1. Sales and Distribution Management

Sales Management - Meaning, Characteristics of Sales Management, Objectives of Sales Management, Importance of Sales Management, Evolution of Sales Management - Pre Industrial Revolution Period, Production Oriented Period, Sales Oriented Period, Customer Oriented Period, Sales Department, Role of Sales Department, Interface of Sales with other Management Functions, Qualities of Sales Manager, Development in Sales Management, Sales Organization, Structure of Sales Organization, Distribution - Meaning, Distribution Channel, Intermediaries, Role of Distribution Channel, Evolution of Distribution Channel, Distribution Management - Meaning, Importance of Distribution Management, Integration of Marketing, Sales and Distribution

1. SALES AND
DISTRIBUTION
MANAGEMENT

2. SALES MANAGEMENT
➢Salesmanagementisacomprehensivetermthatincludes
managementofallmarketingactivities,includingadvertising,sales
promotion,marketingresearch,physicaldistributionpricing,and
productmerchandising.
➢Itisanartaswellasscience-Artbecausemanagingsalesforce
requirescertainskillswhicharepersonalpossessionsofmanagers.
Scienceprovidestheknowledge&artdealswiththeapplicationof
knowledgeandskills.Salesmanagementisscienceasitmakesuseof
scientificprinciplesformanagingthesalesforceanddevelopingthe
salesorganization.

3. DEFINITIONS OF SALES MANAGEMENT
1.AccordingtoAmericanMarketingAssociation,“SalesManagementis
theplanning,directionandcontrolofthepersonalsellingactivitiesofa
businessunitincludingrecruiting,selecting,training,equipping,assigning,
routing,supervising,payingandmotivating,asthesetasksapplytothe
personalsales–force.”
2.AccordingtoWilliamJ.Stanton,“SalesManagementinvolvesplanning,
implementingandevaluatingsales–forceactivitieswithintheguidelines
setbythecompany'sstrategicmarketingplanning”
3.AccordingtoB.R.Canfield,“SalesManagementinvolvesthedirection
andcontrolofsalesmen,salesplanning,budgeting,policymaking,
coordinationofmarketingresearch,advertising,salespromotionand
merchandisingandtheintegrationinthemarketingprogrammeofall
businessactivitiesthatcontributetotheincreasedsalesandprofits.”

4. SALES MANAGEMENT
(source:https://www.geektonight.com/sales-management/)

5. OBJECTIVES OF SALES MANAGEMENT
➢Achievementofsalestarget
➢Growthinsalesvolume
➢Increaseinprofits
➢Increaseinmarketshare
➢Effectivemanagementofsalesforce
➢Effectivemanagementofsalesterritories

6. CHARACTERISTICS OF SALES MANAGEMENT
(source: https://theinvestorsbook.com/sales-management.html)

7. IMPORTANCE OF SALES MANAGEMENT
(source: https://theinvestorsbook.com/sales-management.html)

8. EVOLUTION OF SALES MANAGEMENT
➢Sellingisasoldashumancivilization.Earliertimesthesalesman
usedtosellaxes,swords,buttons,blades,etc.Inthemedievalage,
theBritisherswhoweretheenterprisingtradersstartedgoingacross
countriestodestinationssuchasIndia.Thebuyingandsellinghas
gonethroughvariousphasesofevolutionanddevelopmentoverthe
centuries.
➢Initiallysellinghadapurelytransactionalapproachi.e.barter
systeminwhichgoodswereexchangedforgoods.Itwasaconcept
of“buyer”and“seller”.Astherewasincreaseincompetitionthe
conceptof“customer”evolved.

9. EVOLUTION OF SALES MANAGEMENT
Customer Oriented Period
Sales Oriented Period
Production Oriented Period
Pre Industrial Revolution Period

10. EVOLUTION OF SALES MANAGEMENT
➢Small-scaleindustries/craftsexistedpriortoIndustrialRevolution
period.
➢Theowner/craftsmanturnedentrepreneur,lookedafterallareas
andfunctionsofmanagement,suchas,production,financeand
designanddevelopment.
➢Salesandmarketingwasneveraseriousprobleminthosedayssince
demandfarexceededsupplies.
➢Sellingwasonlyapart-timejobfortheseentrepreneurswhowould
onlydemonstrateordisplaytheircraftsmanship.

