gtm manual

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Lodhi Road & Gurgaon

Module Manual: Going To Market: Managing the Channel & the Sales ForceAcademic Year: PGP 2012- 2014

Module Code: MK-401-13Course Credits: 03Course Marks: 30

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1-INTRODUCTION TO THE COURSE

Going to Market introduces the students to the sales and distribution discipline as the final delivery vehicle of marketing and covers elaborately its two constituents --Managing the Channel (External to the organization) and the Sales Force (Internal to the organization).

A product or service has been produced basis the needs of customers. To take the product to the customer is all about going to the market. A process of system has to be established and people have to be engaged in running the system to deliver. The system is distribution and people are sales force. The system and people are to be managed by Sales Manager.

Over the years there has been a growing importance of marketing channels as a strategic component of the marketing mix along with other strategic components of product, price and promotion. The selection or choice of the appropriate channel will result into efficiencies and competitiveness.

The effectiveness of the sales force depends, to a large extent, on the Sales Manager who directs leads and motivates its members. In depth understanding and skills are required to lead such a force to a higher productivity or else it can result in lost opportunities in the marketplace and a demoralized and disoriented sales team.

The thrust of this highly interactive program is in capturing the following key elements: Understanding the concepts Situation Analysis Case Studies Presentations Live projects & Assignments

By the end of this module students will have learnt how to do at least three things;

1. Develop competence and the competitiveness in dealing with complexities in marketing channels 2. Understand the distribution strategy, management of the marketing channels, organizational efficiency et al

not only for an urban market but for the rural too. 3. Have a clear understanding of the key underlying principles in managing a sales team in today’s competitive

and complex market place

Course Structure:

The emphasis in the course is on understanding a small number of general principles and being able to apply these principles effectively in business. Problem-solving through business case discussions will be an integral part of the learning experience. Although case discussions permeate all of the course session slots, some sessions will focus more on building analytical tools. In particular, there will be two types of session slots

Regular class room interactive sessions, where concepts are discussed and applied mainly to stylized busi -ness examples.

Case discussion sessions, where more extensive discussions of real-world managerial problems give students an opportunity to apply tools already seen in previous sessions or to develop new ones with the purpose of providing managerial solutions to the case problems.

Field projects and assignments.

These learning objectives will be attained in 3 Topics mentioned below, each of which is further broken into 20 Sessions covering a total of 30 contact hours:

1-Managing marketing channels

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2-Distribution Strategy for rural markets

3-Selling and Sales management

A class-by-class outline of the course is provided on the following page.

2. INTRODUCTION TO THE TUTORS

2.1 Area Chair: Name : Prof Sujit SenguptaPhone Number: 9811076737Email ID: [email protected] Location: Lodhi Road

2.2 Module Leader:Ruchi Shah

2.3 Tutorsi) Ruchi Shahhttp://www.iilm.edu/faculty/profiles/ruchi-shah.html

ii) Ms Poonam Nairhttp://www.iilm.edu/faculty/profiles/poonam-nair.html

iii) Ms Radhika Madanhttp://www.iilm.edu/faculty/profiles/radhika-madan.html

4. Module Pre-Requisites: Students must understand the concepts of marketing well delivered as Pre-term module- ‘Basics of Marketing’ and Term 2 – ‘Customer’ running simultaneously.

4-MODULE OVERVIEWPART ASession TopicsSession 1 Managing Marketing Channels- Marketing Channel Concepts (LECTURE)Session 2 The Channel Participants (LECTURE)Session 3 Marketing Channel – Retail and Wholesale (LECTURE)Session 4 Case Discussion - Footwear (India) Ltd (SEMINAR)Session 5 Environments of Marketing Channel (SEMINAR)Session 6 Designing the Channel system (LECTURE)Session 7 Case discussion on Design and Implementation-

Teekha Spices Ltd and Ashwin Healthcare Ltd (SEMINAR)Session 8 Recent Trends in Channel Information Systems: ERP (LECTURE)Session 9 Case discussion on Case Zara- IT for Fast Fashion (SEMINAR)Session 10 Market Logistics & Supply Chain Management (LECTURE)Session 11 Case Discussion on Nortan India Ltd (SEMINAR)Session 12 Marketing Channels for Services (LECTURE)Session 13 Direct Selling Systems and Direct Marketing Channel Systems (LECTURE) Session 14 Case Discussion Future of Avon China – (SEMINAR)Session 15 Distribution Strategy for Rural markets-

Introduction to Rural Marketing (LECTURE)Session 16 Case discussion on The Role of the Distribution Network In Non-Urban

Markets – “Hero Honda-Har Gaon Har Aangan” (SEMINAR) of 24

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Session 17 Reading discussion on Rural Distribution- Micro-financing (SEMINAR)Co Teaching - Finance Area

