Date post: | 04-Apr-2018 |
Category: |
Documents |
Upload: | shikha-aggarwal |
View: | 212 times |
Download: | 0 times |
of 54
7/29/2019 Sales and Distribution Slides Aug 2011
1/54
Selection and Training of Representatives
Introduction
Selection and training of sales representatives is an on going
procedure in all sales as organizations as sales managers
cannot hold on to their staff forever and it is also not good to
do so. Generally speaking, the sales representatives that stayon are not quality people. All the good people will either get
promoted in the same company or move on to other
companies for better prospects. So, it is not just the selection
procedure but training which is imparted to the selectedtrainees that plays a very important role. We provide training
to new people for doing the job and then keep them training
than for doing the same job better and better. Let us now look
at selection and training procedures in detail.
Unit - 2
7/29/2019 Sales and Distribution Slides Aug 2011
2/54
Selection of Sales Representatives
Selection procedure starts from the search of the right candidate. The
normal places to look for them are as follows:
1. Internal search
2. Competitor salesmen
3. From the staff of your distributors
4. From the institutes
5. From employment exchanges/agencies
6. From the staff of other companies
7. By advertising in newspapers
7/29/2019 Sales and Distribution Slides Aug 2011
3/54
Preparation of Job Description and Personnel Specification
Preparation of job description will involve the following activities:
1. Deciding the title of the job e.g., salesman, sales officer/ etc.
2. Deciding the duties and responsibilities.
3. To whom the person will report.
4. Technical requirements of the job e.g., travel for 20 days a month.
5. Location of the job i.e., place of work.
6. Degree of autonomy e.g., limits of authority.
Personnel specifications change from selector to selector. They can be:
1. Physical requirement e.g., strong physique to withstand traveling strain.
2. Attainments e.g. education experience.3. Aptitudes and qualities e.g., communication skills, motivation levels.
4. Deposition e.g., maturity, sense of responsibility.
5. Interests e.g., hobbies etc.
6. Personal status e.g., married/unmarried.
7/29/2019 Sales and Distribution Slides Aug 2011
4/54
Short Listing and Interviews
Short listed candidates are then interviewed to find the best
suitable candidates for your consideration and appointment.The next step is training the selected candidate for job
responsibilities. The training is again of two types:
1. Induction Training Company profile
Position in hierarchy and job responsibilities
Introduction to the administrative staff and accounts staff
Reporting procedures and standards of reporting
Knowledge of products, their features and benefits
Knowledge of manufacturing units
Handing over stationery and kit etc.
7/29/2019 Sales and Distribution Slides Aug 2011
5/54
On job training is a very important aspect of the sales
managers job. This is an ongoing and continuous process
for both the sales manager and his subordinates. It isdirected towards improving job related skills and along with
it the personality of the sales staff as these are the people
who improve or spoil the image of the company by way of
responsible or irresponsible behavior in the minds of the
trade. The company image in the trade circle is very
important in getting good channel members and their whole-
hearted support.
Training Skill Development
2. On Job Training (Field Training)
The skill development training, though similar in both
industrial and consumer products, differs in emphasis on
different aspects.
7/29/2019 Sales and Distribution Slides Aug 2011
6/54
Consumer Sales
Consumer sales are generally divided into steps of a sales
call. They are:
1. Planning and preparation
2. Approach
3. Stock check/need development4. Brand talk
5. Objection handing
6. Close
7. Detail work.
All the seven steps are very important for making a sales
call productive. If the salesman is weak in any of the above
aspects (steps), his performance will not be top class.
7/29/2019 Sales and Distribution Slides Aug 2011
7/54
Industrial Sale
In an industrial sale, though the steps are the same, the
emphasis shifts from brand talk to negotiating the terms of sale
because in this case the buyer is the final user and he does
not buy a brand but a need satisfier. If he is interested in
satisfying his need, and saving costs in the process, and if
your product is replacing an expensive product and satisfiesthe need effectively, you get the order. In industrial sales the
formula SPANCO is in use. Its meaning is as follows
S = Survey of customers
P = Prospecting the customerA = Approach the customer
N = Need development/negotiations
C = Close (order booking)
O = Order processing
7/29/2019 Sales and Distribution Slides Aug 2011
8/54
Training in Personality Development
In this part of training, the sales manager explains the
following things:
1. Dress code
2. Personal grooming
3. Body language4. Communications skills (a) written (b) oral
5. Listening skills
6. Manners and etiquette
A good understanding of each of the above will help one
become a better salesman.