11. EVOLUTION OF SALES MANAGEMENT
➢DuringtheProductionPeriod,massproductiontechniquewas
introduced.Thisincreasedtheproductionlevel,wherethefocuswas
onmanufacturerandproductioncapacity.
➢Therewasgreateremphasislaidonproductionprocesswhichyielded
volumes.
➢Marketingmeant"sellwhatisproduced“anditwasa"sellersmarket“
➢TheSalesOrientedPeriod,stillprevalentindevelopingnations,
focusesonsalesandsalespromotionwithemphasisonsalesvolume.
➢Marketingmeans"productdoesnotsellbyitselfbuthastobepushed.
Customersaretobemanipulatedinthehighlycompetitive
environment.

12. EVOLUTION OF SALES MANAGEMENT
➢DuringtheCustomerOrientedPeriod,Globalizationand
liberalizationhavefurtherincreasedthecompetition.
➢Thisperiodisprevalentindevelopednationsafter1960s.
Developingnationsstartedfollowingthisapproachby1980s.
➢Thefocusison"customersatisfaction“.
➢Emphasisison"problemsolving"oncustomer"needs"and"wants“
toachievecustomerloyalty.
➢Marketingmeanscustomersatisfactionbefore,duringandafter
sales.Itisthe“buyersmarket”havingseverecompetition.

13. EVOLUTION OF SALES MANAGEMENT
Inanutshell,
➢Duringtheearlyyearsof1950ssellingwasmainlyofconsumergoods.
CompaniessuchasUnilever,P&Gwerethepioneersinsellingsoaps,
detergents,etc.
➢In1960s,thesellingofindustrialproductsstartedandslowlygathered
speed.Theevolutionanddevelopmentofsellingcontinued.1970sgave
risetonon-profitandsocietalselling.In1980s,“service”startedtoget
recognitionanditprosperedduringthedecade.
➢Thedevelopmentprocessledtothedevelopmentoftheconceptof
“customer”andtheemphasiswasonrelationshipsellingduringthe
1990s,developingandretainingcustomers.Themaingoalofthe
organizationwastobuildcustomerloyaltythroughsalesmanagement
andcustomerservice.

14. SALES DEPARTMENT
Asalesdepartmentisthedirectlinkbetweenacompany'sproduct/
serviceanditscustomers.
Awell-trainedsalesdepartmentnotonlygeneratessalesbutalso
buildsrelationshipswithcustomers.
Further,aqualitysalespersonhelpsidentifyacustomer’sunique
needsandmakessurethatthoseneedsaremet.
Themostimportantroleofsalesdepartmentistobridgethegap
betweenthepotentialcustomer’sneedsandtheproducts/services
thattheorganizationofferstofulfiltheirneeds.

15. ROLE OF SALES DEPARTMENT
➢Goal-Setting:Thesalesandmarketingdivisionsetsindividualsales
representatives’quotas,aswellastheoverallgoalforthecompany.
➢DesigningandManagingtheSalesForce:
•Establishsalesforceobjectives
•Designingsalesforcestrategy
•Structuresalesforce
•Recruitmentandselectionofsalesforce
•Trainingsalesforce
•Assigningterritories
•Motivatingsalesforce
•Evaluatingperformance

16. ROLE OF SALES DEPARTMENT
➢Product,PricingandDistributionPlanning
➢SalesForecasting
➢SalesBudget
➢CustomerService
➢SalesPromotions
➢Ensureperformanceofactivities
➢Coordination
➢Toeconomizeonexecutivetime:Astheactivitiesofthesales
departmentincreaseincomplexityandnumber,additional
subordinatesarerecruited.Thispermitshigherrankexecutivesto
delegatemoreauthoritytosubordinatesandtheycanthemselves
devotemoretimetoplanningandlessertoexecution.

17. INTERFACE OF SALES WITH OTHER MANAGEMENT FUNCTIONS
SALES
Planning
Organizing
Directing
Controlling
Budgeting
Reporting
Coordinating
Motivating

18. QUALITIES OF SALES MANAGER
Physical and Mental Characteristics
Effective Communication Skills
Positive Attitude
Intelligence
Leadership by Example
Teamwork
Persuasive Skills

19. DEVELOPMENT IN SALES MANAGEMENT
The new trends or major developments in sales management are:
➢EffectivenesstoEfficiency:Effectivenessfocusesoncontributionin
relationtotargetorobjective,andefficiencymeanscontributionin
relationtocost.
➢MultidisciplinaryApproach:Duetothefocusofcompaniesonincreasing
efficiencytheyareadoptingmultidisciplinaryapproachtosellingand
marketingfunction.Inmanufacturing,theincreaseinproductivityand
costreductioninvolvesfourdifferentfunctions,namely:
•ResearchandDevelopment
•Procurement
•ProductionProcess
•QualityControlorManagement
Eachofthesefunctionsarespecializedandbeinghandledbyspecialistsin
theappropriatefield.Hencethetotalmarketingorsellingactivitybecomes
multidisciplinaryinapproach.