Session 18 Selling and Sales Management-Introduction to Sales Management(LECTURE)

Session 19 Case Discussion on Mephisto Products Ltd (SEMINAR)Session 20 Types of Sales Organization (LECTURE)Session 21, 22 Designing and Organizing the Sales Force (LECTURE)Session 23 Recruiting and Selecting the “Right Sales People” (LECTURE)Session 24 Training and development of Sales force (LECTURE)Session 25, 26 Managing the Sales force (LECTURE)Session 27 Efficiency of Sales Organization-Time Management (LECTURE)

5. Module Readings-

The prescribed readings in the course will provide a good theoretical construct to the subject that needs to be supplemented with reading of web resources to understand managing channels and sales force. You are encouraged to access the library for reference books and also read news paper and magazine articles related to the course.

5.1. Texts and References:

1-Marketing Channels - Bert Rosenbloom, 7e India Edition CENGAGE Learning 2- Sales Management – Tanner Honeycutt Erffmeyer Seventh Edition Pearson Publication3-Sales and Distribution Management Text and Cases- Krishna K Havaldar, V M Cavale Mc Graw Hill Publication4-Marketing Channels – Coughlan Anderson Seventh Edition Pearson Publication5-Selling and Sales Management – David Jobber Geoffrey Lancaster Seventh Edition Pearson Publication6-Rural Marketing - Pradeep Kashyap & Siddhartha Raut biztantra Publication dreamtech Press7-Sales and Distribution Management - Tapan Panda

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SESSION PLAN

Topic 1 - MANAGING MARKETING CHANNELS

Session 1: Marketing Channel ConceptsMarketing channels makes us reach the market and this refers to managing the movement of goods from supplier to the point of sale or consumption. In this session we will determine the strategic needs of the distribution channel and requirements from these channels.

The example of Tea Selling in Taiwan highlights the role of the middleman in terms of facilitating search, sorting, accumulating and minimizing the no of contacts,

Required Reading: Tea selling in Taiwan: the key roles of tea middlemen Source: Chapter 1 (page 10) Marketing Channels by Coughlan Anderson Stern, Seventh Edition, Published by Prentice Hall

Reference video:http://www.youtube.com/watch?v=ShdyWIa_GSk (43min)

Learning Outcomes: This session will make the student understand the need for reaching the goods to the customer in an efficient manner.

Session 2: The Channel ParticipantsThis session will deal with the functions of core members of the marketing channels and intermediaries who provide support in terms of transportation, banking, and insurance etc. referred as facilitators. Required Reading: Will the real channel manager please stand up?

Source: Moodle

Learning Outcomes: This session will make the student understand the types and roles of channel partners such as distributors, wholesalers, retailers etc

Session 3: Marketing Channel – Retail and WholesaleRetailer is the last link in going to the market. This session introduces students to the functions, classification and limitations of the retail and the trends in retail. Moreover retailing today has to constantly reinvent itself in new ways to thrive. Modern retail has become one of the most strategic distribution models for reaching/tapping the market. This session also discusses various retail formats including the electronic retail and strategies designed to distribute through them.Also they would learn about the functions, classification, limitations and major decisions related to wholesale channel management and introduction to different nomenclature for defining wholesale functions

Required Reading: Chapter 10 and 11 Sales and Distribution Management by Havaldar and Cavale Published by Mc GrawHill

Reference video:http://www.youtube.com/watch?v=6UXQRHObj1Q&feature=related (2:23 min)Learning Outcome: The students will understand the Indian retail scene and trends, development of retail strategy and concept of franchising. Also they will develop an understanding of the retail formats (location formats, merchandise based formats, size- based formats, price based formats, ownership based formats) and the retail

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strategy with respect to channel partners.Also they will be able to learn the types, functions and limitations of a wholesaler and a key understanding of the functions of a distributor, dealer, stockist and their evaluation criteria

Session 4: Case Discussion on Marketing Channel – Wholesale (SEMINAR)Case Title Footwear (India) LtdOverviewThe case is about a leading footwear company – Footwear India Ltd, having an efficient distribution network whose market share has declined in the recent past due to the entry of various competitors including foreign brands. However with changing times a realization has occurred that the entire distribution structure and strategy needs rationalization

Discussion Question1- If you were Rakesh Tandon what suggestions would you give and why to arrest the declining market share?

Required Reading: Case on Footwear (India) Ltd. Havaldar, Cavale Case 2 page C11

Learning Outcome: Post this session the students will be able to learn reiterate the types, functions and limitations of a wholesaler done in the previous session and understand functions of a distributor, dealer, stockist and their evaluation criteria.