7/29/2019 Sales and Distribution Slides Aug 2011
9/54
Sales Quotas
Importance of Sales Quotas
Sales quotas serve several purposes. The important objectives are shown in the
diagram below:
SalesQuotas
Quotas provide performance targetsQuotas provide standardsQuotas provide controlQuotas are motivational
SalesObjectives
7/29/2019 Sales and Distribution Slides Aug 2011
10/54
Types of Sales Quotas
A sales organization can set many types of quotas. The most common
quotas are shown in the following diagram
Types of Sales Quotas
Sales VolumeQuotas
ProfitQuotas
ExpenseQuotas
ActivityQuotas
QuotaCombinations
7/29/2019 Sales and Distribution Slides Aug 2011
11/54
Territory Management
The following diagram outlines the activities of territory management
Trade relations/Dealer relations
Potential business
CoverageReports
Territory size
Portfolio of accounts
Selling techniques
Customer satisfaction
Selling abilities
Activities of
Territory
Management
7/29/2019 Sales and Distribution Slides Aug 2011
12/54
Why Establish Sales Territories?
A company can develop and use sales territories for various reasons. Some
of the reasons are as follows:
To obtain entire coverage of the market
To establish a salespersons responsibility
To evaluate performance
To improve customer relations
To reduce sales expenses
To allow better matching of salesperson to customer
To benefit salespeople and the company.
7/29/2019 Sales and Distribution Slides Aug 2011
13/54
Factors to be Considered when Designing Territories
In setting up or designing sales territories, these four stepsmust be followed:
Selecting a basic geographical control unit
Determining sales potentials in control unit
Combining control units into tentative territories
Adjusting for coverage difficulty and reallocating
tentative territories.
The two basic approaches commonly used for designingsales territories are discussed below.
1. Market Build-up Approach
2. The Workload Approach
7/29/2019 Sales and Distribution Slides Aug 2011
14/54
The work load approach
This approach is designed by WJ Talley on the basis of the work load
performed by salespersons. the following steps should be consideredimportant hen using the above approach:
Customer are grouped into class size according to the sales
volume.
Optimum call frequencies for each class of customer are estimated.
Present and potential customers are then located geographically
and arranged volume-wise and value-wise
The number of present and potential customer in eachvolume/value group is then multiplied by the desired call frequency to
get the total number of planned calls required for each geographical
control units.
7/29/2019 Sales and Distribution Slides Aug 2011
15/54
Assigning to Territories
BaseFirst Call
C
C
C
7/29/2019 Sales and Distribution Slides Aug 2011
16/54
CC
C
C
C
CC
C
Base
2 3
4 5
1
Clover Leaf Pattern
Major City Pattern
7/29/2019 Sales and Distribution Slides Aug 2011
17/54
Sales Management Information System and
Sales Training
What is Sales Management Information System?
To achieve the sales goals set by senior management, the sales manager
must make tactical decisions about
shape of sales territories allocation of sales staff to territories
what product to push
which customers to contact
incentive schemes
which market segments to emphasize and with what products.
In addition, they must also monitor the sales effort and make changes to the
tactics in response to changes in the market.
7/29/2019 Sales and Distribution Slides Aug 2011
18/54
Monthly Performance Review
Frequency : Monthly/Quarterly/Annual performance at office by Sales Rep.Guidelines
Each sales rep to report personally to the branch office once in a month to
review the following:
Previous tour cycle date wise
Plan for next tour cycle to be sent one week before reporting
Managers to ensure complete availability for each sales rep.