20. DEVELOPMENT IN SALES MANAGEMENT
➢Increasing use of Internet
➢Customer Relationship Management
➢Professionalism in Selling
➢Internal Marketing Company
Internal Marketing External Marketing
Employees Interactive MarketingCustomers

21. SALES ORGANIZATION
➢Salesorganizationisastructuralframework,specifyingtheformal
authorityandresponsibilitybetweenpersonsworkingintheorganization.
➢Itconsistsofgroupofindividualsworkingjointlytoattainqualitativeand
quantitativesellingobjectives.
➢AccordingtoH.R.Tosdal,“Asalesorganizationconsistsofhumanbeings
workingtogetherforthemarketingofproductsmanufacturedbythefirm
orthecommoditieswhichhavebeenpurchasedforresale.”
➢Salesorganizationdefinestheduties,roles,andtherightsand
responsibilitiesofsalespeopleengagedinsellingactivitiesmeantforthe
effectiveexecutionofthesalesfunction.Thisdemandsacoherentand
unifiedeffortofindividualsintheorganizationforachievingacommon
goal.

22. STRUCTURE OF SALES ORGANIZATION
➢Mediumandlargesizedcompaniesexpandtheirsalesorganization
structureinaspecializedformtoincreasetheeffectivenessofthe
salesforce.
➢Thecriteriausedtodesignthesalesorganizationstructureare
meeting:
•customerneeds,
•abilitiesofsalesforce,
•natureoftheproduct,
•numberoftheproduct,
•salescostetc.

23. STRUCTURE OF SALES ORGANIZATION
1.FunctionalSalesStructure
2.ProductSpecializationStructure
3.MarketSpecializationStructure
4.TerritoryBasedStructure
5.CombinationorHybridSalesStructure

24. STRUCTURE OF SALES ORGANIZATION –Functional Sales StructureHead–Marketing
Marketing Research
Manager
Sales Manager
Promotional
Manager
Customer Service
Manager
Area Sales Manager # 4
Salespeople

25. STRUCTURE OF SALES ORGANIZATION –Functional Sales Structure
➢Theseorganizationsarebasedontheprinciplethateachindividual
inanorganizationshouldhaveasfewresponsibilitiesaspossible.
➢Theyfollowtheprincipleofspecializationtothefullestextent.
➢Assignmentsofdutyanddelegationofauthorityaremadeaccording
tofunction.
➢Eachfunctionalspecialisthaslineresponsibilityoversalespeople.
➢Thisstructurehelpsorganizationsruntheirbusinessandearna
profitbygroupingemployeesbasedontheirskillsandexpertise.It
providesaclearhierarchyandminimizesconfusionamong
employeeswhomaybeunsurewhotheyaretoreportto.

26. STRUCTURE OF SALES ORGANIZATION –Functional Sales Structure
➢Themarketingresearchmanager/salesmanager/promotional
manager/customerservicemanagergivetheirinputsorfeedbackto
theareasalesmanagerwhoconveysthem,afterhisanalysis,tothe
salespeople.
➢Eachfunctionalunithandlesoneaspectoftheproductorservice
providedsuchas:
•informationtechnology
•marketing
•development
•research,etc.
Theyarereferredtoas"silos"becausethefunctionindependentlyand
havetheirownverticalmanagementstructure.

27. STRUCTURE OF SALES ORGANIZATION –Functional Sales Structure
➢Themarketingmanagermaysometimesinteractdirectlywiththe
salesstaff.
➢Thesestructuresareusedbylargecompanieswithanumberof
productsormarketsegments,especiallyonesthatproducejusta
fewtypesofgoodsorservices.

28. STRUCTURE OF SALES ORGANIZATION –Functional Sales Structure
Advantages:
a)Itsadministrationissimple.
b)Qualifiedpersonsguidethesalesforce.
Disadvantages:
a)Smallerfirmsfindthissystemexpensive.
b)Theburdenofcoordinatingtheactivitiesofhighlydiverse
specialistsisplacedonsingleindividual.

