Sales and Distribution Management

Introduction to Sales Management : Contents

Detailed Table of Contents

Part I: The Sales Perspective
Chapter 1: Introduction to Sales Management: Evolution of the sales concept, Nature and role of selling, Image of selling, Objectives of sales management, Integrating sales and marketing management, Environmental changes affecting sales management - Shorter product life cycle, Longer, more complex sales cycle, Reduced customer loyalty, Intense competition among manufacturing companies, Rising customer expectations, Increasing buyer expertise, Electronic revolution in communication, Entry of women in sales management, Structure of the book.

Chapter 2: The Sales Organization: Role of a sales organization, Basis for designing a sales organization, Types of organizations - Formal and informal organizations, Vertical and horizontal organizations, Centralized and decentralized organizations, Line and staff organizations. Types of sales force structure - Product-based sales force structure, Geographic-based sales force structure, Customer-based sales force structure, Combination-based sales force structure. Sales culture, Components of sales culture, Role of sales culture in developing a sound sales organization.

Chapter 3: Sales Functions and Policies: Role of a sales manager, Responsibilities of a sales manager - Hiring, Training, Coaching, Motivating, Setting targets and tracking the results, Recognizing and rewarding performance, Providing leads and sales support, Organizing the sales effort, Conducting sales meetings, Allocation of scarce resources, Role of a sales executive, Responsibilities of a sales executive, Identify potential customers from currently available databases, Identifying prospective accounts and deciding upon the priority and frequency of making calls, Deciding upon the selling approach, Administering the sales order, Service provider, Information gathering and reporting, Skill upgradation, Administrative responsibilities, Policies that impact sales management, Sales-related policies pertaining to the product, Product line policy, Product design policy, Sales-related policies pertaining to distribution, Sales-related policies pertaining to pricing.

Chapter 4: Personal Selling: Buyer seller dyads, Types of selling jobs - Sales development, Sales maintenance. Sales force objectives, Sales force strategies - Market access strategies, Account relationship strategy. Theories of personal selling - AIDAS Theory, Buying formula theory of selling, Behavioral equation theory, Right set of circumstances theory. Approaches to personal selling - Stimulus response approach, Need satisfaction approach, Problem situation approach. Personal selling process - Prospecting, Pre-approach, Approach, Sales presentation, Handling objections/Sales resistance, Close, Post-sales Follow-up. Customer related issues in personal selling - Understanding customer types through different selling styles, Finding customers, Researching customers, Communicating effectively, Providing customer service, Creating customer satisfaction. Automation in personal selling - Benefits of sales force automation.

Chapter 5: International Sales Management: Role of the sales manager in the international Market - Basic-level functions. International sales and marketing opportunities, Challenges in international sales management - Economic environment, Legal environment, Cultural environment. Strategic issues for international sales and marketing - Marketing mix - Adapt or Standardize. Obtaining international information, Entering overseas markets. International sales techniques - Preliminary selling, Advanced selling, Time and territory management. Structures for international sales organizations, Long-distance selling, Manufacturer's representatives, Piggybacking, Intermediaries, Establishing direct sales force abroad. International sales management practices - Recruitment of sales personnel, Selection of sales personnel, Training and development of sales personnel, Sales incentives and compensation.

Part II: Planning the Sales Effort
Chapter 6: Sales Planning: The importance of sales planning - Better implementation of corporate plans, Provide a sense of direction, Focus on realistic objectives, Improve coordination, Facilitate control, Ensure healthy interpersonal relationships, Reduce uncertainty and risk. Sales manager as planner and administrator - Sales manager as planner, Sales manager as administrator. The sales planning process - Setting objectives, Determining operations to meet objectives, Organizing for action, Implementing, Measuring results against standards, Re-evaluating and control. Causes of unsuccessful sales planning, Lack of awareness or understanding of important aspects, Absence of proper planning, Lack of systematic communication, Absence of sales force involvement. Accuracy of sales planning.

Chapter 7: Sales Budgets: Purpose of sales budgets - Mechanism of control, Instrument of planning. Benefits of budgeting - Improved planning, Better communication and coordination, Control and performance evaluation, Psychological benefits. Principles of budgeting, Types of budgets - Sales budget, Selling-expense budget, Administrative budget & Profit budget, Methods of budgeting for sales force - Affordability method, Percentage of sales method, Competitive parity method, Objective-and-task method, Return oriented method. Requirements for successful budgeting - Involvement & support of top management, Flexibility in budgeting. Developing a sales budget - Review and analysis of the situation, Identifying specific market opportunities and problems, Sales forecasting, Communicate sales goals and objectives, Preliminary allocation of resources, Preparing the budget, Getting approval for the budget. Precautions in preparing sales budgets - Inability to project course of future events, Inability to gain acceptance, Involvement of time, Repudiation of the long term.

