Professional Documents
Culture Documents
and Management
Distribution’s Function
• The major purpose of marketing is to satisfy
human needs by delivering products of various
types to buyers when and where they want them
and at a reasonable cost.
• The “when and where” is the function of
Distribution
What is a Distribution Channel?
P C
R O
O N
D S
U DISTRIBUTION U
C M
E E
R R
Channel Strategy
Integrated View of Channel Strategy
The Three Disciplines of Channel Stewardship
Mapping the Four Forces Affecting
Channel Strategy
Channel Evolution in the
Personal Computer Industry
Framework
for Building
and Updating
a Channel
Value Chain
Channel Structure
Aligning Channel Intermediaries
Four-Step Channel System Alignment Process
Exhibit 1: Key Concepts and Ideas: Margins
and Channel Activities
Exhibit 2: Mapping the Forces
Affecting Channel Strategy
Exhibit 3: The Structural Constraints
for Each Channel Structure Option
Exhibit TN.4: The Profit-Maximizing
Effort Levels for Each Option
Distribution Channel Functions
Information
Transfer
Communication
Payments
Negotiation
Physical
Distribution
Ordering
Risk Taking
Financing
Typical Channels of Distribution
ANUFACTURER ONSUMER
GENT
ETAILER
HOLESALER
Business-to-Business Channels
Direct
Wholesaler
Agent
Business-to-Business Channel Trends
Manufacturer
Manufacturer
Wholesaler
Wholesaler
Retailer Retailer
Consumer Consumer
Types of Vertical Marketing Systems
Corporate
Common Ownership at Different
Levels of the Channel
Administered
Leadership is Assumed by One or
a Few Dominant Members
Contractual
Contractual Agreement Among
Channel Members
Vertical Marketing Systems
Intensive
Distribution
Exclusive Distribution
Distribution Intensity
Selective
Distribution
Intensive Distribution
Producer
Producer
Producer
Product is sold in
only one outlet in
Retailer
a given area
Developing Distribution Tactics
Reward or
Economic Legitimate
Coercive
Power Power
Power
• Conflict
• Power
– Coercive
– Expert
– Legitimate
Decision Making Framework
One thousand
retailers
Sales Management
Sales Force
Serves as a Critical Link
Between a Company and its Customers Since They:
Represent Customers to
the Company to Produce
Customer Satisfaction
Characteristics of Personal Selling
Order taking
• Routine
– writing up orders
– checking invoices
– assuring prompt order
processing
• Suggestive selling
Personal Selling Tasks
Order getting
• Seeking out
customers
• Creative selling
• Pioneering
• Account management
Personal Selling Tasks
• Missionary
– Detailer
– Goodwill
– “Closers”
• Cross-functional
• Account service rep
Aligning Strategy and Sales
Sizing a Sales Force
Selling as a Boundary Role
Factors Affecting Job Attitudes
Effective Sales Compensation Systems
Some Traits of Good Salespeople
Steps in the Selling Process
Find ’em
Grab ‘em
Show ‘em
Answer ‘em
Sell ‘em
Keep ‘em
Creative Selling Process
Sales Presentation
• Persuasive
communication
• Attention
• Interest
• Desire
• “Tell the product’s story”
Creative Selling Process
Handling Objections
– Questions
– Reservations
• Understand Concern
• Counterarguments
• Acknowledge concern
• Clues to process
Creative Selling Process
Following Up
• Commitments met
– Shipment
– Performance
• Reinforce relationship
• Satisfied customers
rebuy & recommend
Sales Management
Setting Organizing
objectives Planning Organizing activities
Recruit,
Motivate, select,
evaluate, train,
& control develop,
Controlling Directing
manage, &
motivate
Organizing Sales Activities
Sales Territory:
• Geographic divisions
• Customer types
• Product lines
• Selling task
Geographic Division
Vice-President
Marketing
Vice-President
Sales
Vice-President
Sales
Straight
salary or
wage
Salary plus Straight
commission commission
Quota-bonus Commission
plan with draw
Evaluation and Control
• Required reports
• Measurement against
plan or sales
standards
• Expense control
• Productivity
• New account
development
Ethical Issues
• Kickbacks, bribes and
“gifts”
• Price discrimination
• Cheating on expense
accounts
• Misrepresentation