Havaldar, Krishna K., author.
Sales and distribution management : text and cases / Krishna K Havaldar, Vasant M Cavale. - Second edition. - New Delhi : Tata McGraw-Hill, c2011. - xxxv, 672 pages, 12 pages of plates : illustrations ; 24 cm
Includes bibliographical references and index.
Contents
1. Introduction to Sales and Distribution Management
Introduction
Evolution of Sales Management
What is Sales Management?
Nature and Importance of Sales Management
Relationship Selling
Varying Sales Responsibilities/Sales Positions
Importance of Personal Selling and Sales Management
Role and Skills of Modern Sales Managers
Skills of a Sales Manager
Types of Sales Managers/Sales Management Positions
Top-level (Strategic) Sales Managers
Middle-level (Tactical) Sales Managers
First-line (Operational) Sales Managers
Staff Sales Management Positions
Sales as a Career
Rewards in Sales Career
Salesperson to Sales Manager
Changing Role of a Salesforce
Women in Sales
Sales Objectives, Strategies and Tactics
Sales Objectives
Sales Strategies and Tactics
Emerging Trends in Sales Management
Global Perspective
Revolution in Technology
Customer Relationship Management (CRM)
Salesforce Diversity
Team Selling Approach
Managing Multi-channels
Ethical and Social Issues
Sales Professionalism
E-Selling
Linking Sales and Distribution Management
Distribution Channels
Maximising Customer Service
Sales Operations Planning
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Reference Notes
Case 1.1: PI Foods Ltd.—Managing Sales and Distribution
2. Personal Selling: Preparation and Process
Introduction: The Psychology in Selling
Buyer-Seller Dyadic Interaction
Buying Decision Process
Problem (or Need) Recognition
Information Search (or Collection)
Evaluation of Alternatives
Purchase Decision
Post-purchase Behaviour
Buying Decision Process of Business Buyers
Buying Situations or Types of Purchases
For Household and Individual Consumers
Buying Situations for Business Buyers
Effective Communication
Sales Knowledge and Sales Related Marketing Policies
Company Knowledge
Product Knowledge
Customers and Competitors Knowledge
Sales-Related Marketing Policies
The Sales Process or the Personal Selling Process
Prospecting
Qualifying
Preapproach
Approach
Presentation and Demonstration
Developing an Effective Presentation
Demonstration
Overcoming Objections
Trial Close/Closing the Sale
Follow-up and Service
Negotiation
Transactional and Relationship Selling
Transactional Selling (or Exchanges)
Relationship Selling
Value-added Selling
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Reference Notes
Case 2.1: Elex Motors Ltd.—Partnering Relationship
Case 2.2: RK Consultants—Selling Consultancy Service
3. Planning, Sales Forecasting and Budgeting
Introduction
Strategic Planning
Corporate Strategic Planning
Business Unit (or SBU) Strategic Planning
Product/Operational Planning
Role of Marketing and Sales
The Role of Marketing at Corporate Level
The Role of Marketing at Business Unit
Marketing and Personal Selling Strategies
Integrated Marketing Communications (IMC)
Sales Strategy—A Strategic Decision Area
Classification of Accounts
Relationship Strategy
Selling Methods
Channel Strategy
Developing Sales Forecast
Types of Sales Forecast
Basic Terms Used in Forecasting
Forecasting Approaches
Top-down/Break-down Approach
Bottom-up/Build-up Approach
Sales Forecasting Methods
Executive Opinion Method
Delphi Method
Salesforce Composite Method
Survey of Buyers’ Intentions Method
Test Marketing Method
Moving Average Method
Exponential Smoothing Method
Decomposition Method
Naive/Ratio Method
Regression Analysis
Econometric Analysis
How to Improve Forecasting Accuracy?
Use Multiple Forecasting Methods
Identify Suitable Methods
Develop a Few Factors
Obtain a Range of Forecasts
Use Computer Hardware and Software Tools
Sales Budgets
Purposes of the Sales Budget
Methods Used for Deciding Sales Expenditure Budget
Sales Budget Process
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Reference Notes
Case 3.1: AG Refrigerators Ltd.—Developing Sales Forecast
4. Management of Sales Territories and Quotas
Defining Sales Territory
Reasons for Setting up or Reviewing Sales Territories
Procedure for Designing Sales Territories
Select a Control Unit
Find Location and Potential of Customers
Decide Basic Territories
Assigning Salespeople to Territories
Relative Ability of Salespeople
Salesperson’s Effectiveness in a Territory
Use of IT in Territory Management
Managing Territorial Coverage
Routing
Scheduling
Time Management Tools for Salespeople
Time Management Tools for Sales Managers
Sales Quotas or Sales Targets
What are Sales Quotas?
