planning is short-run-oriented, regarding Planning is long-run oriented regarding new

5
today products and markets products, tomorrow’s markets, and future growth.
All departments of a business operate in an

Different departments works as highly
6 integrated manner, the sole purpose being
separate watertight compartments
generation of consumer satisfaction
7 Product first then customer Customer

BBAE0201: Sales & Distribution first
Management then the product 29
S.NO
Marketing Management and Sales
SALES MANAGEMENT MARKETING MANAGEMENT
Is Management
concerned with inducing
Ascertains human needs and satisfies them by
1 customers to purchase the offered providing products/services required.
goods/services
Deals with the needs of the

2 Focuses on market needs
organization.
Includes all activities which facilitate the flow of

Is related to the product and the
3
flow of the product to the customer goods to the buyer like advertising, sales, research,
customer satisfaction, after-sales service, etc.
To identify the needs of the customer to create

4 to convert shoppers into buyers.
BBAE0201: Sales &products to satisfy their needs
Distribution Management 30
1. Revenue Generation
• One of the main objectives of sales management

is to generate revenue for the organization. The
sales department is solely responsible to bring in
the money.
2. Increase Sales Volume
• Through efficient sales management, the

organization wishes to increase the number of units
sold. This will ensure that the production facilities
do not remain idle and are utilized to the fullest.
3. Sustained Profits
• Sales management has an objective of improving the profits

of the organization through effective planning, coordination
and control. Sales management strives to increase sales and
reducing costs, this ensures good profits for the organization
4. Organization Growth
• With the sustained and continuous sales

management techniques, the organization tends
to gain market share and results in growth of the
organization.
5. Market Leadership
• With increased sales volumes and profits, ‘sales

management’ enables an organization to become
the market leader.
6. Converting Prospects to
Customers
• Getting prospects to become customers is an art

and a science, it requires good planning and
sustained efforts. This is accomplished through
sales management.
7. Motivate the Sales Force
• One of the core objectives of sales management is to motivate the

sales force. Selling is a very stressful task, achieving sales targets can
become very challenging.
• Therefore, the sales management task is to ensure that the sales force
is continuously motivated through proper incentives and reward
systems.
8. Compliment Marketing Activities –
• Sales management’s task is to support the

marketing functions of the organization.
Marketing and sales need to go hand in hand to
achieve the desired results.
Selling Process
Shashank Kathpal
Assistant Professor
Selling Process
• As a part of selling activities, if salespeople follow the

steps or phases, their chances of success are far better.

Selling Process
The sequence of above steps may change to meet the sales

situation in hand.
1. Prospecting
• It is identifying or finding prospects i.e. prospective or potential customers.
• Methods:
• Existing customers
• Company sources (website, tradeshow, tele-prospecting)
• External sources (suppliers, intermediaries, trade associations).

2. Pre-approach
• A good salesperson researches a prospect, familiarizing with the customer’s

needs and
• learning all the relevant background info about the individual or business.

3. Approach
• You make first contact with client either face-to-face or sometimes it’s over
the phone.
• Premium approach
• Question approach
• Product approach

4. Presentation & Demonstration
• In this phase, you actively present and demonstrate how your product or
service meets the need of your potential customer.
• You should actively listen to your customer’s needs and then act and react
accordingly.

5. Overcoming objections
• This is where you listen to your prospect’s concerns and address them.
• Successfully handling objections and satisfying the concerns separates good

salespeople from bad.

6. Closing the Sale
• The important - and sometimes challenging- part of the sale is closing it!
• This is where you actually have to ask if the potential customer is willing to
make the purchase.
Strategies:
• Alternative choice close
• Extra inducement close
• Standing room only close

7. Follow up
• Follow-up is an important part of-

• assuring customer satisfaction,
• retaining customers and
• prospecting for new customers.

Sales Forecasting
Presented by:
Shashank Kathpal
Assistant Professor
Institute of Business Management
Topics Covered!
Methods of Sales Forecasting
BBAE0201: Sales & Distribution 53

Management
Meaning of Sales Forecasting
• Sales forecasting is the process of
estimating future sales.
• Accurate sales forecasts enable companies
to make informed business decisions and
predict short-term and long-term
performance.