Session 5: Environments of Marketing Channel (SEMINAR)Marketing channels do not exist in vacuum. They develop and operate in a complex and continually changing environment. These changes and their underlying forces interact with marketing channels and can have profound effects in channels in both the short run and the long run and this poses severe complexities to the Sales Manager

Required Reading -Ethics in Channel Management-Bundy Blackberry Company Chapter - 3 Rosenbloom

OverviewThe case demonstrates the conflicts arising out of ethics in marketing channel between a full service mobile phone retailer Bundy Blackberry Company and a catalogue store retailing in jewellery and general merchandize. Customer Bill Robinson after educating himself withal the features and the benefits of the Blackberry mobile phone prefers to buy it from the catalogue retailer who has offered him the product at Rs 1000 less.

Discussion Questions1-Do you find anything objectionable in Bill Robinson’s approach in buying the typewriter? Why or Why not? Explain your reasoning and the values on which it is based?2-Do you think that it would have been proper for Bundy Blackberry Company to tell its salespeople to avoid customers like Bill Robinson by more carefully “sizing them up” before spending so much time and effort on them?3-What is your opinion of the manufacturer’s role in this? Specifically is it fair to sell the same Blackberry to search different types of retailers at the same wholesale price and let the retailers simply fend for themselves? Discuss

Learning Outcome: The students will examine the environment within which marketing channels operate in the context of the implications for channel strategy, structure and management. They will also learn how it impacts the per-formance of the sales manager.

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Session 6: Designing the Channel SystemThere are number of factors that determine the nature of the marketing channel that are required in different situations. This depends on the nature of the product, the expectations from the system, the location, the nature of customers, the depth of distribution required and the markets being targeted. It also involves decisions on either developing new channels or modifying existing ones while going to the market.

Required Reading: Strategic Channel Design (MIT Sloan Management Review)Source: Moodle

Learning Outcome: After going through this session the students will be able to look at different channel alternatives both direct and indirect and how they meet the customer needs. It would define the intensity of distribution required, the number of channel intermediaries and whether the channel system needs any modification.

Session 7: Case discussion on Channel Design and Implementation (SEMINAR)

Required Reading: Case 14.2 Page 14.30 Teekha Spices Ltd - Havaldar, Cavale Case 14.3 Page 14.32 Ashwin Healthcare Ltd - Havaldar, Cavale

Case Title: Teekha Spices Ltd.

Case OverviewTeekha is in business for over 50 years and their spices are a house-hold name. They have over 1000 stockists. Their branded rice business has not done well in the last two years. They are not sure if they should continue in the business or exit it. They need some action plans if they have to continue the rice business.

Discussion Questions1-What are the lessons you can learn from Teekha Spices Ltd (TSL) on the distribution of a new product with enormous potential?2-How can TSL make a success of rice using its distribution network?3-Should TSL exit the rice business? Will this not mean that the current distribution network built over many years is not effective?

Case Title: Ashwin Healthcare Ltd.

Case OverviewAshwin Healthcare Ltd is a pharmaceutical Company that has been in business over a decade. It has over 600 distributors, 4 RMs, 15 ASMs and 150 PSRs. Their customers include hospitals, nursing homes, chemists, labs and general stores. As the manner of working and working hours of the customers vary, the GM Sales has decided to change the customer mix of the 100 Professional Service Representatives in the major cities. You are to comment on the soundness of the proposal in ensuring better customer service.

Discussion Questions1-Is this a good proposal for improving distribution effectiveness? Explain your views.2-Would this not mean that each distributor would have to deal with a combination of three types of Professional Service Representatives (PSRs)?3-How can a PSR calling on doctors verify with chemists if the doctors have prescribed Ashwin Healthcare Ltd products if the chemists are on the beat of another PSR?4-If this proposal is not right, what is the solution to the problem of falling productivity?

Learning Outcome: After working on these cases the students will understand some of the aspects of channel design and

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implementation. They would also know how channel implementation issues vary with the intensity of distribution.

Session 8: Recent Trends in Channel Information System: ERP

The purpose of channel Information system is to collect and analyze data about the operations of channels in order to assess the performance and take timely corrective action to continuously improve performance. Channel information systems are of primary use to the sales manager and through their analyses to the company as a whole. The Company actually earns its revenues and profits from marketing channels.The session introduces students to the functions of ERP that enables the staff involved in business development and customer service processes in terms of sales prospects, sales activities, direct marketing, sales orders, credit and debit memos and returns.

