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Sales and Distribution Management Sales and Distribution Management Sales and Distribution Management 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. 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. Disclaimer & Copyright Copyright 2016 by Tutorials Point (I) Pvt. Ltd. All the content and graphics published in this e-book are the property of Tutorials Point (I) Pvt. Ltd. The user of this e-book is prohibited to reuse, retain, copy, distribute or republish any contents or a part of contents of this e-book in any manner without written consent of the publisher. We strive to update the contents of our website and tutorials as timely and as precisely as possible, however, the contents may contain inaccuracies or errors. 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 [email protected]. i Sales and Distribution Management 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 Executive....................................................................................................................... 2 Importance of Sales Management ......................................................................................................... 3 Objective of Sales Management ............................................................................................................ 4 2. SDM — SALES MANAGEMENT STEPS ................................................................................. 5 Set Objective ......................................................................................................................................... 5 Develop Sales Strategy .......................................................................................................................... 5 Develop Tactics...................................................................................................................................... 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 ii Sales and Distribution Management 5. SDM — TECHNIQUES OF SALES ........................................................................................ 18 Conceptual Selling ............................................................................................................................... 18 Sales Negotiation ................................................................................................................................ 19 Sales Negotiation Strategies ................................................................................................................ 20 Negotiation Outcomes ........................................................................................................................ 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 Objectives............................................................................................................................................ 32 Types of Sales Quota ........................................................................................................................... 32 Methods for Setting Sales Quota ......................................................................................................... 33 8. SDM — SALES TERRITORY ................................................................................................ 35 Reasons for Establishing Territories ..................................................................................................... 35 Procedure for Designing ...................................................................................................................... 37 iii Sales and Distribution Management Select Control Point ............................................................................................................................. 37 Making an Account Analysis ................................................................................................................ 38 Developing a Salesperson Workload Analysis ...................................................................................... 38 Combining Geographical Control Units into Sales Territories............................................................... 39 Territory Shape .................................................................................................................................... 39 Assigning Sales Personnel to Territories .............................................................................................. 40 9. SDM — PERSONAL
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