Management
Importance of Sales
Forecasting
• To determine production volumes
considering availability of facilities, like
equipment, capital, manpower, space etc.
• Taking decision about the plant expansion

and changes in production mix or should
it divert its resource for manufacturing
other products.
Management
Importance of Sales
Forecasting
• It helps in preparing production and
purchasing schedules.
• Accurate sales forecasting is a very good aid

for the purpose of decision making.
• It helps in guiding marketing, production and

other business activities for achieving these
targets.
Management
Factors Affecting
Sales Forecasting
Competition
Changes in
Factors Technology
Government
Action
Related to
Concern Itself
Current Global
Conditions
Management
Qualitative Methods
-Executive Opinion Method: Product and service leaders
are tremendous resources for forecasting potential
demand or sales outcomes for the future. They have
key knowledge about upcoming offerings, competitor
products, and future releases and about how a
changing market may impact the measurable forecast.
-Delphi Method: Delphi method involves consulting a
panel of industry experts through a series of
questionnaires regarding specific topics about the
business or industry.
Management
Qualitative Methods
-Sales force Composite Method: Interviewing sellers
may be the best way to tap into how customers think.
Each sales representative is an expert on a unique
type of customer, whether that’s based on regional
territories, relative industries, or even client spend.
-Survey of Buyers’ Intentions: Customers’ needs,
interest in future products, shared pain points —
these are just a few insights that can be claimed from
conducting customer and market research.
-Test Marketing:
Management
Sales Manager
Shashank Kathpal
Assistant Professor
Sales Manager
• Sales manager is the heart of sales organization.
• Sales manager manages the sales- which is the life blood of the business.
• ‘The sales manager is a person who is directly responsible for planning,

organizing and performance of the sales force.’
61
BBAE0201: Sales & Distribution Management
Qualities of a Sales Manager
• Personal Abilities - Recruitment and selection, Ability to train salesman,

Ability to define positions, rights, duties, Ability to inspire and motivate,
Ability to evaluate the performance, Ability to guide, supervise, and control of
the staff under his control.
• Product Knowledge: Knowledge of the policies and objectives of the
enterprise, Knowledge of the products, both of the enterprise as well as of the
competitors.
• Policies Knowledge: Knowledge of the rules, regulations and practices etc.
which are governing the trade, Knowledge of the research and development
in sales management, data processing and inventory control.
62
Qualities of a Sales Manager
• Ability to convince: The sales manager must be able to convince his
superiors, his subordinates and the customers very tactfully.
• Maintaining Relations: He is responsible for maintaining good relations with
his superiors, staff and the customers.
• Grievance Handling: He must be able to look into the complaints and
grievances of the staff and the customers and take necessary decisions
impartially.
63
Duties / Functions of a Sales Manager
• Appoint suitable persons to work at different positions.
• He must study the market conditions, problem of competition and the
substitutes coming into the market.
• He must inform the Authorities regarding these facts and also he has to
provide his suggestions to fight with these threats.
• Keep the market knowledge up to date by talking with wholesalers, retailers,
agents and distributors.
• Know the sale tax rules and other policies which are governing the trade.
64
Duties / Functions of a Sales Manager
• Arrange the training programmes for new salesmen as well as required.
• Call conferences and meetings to discuss the problems and review the sales of
the product.
• Hold the sales environment healthy which can improve the output of the firm.
• Arrange and plan salesman’s tours, allocate sales territories and conflict
resolution.
• Organize the internal audit system.
• Finally, it is his duty to increase the sales volume for which he has to plan
and make sales promotion activities and strategies.
65
SELECTION
Submitted to : Submitted By :
Mr. Shashank Kathpal Mehul Garg
Karan
Agrawal
SELECTION
Selection is the process of picking or choosing

the right candidate, who is most suitable for a
vacant job position in an organization. ...
Selection is a process of identifying and hiring

the applicants for filling the vacancies in an
organization.
SELECTION PROCESS
1 Receiving applications and Preliminary screening
2. Selection test
3. Employment interview
4. Medical check up
5. Reference checking
6. Final approval
7. Contract of employment
8 Induction
Receiving Applications and
Preliminary Screening
• This is an initial screening done by lower level managers to weed

