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DISTRIBUTION

DISTRIBUTION STRATEGY AND THE STRATEGIC SELLING CYCLE

STRATEGY AND THE

STRATEGIC SELLING CYCLE

DISTRIBUTION MIX

DISTRIBUTION MIX  COVERAGE  HAVING THE PROPER TYPES OF OUTLET IN GEOGRAPHICAL  PLACEMENT 
  • COVERAGE

    • HAVING THE PROPER TYPES OF OUTLET IN GEOGRAPHICAL

  • PLACEMENT

    • HAVING A RIGHT TARGET NUMBER OF OUTLETS TO ENSURE CUSTOMER’S UTMOST CONVENIENCE

    • PLACE UTILITY FOR CONSUMER CONVIENENCE CALLS FOR INTENSIVE DISTRIBUTION SO THAT CUSTOMERS MAY GET THE PRODUCT WHERE THEY WANT THEM

DISTRIBUTION MIX

  • VOLUME

DISTRIBUTION MIX  VOLUME  THE RIGHT INVENTORY LEVEL IN THE STORES IS CRITICAL  TOO
  • THE RIGHT INVENTORY LEVEL IN THE STORES IS

CRITICAL

  • TOO MUCH INVENTORY OR “OVERLOADING” THE

OUTLETS, IS UNHEALTHY AS IT GOES AGAINST HOW A

CHANNEL MEMBER NORMALLY EARNS A PROFIT

  • SMALL AMOUT OF INVENTORY MAY RESULT IN OUT OF STOCK SITUATIONS

  • DISPLAY

    • THE RIGHT SHELF AND OFF-SHELF LOCATIONS PLUS ADEQUATE DISPLAY SPACE ASSURE MARKETERSA HIGHER PROBABILITY THAT CONSUMERS WILL CHOOSE THEIR BRAND OVER COMPETITION

DISTRIBUTION MIX

  • PRICING

DISTRIBUTION MIX  PRICING  HAVING THE RIGHT RESALE PROMOTES HEALTHY COMPETITION AMONG DEALERS  PRICE
  • HAVING THE RIGHT RESALE PROMOTES HEALTHY COMPETITION AMONG DEALERS

  • PRICE WARS ARE USUALLY AVOIDED, AS DEALERS DO NOT GAIN ANYTHING IN THE END

  • GOODWILL

    • REFERS TO THE BEST RELATIONSHIP BETWEEN A SUPPLIER AND HIS CHANNEL MEMBERS

    • ENABLES MARKETERS TO HAVE GOOD DISPLAY SPACE, AND IN SOME CASES ENABLES FIRMS TO HAVE ADVANCED NOTICE ANOUT IMPENDING COMPETITIVE PROMOTIONAL ACTIVITIES OR PRICE MOVEMENTS

STRATEGIC SELLING CYCLE

STRATEGIC SELLING CYCLE  SELLING TO END-USERS  PROSPECTING ------  PRE APPROACH ----  APPROACH
  • SELLING TO END-USERS

    • PROSPECTING ------PRE APPROACH ----APPROACH ---SALES PROBING ---PRESENTATION ---HANDLING OBJECTION ---DEMOMNSTRATION ---CLOSING

  • SELLING TO DISTRIBUTION CHANNELS

    • ROUTINE OBSERVATION ---DISPLAY CHECK ---WAREHOUSE CHECK ---COLLECTION ---PRESENTATION ---HANDLING OBJECTIONS ---SELL-OUT PLAN ---CLOSING

SELLING TO END-USERS

  • PROSPECTING

SELLING TO END-USERS  PROSPECTING  IDENTIFYING QUALIFIED POTENTIAL CUSTOMERS  THE SALES PERSON MUST OFTEN
  • IDENTIFYING QUALIFIED POTENTIAL CUSTOMERS

  • THE SALES PERSON MUST OFTEN APPROACH MANY PROSPECTS TO

GET JUST A FEW SALES

SALES PEOPLE CAN ASK CURRENT CUSTOMERS FOR REFERRALS OR SEARCH FOR PROSPECTS IN DIRECTORIES OR ON THE WEB AND TRACK DOWN LEADS USING TELEPHONE AND DIRECT-MAIL

PROSPECTS CAN BE QUALIFIED BY LOOKING AT THEIR FINANCIAL ABILITY, VOLUME OF BUSINESS, SPECIAL NEED, LOCATION AND POSSIBILITIES FOR GROWTH