29. STRUCTUREOFSALESORGANIZATION–ProductSpecializationHead–Marketing
Marketing Research
Manager
General
Sales Manager
Promotion
Manager
Sales Training
Manager
Area Sales Managers–
Product Group ‘A’
Area Sales Managers–
Product Group ‘B’
Salespeople –
Product Gr. ‘A’
Salespeople –
Product Gr. ‘B’

30. STRUCTUREOFSALESORGANIZATION–ProductSpecialization
➢Asalesorganizationbasedonproductspecializationismoreapplicable
formulti-businesscompanieswithalargenumberofproductsor
brands.
E.g.P&G
➢Productspecializationisoftwotypes:
i)Salesorganizationwithproductmanagers.
ii)Salesorganizationwithspecializedsalesforce.
➢Whentherearetwogroupsofproducts,itistheresponsibilityofeach
divisionalmarketingmanageralsoknownasproductmanagertoplan
andimplementaseparatemarketingplanforeachgroupofproducts.
➢Eachsalespersonhastoselltheproductsofboththegroupandthere
isnospecializationbytheproduct.

31. STRUCTURE OF SALES ORGANIZATION –Product Specialization
➢Thereisnostaffassistanceandtheregionalanddistrictsales
managersarelinemanagers.
➢Theproductmanagersdevelopacosteffectivemarketingmix
strategyforeachbrandandproductandinstantlyreacttothe
changesinthemarketplace.
➢Thetrendistomovefromproductorbranddrivenorganization
(Colgatetoothpaste)tocategorymanagement(anytoothpaste)to
customerneed(oralcare)management.
➢Themainfocusisontheneedsofthecustomers

32. STRUCTUREOFSALESORGANIZATION–ProductSpecialization
Advantages:
a)Thereisspecializedattentionforeachproductfromthe
salespersonandtheterritorymanagers.
b)Theycanimprovethequalitybyfocusingonlyontheirproduct.
c)Adequateattentionisgiventotheproductlinesandbrandsatthe
planninglevel.
d)Managementcanguidesellingefforts.
Disadvantages:
a)Morethanonesalespersoncallsthesamecustomerleadsto
confusion.
b)Toomanycallsfrustratethecustomers.
c)Lackofproductspecializationbysalesperson.
d)Highercostsduetoduplicationofeffortswithingeographiesand
customeraccounts.

33. STRUCTUREOFSALESORGANIZATION–MarketSpecializationNational Sales Manager
Market Specialisation
Sales Manager
Commercial
Area Sales Mangers –
Commercial
Salespeople
Sales Manager–
Government
Area Sales Managers
Government
Salespeople

34. STRUCTUREOFSALESORGANIZATION–MarketSpecialization
➢Marketspecializedsalesorganizationisdesirablewhenthecustomer
isclassifiedbythespecifictype,userindustry,channelof
distribution.
➢Inthisstructurethesalespersoncarriesoutallsalesactivitiesforall
theproductsbutforcertainspecificcustomergroup.
➢Thesecustomergroupscanbegovernment,commercialetc.Dealers
havedifferentbuyingpracticesandpreferences.
➢Intherecentyearstheuseofmarketingspecializationisincreasing.

35. STRUCTUREOFSALESORGANIZATION–MarketSpecialization
Advantages:
a)Thesalesandmarketingeffortsareorganizedtomeettheneedsof
specificcustomergroup.
b)Managementcontrolcanbestrategicallyallocatedtodifferent
markets.
c)Salesrepresentativesknowtheneedsoftheircustomersandbuild
strongerrelationshipswiththem
Disadvantages:
a)Theremaybeduplicationofterritorycoverage(different
salespersonsworkinginthesameterritorybutcoveringdifferent
customergroups)
b)Highsellingcost.