Objectives of Quotas
Types of Quotas
Methods for Setting Sales Quotas
Insights into Setting and Administration of Sales Quotas
Companies not Using Quotas
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Reference Notes
Case 4.1: CG Engineering Company—Achieving Quotas
Case 4.2: MM Marketing Company—Territory and Quotas for a New Product
5. Organising and Staffing the Salesforce
Concepts of Sales Organisation
Degree of Centralisation
Degree of Specialisation
Line or Staff Position
Market Orientation
Effective Co-ordination
Span of Control
Basic Types of Sales Organisational Structures
Line Sales Organisation
Line and Staff Sales Organisation
Functional Sales Organisation
Horizontal Sales Organisation
Specialisation within Sales Organisation
Geographic Specialisation
Product Specialisation
Market Specialisation
Combination Sales Organisation
Management of Major or Key Accounts
Alternative Sales Organisations for Major Customers
Size of the Salesforce
Workload Method
Sales Potential/Breakdown Method
Incremental Method
Staffing the Salesforce
The Planning Stage
Recruiting the Salesforce
Selecting the Salesforce
Hiring Stage
Socialisation
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Reference Notes
Case 5.1: Electrical Product Company—Revision in Sales Organisation
Case 5.2: Swishflow Ltd.—Hiring Salespeople
6. Training, Motivating, Compensating, and Leading the Salesforce
Introduction
Managing the Sales Training Process
Assess Sales Training Needs
Design and Execute Sales Training Programme
Evaluation of Sales Training Programme
Reinforcing Sales Training
Motivating the Salesforce
What is Motivation?
Importance of Motivation
Relevance of Motivational Theories to Salespeople
Selecting an Effective Mix of Motivational Tools
Guidelines for Motivating Salespeople
Compensating the Salesforce
Objectives of a Compensation Plan
Designing an Effective Sales Compensation Plan
Basic Types of Compensation Plans
Leading the Salesforce
Modern Views of Sales Leadership
Leadership Styles
Leadership Skills
Supervising Salespeople
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Reference Notes
Case 6.1: CG Ltd.—Refresher Training
Case 6.2: STI Ltd.—Incentive Scheme for Salespeople
7. Controlling the Salesforce
Sales and Marketing Intelligence System
Salespeople
Secondary Data Sources
Discussions with Customers and Intermediaries
Other Sources
Salesforce Expenses
Types of Expense Plans
Marketing Audit
Salesforce Audit
Evaluation of Effectiveness of Sales Organisation
Sales Analysis
Marketing Cost and Profitability Analysis
Productivity Analysis
Evaluating and Controlling the Performance of Salespeople
Purposes of Salesforce Performance Evaluation and Control
Procedure for Evaluating and Controlling Salesforce Performance
Ethical, Social, and Legal Responsibilities of Sales Personnel
Business Ethics and Sales Management
Social Responsibilities
Legal Responsibilities and Sales Management
Problems Related to the Internet and Telemarketing
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Questions
Reference Notes
Case 7.1: GTI Company Ltd.
Case 7.2: KKN India Ltd.
Case 7.3: SHB Bank—Fraud Control Unit
Case 7.4: Intel Pentium Chip Flaw
8. Distribution Management and the Marketing Mix
Introduction
Distribution Management
Definition of Distribution Management
Need for Distribution Channels
Are Intermediaries Necessary?
A Combination Works Better
Discrepancies and Distribution Channels
How Does Distribution Add Value?
Distribution Channel Strategy
An Overview of Distribution Channels
Channels of Distribution Used
Different Kinds of Distribution Networks
Patterns of Distribution
Distribution Channels for Rural Markets
Summary
Glossary of Key Terms
Objective Type Questions
Conceptual Questions
Application Questions
Reference Notes
9. Marketing Channels
Introduction
What about Information?
The Marketing Channel
Channel Definition
Evolution of Marketing Channels
Channel Formats Possible
Producer Driven
Seller Driven
Service Driven
Other Formats
Relationship of Flows to Service Levels
Channel Levels
Service Channels
What is the Channel Expected to Deliver?
Summary of Channel Functions
Prominent Channel Systems
Vertical Marketing Systems
Contractual VMS
Horizontal Marketing Systems
Multi-channel Marketing Systems
Costs and Margins in the Distribution System
Summary
Glossary of Key Terms
Objective Type Questions
Conceptual Questions
Application Questions
Reference Notes
Case 9.1: Research One Ltd. – Sales and Channel Relationships
10. Channel Institutions: Retailing
Introduction
Definition of Retailing
The Retailer as a Salesman
Theories in Retail
The Global Retailing Scene
Retailers Dictate Terms
Retailers’ Own Brands/Private Labels
Manufacturers’ Response to Growing Retail Strength
Retail Relationships
The Retail Scene in India
Some Salient Features of Retail in India
Salient Retail Numbers
The Retail Evolution
Commitment among Shoppers
Shopper Segments
Sources of Awareness
Modern Format Awareness Levels
Hierarchy of Factors for Evaluation of a Modern Format
Private Label Brands in India
Trends in Retailing in India
Projected Trends
Organised Retailing in India
Trading/Retail Formats
Types of Retailers
Retail Focus on Categories
Category Lifecycles
Category Types
Category Management
Merchandise Buying Rules
The Role of the Retailer
Merchandising
Customer Service
Customer Communication
Retail Strategy Guidelines
Steps in Retail Strategy
Retail Strategies
Positioning Strategy
Product Differentiation Strategy
Operational Superiority
Store Location
Factors in Development of Strategy
Retail Performance Measures
Other Retail Performance Measures
Aspects of Store Design
Efficient Consumer Response (ECR)
How does ECR Work?
