Sales and Distribution Management
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Questions and Answers

Which sales channel involves no middlemen?

  • Selective Distribution
  • Exclusive Distribution
  • Direct Distribution (correct)
  • Intensive Distribution

    • What is a key focus of sales promotions?

  • Encouraging one-time purchases
  • Encouraging repeat purchases (correct)
  • Building distribution channels
  • Eliminating competition

    • Which factor is least important when choosing a sales channel?

  • Channel costs
  • Product life
  • Personal preferences (correct)
  • Profit potential

    • What type of distribution ensures maximum exposure to as many outlets as possible?

    <p>Intensive Distribution</p> Signup and view all the answers

    Which of the following is a characteristic of industrial selling?

    <p>Complex purchasing decisions</p> Signup and view all the answers

    What does Physical Distribution Management (PDM) NOT include?

    <p>Sales Promotions</p> Signup and view all the answers

    What is a potential benefit of selective distribution?

    <p>Controlled product quality</p> Signup and view all the answers

    In a competitive market, one objective of sales promotions is to:

    <p>Attract consumers to specific outlets</p> Signup and view all the answers

    What is the primary function of exhibitions in sales promotions?

    <p>To build goodwill and prepare for future sales</p> Signup and view all the answers

    Which of the following is NOT considered a basic public in public relations?

    <p>Competitors</p> Signup and view all the answers

    What do premium promotions primarily aim to achieve?

    <p>Increase sales margins</p> Signup and view all the answers

    Which factor is NOT typically considered when choosing distribution partners?

    <p>The partner's employee turnover</p> Signup and view all the answers

    What kind of promotional strategy involves giving free trials to consumers?

    <p>Pull promotions</p> Signup and view all the answers

    Which of the following best describes the nature of public relations?

    <p>A deliberate and sustained effort for mutual understanding</p> Signup and view all the answers

    In the context of sales channels, why is segmentation important?

    <p>To tailor marketing efforts to specific groups</p> Signup and view all the answers

    What is an example of a pull promotion?

    <p>On-pack gifts with purchase</p> Signup and view all the answers

    How do behavioral forces impact sales in today's market?

    <p>Behavioral forces influence consumer buying patterns, preferences, and responses to promotions, significantly affecting overall sales.</p> Signup and view all the answers

    What technological forces should a sales executive consider when selling products?

    <p>Technological forces include advancements in digital marketing, e-commerce platforms, and data analytics that can enhance sales strategies.</p> Signup and view all the answers

    Why is it crucial for businesses to evaluate distribution partners carefully?

    <p>Businesses must consider factors like reach, reliability, and compatibility with their products to maximize sales effectiveness.</p> Signup and view all the answers

    Explain how segmentation and targeting can optimize sales channels.

    <p>Segmentation and targeting allow businesses to tailor their approaches to specific customer groups, enhancing engagement and conversion rates.</p> Signup and view all the answers

    What is one key benefit of using pull promotions?

    <p>Pull promotions create consumer demand by encouraging buyers to seek out a product, leading to increased sales and brand loyalty.</p> Signup and view all the answers

    What role do exhibitions play in sales promotions?

    <p>Exhibitions build goodwill and prepare the market for future sales by showcasing products and engaging directly with consumers.</p> Signup and view all the answers

    How do loyalty programs function as sales promotions?

    <p>Loyalty programs incentivize repeat purchases through point accumulation, encouraging consumer retention and increased sales.</p> Signup and view all the answers

    Identify a characteristic of successful public relations efforts.

    <p>Successful public relations efforts are characterized by consistent communication that nurtures mutually beneficial relationships with various stakeholders.</p> Signup and view all the answers

    What are two key factors to consider when evaluating potential distribution partners?

    <p>The market and channel costs are key factors to consider.</p> Signup and view all the answers

    How does product life influence the choice of a sales channel?

    <p>Product life affects the urgency of sales strategies and inventory practices, guiding whether a direct or selective channel is appropriate.</p> Signup and view all the answers

    What is the primary aim of sales promotions in relation to customer behavior?

    <p>Sales promotions aim to encourage repeat purchases and build long-term customer loyalty.</p> Signup and view all the answers

    Define 'exclusive distribution' and provide a benefit of this strategy.

    <p>Exclusive distribution involves selling through a restricted number of dealers; it can enhance brand prestige.</p> Signup and view all the answers

    In what way does physical distribution management (PDM) impact customer satisfaction?

    <p>PDM ensures efficient logistics and timely delivery, which directly enhances customer satisfaction.</p> Signup and view all the answers

    Describe how a sales executive might use public relations to benefit sales.

    <p>A sales executive can use public relations to build brand awareness and foster positive relationships with stakeholders.</p> Signup and view all the answers

    What role does channel structure play in choosing a sales channel?

    <p>Channel structure influences how products reach customers and impacts the efficiency of distribution.</p> Signup and view all the answers

    How do logistics activities like order processing affect sales performance?