7/29/2019 Sales and Distribution Slides Aug 2011
19/54
Sales Training
Any training is dependent for its success on a number of
factors. These include how well it relates to identified needs,how relevant it is to the real day-to-day job of participants,
how participative it is, and more.
Presentational techniques
Techniques to prompt and handle participation
The methodology of role-playing, which as has been
said in the previous section can be of valuableassistance in developing sales skills
The use of training films.
7/29/2019 Sales and Distribution Slides Aug 2011
20/54
UNIT-3,4
Distribution System
Introduction : Basic Concepts of the Distribution System
Distribution of goods and services plays an important role in the sales
system. Distribution system varies from company to company and region
to region. The distribution system gives strength to the company by
helping to increase the reach of the product to various parts of the region,
country or even in foreign markets. An effective distribution system helps
in making available goods in the right quantity at the right time when they
are required and giving a reasonable earning to those who are associated
with the distribution system like wholesalers, retailers, departmental
stores, etc.
7/29/2019 Sales and Distribution Slides Aug 2011
21/54
functions
Contact
InformationRisk Taking
Promotion
Matching
Financing
Physical
Distribution
Negotiation
7/29/2019 Sales and Distribution Slides Aug 2011
22/54
Setting Distribution Objectives
What are distribution objectives? For a product market, they are defined in
terms of availability of the product (for example, percentage of total outletsreached). Most companies do not explicitly set distribution objectives. Of
those that do, distribution objectives often have no linkage to end
customer requirements. Often companies fail to ask questions like, How
many and what kind of outlets do I need, to be available to a given target
audience and their buyerbehaviour?
There are also regional differences in category development to be taken
into account. For instance, will extending distribution in a region with a low
level of category development help me boost sales? Finally, the objectives
should take note of the marketing initiatives planned for the year
7/29/2019 Sales and Distribution Slides Aug 2011
23/54
The Andersen Consulting Distribution Strategy Pyramid
Distribution
Objectives
STRATEGY
ChannelDesign
NetworkStrategy
STRUCTURE
IntermediateManagement
Warehousesand Transport
MaterialsManagement
PROCESS
IT Policies andProcedures
Facilities andEquipment
ChannelManagement
IMPLEMENTATION
7/29/2019 Sales and Distribution Slides Aug 2011
24/54
The Distribution Development Index (DDI) is defined as the availability of a
brand/category in the market relative to that of a benchmark brand/category. The
Category Development Index (CDI) is defined as the per capita consumption of the
category in that market relative to the national per capita consumption of the
category. The relative level of DDI and CDI will determine the extent of the
opportunity to actually extend distribution.
Concentrate ondemand generationactivities
Concentrate onquality of distribution,
service level,frequency etc.
Develop integratedsales andmarketing package
Extend distributionimmediately
High
Low
DistributionDevelopment
Category Development
Low High
7/29/2019 Sales and Distribution Slides Aug 2011
25/54
Developing Channel Design
Distribution Processes Setting/AchievingDistribution Objectives
ControllingDistribution
u Inventory managementthrough a periodic reviewof network
u Integrated supply chainplanning
u Setting up distributionstrategy withalternatives
u Consistently lowerinventory levels inchanging demand
u Demand forecastingbased on consumertrend secondary
u
Setting distributionobjectives in line withthe demand potential
u
Lower inventoriesu Lower trade spends (no
attempts to boost saleswhere demand)
u Monitoring of tradespends
u Monitoring of distributor
u Achieving distributionobjectives by ensuringthe right mix of directcoverage and reach.
u Controlling trade spends
u Controlling distributorexpenses and serviceevils to prevent
distributors from makingsales.
7/29/2019 Sales and Distribution Slides Aug 2011
26/54
Definitions of Physical Distribution
1. The term Physical Distribution Management, is employed in
manufacturing and commerce to describe the broad range of activities
are:
Freight
Warehouseing
Material handling
Protective packing
Inventory control
Selection of site for various activities
Marketing
Forecasting.
2. Physical Distribution is the art and science of determiningrequirements, acquiring them, distributing them and, finally, maintaining
them in an operationally ready condition for their entire life.
3. Physical Distribution Management is specifically concerned with the
flow of goods through the economic system.