Required Reading: How Fast and Flexible Do You Want Your Information, Really? (MIT Sloan Management Review)Source: MoodleLearning Outcome: The student will get a general idea of the mechanisms to execute the business processes used in selling, shipping, and billing of product and services

Session 9: Case Discussion on Zara – IT for Fast Fashion (SEMINAR)Source: Moodle Overview

In 2003, Zara's CIO must decide whether to upgrade the retailer's IT infrastructure and capabilities. At the time of the case, the company relies on an out-of-date operating system for its store terminals and has no full-time network in place across stores. Despite these limitations, however, Zara's parent company, Inditex, has built an extraordinarily well-performing value chain that is by far the most responsive in the industry. The case describes this value chain, concentrating on its operations and IT infrastructure.

The case reveals how one company makes brilliant use of multiple information channels: subjective and objective; qualitative and quantitative; and phone, face-to-face, e-mail, and modem. Also, to highlight the inside-out approach to selecting IT. It also demonstrates how information and IT supports a business model.

Discussion Questions:Q1-How did Zara's customers and product category differ from other non-fashion products? Q2-How was Zara able to capture the larger domain of this business? For knowing more about customer preferences, what were the sources of information? Q3-What was different with Zara's promotion strategy? What was the focus for Zara's promotion? Q4-How did Zara ensure high garments turnover? Why did Zara not opt for online ordering and sales? Q5-Where do Zara's growth prospects lie? How is Zara equipped to exploit future growth potential? Q6-What processes were initiated to account for shifting consumer demands? What are the advantages in ordering by canvassing over ordering through inventory balances?

Learning Outcome: The student will understand the importance of information system for management of channels and how such information is used to impact the channel objectives. It also helps to understand the performance measures of channels

Session 10: Market Logistics & Supply Chain ManagementIn this session we turn our attention to one of the major elements needed to foster a cooperative team of channel members-an effective and efficient logistics system. Getting the right amount of the right products to the right place at the right time is usually no simple or inexpensive job, hence an understanding of the various

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costs involved-transportation; material handling, order processing, warehousing, packaging etc becomes the prime objective.

Required Reading: Ch 13 (pg 435) Marketing Channels by Bert Rosenbloom, India Edition, Published by CENGAGE Learning

Reference videos: 1. http://www.youtube.com/watch?v=wmfOQJnI7pI. (6 min)2. http://www.youtube.com/watch?v=nIPXqhz6y14&feature=related (33 min)3. http://www.youtube.com/watch?v=lYCx-K8MwDo&feature=related (9 min)4. http://www.youtube.com/watch?v=Mja5PM-CNkU&feature=related (9:06 min)

Learning Outcome: By the end of this session the students will be familiar with the role of logistics in supply chain. Also an understanding of various elements of total cost in physical distribution system is well established here.

Session 11: Case Discussion on Norton India Ltd (SEMINAR)Case Title Norton India Ltd

Case OverviewNorton India Ltd (NIL) is a FMCG company in operation for the last 7 years but does not seem to have made inroads in improving its rank in the industry. NIL has 12 brands, 47 skus, 2 factories, 10 – 3rd party packers, 30 C&FAs/depots and 1600 distributors.They have issues relating to sales planning and channel management with a supply chain cost of 13% of sales.NIL wants to reduce its supply chain cost and improve its customer service performance.

Discussion Questions1-Do you agree with the calculation of the supply chain cost? The CEO has read that the supply chain cost for FMCG companies is about 6-8% of the sales. He wants NIL to reduce the supply chain cost to half in one year. Do you think it is possible? How?2-What should be the performance matrices for supply chain costs? Should it be built into the performance evaluation of the people concerned?3-Should there be inventory norms at all stock points in a growing company like NIL? Should these norms be strictly enforced?4-Raw and packing materials procurement is distributed if the sales plans are not achieved. NIL cannot make firm commitments on off-take to the 3P packers. What is the remedy?5-How much will the IT initiative help NIL in managing its supply chain and the costs better?

Required reading: Nortan India Ltd Case 15.3 page 15.50 Sales and Distribution Managemen, Havaldar and Cavale

Learning Outcome: By the end of this session the students will rehearse the read concept involved about the role of logistics in supply chain along with various elements of total cost in physical distribution system.

Session 12: Marketing Channels for Services Given the growth of service industry, the marketing of services has become the most important constituent. In terms of meeting two basic objectives-being in tune with customer demands and enhancing customer appeal marketing of services has to be dealt with in a different way-in terms of intangibility of services, difficulty of standardization, customer involvement and perishability of services.


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Learning Outcome: By the end of this session the students will recognize the importance of services as a major and rapidly growing sector of Indian economy and the need for customer involvement during service delivery.