Retailing Initiatives in Rural India
Franchising
How Does the System Work?
Electronic Retailing or E-Tailing
Retailing on the Internet/e-tailing
Retailing on the Internet—Some Salient Points
Internet Usage in India
Online Retailers
Disadvantages of Online Retailing
Logistics Support to E-retailing
Receipt of Payment Against Orders (Payment Gateway)
Foreign Direct Investment (FDI) in Retail in India
Summary
Glossary of Key Terms
Objective Type Questions
Conceptual Questions
Application Questions
Reference Notes
11. Channel Institutions: Wholesaling
Introduction
Definition of a Wholesaler
Features of Freelance Wholesalers in India
Wholesalers Deliver Value
Functions of Wholesalers
Wholesaling Functions for Producer Suppliers
Wholesaling Functions for Retailers and Other Customers
Classification of Wholesalers
Wholesalers—Key Tasks
Assembling or Aggregating the Goods
Warehousing of the Goods
Order Booking and Execution
Transportation of the Goods
Financing of the Business
Risk Bearing
Grading and Packing
Providing Market Information
Limitations of Wholesalers
Strategic Issues in Wholesaling
Selecting Target Markets
Marketing Mix
Major Wholesaling Decisions
Which Markets to Operate in?
Manpower
Which Product to Sell?
Promotional Support
Credit and Collections
Image and Customer Perception
Warehouse Location and Design
Inventory Control
Cash and Carry Wholesale
METRO Cash & Carry
Bharti Wal Mart Best Price Modern Wholesale
Distributors/Dealers/Stockists
Distributor Management
Need for a Distributor
Expectations from the Distributor
Selection of Distributors
Security Deposit
Payment by the Distributor
Credit to be Extended by the Distributor
Investment in Inventory
Investment in Infrastructure
Manpower
Coverage of Markets
Developing Rural Markets
Categorisation of Distributors
Performance Evaluation of Distributors
Trends in Wholesaling
Future of Wholesalers in India
Summary
Glossary of Key Terms
Objective Type Questions
Conceptual Questions
Application Questions
Reference Notes
12. Designing Channel Systems
Introduction
Channel Design and Planning Process
Variables which Affect the Channel Structure
Stages in Channel Planning
Defining the Customer Needs
Defining Channel Objectives
Channel Alternatives
Cost of the Channel System
Hybrid Channels
Evaluation of Major Alternatives
Selecting Channel Partners
Example: A Carrying and Forwarding Agent (C&FA)
Example: A Distributor
Factors Influencing Channel Selection
Change of Channel Members
Training Channel Members
Motivating Channel Partners
Evaluating Channel Members
Evaluation of Effectiveness of Channel Systems
Modifying an Existing Channel Network
Channel Design Comparison Factors
Channel Design Implementation
Vertical Integration—Owning the Channel
Own the Channel or Outsource?
How much of Vertical Integration?
Why Vertical Integration?
Outsourcing Distribution
Non-store Retailing and Electronic Channels
Selling Door-to-door
Vending Machines
Tele-shopping
Marketing through Catalogs
Selling Direct
Use of Electronic Channels
Summary
Glossary of Key Terms
Objective Type Questions
Conceptual Questions
Application Questions
Reference Notes
Case 12.1: Snow White Paper Company (2) – Finished Goods Distribution
13. Channel Management
Channel Management
Use of Power Bases in the Context of Channel Management
Identifying and Resolving Channel Conflicts
Channel Co-ordination
Use of Channel Power
Five Sources of Power
Countervailing Power
What is Channel Conflict?
Stages of Conflict
Reasons for Channel Conflict
Channel Conflict in Hybrid Channels
Types of Channel Conflict
Examples of Channel Conflict
Competition and Conflict
Managing Conflict
Ways of Managing Channel Conflict
Principles of Channel Management
Channel Control
Vertical Management Systems (VMS)
Channel Policies
Markets to be Serviced
Customer Coverage
Pricing
Product Lines
Selection of Channel Members
Termination of Channel Partners
Ownership of the Channel
Distribution Management for Services
Some Unique Distribution Examples
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Reference Notes
Case 13.1: Popular Foods Ltd. – Sales and Distribution Team Work
Case 13.2: Gem Soaps and Detergents – Managing Channel Conflict
Case 13.3: Apple Food Products – Managing a Distribution Network
Case 13.4: Kinetic Engineering Company – Handling Channel Conflict
Case 13.5: Advanced Measuring Devices (1) – Channel Management and Control
Case 13.6: Advanced Measuring Devices (2) – Channel Management and Control
14. Channel Information Systems
Introduction
Why an Information System?