out unqualified applicants.
• An application form is designed to get a written record of
candidate’s qualifications, experience and other details.
• After the applications have been received, they are properly
checked as regards qualification, and experience by the screening
committee.
Selection test
• Proficiency tests – proficiency test also named as occupational or trade

tests. Proficiency tests are those which are designed to measure the
skills already seized by the individuals.
• Aptitude tests – Aptitude means potential. Aptitude test measure an
applicant’s capacity and his potential for development. Generally
aptitude tests are of two types Cognitive test and motor test.
• Intelligence test – used to judge the mental abilities and capacity of an
applicant. There are many verbal and non-verbal intelligence tests
constructed by psychologists for different kinds of jobs.
• Personality tests– personality test are designed to observe how job
applicants react to real life situations.
Employee Interview
• The selectors ask job related and general questions. The way
in which a candidate responds to the questions is evaluated.
• The main purpose of an employment interview is to secure
more information about the candidate which does not
received through application form and employee test.
• Through employee interview, communication skill of the
candidate can be judged.
Medical Checkup
• It serves to ascertain the applicant’s physical capabilities to

meet the job requirements.
• It helps to prevent communicable diseases from entering the
organization.
• It serves to protect the organization against unwarranted claims
under worker’s compensation laws or against law suits for
damages.
• It helps to reduce the rates of accidents, labor turnover and
absenteeism.
Reference checking
• Prior to final selection, the prospective employer normally

makes an investigation on the references supplied by the
applicant.
• He undertakes a thorough search into the candidate’s
family background, past experience, education, personal
reputation, police record, etc.
Final Approval
• Once the applicant cleared all the stages of selection process,
he formally appointed by issuing him an offer/appointment
letter.
• The date of joining, terms and conditions of employment,
nature of job, pay scale, etc are an integral part of the offer
letter.
Contract of
Employment
• Employer and employee will sign a contract of employment.
• Contract of employment contains all important terms and
conditions, job title and duties, work rules, leave rules, pay scale,
benefits, disciplinary procedures and termination of contract.
CONGRATULATIONS !
You have a new
Employee
Induction
After selecting the candidate, induction is provided to the
candidate.
The major objective of induction are-
• Familiarizing the employee with this new surrounding,
company policy, rules and regulations, structure etc.
• Integrating his personal goals with organizational goals.
BARRIERS TO
EFFECTIVE SELECTION
1 PERCEPTION
2 FAIRNESS
3 VALIDITY
4 RELIABILITY
5 PRESSURE
Perception
Our inability to understand others accurately is probably

the most fundamental barrier to selecting the right
candidate.
Fairness
Fairness in selection requires that no individual should

be discriminated against on the basis of religion, region,
race or gender.
Validity
• Validity is a test that helps predict job performance of
an incumbent.
• A test that has been validated can differentiate
between the employees who perform well and those
who will not.
• However, a validated test does not predict job success
accurately. It can only increase possibility of success.
Reliability
A reliable method is one, which will produce
consistent results when repeated in similar situations.
Like validated test, a reliable test may fail to predict
job performance with precision.
Pressure
Pressure is brought on the selectors by politicians,
bureaucrats, relatives, friends and peers to select
particular candidates. Candidates selected because of
compulsions are obviously not the right ones.
Appointments to public sectors undertakings
generally take place under such pressures.
Training & Remuneration of Sales
Force
Shashank Kathpal
Assistant Professor
Remuneration of Sales force
Need for Better Compensation
Reason # (1) To Attract Best Salesmen
Reason # (2) To Keep Sales force Contended
Reason # (3) To Build Up Loyalty
Reason # (4) To Guarantee Sound Employer-Employee Relation

Elements of a Good Remuneration Plan
(1) Should provide adequate income to maintain a decent standard

of living.
(2) Simplicity
(3) Flexibility
(4) Incentive Oriented
(5) Low Administration Cost
(6) Fairness
(7) It Is Prompt in Payment
(8) Promotion
Training of Sales Force
The extent of training will depend upon following:
1. How difficult and complicated is the concerned selling job?
2. The level of education and previous training the salesman possesses.
3. Previous selling experience of the salesmen.
4. The type of buyer to be approached. In case of an expert buyer, more knowledge

of the product to be sold is the absolute necessity.
Training Content
(1) Basic Principles of Salesmanship