36. STRUCTURE OF SALES ORGANIZATION –Territory Based StructureMarketing Manager for India
Sales Manager for India
Area Sales
Mg., Delhi
Area Sales
Mgr., Chennai
Area Sales
Mgr., Mumbai
Area Sales
Mgr. Kolkata
Area Sales Officer
Area Sales
Representative

37. STRUCTURE OF SALES ORGANIZATION –Territory Based Structure
➢Largeorganizationssellingatnationallevelorganizetheirsales
operationsalongnationalboundaries.
➢Thesalespersonisassignedgeographicalareasandtheyare
responsibletoselltheirproductsintheareasassignedtothem.
➢Anumberofpeopleareplacedundertheterritorymanageralso
calledasabranch,regional,areaordistrictmanager.
➢Therearetwoorthreeterritorymanagersincompany’shavinglarge
numberofsalespeople

38. STRUCTURE OF SALES ORGANIZATION –Territory Based Structure
➢Thenationalmarketisdividedintoregionalmarketbasedonthe
ethnicanddemographicsegmentationwithdifferentpromotional
strategiesforeachregion.
➢Manycompanieshavelocalmarketingmanagersorareamanagers
tosupportthelocalsaleseffortatregionalanddistrictlevel.
➢Therearemarketingmanagerswhoprepareregionalanddistrict
plansforsellingtheproductandalsohelpsthesellingteamby
adjustingthecompany’smarketingplansandstrategiesasperthe
localneeds

39. STRUCTURE OF SALES ORGANIZATION –Territory Based Structure
Advantages:
a)Ithascontroloverthesalesforce.
b)Ithasbettermarketcoverage.
c)Quickresponsetolocalserviceandconditions.
d)Theyprovidesuperiorcustomerservice.
e)Lowgeographicalduplication.
f)Lowcost
Disadvantages:
a)Itislimitedtospecializationofmarketingtasks.
b)Salesarerestrictedtogeographicalboundaries.
c)Territorysizingcanbeachallenge,resultinginuneven
revenue/opportunityacrossgeographies.
d)Salesrepresentativeshavehardtimeindevelopingmarketor
productspecialization.

40. STRUCTUREOFSALESORGANIZATION–CombinationorHybridDirector – Sales & Marketing
General Manager
Sales – North
General Manager
Sales – East
General Manager
Sales – West
General Manager
Sales – South
Regional Sales
Mgr. – Govt.
Regional Sales
Mgr. – Commercial
Regional Sales
Mgr. – Dealers
Salespeople Salespeople Salespeople

41. STRUCTUREOFSALESORGANIZATION–CombinationorHybrid
➢Thestrengthofoneorganization’ssalesstructureistheweaknessof
otherorganization’sstructure.
➢Toavoidthisproblem,company’susecombinationorhybridsales
structurethatincludethesalesstructureofvariousorganizations.
➢Theymaximizetheadvantagesandminimizethedisadvantages.
➢Theymaycombinethegeographicandmarketspecializations.
➢Thebasisofspecializationvariesfromcompanytocompanybutthis
typeofspecializationisneededforthefirmstoremaincompetitive

42. Suggest,withreasons,suitableSalesStructureforthefollowing
products:
1.Laptop
2.Soaps
3.MobilePhone
4.PhotocopyMachine

43. DISTRIBUTION
➢Distribution(place)isoneoftheimportantelementsinthe
marketingmix.
➢AccordingtoMossmam&Norton“Distributionistheoperation
whichcreatestime,place&formutilitythroughthemovementof
goodsandpersonsfromoneplacetoanother”.
➢Themajorpurposeofmarketingistosatisfyhumanneedsby
deliveringproductsofvarioustypestobuyerswhenandwherethey
wantthemandatareasonablecost.
➢Distributionisacriticalcomponentofsupplychainstrategywhich
leadstocustomersatisfactionandcompetitiveadvantage.
➢The“whenandwhere”isthefunctionofDistribution

44. DISTRIBUTION
➢Thekeyrolethatdistributionplaysissatisfyingafirm’scustomer
andachievingprofitforthefirm.
➢Fromadistributionperspective,customersatisfactioninvolves
maximizingtimeandplaceutilityto:
•Organization’ssuppliers
•Intermediatecustomers
•Finalcustomers.
➢Theroleofdistributionisthroughchannelsorintermediarieswho
makepossiblethedeliveryofaproducttofinalconsumers
wheneverandwherevertheywant.