Developing a Channel Information System—Channel MIS
Purpose of Information Systems
Volume and Value Information
A Good CIS
Elements of a Channel Information System
Market Information
Distributor Profile and Database
Competition Tracking
Primary Sales
Secondary Sales
Retailer Cards
Pricing Trends
Promotions History
Promotions Evaluation
Secondary Freight
Inventory Control
Orders/Indents from Channel Partners
Distribution Costs
Distributor Return on Investment (ROI)
Statutory Information and Reporting
Distributor Payments Record
Storage and Processing of Information
Channel Performance Evaluation
Channel Performance Evaluation Criteria
Criteria for Evaluation
Channel Implementation
Intensive Distribution
Selective Distribution
Example of Coverage and Break-even Sales
IT Systems for Channels
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Reference Notes
Case 14.1: Indian Engineering Ltd. – Improving Effectiveness of Distribution
Case 14.2: Teekha Spices Ltd. – Challenging the Capabilities of a Distribution Network
Case 14.3: Ashwin Healthcare Ltd. – Modifying Distribution Channels
15. Market Logistics and Supply Chain Management
Origin of Logistics
Customer Service
Definition of Logistics
Scope of Logistics
Key Logistics Activities
Materials Handling
Order Processing
Extension into Supply Chain Management
Supply Chain Management Focus
Need for a Supply Chain Review
Influencing Factors on Supply Chain
Supply Chain Integration
Difference Between Logistics and Supply Chain Management
One Viewpoint: Pete Crosby – SCM Consultant
A Second Viewpoint (from Another Logistics Consultant)
Council of Logistics Management
A Fourth View Point: Jeff Ashcroft
Our View
Logistics and Other Functions—Interface
Major Areas of Interaction—Logistics and Marketing
Channels of Distribution
Logistics Impact on Financial Health
Strategy for Logistics
Customer Service Elements
Service Driven Logistics Systems
Focus Areas of Logistics and SCM
Inventory Management
Warehousing
Transportation
Advances in Supply Chain Management
Efficient Consumer Response
Category Management
Continuous Replenishment
Quick Response Logistics
Handling Functional and Innovative Products
Benchmarking
IT Enabling the Logistics Function
IT in Managing the Supply Chain
Technology in Logistics—EDI, Bar Coding, RFID etc.
Supplier Relationship Management (SRM)
Customer Relationship Management (CRM)
Supply Chain Management (SCM)
Electronic Data Interchange (EDI)
Bar Codes
Radio Frequency Identification (RFID)
Data Warehousing
Electronic Payment Transfers
Logistics/Supply Chain: Cost of Service
Logistics/Supply Chain: Performance Measurement
Internal Measurements
External Measurements
Logistics/Supply Chain Performance: Popular Measurement Ratios
Logistics for Rural Markets
Summary
Glossary of Key Terms
Objective Type Questions
Conceptual Questions
Application Questions
Reference Notes
Case 15.1: Snow White Paper Company (1) – Managing Inbound Logistics
Case 15.2: Snow White Paper Company (3) – Handling Outbound Transport
Case 15.3: Norton India Ltd. – Managing Distribution Channels and Logistics
Case 15.4: Atlas India Ltd. – Setting up a Logistics System
Case 15.5: Healthcare Equipment Company – Clearing Import Consignments
16. International Sales and Distribution Management
Introduction
The Nature of International Markets
Choosing the Market
Culture and International Business
Legal Aspects of Doing International Business
Risks Involved in Doing Business Internationally
Selling in International Markets
Entry Strategies for International Markets
Organising for International Selling
Distribution
Types of Distribution Channels
Legal and Social Aspects
Role of Logistics Companies
Profile of an International Salesperson
Pricing and Payment Terms in International Trade
Currency of Pricing
Packing and Shipping
Market Intelligence and Research
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Caselet
17. Sales Promotions
Introduction
Definition of Sales Promotion
Benefits and Drawbacks of Sales Promotion
Benefits to Manufacturers
Benefits to Consumers
Benefits to Traders
Drawbacks to Manufacturers
Drawbacks to Consumers
Drawbacks to Traders
Types of Sales Promotions
Consumer Promotions
Trade Promotions
Business Promotions
Sales Force Promotions
Effect of Sales Promotion on Sales
Coordination of Sales Promotion with Advertising and Personal Selling
Evaluation of Sales Promotion
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Reference Notes
Case 17.1: Healthy World
Case–Chapter Matrix for Integrated Cases
Case 1: Computers (India) Ltd.
Case 2: Footwear (India) Ltd.
Case 3: SM Technologies Ltd.
Case 4: Hindustan Products Ltd.
Case 5: AP Technologies Ltd.
Case 6: Hindustan Engineering and Automotive Products Ltd.
Case 7: Alfa Networks
Case 8: Metal Products India Ltd.
Case 9: Syndiant Ltd.
Case 10: Electrical Equipment Ltd.
Case 11: Sunshine Luminaires Pvt. Ltd.
Case 12: Taurus Analytical Solutions Ltd.
Case 13: SKJ Company Ltd.
Index
The primary aim of the book is to provide students of management with a firm foundation for understanding all the main components of sales and distribution management. The book has a practical orientation, as it is written by authors who have worked as practicing managers mostly in sales and distribution and between them have over 60 yrs. of industry experience. The book, therefore, is a useful resource to practicing professionalism in industry, training and consultancy.
English text.
9781259008757 (Reprint)
Sales management.
Physical distribution of goods.