7/29/2019 Sales and Distribution Slides Aug 2011
27/54
Functions of Physical Distribution
In main, physical distribution functions may be listed as follows:
1. Locational analysis
2. Transportation
3. Material handling4. Warehousing
5. Packing
6. Order processing
7. Packaging
8. Inventory control
9. Customer sales service.
7/29/2019 Sales and Distribution Slides Aug 2011
28/54
Logistics
Introduction
Logistics is the process of planning, implementing and controlling the
efficient, effective flow and storage of goods, services and related
information from the point of origin to the point of consumption for the
purpose of conforming to consumerrequirements.
Logistics is not a new area of marketing management. It has been aroundsince the beginning of civilisation.
Logistics helps the inflow of materials into the manufacturing process. It
also helps in the distribution of products to consumers through various
marketing channels.
Logistical management includes the design and administration of systems
to control the flow of material, work-in-process and finished inventory to
support business unit strategy.
7/29/2019 Sales and Distribution Slides Aug 2011
29/54
Logistic Needs
Land Sufficient land so that industrial or business operations may be
conducted smoothly.
Water distribution
Energy Sufficient electric power or alternative resources of power so that
operations may go unhindered.
Storage for equipments, construction goods.
Machinery and spares.
Warehousing space for movement of goods/temporary storing till the
goods reach final destination.
Transport equipments, trucks, trolleys, etc.
Telephones, telefax and other communication equipments.
7/29/2019 Sales and Distribution Slides Aug 2011
30/54
Functional Areas of Logistics
There are seven important functional areas of logistics.
Transportation(Road, Rail or
Air) (3)
InformationTechnology (2)
NetworkDesign (1)
Logistics forCustomer
Satisfaction
Inventory andStorage (4)
Packaging andRe-packaging
(7)
MaterialsHandling,Loading,
and Unloading(6)
Warehousing
(Pvt./Public)(5)
7/29/2019 Sales and Distribution Slides Aug 2011
31/54
1. Network Design
Manufacturing plants, warehouses, material handling, distribution and after-
sale services are typical logistics facilities. Network design is one of the
prime responsibility of logistical management. It is required to determine thenumber and location of all types of facilities required to perform the logistics
task. The selection of a superior locational network can be the first step
towards competitive advantage. Logistical efficiency directly depends on the
proper design of network and infrastructure.
2. Information Technology: Two major areas that depend on information are:
Sales Forecasting: It is done to estimate the future requirements oflogistics. It helps inventory management to satisfy anticipated customer
requirements.
Order Management: Customers order is very important in logistics.Logistics services are required for external and internal customers. External
customers are those that consume the products or services and any trading
partners that purchase products or services for resale. Internal customers
are organisational units within a company.
7/29/2019 Sales and Distribution Slides Aug 2011
32/54
3. Transportation
It helps in positioning inventory geographically. There are three forms of
transport, i.e., private carriage, contract carriage and public carriage. Road Transport
The Plan of Super National Highways
Water Transport
Shipping Companies
Gopalpur Seaport Project
National Waterways
Air Transport
7/29/2019 Sales and Distribution Slides Aug 2011
33/54
Just-in-Time (JIT) Transport Management
Seven results were selected for this study as benefits of JIT implementation:
1. Downtime reduction
2. Inventory reduction
3. Workspace reduction
4. Increased quality
5. Increased manpower utilisation
6. Increased equipment utilisation
7. Increased inventory turnover
7/29/2019 Sales and Distribution Slides Aug 2011
34/54
Inventory Management
S.
No.
Title Basis Main Uses
1. ABC (Always BetterControl)
Value of Consumption To control raw material components andwork-in-progress inventories in the
normal course of business.
2. HML (High, Medium,
Low)
Unit price of material Mainly to control purchases.
3. XYZ Value of items instorage
To review the inventories and their usesat scheduled intervals.
4. VED (Vital Essential
Desirable)
Criticality of
component
To determine the stocking levels of
spare parts.
5. FNSD (Fast, Nominal,
Slow, Dead, etc.)