  • PRE-APPROACH

    • THE SALES PERSON LEARNS AS MUCH AS POSSIBLE ABOUT A PROSPECTIVE CUSTOMER BEFORE MAKING A SALES CALL

SELLING TO END-USERS

  • APPROACH

SELLING TO END-USERS  APPROACH  THE SALESPERSON MEETS THE CUSTOMER FOR THE VERY FIRST TIME

THE SALESPERSON MEETS THE CUSTOMER FOR THE VERY FIRST TIME

  • PRESENTATION AND DEMONSTRATION

THE STEP IN THE SELLING PROCESS IN WHICH THE SALESPERSON TELLS THE “VALUE STORY” TO THE BUYER, SHOWING HOW THE COMPANY’S OFFER SOLVES THE CUSTOMER’S PROBLEMS

  • HANDLING OBJECTIONS THE SALES PERSON SEEK OUT, CLARIFIES ND OVERCOMES CUSTOMER OBJECTIONS TO BUYING

SELLING TO END-USERS

SELLING TO END-USERS  CLOSING  THE SALESPERSON ASKS THE CUSTOMER FOR AN ORDER  FOLLOW-UP
  • CLOSING THE SALESPERSON ASKS THE CUSTOMER FOR AN ORDER

  • FOLLOW-UP THE SALESPERSON FOLLOWS UP AFTER THE SALE TO ENSURE CUSTOMER SATISFACTION AND REPEAT BUSINESS

SELLING TO DISTRIBUTION

CHANNELS

SELLING TO DISTRIBUTION CHANNELS  ROUTINE OBSERVATION  THE MARKETER TRIES TO EXPLOIT OR A THREAT
  • ROUTINE OBSERVATION

THE MARKETER TRIES TO EXPLOIT OR A THREAT TO COUNTER OR PRE-EMPT

  • DISPLAY CHECK VISIT THE SELLING AREA OF THE RETAILER ON HIS PRODUCT’S PLACEMENT AND DISPLAY

  • WAREHOUSE CHECK DONE TO DETERMINE THE INVENTORY LEVEL OF THE FIRM’S PRODUCTS BEFORE COLLECTION OF ACCOUNTS IS DONE

SELLING TO DISTRIBUTION CHANNELS

SELLING TO DISTRIBUTION CHANNELS  COLLECTION  THE VOLUME FOR DELIVERY IS BASED ON AN AGREED
  • COLLECTION THE VOLUME FOR DELIVERY IS BASED ON AN AGREED JOINT FORECAST QUANTITY BETWEEN MANUFACTURER AND RETAILER.

  • EFFICIENT REPLENISHMENT AND OPERATING SYSTEM (EROS)

AUTOMATED WAY RETAILERS COMPUTE STOCK REPLENISHMENT BASED ON ACTUAL CONSUMER OFF-TAKE KNOWN THRU THE POINT-OF-SALE SCANNERS LOCATED IN THE

CHECKOUT COUNTER OF THE SUPERMARKETS

SELLING TO DISTRIBUTION

CHANNELS

SELLING TO DISTRIBUTION CHANNELS  PRESENTATION STAGE  THE MARKETER WOULD VISIT THE RETAILER TO INTRODUCE
  • PRESENTATION STAGE THE MARKETER WOULD VISIT THE RETAILER TO INTRODUCE NEW PRODUCTS, EXPLAIN NEW RESEARCHES, LAUNCH NEW PROMOTIONS, SHOW NEW DISPLAY MATERIALS OR INTRODUCE A NEW MEMBER OF HE TEAM

DISTRIBUTION CHANNELS

DISTRIBUTION CHANNELS  PERFORMS THE WORK OF MOVING PRODUCTS FROM MANUFACTURERS TO FINAL CONSUMERS OR BUSINESS
  • PERFORMS THE WORK OF MOVING PRODUCTS FROM MANUFACTURERS TO FINAL CONSUMERS OR BUSINESS USERS

  • A GOOD DISTRIBUTION CHANNEL SHORTEN THE TIME, PLACE, AND POSSESSION GAPS BETWEEN THE MANUFACTURERS AND CONSUMERS

DISTRIBUTION CHANNELS

  • DISTRIBUTORS

DISTRIBUTION CHANNELS  DISTRIBUTORS  APPOINTED TO PERFORM THE DISTRIBUTION FOR MANUFACTURERS IN MAKING THEIR PRODUCTS

APPOINTED TO PERFORM THE DISTRIBUTION FOR MANUFACTURERS IN MAKING THEIR PRODUCTS AVAILBLE

DISTRIBUTORS MAY SELL TO WHOLESALERS OR RETAILERS OR MAY EVEN GO DIRECTLY TO CONSUMERS

  • WHOLESALING ACTIVITIES OF A PERSON OR ORGANIZATIONS THAT SELL TO THOSE WHO BUY FOR RESALE (RETAILERS) OR BUSINESS USE (INDUSTRIAL, INSTITUTIONAL, AND COMMERCE USERS). THEY LESSEN THE INTERACTION BETWEEN MANUFACTURERS /PRINCIPALS ND RETAILERS