CIR HF 5438.4 / H38 2011
Sales and distribution management : text and cases / Krishna K Havaldar, Vasant M Cavale. - Second edition. - New Delhi : Tata McGraw-Hill, c2011. - xxxv, 672 pages, 12 pages of plates : illustrations ; 24 cm
Includes bibliographical references and index.
Contents
1. Introduction to Sales and Distribution Management
Introduction
Evolution of Sales Management
What is Sales Management?
Nature and Importance of Sales Management
Relationship Selling
Varying Sales Responsibilities/Sales Positions
Importance of Personal Selling and Sales Management
Role and Skills of Modern Sales Managers
Skills of a Sales Manager
Types of Sales Managers/Sales Management Positions
Top-level (Strategic) Sales Managers
Middle-level (Tactical) Sales Managers
First-line (Operational) Sales Managers
Staff Sales Management Positions
Sales as a Career
Rewards in Sales Career
Salesperson to Sales Manager
Changing Role of a Salesforce
Women in Sales
Sales Objectives, Strategies and Tactics
Sales Objectives
Sales Strategies and Tactics
Emerging Trends in Sales Management
Global Perspective
Revolution in Technology
Customer Relationship Management (CRM)
Salesforce Diversity
Team Selling Approach
Managing Multi-channels
Ethical and Social Issues
Sales Professionalism
E-Selling
Linking Sales and Distribution Management
Distribution Channels
Maximising Customer Service
Sales Operations Planning
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Reference Notes
Case 1.1: PI Foods Ltd.—Managing Sales and Distribution
2. Personal Selling: Preparation and Process
Introduction: The Psychology in Selling
Buyer-Seller Dyadic Interaction
Buying Decision Process
Problem (or Need) Recognition
Information Search (or Collection)
Evaluation of Alternatives
Purchase Decision
Post-purchase Behaviour
Buying Decision Process of Business Buyers
Buying Situations or Types of Purchases
For Household and Individual Consumers
Buying Situations for Business Buyers
Effective Communication
Sales Knowledge and Sales Related Marketing Policies
Company Knowledge
Product Knowledge
Customers and Competitors Knowledge
Sales-Related Marketing Policies
The Sales Process or the Personal Selling Process
Prospecting
Qualifying
Preapproach
Approach
Presentation and Demonstration
Developing an Effective Presentation
Demonstration
Overcoming Objections
Trial Close/Closing the Sale
Follow-up and Service
Negotiation
Transactional and Relationship Selling
Transactional Selling (or Exchanges)
Relationship Selling
Value-added Selling
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Reference Notes
Case 2.1: Elex Motors Ltd.—Partnering Relationship
Case 2.2: RK Consultants—Selling Consultancy Service
3. Planning, Sales Forecasting and Budgeting
Introduction
Strategic Planning
Corporate Strategic Planning
Business Unit (or SBU) Strategic Planning
Product/Operational Planning
Role of Marketing and Sales
The Role of Marketing at Corporate Level
The Role of Marketing at Business Unit
Marketing and Personal Selling Strategies
Integrated Marketing Communications (IMC)
Sales Strategy—A Strategic Decision Area
Classification of Accounts
Relationship Strategy
Selling Methods
Channel Strategy
Developing Sales Forecast
Types of Sales Forecast
Basic Terms Used in Forecasting
Forecasting Approaches
Top-down/Break-down Approach
Bottom-up/Build-up Approach
Sales Forecasting Methods
Executive Opinion Method
Delphi Method
Salesforce Composite Method
Survey of Buyers’ Intentions Method
Test Marketing Method
Moving Average Method
Exponential Smoothing Method
Decomposition Method
Naive/Ratio Method
Regression Analysis
Econometric Analysis
How to Improve Forecasting Accuracy?
Use Multiple Forecasting Methods
Identify Suitable Methods
Develop a Few Factors
Obtain a Range of Forecasts
Use Computer Hardware and Software Tools
Sales Budgets
Purposes of the Sales Budget
Methods Used for Deciding Sales Expenditure Budget
Sales Budget Process
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Reference Notes
Case 3.1: AG Refrigerators Ltd.—Developing Sales Forecast
4. Management of Sales Territories and Quotas
Defining Sales Territory
Reasons for Setting up or Reviewing Sales Territories
Procedure for Designing Sales Territories
Select a Control Unit
Find Location and Potential of Customers
Decide Basic Territories
Assigning Salespeople to Territories
Relative Ability of Salespeople
Salesperson’s Effectiveness in a Territory
Use of IT in Territory Management
Managing Territorial Coverage
Routing
Scheduling
Time Management Tools for Salespeople
Time Management Tools for Sales Managers
Sales Quotas or Sales Targets
What are Sales Quotas?