Chapter 8: Estimating Market Potential and Forecasting Sales: Importance of assessing market potential, Need to determine market potential, Analyzing market potential - Ability to buy, Willingness to buy. Sources of data - Secondary sources, Primary sources. Importance and uses of sales forecasts, Sales forecasting methods, Qualitative methods - User expectations, Sales force composite, Jury of executive opinion, Delphi technique, Market test. Quantitative methods - Time series analysis, Moving average, Exponential smoothing, Regression and correlation analysis, Multiple regression model. Selecting a forecasting method - Accuracy, Costs, Type of data available, Requirements of the software, Experience of the company. Criteria that determine whether forecasting is effective - Accuracy, Plausibility, Durability, Flexibility, Availability of statistical indexes, Demand patterns in the market for the product. Difficulties associated with forecasting - Lack of adequate sales history, Lack of time, money and qualified personnel, Changing customer attitudes, Fashions and fads.

Chapter 9: Sales Quotas: Purpose of sales quotas, Importance of sales quotas - Provide performance targets, Provide standards, Provide control, Provide change of direction, Tool for motivating salespeople. Types of sales quotas - Sales volume quotas, Profit quotas, Expense quotas, Activity quotas. Characteristics of a good sales quota - Methods of setting sales quotas - Quota setting processes, Quotas based on sales forecasts and market potential, Quotas based on sales forecasts alone, Quotas based on past experience, Quotas based on executive judgment, Quotas based on sales force compensation, Quotas set by sales people themselves, Administering sales quotas - Minimizing acceptance problems, Managing and controlling people through quotas. Limitations of sales quotas.

Chapter 10: Sales and Cost Analysis: Sales manager's responsibility to ensure profits, Nature of sales control, Objectives of sales control. The sales control process. Difficulties in sales control. Sales analysis, Elements of sales analysis, Steps in sales analysis, Variations of Sales Analysis. Problems in sales analysis. Sales audit. Elements of sales. Marketing cost analysis. Types of costs. Procedure for cost analysis. Marketing audit - Procedure for a marketing audit. Components of a marketing audit. Profitability analysis, Break-even analysis, Capital budgeting tools, Principles of analysis - Iceberg principle, 80-20 Principle, Cross-classifications.

Part III: Organizing and Directing the Sales Efforts
Chapter 11: Hiring and Training Sales Personnel: Recruitment and its importance, Determining specific requirements of the sales personnel, Mental aptitude dimensions. Sales personnel selection process - Sourcing the candidates, Screening the candidates, Selection test, Background check, Personal interview, Letters of recommendation, Physical examination, Making the employment offer, Importance of sales training, Types of sales training, Initial sales training, Follow-up or refresher training, Training by the manufacturer to the distributor's sales force, Training by the manufacturer to the customers, Benefits of sales training, Sales training programs, Designing the training program, Implementing the training program, Evaluating training programs.

Chapter 12: Time and Territory Management: Time management and its importance - Better market coverage, Reduced selling costs, Improved customer service, More accurate evaluation of sales force personnel. Territory management and its importance, Benefits of territory management. Criteria for territory design - Sufficient potential, Reasonable size, Adequate coverage, Minimum impediments. Methods for designing territories - Buildup method, Breakdown method, Incremental method. Procedures for developing territories - Identify objectives and criteria for territory formation, Bases for developing territories. Assigning sales personnel to territories, Operating the territory management system - Routing, Scheduling.

Chapter 13: Compensating Sales Personnel: Objectives of compensation plans, Balancing the needs of personnel, Managing effects of time, Characteristics of compensation plans, Fairness to all, Flexibility, Provide incentive and motivation, Lead to direction of efforts towards company objectives, Ease of administration and comprehension, Types of compensation plans - Straight salary, Straight commission plans, Combination salary plans. Designing compensation plans, Determine specific objectives, Establish desired levels of earnings, Methods of payment, Implementing compensation plans, Sales contests, Planning sales contests, Evaluating sales contests, Sales force expenses - Expense plans, Types of expense plans, Fringe benefits, Elements in fringe benefit, Advantages of fringe benefits.

Chapter 14: Motivating the Sales Force: Concept of motivation, Motivational theories, Maslow's hierarchy of needs theory, Herzberg's two-factor theory, Goal setting theory, Expectancy theory, Job design theories. Motivation and productivity of the sales force - Sales productivity is defined as the ratio of sales revenues to sales expenses. Effect of personal characteristics on sales force motivation - Competitor, Achiever, Ego-driven, Service-oriented, Sales motivational mix, Motivating the sales personnel at different stages of their career - Exploration stage, Establishment stage, Maintenance stage, Disengagement stage.

Chapter 15: Leading the Sales Force: Nature of leadership, Characteristics of an effective leader, Personal characteristics of the manager. Needs and motives, Bases of power. Past experience. Leadership styles of sales Managers, Traditional leadership styles. Modern leadership. Skills essential for a leader - Delegation skills, Communication skills, Team-building skills, Administrative skills, Interpersonal skills.

