Page 17 - DMGT205_SALES_MANAGEMENT

Unit 1: Introduction to Sales Management

13. Coordination and Control: Notes
(a) Coordinating external and internal activities
(b) Coordinating with distribution network
(c) Coordinating and implementing overall marketing strategy.

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Caselet Distribution

was a partnership firm which started with humble beginnings. The firm sold its
goods in a restricted market which was situated about a thousand miles away
Afrom the manufacturing plant. The firm had a turnover of 2 crores and increased
its sales through product development, proper distribution and greater market coverage.
The company was operating in a niche.

The methodology of the firm was to send salesmen to the market and get orders from
wholesalers of repute. Gradually the product gained partial monopoly in those areas the
consumers accepted and demanded the product. The system of getting orders from dealers
of any districts was paying off well.
However, sometimes there was a shortage of goods. It took more than 20 days for goods
to reach their destination. The bill was sent through the bank and the entire transaction
took more than a month to materialise. The dealers were keen to place orders and the
number of dealers, the company dealt with directly was reaching enormous proportions
because the dealers placed small orders which lasted for a small time. All this put a great
load on the working of the head office of keeping records of individual dealers and
sending reminders to them for payment and reorder. The firm proposed one of the dealers
to take the entire agency of the area as an exclusive distributor. These exclusive distributors
were appointed by the firm at a distance of 200 kms away from each other.

The system worked well, the burden of the firm was reduced and it could maintain greater
control with lesser staff. Only a few salesmen were required for supervising and registering
complaints and suggestions. Distribution cost also went down, but higher commission
was given to dealers. The sales went up by about 30%. The exclusive dealers employed
their own sales team to get a greater volume of business. These salesmen were local
residents of the area and operated from their own cities where they resided.

1.8 Summary

 The importance of marketing problems was realised only after the industrial revolution
which started in England in 1760 and immediately thereafter in United States.
 Marketing management is a broader concept and sales management is a part of marketing
management.
 Sales Force are found in both profit and non-profit making organisations.
 The organizational structure for sales management varies depending on the firm’s size
and strategy.
 Sales managers typically start out as salespeople, working their way to the top with
strong leadership and organizational abilities.

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