Objectives of Quotas
Types of Quotas
Methods for Setting Sales Quotas
Insights into Setting and Administration of Sales Quotas
Companies not Using Quotas
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Reference Notes
Case 4.1: CG Engineering Company—Achieving Quotas
Case 4.2: MM Marketing Company—Territory and Quotas for a New Product
5. Organising and Staffing the Salesforce
Concepts of Sales Organisation
Degree of Centralisation
Degree of Specialisation
Line or Staff Position
Market Orientation
Effective Co-ordination
Span of Control
Basic Types of Sales Organisational Structures
Line Sales Organisation
Line and Staff Sales Organisation
Functional Sales Organisation
Horizontal Sales Organisation
Specialisation within Sales Organisation
Geographic Specialisation
Product Specialisation
Market Specialisation
Combination Sales Organisation
Management of Major or Key Accounts
Alternative Sales Organisations for Major Customers
Size of the Salesforce
Workload Method
Sales Potential/Breakdown Method
Incremental Method
Staffing the Salesforce
The Planning Stage
Recruiting the Salesforce
Selecting the Salesforce
Hiring Stage
Socialisation
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Reference Notes
Case 5.1: Electrical Product Company—Revision in Sales Organisation
Case 5.2: Swishflow Ltd.—Hiring Salespeople
6. Training, Motivating, Compensating, and Leading the Salesforce
Introduction
Managing the Sales Training Process
Assess Sales Training Needs
Design and Execute Sales Training Programme
Evaluation of Sales Training Programme
Reinforcing Sales Training
Motivating the Salesforce
What is Motivation?
Importance of Motivation
Relevance of Motivational Theories to Salespeople
Selecting an Effective Mix of Motivational Tools
Guidelines for Motivating Salespeople
Compensating the Salesforce
Objectives of a Compensation Plan
Designing an Effective Sales Compensation Plan
Basic Types of Compensation Plans
Leading the Salesforce
Modern Views of Sales Leadership
Leadership Styles
Leadership Skills
Supervising Salespeople
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Reference Notes
Case 6.1: CG Ltd.—Refresher Training
Case 6.2: STI Ltd.—Incentive Scheme for Salespeople
7. Controlling the Salesforce
Sales and Marketing Intelligence System
Salespeople
Secondary Data Sources
Discussions with Customers and Intermediaries
Other Sources
Salesforce Expenses
Types of Expense Plans
Marketing Audit
Salesforce Audit
Evaluation of Effectiveness of Sales Organisation
Sales Analysis
Marketing Cost and Profitability Analysis
Productivity Analysis
Evaluating and Controlling the Performance of Salespeople
Purposes of Salesforce Performance Evaluation and Control
Procedure for Evaluating and Controlling Salesforce Performance
Ethical, Social, and Legal Responsibilities of Sales Personnel
Business Ethics and Sales Management
Social Responsibilities
Legal Responsibilities and Sales Management
Problems Related to the Internet and Telemarketing
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Questions
Reference Notes
Case 7.1: GTI Company Ltd.
Case 7.2: KKN India Ltd.
Case 7.3: SHB Bank—Fraud Control Unit
Case 7.4: Intel Pentium Chip Flaw
8. Distribution Management and the Marketing Mix
Introduction
Distribution Management
Definition of Distribution Management
Need for Distribution Channels
Are Intermediaries Necessary?
A Combination Works Better
Discrepancies and Distribution Channels
How Does Distribution Add Value?
Distribution Channel Strategy
An Overview of Distribution Channels
Channels of Distribution Used
Different Kinds of Distribution Networks
Patterns of Distribution
Distribution Channels for Rural Markets
Summary
Glossary of Key Terms
Objective Type Questions
Conceptual Questions
Application Questions
Reference Notes
9. Marketing Channels
Introduction
What about Information?
The Marketing Channel
Channel Definition
Evolution of Marketing Channels
Channel Formats Possible
Producer Driven
Seller Driven
Service Driven
Other Formats
Relationship of Flows to Service Levels
Channel Levels
Service Channels
What is the Channel Expected to Deliver?
Summary of Channel Functions
Prominent Channel Systems
Vertical Marketing Systems
Contractual VMS
Horizontal Marketing Systems
Multi-channel Marketing Systems
Costs and Margins in the Distribution System
Summary
Glossary of Key Terms
Objective Type Questions
Conceptual Questions
Application Questions
Reference Notes
Case 9.1: Research One Ltd. – Sales and Channel Relationships
10. Channel Institutions: Retailing
Introduction
Definition of Retailing
The Retailer as a Salesman
Theories in Retail
The Global Retailing Scene
Retailers Dictate Terms
Retailers’ Own Brands/Private Labels
Manufacturers’ Response to Growing Retail Strength
Retail Relationships
The Retail Scene in India
Some Salient Features of Retail in India
Salient Retail Numbers
The Retail Evolution
Commitment among Shoppers
Shopper Segments
Sources of Awareness
Modern Format Awareness Levels
Hierarchy of Factors for Evaluation of a Modern Format
Private Label Brands in India
Trends in Retailing in India
Projected Trends
Organised Retailing in India
Trading/Retail Formats
Types of Retailers
Retail Focus on Categories
Category Lifecycles
Category Types
Category Management
Merchandise Buying Rules
The Role of the Retailer
Merchandising
Customer Service
Customer Communication
Retail Strategy Guidelines
Steps in Retail Strategy
Retail Strategies
Positioning Strategy
Product Differentiation Strategy
Operational Superiority
Store Location
Factors in Development of Strategy
Retail Performance Measures
Other Retail Performance Measures
Aspects of Store Design
Efficient Consumer Response (ECR)
How does ECR Work?