Session 13: Direct Selling Systems and Direct Marketing Channel Systems

Depending upon product category certain goods are not amenable for marketing through conventional channels. The session deals with impact of various variables- markets, product, intermediary, environmental and behavioral on direct selling and direct marketing.Direct Marketing attempts to acquire and retain customers by contacting them without the use of an intermediary away from a fixed location. The objective is to achieve a direct response through a process. This session introduces the students to important alternative channels that differ from the conventional channels and make them familiar with the structure and general trends in direct marketing


Reference video:1. http://www.youtube.com/watch?v=jocaa0FSp3w (58 min)2. http://www.youtube.com/watch?v=b4zyS9Nnl6g&feature=related (7 min)

Learning Outcome: By the end of this session the students will understand the meaning, rationale for designing direct selling channels its prospects and application of direct marketing its advantages and usages. Also they would know the problems and prospects associated with it

Session 14: Case Discussion on Future of Avon China: Direct Sales, Retail Sales or Both (SEMINAR)Case Title– Future of Avon China

Source: Moodle

Overview On 9th April, 2005, seven years after the ban is enforced, Avon, the global leader of direct sales in cosmetics,

became the first to win the exclusive approval from the Chinese Government to test the direct selling model again in China limiting to three regions only – Beijing, Tianjin and Guangdong provinces. No doubts in past few decades, the demand for cosmetics in China has sky rocketed still Avon faces problems concerning resource allocation.

In 1998 the Chinese Government bans all direct selling schemes, which poses a huge blow to Avon operations and it is forced to find an alternative business model for the Chinese market. However, its business thrives and by 2005, the company is already operating about 6300 beauty boutiques and more than 1000 departmental stores. Now Avon faces a dilemma in terms of deciding which model to focus on for its Chinese market.

Learning objective: The learning objectives of this case are:

1. To provide students with a basic understanding of the direct sale distribution approach.2. To analyse the opportunities and challenges in a fast growing market.3. To analyse the fit between a firms organizational structure and strategies and its external environment.4. To develop an appropriate strategy to market consumer goods such as Avon cosmetics in countries like China

with great potential but a lot of Government restrictions.

The case will be done in a seminar format and the following questions will be discussed:

Q1- Why has Avon been using direct sales throughout its history?Q2- What are the characteristics of China’s cosmetics industry? And which factors are more important in determining the

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success (or failure) of foreign cosmetic firms in China? Q3-What are the advantages and disadvantages of Avon’s direct sales model in China? What are the factors that lead the Chines Government to ban direct selling in 1998?Q4- With the Chinese Government lifting its ban in early 2005 and granting Avon approval in direct sales, what are the opportunities and challenges lying ahead for the company? Devise your own strategies for Avon China.

Learning Outcome: By the end of this session the students will understand the meaning, rationale for designing direct selling channels its prospects. Also they would know the problems and prospects associated with it.

TOPIC 2 – DISTRIBUTION STRATEGIES FOR RURAL MARKETS

Session 15: Introduction to Rural Marketing

Rural marketing involves delivering manufactured or processed inputs or services to rural producers or consumers so as to soak up the huge size of the untapped rural market. In today's congested and difficult markets, both local and global, all FMCG as well as other companies search for new opportunities, consumers and markets. Thus looking at the opportunities which rural markets offer to the marketers it seems that the future is very promising for those who can understand the dynamics of rural markets and exploit them to their best advantage.

Required Reading: Hindustan Lever Limited (HLL) and Project Sting - Darden Publishing School, University of Virginia (http://papers.ssrn.com/sol3/papers.cfm?abstract_id=908768)

Reference video:

http://www.youtube.com/watch?v=8Lxt-Rqc2qA (8 min)

Overview:

Set in India in the 1980s and 1990s, this reading concerns the attempts by the Unilever division Hindustan Lever Limited (HLL) to create, market, and distribute a detergent for India's rural poor. The upstart, low-priced Nirma detergent, manufactured by a former chemist, has overtaken HLL in the detergent market primarily because Nirma is being distributed and sold to this previously ignored segment of India's population. In this war of laundry powders, HLL must revise its traditional practices in manufacturing, marketing, and distribution in order to tap the "bottom of the pyramid" which is an untapped and potentially lucrative market.

Learning Outcome: The students would understand the potential of Rural markets in India, its changing patterns and demographic profile of the Rural Indian Consumer

Session 16: Case Discussion: The Role of the Distribution Network In Non-Urban Markets (SEMINAR)

Distribution is central to the success of Rural Marketing strategy. The challenges of distribution to rural markets are to be understood and appropriate strategies designed to overcome them.