DISTRIBUTION CHANNELS

DISTRIBUTION CHANNELS  DIVISORIA  LOCATED IN TONDO, MANILA AND IS THE CENTER OF TRADE BETWEEN
  • DIVISORIA LOCATED IN TONDO, MANILA AND IS THE CENTER OF TRADE BETWEEN METROM MANILA AND THE PROVINCES

WHOLESALERS IN DIVISORIA PURCHASE PRODUCTS ON VOLUME BASIS AND MOSTLY ENJOY VOLUME REBATE ARRANGEMENTS WITH MANUFACTURERS OR DISTRIBUTORS

  • JOBBERS

    • ARE WHOLESALERS WHO ALSO PROVIDE WAREHOUSING

SPACE FOR MANUFACTURERS AND DISTRIBUTORS, THUS ENABLING THE LATTER TO AVOID A FIXED COST

DISTRIBUTION CHANNELS

  • EX-TRUCK

DISTRIBUTION CHANNELS  EX-TRUCK  A SALES OPERATION WHERE THE EX-TRUCK SALESMAN CARRIES STOCKS IN HIS

A SALES OPERATION WHERE THE EX-TRUCK SALESMAN CARRIES STOCKS IN HIS VAN OR SMALL TRUCJK, SATURATES A GIVEN

TERRITORY REGULARLY BY SELLING HIS STOCKS ON “CASH” ASIS,

AND DELIVERS THE STOCKS IMMEDIATELY UPON ORDER CATERS THE NEEDS OF RETAILERS LIKE SARI-SARI STORE

  • FEEDER

A DISTRIBUTOR SALESMAS GOES AROUND BY HIMSELF TO TAKE ORDERS AND RELAYS THESE TO A DELIVERY TEAM WHO WILL BRING THE ORDERS TO THE RETAILERS

THE ADVANTAGE OF THE FEEDER MODEL OVER THE EX-TRUCK MODEL IS THAT THE SALESMAN IS ABLE TO SELL MORE THAN HIS TRUCK WOULD NORMALLY CONTAIN

DISTRIBUTION CHANNELS

DISTRIBUTION CHANNELS  RETAILING  ACTIVITY INVOLVING THE SALE OF PRODUCTS OR SERVICES DIRECTLY TO FINAL
  • RETAILING ACTIVITY INVOLVING THE SALE OF PRODUCTS OR SERVICES DIRECTLY TO FINAL CONSUMERS

  • FRANCHISING A FRANCHISE FEE IS PAID TO THE FRANCHISE OWNER IN EXCHANGE OF AN ESTABLISHED BRAND NAME, A PROVEN

SYTM OF OPERATION, TRAINING AND OTHER

INFRASTRUCTURE SUPPORT

THE RULE OF THUMB IS TO HAVE AT LEAST 100,000 POTENTIAL QUALIFIED CUSTOMER S FOR EVERY FRANCHISE

DISTRIBUTION CHANNELS

DISTRIBUTION CHANNELS  DIRECT SELLING  NETWORK MARKETING IS ALSO KNOWN AS TH “PEOPLE’S FRANCHISE BECAUSE
  • DIRECT SELLING NETWORK MARKETING IS ALSO KNOWN AS TH “PEOPLE’S FRANCHISE BECAUSE A SELLER SECURES THE RIGHT TO SELL A

COMPANY’S PRODUCT, FOLLOS A PROVEN SYSTEM OF

SELLING, AND HAS ACCESS TO TRAINING AND OTHER

ADMINISTRATIVE SERVICES EVEN IF THERE IS NO FRANCHISE FEE PAID

THE DSAP TRIES TO PROTECT THE CONSUMER RIGHTS AND FIGHTS PYRAMIDING COMPANIES THAT USE NETWORK MARKETING AS THEIR FRONT

DISTRIBUTION CHANNELS

  • INTERNET

BUSINESS TO BUSINESS MARKETING IS ALSO GIVING A DIFFERENT FACE TO THE SELLING PROCESS AS COMPANIES REALIZE THAT SUBSTANTIAL MONEY AND TIME CAN BE SAVED FROM THE PAPERLESS E-MARKETPLACE POPULARIZED BY ORACLE SOFTWARE.