Chapter 16: Evaluating Sales Force Performance: Sales force performance, Determinants of sales force performance - Internal factors, External factors. Performance evaluation - Purpose and reasons, Who should evaluate, When to evaluate, Information sources for evaluation, Criteria for the evaluation of sales force performance - Qualitative, Quantitative. Establishing performance standards, Methods of sales force evaluation - Essays, Rating scales, Forced choice method, Ranking, New methods of evaluation. Monitoring and reviewing sales force performance.

Part IV: Distribution Management
Chapter 17: Marketing Logistics: Logistics and its importance, Functions in logistics management - Procurement /Purchasing, Inward transport, Receiving, Warehousing, Stock control, Order picking, Materials handling, Outward transport, Physical distribution management, Recycling, Returns, and waste disposal. Importance of communication in logistics, Technology in logistics - Electronic data interchange (EDI), Artificial intelligence, Expert systems, Communication technology, Bar coding and scanning, Streamlining the logistics process. Strategic issues in logistics management, Local and global challenges in logistical management, Local challenges, Global challenges.

Chapter 18: Marketing Channels: Evolution of marketing channels - The production era, The sales era, The marketing era, Relationship marketing era. Channel members and their roles - Roles of channel members. Channel functions, Designing marketing channels - Channel structure, Channel intensity. Types of channel intermediaries at each level. Channel flows and costs.

Chapter 19: Channel Integration: Importance of channel integration, Vertical marketing systems, Types of vertical marketing systems - Corporate VMS, Administered VMS, Contractual VMS. Benefits and costs of vertical marketing systems, Horizontal marketing systems, Hybrid channel systems - Designing and managing hybrid channel systems.
 
Chapter 20: Channel Management: Recruiting channel members - Recruiting as a continuous process, Recruiting manufacturers, Screening. criteria for selecting channel partners - Sales factors, Product factors, Experience factors, Administrative factors, Risk factors. Motivating channel members - Distributor advisory councils. Evaluating channel members, Modifying channel arrangements, PLC changes, Customer-driven refinement of existing channels, Growth of multi-channel marketing systems. Managing channel relationships - Cooperation and coordination, Conflict, Power.

Part V: Channel Control

Chapter 21: Evaluating Channel Performance: Performance measures in Marketing Channels - Channel performance at a Macro Level, Channel performance at a Micro level. Models to Diagnose Channel Profitability - Strategic Profit Model, Economic Value Analysis. Appraisal of Channel Members' Contribution - Activity based costing, Direct product profit. Result of Channel Performance.

Chapter 22: Managing Channel Conflicts: Sources of Conflict - Goal incompatibility, Differing perceptions of reality, Clashes over domains. Types of conflicts - Pre-contractual and Post-contractual conflicts, Channel level conflicts. Conflict management techniques, Negotiation (Bargaining), Persuasive mechanism, Problem-solving strategies, Political strategies, Co-optation. Channel leadership - Role of leadership power in resolving conflicts.

Chapter 23: Channel Information Systems: Elements of channel information systems - Hardware and networks in an information system, Databases for channel information systems. Impact of information systems on channel flow - Transaction flow, Inventory flow, Distribution flow, Promotional flow, Negotiation flow. Impact of information systems on channel relationships - Power, Conflict, Cooperation and Coordination.

Part VI: Channel Institutions & Future Trends
Chapter 24: Wholesaling: Wholesaling and its importance, Types of wholesalers, Merchant wholesalers, Agents and brokers, Manufacturer's wholesalers, Strategic issues in wholesaling - Target market decisions, Marketing mix decisions, Trends shaping wholesale distribution - Functional overlap, Increased services, Pricing and credit, Regional coverage, Organizational form and size. Impact of information technology on wholesaling, Challenges in wholesaling, Inventory management, Sales management, Promotion management, Financial planning and management, Wholesaling in India, Future of wholesaling.

Chapter 25: Retailing: Retailing and its importance - Importance to consumers, Source of employment. Evolution of retailing - Wheel of retailing, Industrial revolution, Competition and trade-up, Regression and assimilation, Innovation. Classification of retailers - Classification based on type of ownership, Store-based retailers, Non-store based retailing, Non-traditional retailing, Service Vs Goods retail strategy mix. Strategic issues in retailing - Store location, Retail store image, Store size, Promotion, Role and impact of private brands on power of retailers. Trends in retailing, Future of Retailing, Global retailing, Retailing in India.

Chapter 26: Ethical and Social Issues in Sales & Distribution Management
Ethics in business, What is social responsibility?, Evolution of corporate social responsibility (CSR), Levels of social responsibility - Obeying the law, Meeting public expectations, Anticipating new social demands, Leading the way, What influences ethical behavior? - Individual's role, Organization's role. Management's ethical responsibilities, Ethical issues facing a sales manager, Ethical issues facing a salesperson.