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SALES & DISTRIBUTION

Presented By: Anushree Pawar 11303

Sales and marketing are business terms that are often used interchangeably. Selling and marketing, however, are not one and the same. In fact, marketing and sales are two completely different

activities.
A sale is the act of selling a product or service in return for money or other compensation.

Marketing is identifying customer needs, wants and desire converting

them into products and services


Marketing is the set of processes that include determining channels of distribution, pricing, and developing the "brand".

Systematic approach to selling a product or service

Stages in sales process: Initial contact Application of Initial Fit Criteria Sales lead Need identification Qualified prospect Proposal Negotiation Closing Deal Transaction

Customer relationship management (CRM) is an information technology-driven strategy companies use to get and retain a customer. Helps in managing a companys interactions with customers, clients, and sales prospects. It involves using technology to organize, automate, and synchronize business processesprincipally sales activities

Benefits of CRM
SHORTER LEAD TIMES

CRM software is used to coordinate sales activities to obtain big dividends. CRM solutions fall into the following four broad categories. 1. Outsourced solutions Application service providers provide web based CRM solutions for businesses. Company does not have the in-house skills necessary to tackle the job from scratch. Good solution if you are already geared towards online e-commerce.

2. Off-the-shelf solutions
Software companies offer CRM applications that integrate with existing packages. Cut-down versions of such software may be suitable for smaller businesses. Cheapest option as you are investing in standard software components. Software may not always do precisely what you want and you may have to trade off functionality for convenience and price. Key to success is to be flexible without compromising too much.

3. Bespoke software
Customize or create a CRM system and integrate it with existing software. Expensive and time consuming. Requirements to be specified carefully . Most expensive option designer quotes.

4. Managed solutions Half-way house between bespoke and outsourced solutions. Involves renting a customized suite of CRM applications as a bespoke package. Can be cost effective but it may mean that you have to compromise in terms of functionality.

Implementation
Implementation of CRM strategy is a six stage process : Stage 1 - Collecting information Capture the information needed to identify your customers and categorize their behavior. Stage 2 - Storing information Store and manage your customer information is in a relational database - a centralized customer database to allow run all the systems from the same source to ensure that everyone uses up-to-date information.

Implementation
Stage 3 - Accessing information With information collected and stored centrally, the next stage is to make this information available to staff in the most useful format. Stage 4 - Analyzing customer behaviour Using data mining tools in spreadsheet programs, analyze data to identify patterns or relationships to profile customers and develop sales strategies.

Implementation
Stage 5 - Marketing more effectively Use CRM to gain a better understanding of customers' needs, desires and self-perception for targeting most valuable customers. Stage 6 - Enhancing the customer experience Identify complaining customers taking up a disproportionate large amount of staff time. If their problems can be identified and resolved quickly, so that staff will have more time for other customers.

The movement of goods and services from the source through a distribution channel, right up to the final customer, consumer, or user. Distribution Channel: The chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. Channels are broken into direct and indirect forms.

Intensive Distribution

Exclusive Distribution

Distribution Intensity

Selective Distribution

Producer Retailer Retailer Retailer Retailer Retailer Retailer Retailer Retailer Retailer

Seeks to obtain maximum product exposure at the retail level

Retailer Retailer Retailer

Retailer

Retailer

Retailer

Producer

Product is sold in a limited number of outlets

Retailer

Retailer

Retailer

Retailer

Retailer

Retailer

Product is sold in only one outlet in a given area

Producer Retailer

Direct Sale P R O D U C E R Retailer Wholesaler Agent Agent Agent/Dealer Agent/Dealer Wholesaler Wholesaler Retailer Retailer Retailer Retailer Retailer C O N S U M E R

Information

Risk Taking

Promotion

Financing

Contact

Physical Distribution

Matching

Negotiation

E-Commerce - Transforming Distribution Channels


E-Commerce consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks E-commerce facilitates Supply chain management Internet marketing Electronic data interchange (EDI) Inventory management systems Automated data collection systems.

Other functions are: Disintermediation Being able to conduct business 24 x 7 x 365 Access the global marketplace.

WALMART
Automated Distribution System
As soon as the level or number of products in the point of sales decreases below a safety stock, the system automatically places an order to the supplier, thus making it possible to replenish the stocks before the seller runs out of stock. Successful management of the system avoids losing the customers to the competitors by providing them with the same quality product continuously.

CONCLUSION
Distribution channel is considered as the backbone of every company and technology is the most important ingredient to make it firm and strong. The rapid developments in recent years in the information technologies have resulted in distribution channels with different characteristics in industries such as banking, tourism, and travelling. Low-cost distribution channels, convenience for the customer, the quality of the goods and services to be delivered to the customer, and the speed of the delivery have been made possible with Information technology in distribution.

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