45. DISTRIBUTION CHANNEL/ MARKETING INTERMEDIARIES
➢Asetofinterdependentorganizations(intermediaries)involvedinthe
processofmakingaproductorserviceavailableforuseorconsumption
bytheconsumerorbusinessuser.
➢Distributionchannelshelpinthesmoothflowofgoodsandservices.This
interventionisnecessaryasthereisadifferencebetweentheassortment
ofgoodsandservicesgeneratedbytheproducerandtheassortment
demandedbytheconsumer.
➢Intermediariesnotonlyaddvaluetosellingbutalsoperformanumberof
otherfunctionswhichareveryusefultoacompany
➢Theuseofintermediariesresultfromtheirgreaterefficiencyinmaking
goodsavailabletotargetmarkets,thepurposeistomatchsupplyfrom
producerstodemandfromconsumers.
➢Distributionchanneldecisionsareamongthemostimportantdecisions
thatmanagementfacesanddirectlyaffecteveryothermarketing
decisions.

46. ROLE OF DISTRIBUTION CHANNEL/ MARKETING INTERMEDIARIES
Supply of Information
Product Promotion
Financing Operations
Maintaining Price Stability
Feedback
Negotiation
Risk Sharing

47. EVOLUTION OF DISTRIBUTION CHANNEL
➢Inthepast,alltheproductsproducedontheagriculturalfarmshad
tobedistributedinthevicinitybythefarmers.Hewouldsellhis
producewithinthelimitsofhisphysicalreach.
➢Thereafter,duetotheIndustrialrevolution,therewaslargescale
manufacturingandhencetheneedtoreachouttomoreconsumers.
Notonlythis,italsorequiredprocuringrawmaterials,machinery,
equipmentetc.fromvarioussources.Allthisaddednewdimension
todistributionandthustraderscameintopicture.
➢Thentheconceptofbrandingbecameapparentaseconomiesof
scaleensuredhighlevelsofproductionandinventories.Distribution
wasrelevantonlyforthe‘place’partofthemarketingmix.

48. EVOLUTION OF DISTRIBUTION CHANNEL
➢Theconceptof‘selling’ledtomanyindependentintermediariesin
theformofwholesalersandretailers.
➢Theearly1950sarecreditedwithlayingthefoundationofthe
marketingconceptwhichmeanteachchannelmemberhadtowork
towardsmeetingtheneedsofhiscustomers.
➢Thenextstagewas“relationshipmarketing”whichmeantthatmere
transactionswerenotenough–relationshipswererequiredtobe
builtforlong-lastingandstrongbusinessresults.Sophisticated
databasesandinteractivetechnologiesbecameabigsupportto
pursuethisstrategy.

49. EVOLUTION OF DISTRIBUTION CHANNEL
➢Howevertherecentmarketingconceptis“interactivemarketing”,
sometimescalledtrigger-basedorevent-drivenmarketingisa
marketingstrategythatusestwo-waycommunicationchannelsto
allowconsumerstoconnectwithacompanydirectly.
➢Anewformofdistributionchannelshaveevolvedduetothisand
thusmarketinghasincreasinglytakenplacealmostexclusively
onlinethroughemail,socialmedia,andblogs.Thishasledtoless
numberofchannelsoraconceptcalled“zerochannel”.

50. EVOLUTION OF DISTRIBUTION CHANNEL
➢Asdistributionchannelshaveevolved,someretailers,suchas
Walmart,havegrownsolargethattheyhavetakenoveraspectsof
thewholesalefunction.Still,itisunlikelythatwholesalerswillever
goaway.
➢Mostretailersrelyonwholesalerstofulfillthefunctionsandthey
simplydonothavethecapabilityorexpertisetomanagethefull
distributionprocess.
➢Wholesalersareabletofocusoncreatingefficienciesfortheirretail
channelpartnersthatareverydifficulttoreplicateonasmallscale.

51. DISTRIBUTION MANAGEMENT
➢Distributionmanagementisatypeofmarketingactivitythat
providesplace,timeandpossessionutilitytotheconsumer.
➢Distributionmanagementisthemanagementofallactivitiesthat
facilitatesthemovementandco-ordinationofsupplyanddemand
increationoftimeandplaceutilityingoods.
➢Distributionmanagementincludesthebroadrangeofactivities
concernedwithefficientmovementoffinishedproductsfromthe
endofproductionlinetotheconsumerandinsomecasesitalso
includesthemovementofrawmaterialsfromthesourceofsupply
tothebeginningoftheproductionline.