Consumption pattern
of the component
To control obsolescence.
6. SDE (Scarce, Difficult,
Easy to obtain)
Problems faced in
procurement
Lead-time analysis and purchasing
strategies.
7. GOLE (Government,
Ordinary, Local,
Foreign sources)
Source of the material Procurement strategies.
8. SOS (Seasonal, Off-
season)
Nature of supplies Procurement/Holding strategies for
seasonal items like agricultural
products.
7/29/2019 Sales and Distribution Slides Aug 2011
35/54
Warehousing
Warehouses provide a key link in the physical distribution chain and, like other
stages of distribution, they are being closely scrutinised by todays marketing
managers. The location, size and capabilities of warehouses can profoundly
affect a companys ability to satisfy its customers and deliver products and
services profitably.
Types of Wareshouses
There are two types of warehouses (i) private warehouses (ii) public
warehouses.
Purposes of a Good Warehouse
Storage
Breaking bulk
Consolidation
Unitisation
7/29/2019 Sales and Distribution Slides Aug 2011
36/54
Factors Affecting Warehousing Choice
The warehousing decision is influenced by the difficulty of moving goods directly
from the assembly line to buyers or public warehouses. The following factorshave to be kept in mind when deciding the location of a warehouse:
Product type
Transportation cost
Markets Rent
Labour supply
Taxes
Geography
Competition.
7/29/2019 Sales and Distribution Slides Aug 2011
37/54
Materials Handling Equipments
Material handling is such an important activity that it cannot be avoided in the
performance of logistics. Material handling activities should be minimised as it
requires a very high capital investment and direct labour cost. The network of
facilities forms a structure from which logistical operations are performed within a
network design framework as per the requirement of customers.
Materials handling system in logistics is designed under certain guidelines.
These are very important to assist management. These are:
Equipment for materials handling and storage should be standardised
The system should be designed to provide maximum continuous product
flow as per the requirements of the company
Handling equipment should be properly utilised.
7/29/2019 Sales and Distribution Slides Aug 2011
38/54
Classification of Materials Handling Systems
1. Mechanised Systems: These systems utilise a combination of labour andhandling equipment to facilitate receiving, processing, and/or shipping.
Mainly labour constitutes a high percentage of overall cost in mechanised
handling.
2. Semi-automated System: The main equipments used in semi-automated
system are:
Automated Guided Vehicle System (AGVS)
Sortations
Robotics.
3. Automated System: Automated System attempts to minimise labour as
much as practically possible by substituting capital investment by
equipment.
7/29/2019 Sales and Distribution Slides Aug 2011
39/54
Packaging
Packaging includes handling and storage of finished goods. It also emphasises
on protection from loss and damage.
Hence, we can say that logistics management is the framework of 7 RsRight
quantity of the Right product or service to the Right place in the Right conditions
at the Right cost and the Right time with Right impression.
Excellence in each aspect of functional work is relevant and must be viewed in
terms of improving the overall efficiency and effectiveness of integrated logistics.
7/29/2019 Sales and Distribution Slides Aug 2011
40/54
Logistical Integration
The logistical integration process is composed of two interrelated efforts, i.e.,
goods flow and information flow. Information from and about customers flowsthrough the enterprise in the form of sales activity, forecasts and orders. This
information is refined into manufacturing and procurement plans. A value-added
inventory flow results in transfer of finished products to customers.
The following are the major components of logistical operations:
a. Physical Distribution
b. Manufacturing Support
c. Procurement
d. Inventory Flow
e. Information Flow
7/29/2019 Sales and Distribution Slides Aug 2011
41/54
Marketing and Physical Distribution of Petroleum
Products (An Indian Perspective)
Marketing and physical distribution of petroleum products in India is quitedeveloped and most of it is under public sector organisations. Recently, the
government gave permission for the import and distribution of cooking gas and
kerosene oil to the private sector.
