Sales & Distribution

1. Sales and
Distribution
Team C2X !!

2. •Market ? 
•What is Marketed ? 
•Who Markets ? 

3. Dimensions of Market
•Spatial Seperation
•Time Seperation
•Perceptional Seperation
•Seperationof Values
•Seperationof ownership

4. Sales ??

5. Sales Techniques
•Direct Selling
•Pro Forma Sales
•Agency Based sales
•Request for Proposal
•B2B

6. TheRole of the Sales Force
Sales Force
Serves as a Critical Link 
Between a Company and its Customers Since They: Represent Customers to 
the Company to 
Produce 
Customer Satisfaction
Represent the Company 
to Customers to 
Produce 
Company Profit

7. Step 1. Prospecting and
Qualifying
Identifying and Screening For
Qualified Potential Customers.
Steps in the Selling Process Steps in the Selling Process
Learning As Much As Possible
About a Prospective Customer
Before Making a Sales Call.
Learning As Much As Possible
About a Prospective Customer
Before Making a Sales Call.
Step 2. Pre-approach
Step 3. Approach
Knowing How to Meet the Buyer
to Get the Relationship Off
to a Good Start.
Knowing How to Meet the Buyer
to Get the Relationship Off
to a Good Start.
Step 4. Presentation/
Demonstration
Telling the Product “Story”
to the Buyer, and Showing the
Product Benefits.
Telling the Product “Story”
to the Buyer, and Showing the
Product Benefits.

8. Steps in the Selling Process Steps in the Selling Process
Step 5. Handling Objections Step 6. Closing Step 7. Follow-Up
Seeking Out, Clarifying,
and Overcoming
Customer Objections to
Buying.
Asking the Customer
for the Order
.
Following Up After the Sale to
Ensure Customer Satisfaction
and Repeat Business.

9. Distribution
Channels and
Management

10. Distribution
P
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DISTRIBUTION

11. Distribution’s Function
•The major purpose of marketing is to satisfy 
human needs by delivering products of 
various types to buyers when and where
they want them and at a reasonable cost.  
•The “when and where”is the function of 
Distribution

12. 12
Distribution Objectives
•Minimize total distribution costs for a 
given service output
•Determine the target segments and 
the best channels for each segment
•Objectives may vary with product 
characteristics
oe.g. perishables, bulky products, non-
standard items, products requiring 
installation & maintenance

13. What is a Distribution
Channel?
•A set of interdependent organizations 
(intermediaries) involved in the process of making 
a product or service available for use or 
consumption by the consumer or business user.
•Marketing Channel decisions are among the most 
important decisions that management faces and 
will directly affect every other marketing decision.

14. Distribution Channel Functions
Ordering
Payments
Communication
Transfer
Negotiation
Financing
Risk Taking
Physical Physical
Distribution
Information

15. 15
Basic Channels of
Distribution
Manufacturers/products
Agents/brokers
Wholesalers/distributors
Retailers
Retailers Consumers and organizational end users

16. 16
Typical Distribution of Drugs
Manufacturers
Marketing Agents ( Optional )
Retailers/Wholesalers/Distributors
Private GPs/specialists
Group Procurement 
Office
Retail
Pharmacy
Public Hospitals / Institutions
Patient 

17. 17
Typical Distribution in FMCG
Manufacturers
Marketing Agents ( Optional ) Wholesalers/Distributors
Retail Chains like Big 
Bazaar etc.
Unorganized retailers
Public Canteens/ 
Government Purchase
Consumer 

18. Business-to-Business Channels
Direct
Wholesaler
Agent

19. Business-to-Business Channel Trends
Infomediaries & Vertical Exchange

20. Conventional Distribution Channel vs.
Vertical Marketing Systems
Vertical
marketing
channel
Manufacturer
Retailer
Conventional
marketing
channel
Consumer
Manufacturer
Consumer
Retailer
Wholesaler
Wholesaler

21. Types of Vertical Marketing Systems Types of Vertical Marketing Systems
Corporate
Common Ownership at Different
Levels of the Channel
Contractual
Contractual Agreement Among
Channel Members
Administered
Leadership is Assumed by One or
a Few Dominant Members

22. Vertical Marketing
Systems
•Corporate systems -total ownership
•Administered -strong leadership
•Contractual -legal relationships

23. Horizontal Marketing
System
•Joining of two or more corporations on the same 
level for the purposes of pursuing a new marketing 
opportunity.
•Established to make use of combined resources
•Produce synergistic effect for all the parties invo lves
•Example:Nestle & Coke in Europe, FIAT in India

24. Planning the Channel of
Distribution
•Determining the structure
oMarketing mix strategy
oOrganizational resources
oExternal environmental factors
oMarket characteristics
oConsumer preferences 
oConsumer behavior
oThe nature and availability of Intermediaries
oOther environmental factors

25. Customers’ Desired Service Levels
•Lot size
•Waiting time
•Spatial convenience
•Product variety
•Service backup

26. Steps: Distribution Planning

27. Intensive
Distribution
Exclusive
Distribution
Selective
Distribution
Distribution
Intensity
Choosing a Distribution
System