Case Title Hero Honda “Har gaon, har aangan”

Case overview: The case discusses about market leader - Hero Honda which launched its “Har gaon, har aangan” (every village, every home) campaign to make a foray into rural areas. Obviously, it is in place to take advantage of the increase in rural disposable incomes. “They have positioned themselves as a rural India story,” says S Ramnath, vice-president at IDFC-SSKI Securities Ltd, “at just the right time”. As two wheeler sales across the country have slowed, the focus on rural areas has stood Hero Honda in good stead. The company has

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grown by 12 percent, while rival Baja Auto Ltd has seen sales fall by 23 percent.

A robust, alternative retail distribution strategy was important for safe, long-term growth of the company.

Discussion Questions:1- Do you appreciate the sell-but-not-tell and see-and-experience approaches of Hero Honda?2- Are there any missing links in the distribution plan of Hero Honda?3- What suggestions would you offer to make it even more effective?

Reference video:http://www.youtube.com/watch?v=EElykA1JPTA (4:17 min)

Learning outcome: The case study has been designed keeping in mind the integration of Sales & Distribution with emphasis on supply driven demand growth and specific inputs to ‘Value Enhancement Through Distribution Channel Strategy’

Session 17: Reading Discussion on Rural Distribution-Micro-financing (SEMINAR)(Co-Teaching with Finance)

This session discusses the new form of rural retailing- corporate MFI partnership and looks at the sustainability of such relation ships

Required Reading: Rural Marketing in India-Retailing through microfinance institutions(http://www.ibscdc.org/marketing_strategies_case_studies.asp)

OverviewThis reading primarily deals with the growing corporate-microfinance institutions (MFIs) partnerships that are creating new business platforms for the rural markets of India. Management guru, CK Prahalad has been insisting that companies, which operate at the bottom of the pyramid, will witness future rewards and growth. Of late, catering to the strata of people present at the low income levels and those of the rural areas has indeed become mainstay for many companies. The vast opportunities opened up by rural markets, the increasing purchasing power of rural consumers, growing consumption levels, media penetration into rural areas, etc, are drawing companies towards them. Companies of all kinds, like Hindustan Unilever Limited, Coca-Cola, Godrej, Nokia, Bharti Airtel, Bajaj Allianz, etc, are catering to these markets by customizing their offerings. With the existing distribution channels, companies are finding it difficult to reach the Indian hinterlands as rural areas are highly scattered and less densely populated. Most of the companies are reinventing their distribution networks and in this process tied-up with MFIs, which have a strong social network. These MFIs, acting as distributors to companies, are providing many other benefits like, enhancing brand visibility in rural areas, saving distribution costs and increasing customer base. However, can the social mission of MFIs be aligned with the profit objective of companies? The question also arises about the sustainability of corporate-MFI partnerships. This reading can be used to: (1) examine the potential of the emerging rural market in India and the growth drivers of this market; (2) understand the significance of rural retailing in India and to critically analyse the opportunity that Indian rural markets offer to India Inc and other multinationals; (3) analyse the challenges for retailers and the possible ways of dealing with these problems effectively.

Learning Outcome: The students will not only understand the successful distribution models for rural markets but also the innovation involved in creating a low cost distribution network. They will learn about the channel network, channel behavior and distribution models – Prevalent & emerging

TOPIC 3 – SELLING AND SALES MANAGEMENT

Session 18: Sales ManagementIn the present times selling has become more professional, result oriented with all the pressures associated

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with it. The marketing strategies flow to different levels of sales management to achieve overall objectives.

Required Reading: Ending the War Between Sales and MarketingSource: Moodle

Reference video:http://www.youtube.com/watch?v=DVpAu4jvvb8 (30 min)

Learning Outcome: A marketer cannot be successful without the knowledge of sales in its entire connotation. In this session the student will be able to understand the basic concepts of Sales Management as a precursor to the marketing career

Session 19: Case Discussion on Mephisto Products Ltd (SEMINAR)

Case Title: Mephisto Products Ltd Overview:The case describes a company- Mephisto Products Ltd that has not adapted to changing economic circumstances. The company has remained in a market that has not necessarily declined, but one that has witnessed more competition especially from EU countries. These new entrants have brought with them new products, whilst Mephisto’s products have not been updated. The company is production orientated and this philosophy permeates thinking amongst their sales staff. A solution to this problem is seen to be the appointment of a new marketing manager

Discussion Questions1-Criticise Mephisto Products’ approach to sales and marketing.2-Comment upon the following as they exist now at Mephisto Products:(a) marketing orientation(b )the marketing mix(c) the product life cycle3-What problems can you anticipate if Jim Bullians goes ahead and appoints a marketing manager?4-What general advice can you give to the company to make it more marketing oriented.

Learning Outcome: This session reiterates on the understanding of the basic concepts of Sales Management as discussed in the previous session.

Required Reading: Ch 1 Pg 37, Selling and Sales Management, Jobber Lancaster, 7e, Pearson Publication.