Associated Units
1. Indian Oil Corporation Ltd (IOCL)
2. Bharat Petroleum Corporation Ltd (BPCL)
3. Hindustan Petroleum Corporation Ltd (HPCL)
4. Gas Authority of India Ltd (GAIL)
7/29/2019 Sales and Distribution Slides Aug 2011
42/54
Physical Distribution Management
Transportation and Warehousing
Definition
Physical distribution management refers to:
The management of all activities which facilitate movement and
coordination of supply and demand in the creation of time and place utility
in goods.
A more comprehensive definition of the physical distribution management
may be:
The term physical distribution management employed in manufacturing
and commerce is used to describe the broad range of activities with the
efficient movement of finished products from the end of production line to
the consumer and, in some cases, includes the movement of raw materials
from the source of supply to the beginning of the production line.
7/29/2019 Sales and Distribution Slides Aug 2011
43/54
These activities have been illustrated in Figure.
Location Ware Houseing
Material Handling
Packing and
Packaging
Inventory ControlOrder ProcessingTransportation
Customer Services
Records
Maintenance
PHYSICAL
DISTRIBUTION
7/29/2019 Sales and Distribution Slides Aug 2011
44/54
Transportation
Transportation system in an organisation should be:
Efficient
Economic
Reliable
Meeting customer needs in a timely manner
Experienced
Capable of meeting emergencies, special needs.
7/29/2019 Sales and Distribution Slides Aug 2011
45/54
Transport Infrastructure
In order to be successful in managing a good transportation system, acompany has to plan for a proper infrastructure like:
Land, building
Labour
Packing places
Roads
Lighting
Weight scales, handling equipments
Receipt and despatch procedures
Suitable manpower
Proper timing of operations, so that goods may be received or
dispatched on time.
Adequate number of vehicles to transport the goods.
7/29/2019 Sales and Distribution Slides Aug 2011
46/54
Modes of Transportation
The following modes of transportation are used keeping in mind the goodsand places where they are to be sent and the volume of goods:
1. Railways
2. Road Transportation
3. Air Transportation
4. Sea Transportation (Marine)
5. Inland Waterways
6. Ropeways
7. Postal
8. Courier
9. Hand carts, Thelas, Rehres, Cycle Rikshaws,
10. Bullock carts, etc.
7/29/2019 Sales and Distribution Slides Aug 2011
47/54
Distribution Agreement Specimen
(Between a fast moving consumer goods company and its distributor)
From:
M/s ABC+ CoNew Delhi
To
M/s XYZ + Co
Ghaziabad (UP)
Dear Sirs,
We have pleasure in appointing you as one of our Confectionery Division Distributors at
Ghaziabad wef 21.05.98 on the following terms and conditions:-------------------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------------------
Please signify your consent to the above terms and conditions by signing and returning to us the
duplicate copy of this agreement.
Thanking You,
Yours very truly,Accepted
For XYZ +Co. For ABC + Co.
sd/- sd/-
Partner Zonal Manager
7/29/2019 Sales and Distribution Slides Aug 2011
48/54
Operating Instructions
Terms of Payment
As you are aware, the company supplies its goods to you on the basis of your
ex-godown or shop. For your better understanding of the terms, we would like to
give clarifications as under:
a. Cost/Charges to Be Borne by the Company
b. Cost/Expenses to your Account
c. Interest on Delayed Payments
d. Payment for Short/ Damaged Delivery
7/29/2019 Sales and Distribution Slides Aug 2011
49/54
Warehouses(chpt-30)
A warehouse is a location with proper facilities where shipments are received
from a factory or production centre, broken down, reassembled, and shipped to
the customers as per their orders , It is also defined as:
a building in which goods are stored, bonded or displayed for sale.
Advantages
The warehouse provides the following main advantages
1. Reduces distribution costs.
2. Is easily accessible to the customers or is located near the market, resulting
in better and finer distribution.
7/29/2019 Sales and Distribution Slides Aug 2011
50/54
7/29/2019 Sales and Distribution Slides Aug 2011
51/54
7/29/2019 Sales and Distribution Slides Aug 2011
52/54
7/29/2019 Sales and Distribution Slides Aug 2011
53/54
7/29/2019 Sales and Distribution Slides Aug 2011
54/54