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.