28. Intensive Distribution Intensive Distribution
Seeks to obtain 
maximum product 
exposure at the retail 
level
Seeks to obtain 
maximum product 
exposure at the retail 
level
Producer Retailer
Retailer
Retailer Retailer Retailer
Retailer
Retailer Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer

29. 29
Example of Intensive
Distribution
•Newspapers
•Most fast moving consumer goods 
•Photo processing shops

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•Advantages:
oIncreased sales, wider customer recognition, and 
impulse buying
•Disadvantages:
oCharacteristically low price and low-margin products 
that require a fast turnover 
oDifficult to control large number of retailers
Intensive Distribution

31. Selective Distribution Selective Distribution
Product is sold in
a limited
number of
outlets
Product is sold in
a limited
number of
outlets
Producer
Retailer
Retailer
Retailer Retailer
Retailer
Retailer

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Example of Selective
Distribution
Daewoo has 2 distributors in Singapore
•“Starsauto, part of a larger Indonesian 
group, represents Daewoo’s traditional line 
of sedans.
•Homegrown family-owned JTA Motors 
market Daewoo’s offroadvehicles like the 
Mussoand Korando, and an upmarket 
model called the Chairman.

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Selective Distribution
•Advantages:
oBetter market coverage than exclusive distribution
oMore control and less cost than intensive 
distribution
oConcentrate effort on few productive outlets
oSelected firms capable of carrying full product line 
and provide the required service

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Selective Distribution (cont’d)
•Disadvantages:
oMay not cover the market adequately
oDifficult to select dealers (retailers) that can ma tch your 
requirement and goals

35. Product is sold in
only one outlet in a
given area
Product is sold in
only one outlet in a
given area
Producer
Retailer
Exclusive Distribution Exclusive Distribution

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Exclusive Distribution:
Advantages •Maximize control over service 
level/output
•Enhance product’s image & allow 
higher markups
•Promotes dealers loyalty, better 
forecasting, better inventory and 
merchandising control
•Restricts resellers from carrying 
competing brands

37. 37
Exclusive Distribution:
Disadvantages
•Betting on one dealer in each market
•Only suitable for high price, high margin, 
and low volume products

38. 38
Multiple-Channel Strategy
Using two or more different channels to 
distribute goods and services
•Why ?
oPermits optimal access to each market 
segment
oIncrease market coverage, lower channel 
cost and provide more customized selling
•What to look out for ?
oMore channels usually means more conflict 
and control problems

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Complementary Channels
Each channel handles a product or segment that is 
different or non-competing e.g.
•Toyota Lexus
•Magazine distributions

40. 40
Competitive Channels The same product is sold through two different and 
competing channels e.g.
oNon-prescriptive drugs
oElectronic goods
•Why ?To increase sales
•What to look out for?
oOver extending yourself
oDealers’ resentment
oControl problems

41. Developing Distribution Tactics
Selecting Channel Partners
Reward or Reward or
Coercive
Power
Legitimate
Power
Economic
Power
Managing the Channel of Distribution
Channel Leader Power Distribution Channels & the Marketing Mix

42. Materials Handling Materials Handling
Moving Products Into,
Within, and
Out of Warehouses
Warehousing Warehousing
Number Needed
Where
What Type
Inventory Inventory
Control
When to order
How much to order
Order Processing Order Processing
Received
Processed
Shipped
Physical
Distribution
Functions Transportation
Rail, Water, Trucks,
Air, Pipeline,
Internet
Physical Distribution

43. Rail
Cost-effective for shipping bulk products,
piggy-back, fishyback, birdyback.
Rail
Cost-effective for shipping bulk products,
piggy-back, fishyback, birdyback.
Water
Low cost for shipping bulky, low-value,
non perishable goods, slowest form.
Water
Low cost for shipping bulky, low-value,
non perishable goods, slowest form.
Truck
Most important carrier for consumer
goods, flexible.
Truck
Most important carrier for consumer
goods, flexible.
Air
High cost, ideal when speed is needed or
distant markets have to be reached
Air
High cost, ideal when speed is needed or
distant markets have to be reached
Pipeline
Carry petroleum based products,
very low cost, requires little energy.
Pipeline
Carry petroleum based products,
very low cost, requires little energy.
Transportation Modes
Internet
Web sites have products available, used
especially for services.
Internet
Web sites have products available, used
especially for services.

44. Channel Relationships
•Cooperation
•Conflict
•Power
–Coercive
–Expert
–Legitimate

45. Decision Making Framework
Prospects
of
Destructive
Conflict
Importance of threatened channel in
terms of current or potential volume
or profitability
High Low
High (FIRE)Act to avert or address
conflict
Allow threatened
channel to
decline
Low
(Smoke)
Look for opportunities
to reassure threatened
channel and leverage
your power
Do nothing

46. All the Best for Summers
☺
Feel free to contact
Team C2X
for any query!!