Page 12 - DMGT205_SALES_MANAGEMENT

Sales Management

Notes 4. Promotion: This is to make the customer aware of the product. The promotion must show
that the product can provide customer satisfaction, i.e., he should get good value for his
money. Proper promotion should have customer generating potential.
5. Physical Distribution and Collection: Physical distribution means actual transfer of
possession. It includes transportation, warehousing and inventory control. It also includes
installation. For example, the food must reach the destination timely and safely. Exchange
is never complete without the collection of money, i.e., revenue. Money is the backbone of
any organisation and timely collection of money is also a very important criteria. Delayed
payments lead to shortage of funds which affects the organisation adversely. In going
through this exercise a lot of information is also imparted to the customer.
Most organisations perform exchanges through a combination of their own sales force and
distribution network. Tasks are allocated between sales force and channel members. The factors
considered for using the distribution network or the company’s sales force are:

 Competitive practices;
 Product and market requirements;
 Preference of the customer and;
 Management philosophy towards control.

Task Discuss about the different structures in Sales Management.

1.4 Interdependence of Sales and Distribution

Sales and distribution are interdependent on each other. Although sales can be realised by direct
marketing or through the channel members, both go hand in hand. The following points must
be understood:
1. Both sales management and distribution are the responsibility of the sales manager. Most
organisations use their own sales force to reach the customers. The practice is to use the
sales force to reach the retailers through wholesalers. Brooke Bond is one company which
reaches up to retail level. Activities of sales organisations are coordinated with channel
operations to realise sales goals effectively.
2. The type of training to be given will depend upon the responsibility given to the sales
force and to channel members.
3. The choice before an organisation to have direct, indirect or joint distribution depends
upon the degree of control, flexibility and cost and financial requirements. For example,
in indirect distribution, there is less of control but it is more economical. In this sort of
distribution lesser funds are tied up and there is low fixed and variable cost of managing
the channel. On the other hand in personal selling, there is better control but it is more
expensive.
4. To implement the overall marketing strategy, the manufacturers need the cooperation of
distribution outlets, store displays, local advertising and purchase promotions.

Sales management has the responsibility of structuring, maintaining and coordinating an
organisational relationship within their own departments and with interacting organisational
entities so that sales task can be performed and coordinated with the overall marketing goals.

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