Session 20: Types of Sales OrganizationsIn this session the students will understand the nature of sales organizations and organizational structures to support them. They will also learn various kinds of selling approaches- transactional, affinitive, consultative/problem solving, and enterprise selling.

Required Reading: Ch 5 pg 202-211 Sales and Distribution Management by Tapan Panda and Sehdev Published by Oxford University Press

Learning Outcome: By the end of this session the students will understand how different sales organizations build up their structures which will efficiently support the performance expected from the sales management. The session provides emphasis on service organizations like banking and insurance Also it will talk about the various responsibilities of sales manager & salesperson.

Session 21: Designing and Organizing the Sales ForceThe session will discuss the various concepts such as the size of the sales force needed to serve the existing and

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potential customers. This can be done by employing the breakdown method and workload method.Further discussion will be held on the various types of sales force structures – geographic sales structures, product-based structures, market or customer based structures, functional sales structure & combination sales structure – and the pros & cons of all these structures

Required Reading: Ch 7 Sales Management by Tanner, Honeycutt & Erffmeyer, Published by Pearson Education

Learning Outcomes: the students will be able to understand the advantages and disadvantages of different sales force organizational structures. Also they would know how a sales force can be organized in multiple ways that match the customer demands.

Session 22: Designing and Organizing the Sales Force (cont)This session is an extension to the last session which talks about the reporting relationships in a sales organization. It also introduces students to sales forces expenses vs revenues and the rationale of Break-even analysis.


Learning Outcomes: By the end of this session the students will understand the revenues and expenses of a sales force through various Industry examples.

Session 23: Recruiting and Selecting the Right Sales PeopleThis session will include understanding of the relevance of recruitment & selection of the sales-people, the various stages involved, including preparation of JD & personnel specifications, identification of sources of recruitment & methods of communication, designing of effective application form, interview techniques & supplementary selection aids like psychological tests & role plays

Required Reading: The Littlest sales Force Source: Moodle

Learning Outcome: Students will be able to understand the requirements of the sales job & how sales manager must go ahead with recruitment of new salespeople. Also they will learn to evaluate their recruitment decisions

Session 24: Training & Development of Sales ForceTraining will prepare salespeople for various challenges that organization & its products may face. The session will focus on the importance of sales training & the various components of a training program. It will also focus on the study of various delivery methods that are employed to provide training to the sales force. The different kinds of delivery methods are lectures, films, role plays, case studies & in-the-field training

Alumini Guest Session


Learning Outcome: In order to survive in the competitive market, training & development of sales force is very essential. Students will learn the relevance of training and the importance of measuring and analysing the performance of the sales force when needed, taking corrective action in order to meet the overall objectives.

Session 25: Managing the Sales ForceEffective sales management achieves a balance among four key areas: defining the role of personal selling, deploying the sales force, managing the accounts, and understanding the selling costs. Because sales depend on

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the customer, management's overall concern should be managing the customer, not the sales force.

Required Reading: Manage the Customer Not Just the Sales Force Source: Moodle

Learning Outcome: Students will learn the various skills required to be a good manager and the ability to organize and work effectively in a team

Session 26: Managing the Sales Force (cont)This session will focus on the high importance of supervision due to independent nature of sales jobs & how it is used to guide new hires in the sales profession. Also the activities involved in managing a sales force from two different perspectives- from sales manager's perspective & the sales representative's perspective and the need for organizing and staffing the sales force will be taken care of. In the present generation, the firms want to hire those sales managers that have high leadership skills. The session will give an insight into the 2 kinds of leadership approaches- the transactional leadership and the transformational leadership. It will also discuss about Sales targets, evaluating the Performance of the Sales Force composite and evaluating individual sales person

Required Reading: Ch 10 (pg 219) Sales Management by Tanner, Honeycutt & Erffmeyer, Published by Pearson Education Learning Outcome: With a brief discussion on the various challenges for future performance the students will learn the various performance competencies that sales managers needto be an active team member and effectively achieve the organization goals. They will learn the impact of Coaching – meaning and the various guidelines to be followed in order to make it effective and Mentoring- how it can lead to the personal and professional development of the new hires.

Session 27: Efficiency of Sales Organization: Time Management and Sales Force ProductivityThis session will discuss the criteria and types of expense plans and four types of analysis-sales, cost, profitability and productivity to evaluate the effectiveness of the sales organization. We will also discuss the ethical, social and legal responsibilities of sales manager and salespeople.

Required Reading: New Science of Sales Force ProductivitySource: Moodle

Reference video:http://www.youtube.com/watch?v=XDNzteztKuM (10:04 mins)

Learning Outcome: The students will learn the ways to increase organizational productivity and to analyse the reports and making actionable points. They will know purposes and procedures for evaluating and controlling the performance of salespeople.

