DISTRIBUTION

STRATEGY AND THE

STRATEGIC SELLING
CYCLE
DISTRIBUTION MIX
COVERAGE
HAVING THE PROPER TYPES OF OUTLET IN
GEOGRAPHICAL

PLACEMENT
HAVING A RIGHT TARGET NUMBER OF OUTLETS TO
ENSURE CUSTOMERS 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
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
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
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





PROSPECTING
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
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
COMPANYS OFFER SOLVES THE CUSTOMERS 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
THE SALESPERSON FOLLOWS UP AFTER THE SALE TO
ENSURE CUSTOMER SATISFACTION AND REPEAT
BUSINESS
SELLING TO DISTRIBUTION
CHANNELS

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
PRODUCTS PLACEMENT AND DISPLAY
WAREHOUSE CHECK
DONE TO DETERMINE THE INVENTORY LEVEL OF
THE FIRMS PRODUCTS BEFORE COLLECTION OF
ACCOUNTS IS DONE


SELLING TO DISTRIBUTION
CHANNELS

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

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

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
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

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
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
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
DIRECT SELLING
NETWORK MARKETING IS ALSO KNOWN AS TH PEOPLES
FRANCHISE BECAUSE A SELLER SECURES THE RIGHT TO SELL A
COMPANYS 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.
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 PROSPECTING
TELEMARKETING QUALIFYING SALES
DIRECT SELLING APPROACH
SALES PROBING
SALES PRESENTATION
HANDLING OBJECTIONS
RETAILING DEMONSTRATION
CLOSING
DEALERS 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
THE GENERAL THRUST ID PARTNERSHIP-
WHATEVER IS THE PARTNERS PROBLEM IS THE
PROBLEM OF THE OTHER PARTY

SALESMAN AS ONLY LINK
TEAM SELLING AS AN INITIAL
STEP TO STRATEGIC ALLIANCE
ALLIANCES AMONG
COMPETITON
COMPETITION CAN SOMETIMES COLLABORATE IF
THE COLLABORATION WILL RESULT IN THE OVERALL
INCREASE OF SATISFACTION OF EACH
COMPETITORS CUSTOMERS AS WELL AS FOR
COST-EFFICIENCY
EVALUATING DISTRIBUTION
CHANNELS
COST-EFFICIENCY
IT IS IMPORTANT TO ESTIMATE THE LONG TERM IMPCT OF
HAVING ONES 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
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
IF MARKETERS WILL NOT SHOW RESPONSIBILITY FOR
THE ENVIRONMENT, THE GOVERNMENT WILL LIKELY
BE FORCED TO ENACT LAWS AND MAKE THE
RECOVRY OF A COMPANYS PRODUCT TRASH
COMPULSORY FOR EACH MANUFACTURER
GRAY MARKETING
A TERM USED TO DESCRIBE UNAUTHORIZED
IMPORTATION AND DISTRIBUTION OF PRODUCTS
BEARING GENUINE BRANDS ACROSS THE MARKET
DIFFERENT FROM SELLING IMMITATED BRANDS