52. IMPORTANCE OF DISTRIBUTION MANAGEMENT
➢Creation of utilities
➢Satisfaction of customers
➢Standard of living
➢Value addition
➢Communication
➢Employment
➢Efficiency
➢Product Planning & Pricing
➢Financing

53. CASE STUDY –NOV. 2017
TheIndianGovernmenthasimplementedtheschemeofPublicDistribution
System(PDS)forfoodgrainsandotheressentialconsumer’sitems.Themain
objectiveofthisschemeistoensurethesupplyofessentialconsumeritemsto
thevulnerablesectionsofsociety.Howeverithasbeenfoundthatthescheme
hasnotbeenvaryefficientmanyofthevulnerablesocietymemberscouldnot
availofservicesofthedistributionsystem.
ThisgovernmentisnowproposingtolaunchanewtargetedPublicDistribution
(TPDS).Thisshallbeparticularlytargetedatthelowestincomecustomers.This
schemesshallsegmentthelowerandhighersegmentconsumerthrough
separateration–cardsandpriesfortheitemssold.
Questions
a)Analysethecase (7)
b)Whatfactorswillyouconsiderwhileselectingadistributionchannel.(8)

54. INTEGRATION OF MARKETING, SALES AND DISTRIBUTION
➢Theintegrationofmarketingandsellingandalsosalesand
distributionaretwoimportantstepstowardseffectivesales
management.
➢Thenextimportantstepinthisdirectionistheintegrationofallthe
threeactivities–marketing,salesanddistribution.
➢Salesmanagementanddistributionchannelsaretwosidesofthe
samecoinwhichareinseparable.
➢Salesmanagementplansoperationsanddistributionchannel
executestheseplans.Theyhaveinfluenceoneachothersworking
anddeliverhighcustomerservice

55. INTEGRATION OF MARKETING, SALES AND DISTRIBUTION
➢Salesmanagementplansthestrategiesandoperationaldetailsto
achieverevenue,growthandmarketshare,thedistributionexecutes
theseplansundertheguidanceofthesalesmanagers
➢Planningandexecutionisateameffortbetweenthesalesmanager
anddistributionchannels.
➢Thedistributionmanagementhastheresponsibilityofthephysical
movementofgoodsanditsstoragewhichcanbedonethrough
marketingchannels.

56. INTEGRATION OF MARKETING, SALES AND DISTRIBUTION
Thelistoftasksgivenbelowareperformedbythesalesmanagement
andisaccomplishedincosteffectivewaythroughthedistribution
managementwiththehelpofmarketingchannels:
•Ifthesalesmanagementtaskistoachievevolumeandmarket
shares,thenthedistributionchannelsroleistoensureshelfvisibility
andphysicalmovementandstorageofgoodsclosetothemarket.
•Thesalesmanagementtaskistoparticipateinpromotionalevents,
theroleofdistributionwillbetoorganizeandparticipateinfairs,
exhibitions.Makingpromotionsuccessfulintermsofsetobjectives
andensuringthesuccessofnewproductslaunches

57. INTEGRATION OF MARKETING, SALES AND DISTRIBUTION
•Thesalesmanagementtaskisimplementingmarketingplans,the
distributionroleistoensurewideandequitabledistribution.
•Thesalesmanagement’staskismarketfeedbackandreporting,the
distributionroleisretainstocksuptonorms.
•Thesalesmanagement’staskismanaginginstitutionalbusiness,the
distributionroleisgettingordersandexecution.
•Thesalesmanagementtaskistocoverthemarketsandoutlets,the
distributionroleismakethecustomerscallproductive.
•Thesalesmanagementtaskiswidthanddepthofdistribution,the
distributorsroleisfocusonslowmovers,ensuringhighvisibility,sell
morethancompetition.

58. REFERENCES
1.A.Nag,SalesAndDistributionManagement,McgrawHill,2013Edition
2.RichardR.Still,EdwardW.Cundiff,NormanA.P.Govoni,Sales
Management,PearsonEducation,5
th
Edition
3.KrishnaK.Havaldar,VasantM.Cavale,SalesAndDistribution
Management–Text&Cases,McGrawHillEducation,2ndEdition,2011
4.Dr.MatinKhan,SalesAndDistributionManagement,ExcelBooks,1st
Edition
5.Kotler&Armstrong,PrinciplesOfMarketing–SouthAsianPerspective,
PearsonEducation,13
th
Edition
6.Nagpal,Sharma,Kukreja,SalesandDistributionManagement,Sheth
Publishers

59. Thank You
Dr.Parveen Kaur Nagpal
www.linkedin.com/in/dr-parveen-kaur-nagpal