Page 54 - DMGT205_SALES_MANAGEMENT

Sales Management

Notes Work Load Basis: This approach considers both account potential and servicing plus extra work
load created by topographical locations and competitive forces.

Self Assessment

Fill in the blanks:

1. .......................... strategy is the game plan adopted to achieve the desired objectives.
2. The sales objectives are directly affected by .......................... missions or goals.
3. The .......................... of sales force in this case will be different to those who only coordinate.
4. .......................... are set in terms of Sales volume.
5. .......................... Specialists know the different markets and can also adopt different sales
approaches for different markets.

4.6 Channel Support and Coordination

This is also an important consideration for the formulation of sales strategy. If indirect distribution
is adopted it is imperative that sales organisation indicates dealer cooperation programmes.
Support is to be given for maintenance of adequate stocks, local promotion in the form of P.O.P.
(point of purchase) displays and for local advertising. Feedback from the dealer is an important
area of support and can't be ignored. In the dealer management programmes, for the success of
channel support and coordination:
1. Adequate incentives for the dealers are a must;
2. Proper feedback and communication is important;

3. Measures have to be taken to promote dealer loyalty.
The degree of coverage and the support you want from the channel depends on how intensively
or extensively you want to distribute the product.

Intensive Distribution

In this the distribution is made to all the outlets which are many in number and spread in a big
area. Maximum exposure to the product is given. Such distribution is done by Hindustan Lever
and Asian Paints Limited.

Extensive Distribution

It is the distribution in which we cover a great area but do not concentrate on all customers in the
area. Extensive distribution covers a large area and distribution of goods is extensively done.

Elective Distribution

Here goods are distributed to selected outlets. These may be speciality stores or prominent
stores in one area. The distribution is done through more than one outlet but less than all, e.g.,
designer shirts, cosmetics, TV, electrical equipment, etc.

Exclusive Distribution

This is done exclusively by one dealer who provides after sales service like in automobiles. This
is done for the cultivation of an exclusive image. This requires greater motivation, greater

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