Sales and Distribution Management - tutorialspoint.com

1 Sales and Distribution Management Sales and Distribution Management i About the Tutorial Sales Management is an art where the Sales executive or the salesperson helps the organization or individual to achieve its objective or buy a product with their skills. This is a brief introductory tutorial that explains the functions in Sales and Distribution Management . This tutorial also throws light on the strategies applied in distributing tasks to the Sales personnel and their performance.

2 Audience This tutorial will be useful for those who wish to understand Sales and Distribution Management as an art to increase customer demand for a particular product. This tutorial will help those who wish to apply Sales techniques and manage a firm s Sales operation. Prerequisites To understand this tutorial, it is advisable to have a foundation level knowledge of Management . However, general students who wish to get a brief overview of Sales and Distribution Management may find this tutorial quite useful.

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4 Tutorials Point (I) Pvt. Ltd. provides no guarantee regarding the accuracy, timeliness or completeness of our website or its contents including this tutorial. If you discover any errors on our website or in this tutorial, please notify us at Sales and Distribution Management ii Table of Contents About the Tutorial .. i Audience .. i Prerequisites .. i Disclaimer & Copyright .. i Table of Contents .. ii 1. SDM INTRODUCTION .. 1 Skills of a Sales 2 Importance of Sales Management .

5 3 Objective of Sales Management .. 4 2. SDM Sales Management STEPS .. 5 Set Objective .. 5 Develop Sales Strategy .. 5 Develop 6 3. SDM PROCESS .. 7 Planning .. 7 Staffing .. 8 Training .. 9 Leading .. 9 Controlling .. 10 Performance .. 12 4. SDM Sales METHODS .. 13 Electronic Sales .. 16 Request for Proposal .. 17 Sales and Distribution Management iii 5. SDM TECHNIQUES OF Sales .. 18 Conceptual Selling .. 18 Sales Negotiation .. 19 Sales Negotiation Strategies .. 20 Negotiation Outcomes.

6 20 Reverse Selling .. 21 Take away .. 22 Sales Outsourcing .. 22 Advantages of Sales Outsourcing .. 23 6. SDM Sales ORGANIZATION .. 24 Characteristics of a Sales Organization .. 24 Significance of Sales Organization .. 25 Types of Sales Organization .. 25 Functional Type .. 26 Product Type .. 27 Consumer Specialization Type .. 28 Area Type .. 30 7. SDM Sales QUOTA .. 32 32 Types of Sales Quota .. 32 Methods for Setting Sales Quota .. 33 8. SDM Sales TERRITORY .. 35 Reasons for Establishing Territories.

7 35 Procedure for Designing .. 37 Sales and Distribution Management iv Select Control Point .. 37 Making an Account Analysis .. 38 Developing a Salesperson Workload Analysis .. 38 Combining Geographical Control Units into Sales 39 Territory Shape .. 39 Assigning Sales Personnel to Territories .. 40 9. SDM PERSONAL SELLING .. 41 Objectives of Personal Selling .. 41 Relevant Situation for Personal Selling .. 42 Diversity of Selling Situation .. 43 10. SDM STEPS IN PERSONAL SELLING .. 46 46 Train/Educate the 47 Preparation for the Sale of Product.

8 47 Presentation .. 48 Handling Objections .. 49 Closing the Sale .. 50 Follow-up .. 51 11. SDM Sales Management BUDGET .. 52 Objective of Sales Budgeting .. 52 Methods of Sales Budgeting .. 52 Preparation of Sales Budget .. 53 Communicating Overall Objectives .. 54 Selling the Sales Budget to Top Management .. 54 Sales and Distribution Management v 12. SDM MARKETING CHANNEL .. 55 Wholesale .. 55 Retail .. 56 Sales and Distribution Management 1 Sales refers to the exchange of goods/ commodities against money or service.

9 It is the only revenue generating function in an organization. It has formed an important part in business throughout history. Even prior to the introduction of money, people used to exchange goods in order to fulfill the needs, which is known as the barter system. Example of Barter System A has 100 kg of rice and B has 50 kg of wheat. Here, A needs wheat and B needs rice. They agree to exchange 50 kg of rice and 25 kg of wheat upon mutual understanding. Conditions of Sales There are two parties involved in the transaction, the seller and the buyer.

10 The seller is the provider of goods or services and the buyer is the purchaser in exchange of money. The seller of goods has to transfer the title of ownership of the item to the buyer upon an agreed price. A person who sells goods or services on behalf of the seller is known as the salesman/woman. Distribution is the process of making a product or service available for use or consumption to the end consumer or business. Distribution could be of the following two types: Direct Distribution It can be defined as expanding or moving from one place to another without changing direction or stopping.