Retailing Initiatives in Rural India
Franchising
How Does the System Work?
Electronic Retailing or E-Tailing
Retailing on the Internet/e-tailing
Retailing on the Internet—Some Salient Points
Internet Usage in India
Online Retailers
Disadvantages of Online Retailing
Logistics Support to E-retailing
Receipt of Payment Against Orders (Payment Gateway)
Foreign Direct Investment (FDI) in Retail in India
Summary
Glossary of Key Terms
Objective Type Questions
Conceptual Questions
Application Questions
Reference Notes
11. Channel Institutions: Wholesaling
Introduction
Definition of a Wholesaler
Features of Freelance Wholesalers in India
Wholesalers Deliver Value
Functions of Wholesalers
Wholesaling Functions for Producer Suppliers
Wholesaling Functions for Retailers and Other Customers
Classification of Wholesalers
Wholesalers—Key Tasks
Assembling or Aggregating the Goods
Warehousing of the Goods
Order Booking and Execution
Transportation of the Goods
Financing of the Business
Risk Bearing
Grading and Packing
Providing Market Information
Limitations of Wholesalers
Strategic Issues in Wholesaling
Selecting Target Markets
Marketing Mix
Major Wholesaling Decisions
Which Markets to Operate in?
Manpower
Which Product to Sell?
Promotional Support
Credit and Collections
Image and Customer Perception
Warehouse Location and Design
Inventory Control
Cash and Carry Wholesale
METRO Cash & Carry
Bharti Wal Mart Best Price Modern Wholesale
Distributors/Dealers/Stockists
Distributor Management
Need for a Distributor
Expectations from the Distributor
Selection of Distributors
Security Deposit
Payment by the Distributor
Credit to be Extended by the Distributor
Investment in Inventory
Investment in Infrastructure
Manpower
Coverage of Markets
Developing Rural Markets
Categorisation of Distributors
Performance Evaluation of Distributors
Trends in Wholesaling
Future of Wholesalers in India
Summary
Glossary of Key Terms
Objective Type Questions
Conceptual Questions
Application Questions
Reference Notes
12. Designing Channel Systems
Introduction
Channel Design and Planning Process
Variables which Affect the Channel Structure
Stages in Channel Planning
Defining the Customer Needs
Defining Channel Objectives
Channel Alternatives
Cost of the Channel System
Hybrid Channels
Evaluation of Major Alternatives
Selecting Channel Partners
Example: A Carrying and Forwarding Agent (C&FA)
Example: A Distributor
Factors Influencing Channel Selection
Change of Channel Members
Training Channel Members
Motivating Channel Partners
Evaluating Channel Members
Evaluation of Effectiveness of Channel Systems
Modifying an Existing Channel Network
Channel Design Comparison Factors
Channel Design Implementation
Vertical Integration—Owning the Channel
Own the Channel or Outsource?
How much of Vertical Integration?
Why Vertical Integration?
Outsourcing Distribution
Non-store Retailing and Electronic Channels
Selling Door-to-door
Vending Machines
Tele-shopping
Marketing through Catalogs
Selling Direct
Use of Electronic Channels
Summary
Glossary of Key Terms
Objective Type Questions
Conceptual Questions
Application Questions
Reference Notes
Case 12.1: Snow White Paper Company (2) – Finished Goods Distribution
13. Channel Management
Channel Management
Use of Power Bases in the Context of Channel Management
Identifying and Resolving Channel Conflicts
Channel Co-ordination
Use of Channel Power
Five Sources of Power
Countervailing Power
What is Channel Conflict?
Stages of Conflict
Reasons for Channel Conflict
Channel Conflict in Hybrid Channels
Types of Channel Conflict
Examples of Channel Conflict
Competition and Conflict
Managing Conflict
Ways of Managing Channel Conflict
Principles of Channel Management
Channel Control
Vertical Management Systems (VMS)
Channel Policies
Markets to be Serviced
Customer Coverage
Pricing
Product Lines
Selection of Channel Members
Termination of Channel Partners
Ownership of the Channel
Distribution Management for Services
Some Unique Distribution Examples
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Reference Notes
Case 13.1: Popular Foods Ltd. – Sales and Distribution Team Work
Case 13.2: Gem Soaps and Detergents – Managing Channel Conflict
Case 13.3: Apple Food Products – Managing a Distribution Network
Case 13.4: Kinetic Engineering Company – Handling Channel Conflict
Case 13.5: Advanced Measuring Devices (1) – Channel Management and Control
Case 13.6: Advanced Measuring Devices (2) – Channel Management and Control
14. Channel Information Systems
Introduction
Why an Information System?