DISTRIBUTION CHANNELS  INTERNET  BUSINESS TO BUSINESS MARKETING IS ALSO GIVING A DIFFERENT FACE TO

30-50% CAN BE SAVED IN ORDER CYCLE TIME LESSER INVENTORY AND INVENTORY COST, AND GREATER FLEXIBILITY TO RESPOND TO THE FAST CHANGING MARKETPLACE

  • HOME DELIVERY

INVOLVES APPOINTING A CENTRALIZED CALL CENTER OPERATOR WHO IS TASKED TO TAKE OR SUGGEST ORDERS AS WELL AS SEND THESE ORDERS TO THE BRANCH NEAREST THE

CUSTOEMR

DIAGNOSTIC DISTRIBUTION

 USED TO MEAN THE PROPER MATCHING OF DISTRIBUTION CHANNELS TO THE SELLING PROCESS DIRECT MAIL
USED TO MEAN THE PROPER MATCHING OF DISTRIBUTION
CHANNELS TO THE SELLING PROCESS
DIRECT MAIL
TELEMARKETING
DIRECT SELLING
SALES PROBING
SALES PRESENTATION
HANDLING OBJECTIONS
RETAILING
CLOSING
DEALERS
PROSPECTING
QUALIFYING SALES
APPROACH
DEMONSTRATION
AFTER SALES SERVIICE

STRATEGIC ALLIANCES

  • TRADE CUSTOMERS AND SUPPLIERS ENTER INTO A STRATEGIC ALLIANCE TO ATTAIN SOME LONG- TERM OBJECTIVES AND MUTUALLY IMPROVE THEIR POSITION IN THE INDUSTRY

STRATEGIC ALLIANCES  TRADE CUSTOMERS AND SUPPLIERS ENTER INTO A STRATEGIC ALLIANCE TO ATTAIN SOME LONG-

TEAM SELLING AS AN INITIAL STEP TO STRATEGIC ALLIANCE

  • THE GENERAL THRUST ID “PARTNERSHIP”- WHATEVER IS THE PARTNER’S PROBLEM IS THE

PROBLEM OF THE OTHER PARTY

STRATEGIC ALLIANCES  TRADE CUSTOMERS AND SUPPLIERS ENTER INTO A STRATEGIC ALLIANCE TO ATTAIN SOME LONG-

SALESMAN AS ONLY LINK

ALLIANCES AMONG COMPETITON

ALLIANCES AMONG COMPETITON  COMPETITION CAN SOMETIMES COLLABORATE IF THE COLLABORATION WILL RESULT IN THE OVERALL
  • COMPETITION CAN SOMETIMES COLLABORATE IF THE COLLABORATION WILL RESULT IN THE OVERALL INCREASE OF SATISFACTION OF EACH COMPETITOR’S CUSTOMERS AS WELL AS FOR COST-EFFICIENCY

EVALUATING DISTRIBUTION CHANNELS

EVALUATING DISTRIBUTION CHANNELS  COST-EFFICIENCY  IT IS IMPORTANT TO ESTIMATE THE LONG TERM IMPCT OF
  • COST-EFFICIENCY IT IS IMPORTANT TO ESTIMATE THE LONG TERM IMPCT OF HAVING ONE’S OWN SALES FORCE VERSUS APPOINTING A DISTRIBUTOR

  • CONTROL IT IS IMPORTANT THAT THE OBJECTIVES, PRIORITIES AND EXPECTATIONS OF THE FIRM BE COMMUNICATED AND AGREED UPON BEFORE PRINCIPALS ARRE CHOSEN AND DISTRIBUTORS ARE APPOINTED.

EVALUATING DISTRIBUTION CHANNELS

EVALUATING DISTRIBUTION CHANNELS  CHANNEL MODIFICATION  THE MARKET PLACE I EVERCHANGING. THE FLEXIBILITY TO MODIFY
  • CHANNEL MODIFICATION

  • THE MARKET PLACE I EVERCHANGING. THE FLEXIBILITY TO MODIFY DISTRIBUTION MAY BE NEEDED

  • OTHER CHANGES IN THE CONSUMER PURCHASING PATTERN SUCH AS WHEN NEW COMPETITION ARISES,AND WHEN INNOVATIVE DISTRIBUTION EMERGES, MUST ALSO BE CONSIDERED

BACKWARD DISTRIBUTION

BACKWARD DISTRIBUTION  IF MARKETERS WILL NOT SHOW RESPONSIBILITY FOR THE ENVIRONMENT, THE GOVERNMENT WILL LIKELY
  • IF MARKETERS WILL NOT SHOW RESPONSIBILITY FOR THE ENVIRONMENT, THE GOVERNMENT WILL LIKELY BE FORCED TO ENACT LAWS AND MAKE THE RECOVRY OF A COMPANY’S PRODUCT TRASH COMPULSORY FOR EACH MANUFACTURER

GRAY MARKETING

GRAY MARKETING  A TERM USED TO DESCRIBE UNAUTHORIZED IMPORTATION AND DISTRIBUTION OF PRODUCTS BEARING GENUINE
  • A TERM USED TO DESCRIBE UNAUTHORIZED IMPORTATION AND DISTRIBUTION OF PRODUCTS BEARING GENUINE BRANDS ACROSS THE MARKET

  • DIFFERENT FROM SELLING IMMITATED BRANDS