(2) Knowledge of the Firm
(3) Knowledge of the Products
(4) Knowledge about the Customers
(5) Knowledge of Competitors
(6) Matters Pertaining to the Day to Day Work.
(7) Knowledge of self.
Advantages of Training the Sales force
Advantage # 1. Greater Sales Volume

Advantage # 2. Reduces Cost of Production
Advantage # 3. Early Selling Maturity
Advantage # 4. Lowers Supervision Cost
Advantage # 5. Lowers Turnover of Sales force
Advantage # 6. Better Customer Relations
Other Advantages:
Items having higher margin of profit can be more easily sold.

 Reduced number of complaints from customers.
 Better demonstration and sales presentation.
 The number of sales force could be kept at the minimum.
 Buyer’s demand for a better knowledge of the product could be satisfied only
by a trained salesman.
Methods of Training
Types of Training:
- On the Job
- Off the Job
Scope of Training:
- Behavioral
- Organizational
- Skill
The best types of employee training methods include:
• Instructor-led training
• eLearning
• Simulation employee training
• Hands-on training
• Coaching or mentoring
• Lectures
• Group discussion and activities
• Role-playing
• Management-specific activities
• Case studies or other required reading

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BBAE0201

SALES & DISTRIBUTION MANAGEMENT

• To enable the students to gain insight about the various

concerns as related to the fields of sales and distribution

management as found in today’s organizations.

Introduction & Concept of Sales Management: Nature,

quantitative methods. Sales organization its functions

• Understand the basic concepts pertaining to Sales and Distribution.

• Understand the role of a sales manager and sales force.

• Develop awareness about the various concepts and principles

• Develop a sales aptitude as well as attitude.

SM— is Planning, direction and control of Personal selling

• It is a sales management that translates the

• That’s why sales management described as the

“Sales Management is the planning, direction and

BBAE0201: Sales & Distribution Management 10

BBAE0201: Sales & Distribution

BBAE0201: Sales & Distribution Management 12

BBAE0201: Sales & Distribution

BBAE0201: Sales & Distribution

• Marketing Management Integration

• Different Sales or Job Position

BBAE0201: Sales & Distribution

• Sales Management is a part of total management of the enterprise.

• Responsible for a part of Marketing Activities.

• Responsible for the management of personal selling functions.

BBAE0201: Sales & Distribution Management 19

BBAE0201: Sales & Distribution Management 20

BBAE0201: Sales & Distribution Management 21

BBAE0201: Sales & Distribution Management 22

BBAE0201: Sales & Distribution Management 23

BBAE0201: Sales & Distribution Management 24

Objectives of Sales Management

-To increase sales volume.

• Selling is an action which converts the product into cash,

• But marketing is the process of meeting and satisfying

BBAE0201: Sales & Distribution Management 26

• Marketing consists of all those activities that are associated

• Selling focuses on the seller needs whereas marketing

BBAE0201: Sales & Distribution Management 27

BBAE0201: Sales & Distribution Management 28

3 Management is sales volume oriented Management is profit oriented

4 Profit through Sales Volume Profits through Customer Satisfaction

Planning is short-run-oriented, regarding Planning is long-run oriented regarding new

All departments of a business operate in an

7 Product first then customer Customer

Deals with the needs of the

Includes all activities which facilitate the flow of

To identify the needs of the customer to create

• One of the main objectives of sales management

• Through efficient sales management, the

• Sales management has an objective of improving the profits

• With the sustained and continuous sales

• With increased sales volumes and profits, ‘sales

• Getting prospects to become customers is an art

• One of the core objectives of sales management is to motivate the

• Sales management’s task is to support the

• As a part of selling activities, if salespeople follow the

BBAE0201: Sales & Distribution Management 43

The sequence of above steps may change to meet the sales

BBAE0201: Sales & Distribution Management 45

• A good salesperson researches a prospect, familiarizing with the customer’s