Developing a Channel Information System—Channel MIS
Purpose of Information Systems
Volume and Value Information
A Good CIS
Elements of a Channel Information System
Market Information
Distributor Profile and Database
Competition Tracking
Primary Sales
Secondary Sales
Retailer Cards
Pricing Trends
Promotions History
Promotions Evaluation
Secondary Freight
Inventory Control
Orders/Indents from Channel Partners
Distribution Costs
Distributor Return on Investment (ROI)
Statutory Information and Reporting
Distributor Payments Record
Storage and Processing of Information
Channel Performance Evaluation
Channel Performance Evaluation Criteria
Criteria for Evaluation
Channel Implementation
Intensive Distribution
Selective Distribution
Example of Coverage and Break-even Sales
IT Systems for Channels
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Reference Notes
Case 14.1: Indian Engineering Ltd. – Improving Effectiveness of Distribution
Case 14.2: Teekha Spices Ltd. – Challenging the Capabilities of a Distribution Network
Case 14.3: Ashwin Healthcare Ltd. – Modifying Distribution Channels
15. Market Logistics and Supply Chain Management
Origin of Logistics
Customer Service
Definition of Logistics
Scope of Logistics
Key Logistics Activities
Materials Handling
Order Processing
Extension into Supply Chain Management
Supply Chain Management Focus
Need for a Supply Chain Review
Influencing Factors on Supply Chain
Supply Chain Integration
Difference Between Logistics and Supply Chain Management
One Viewpoint: Pete Crosby – SCM Consultant
A Second Viewpoint (from Another Logistics Consultant)
Council of Logistics Management
A Fourth View Point: Jeff Ashcroft
Our View
Logistics and Other Functions—Interface
Major Areas of Interaction—Logistics and Marketing
Channels of Distribution
Logistics Impact on Financial Health
Strategy for Logistics
Customer Service Elements
Service Driven Logistics Systems
Focus Areas of Logistics and SCM
Inventory Management
Warehousing
Transportation
Advances in Supply Chain Management
Efficient Consumer Response
Category Management
Continuous Replenishment
Quick Response Logistics
Handling Functional and Innovative Products
Benchmarking
IT Enabling the Logistics Function
IT in Managing the Supply Chain
Technology in Logistics—EDI, Bar Coding, RFID etc.
Supplier Relationship Management (SRM)
Customer Relationship Management (CRM)
Supply Chain Management (SCM)
Electronic Data Interchange (EDI)
Bar Codes
Radio Frequency Identification (RFID)
Data Warehousing
Electronic Payment Transfers
Logistics/Supply Chain: Cost of Service
Logistics/Supply Chain: Performance Measurement
Internal Measurements
External Measurements
Logistics/Supply Chain Performance: Popular Measurement Ratios
Logistics for Rural Markets
Summary
Glossary of Key Terms
Objective Type Questions
Conceptual Questions
Application Questions
Reference Notes
Case 15.1: Snow White Paper Company (1) – Managing Inbound Logistics
Case 15.2: Snow White Paper Company (3) – Handling Outbound Transport
Case 15.3: Norton India Ltd. – Managing Distribution Channels and Logistics
Case 15.4: Atlas India Ltd. – Setting up a Logistics System
Case 15.5: Healthcare Equipment Company – Clearing Import Consignments
16. International Sales and Distribution Management
Introduction
The Nature of International Markets
Choosing the Market
Culture and International Business
Legal Aspects of Doing International Business
Risks Involved in Doing Business Internationally
Selling in International Markets
Entry Strategies for International Markets
Organising for International Selling
Distribution
Types of Distribution Channels
Legal and Social Aspects
Role of Logistics Companies
Profile of an International Salesperson
Pricing and Payment Terms in International Trade
Currency of Pricing
Packing and Shipping
Market Intelligence and Research
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Caselet
17. Sales Promotions
Introduction
Definition of Sales Promotion
Benefits and Drawbacks of Sales Promotion
Benefits to Manufacturers
Benefits to Consumers
Benefits to Traders
Drawbacks to Manufacturers
Drawbacks to Consumers
Drawbacks to Traders
Types of Sales Promotions
Consumer Promotions
Trade Promotions
Business Promotions
Sales Force Promotions
Effect of Sales Promotion on Sales
Coordination of Sales Promotion with Advertising and Personal Selling
Evaluation of Sales Promotion
Summary
Glossary of Key Terms
Conceptual Questions
Objective Type Questions
Application Questions
Reference Notes
Case 17.1: Healthy World
Case–Chapter Matrix for Integrated Cases
Case 1: Computers (India) Ltd.
Case 2: Footwear (India) Ltd.
Case 3: SM Technologies Ltd.
Case 4: Hindustan Products Ltd.
Case 5: AP Technologies Ltd.
Case 6: Hindustan Engineering and Automotive Products Ltd.
Case 7: Alfa Networks
Case 8: Metal Products India Ltd.
Case 9: Syndiant Ltd.
Case 10: Electrical Equipment Ltd.
Case 11: Sunshine Luminaires Pvt. Ltd.
Case 12: Taurus Analytical Solutions Ltd.
Case 13: SKJ Company Ltd.
Index
The primary aim of the book is to provide students of management with a firm foundation for understanding all the main components of sales and distribution management. The book has a practical orientation, as it is written by authors who have worked as practicing managers mostly in sales and distribution and between them have over 60 yrs. of industry experience. The book, therefore, is a useful resource to practicing professionalism in industry, training and consultancy.
English text.
9781259008757 (Reprint)
Sales management.
Physical distribution of goods.
CIR HF 5438.4 / H38 2011