    <p>Effective order processing enhances speed and accuracy, ultimately boosting customer satisfaction and sales performance.</p> Signup and view all the answers

    Study Notes

    Learning Objectives

    • Understand sales channels
    • Understand sales promotions
    • Understand exhibitions
    • Understand the importance of public relations

    Environmental Factors Affecting Sales

    • Unclear environmental factors affecting sales

    Activities of Distribution Channels

    • Logistic or Physical Distribution Management (PDM) involves order processing, material handling, warehousing, inventory control, and physical distribution.

    Logistics or Physical Distribution Management (PDM)

    • Order processing
    • Material Handling
    • Warehousing
    • Inventory control

    Choosing a Sales Channel

    • Consider market factors.
    • Consider channel cost.
    • Consider product.
    • Consider profit potential.
    • Consider channel structure.
    • Consider product life-cycle.

    Four Types of Distribution

    • Direct: No middlemen
    • Selective: Sell to limited number of middlemen
    • Intensive: Maximum exposure to as many outlets as possible.
    • Exclusive: Restricted number of dealers.

    Industrial / Commercial / Public Authority Selling

    • Fewer Markets
    • Concentrated markets
    • Complex purchasing decisions
    • Long-term relationships
    • Reciprocal trading

    Selling Services

    • Unspecified content about selling services.

    Sales Promotions

    • Encourage repeat purchases
    • Building long-term consumer loyalty
    • Encourage consumers to visit a particular sales outlet
    • Building up retail stock levels
    • Widening or increasing the distribution of a product or brand.

    Sales Promotions - Areas

    • Consumer promotions (pull): Encourage consumers to buy a product
    • Trade promotions (push): Encourage wholesalers and retailers to stock a product
    • Personal motivation: Motivate salespeople to sell a product

    Sales Promotions - Examples

    • Price reductions
    • Voucher or coupons
    • Gifts
    • Competition
    • Lotteries
    • Cash bonuses
    • Premiums
    • Discounts
    • Free Holidays
    • Continuities
    • Bonus
    • Collection of points, stamps, vouchers converted to merchandise

    Exhibitions

    • The function of exhibitions is to build goodwill and prepare for future sales.
    • Characteristics of exhibitions include: wide range of products, large number of competitors, good amount of information on products, large number of new products, nearness to the buyer’s home base, good exhibition hall facilities, a simple and neat stand.

    Public Relations – Nature and Role

    • Public relations is the deliberate, planned, and sustained effort to establish and maintain mutual understanding between an organization and its public.

    Public Relations - Basic Publics

    • The community
    • Employees
    • The government
    • The financial community
    • Distributors
    • Consumers
    • Opinion leaders

    ### Learning Objectives

    • Understand sales channels
    • Understand sales promotions
    • Understand exhibitions
    • Understand the importance of public relations

    Environmental Factors Affecting Sales

    Activities of Distribution Channels

    • Logistics / Physical Distribution Management (PDM)
      • Order processing
      • Material handling
      • Warehousing
      • Inventory Control

    Choosing a Sales Channel

    • Factors to consider:
      • The market
      • Channel costs
      • The product
      • Profit potential
      • Channel structure
      • Product life-cycle

    Four Types of Distribution

    • Direct: No middlemen
    • Selective: Sell to a limited number of middlemen
    • Intensive: Maximum exposure – to as many outlets as possible
    • Exclusive: Restricted number of dealers

    Industrial / Commercial / Public Authority Selling

    • Fewer markets
    • Concentrated markets
    • Complex purchasing decisions
    • Long-term relationships
    • Reciprocal trading

    Selling Services

    Sales Promotions

    • Repeat purchases
    • Building long-term customer loyalty
    • Encouragement of consumers
    • Building up of retail stock levels
    • Widening or increasing the distribution of a product or brand

    Sales Promotions - Areas

    • Consumer Promotions (Pull)
      • Premiums
      • On-pack gifts
      • Free samples
      • Coupon plans
      • Free holidays
      • Continuitis
    • Trade Promotions (Push)
      • Price reductions
      • Vouchers or coupons
      • Gift
      • Competitions
      • Lotteries
      • Cash bonuses
    • Personal Motivation Sales Incentives
      • Discounts
      • Bonus schemes
      • Collection of points, stamps, vouchers and conversion to merchandise

    Exhibitions

    • The function of exhibitions is to build up goodwill and prepare the way for future sales
    • Characteristics of exhibitions:
      • A wide range of products
      • A large number of competitors
      • A good amount of information on the products on show
      • A large number of new products
      • Nearness to the buyer’s home base
      • Good exhibition hall facilities
      • A simple stand that is always neat (no personal effects on show)

    Public Relations – Nature and Role

    • PR practice is the deliberate, planned and sustained effort to establish and maintain mutual understanding between an organization and its public
    • Basic Publics:
      • The community
      • Employees
      • The Government
      • The financial community
      • Distributors
      • Consumers
      • Opinion Leaders

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    Related Documents

    Selling and Sales Management Lecture 2 PDF

    Description

    This quiz focuses on the fundamentals of sales channels, promotions, and the importance of public relations. It also covers logistics management, distribution strategies, and factors influencing the choice of sales channels. Test your knowledge on how to effectively manage sales and distribution processes.

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