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ASSESSMENT PLAN

PART A - ASSESSMENT

S. No. Component Weightage/Marks

1. Case Presentation 30%/9

2. Group Project & Presentations 30%/9

3. Test 40%/12

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DETAILS OF ASSESSMENT

COMPONENT 1: CASE PRESENTATION (9)

Case analysis and presentation would require the students to thoroughly read the case and identify the Problem Areas. The solution of the case would involve designing feasible solutions.

Feedback on the same will be provided by the instructor after the presentation / submission of analysis.

COMPONENT 2: PROJECT WORK (9)The project will be allotted to the predefined groups and shall have the following POA (Plan of Action) -

The student would be a part of a group (6 to 7 members) as decided by the faculty, which will investigate one industry. As we go along, various pieces of the report will be turned in. At the end of the term, all the pieces will be put together into one final report. This report serves two purposes. First, it allows you to apply various concepts introduced during the term. Second, it allows you to acquire a deeper understanding of one particular industry (hopefully, one you are interested in!).

Each report will include the components listed below.

PROJECT ASSESSMENT

Select businesses where goods are supplied through indirect channels and not Direct Selling or Direct Marketing.

-Actual observation – Name, Address, Business unit’s contact person’s name & Mobile no. must be given to show authenticity of the Project.- Analysis of the observations Project Structure1. Identify Distribution Channel: a. Members –A StructureB Product form (liquid, packaged, loose)C Logistics (transportation, courier), safety of goods

2. Structure of Channel partners their margins, commissions How is the product/ service marketed Who are the channel participants and the channel structure How is the channel managed? How are channel conflicts if any resolved? What are the various pricing strategies?

3. Physical Distribution Management Who is responsible for designing and setting up channel How the warehousing is managed? Is there a CF agent? Logistics and its cost Distribution costs What are the payment terms and debtors control?

4. Communication/ Information flow: Producers <---------Channel Partners regardingA. inventory data, B. sales data,

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C. payments data

5. Critical analysis: A. Supply Management – order fulfilling time, Min. Order Qty., Payments/ outstanding B. Demand management (periods of shortages or excesses)C. Speed of processes for complaints regarding supplies

BUSINESSES could be stand-alone or chain of storesI. Consumer Non-durables: Perishables – Fruits, Vegetables, Dairy products, Confectionary, Apparel and gar-

ments, Cloth, Foods (generic), Stationary, Medicines, Magazines and books, Shoes, Optical, FMCG.II. Consumer Durables: Electronic, Electrical, Furniture, Building materials, Real estate.

III. Hospitality

The project should include channels from producer to end customers, both B to B and B to C.

6. Final Report

- The final report should include all of the following :

Cover Page - The cover page should include the report title, the names of your group members, with roll numbers. Each group member will sign his / her name on the cover as a 'sign off' on the report and its contents.

Executive Summary - An Executive Summary of no more than two double spaced pages will follow the cover page. This should highlight what is included in the report.

Table of Contents - Immediately following the Executive Summary should be a table of contents for your report. You may put the report together in any order you like, provided there is some logical reasoning (apparent to the reader) for the sequence you have chosen.

Main Body of Report - Groups are expected to include each of the components, discussed earlier, in the final report. As noted earlier, groups should revise each section, as necessary, for inclusion in the final report.

Conclusion - The report should end with a brief conclusion that ties the entire project together and reveals major insights gained during the study of your chosen industry.

References - A complete citation of all work / research of others references in your report should be included in a list at the end of the report as references and also indicated in the text of the report.

COMPONENT 3: Written Test (Closed book examination)

The final assessment would be of 12 marks conducted immediately post the course is through.

FORMAT FOR SUBMISSION OF COURSEWORK

Coursework, including case analysis and project components must be submitted according to the deadlines specified by the instructor at the beginning of the module. The documents must be submitted to the instructor before 5 pm on the day of submission. Failure to submit without good cause (illness supported by a medical certificate or similar) will result in a zero mark..

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Submissions are to be made in hard copy or soft copy - as instructed by the faculty.

When submitting coursework in hard-copy, you must include a cover page which specifies: • The component name • Your name / group member names • Student ID number (s) • Your section • The Module title • The name of the module instructor

When sending documents on e-mail, you must ensure the following: • Subject Line to read "component name_your name_your section" • Body of the email specifying the enclosed attachments and your details (name (s), student

ID number (s), section)

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Assessment Map

This table shows main assessment methods which are used across module and its stages:Module A1 A2 A3 A4 A5

Going To Market * * *

Notes:A1: Individual test/ AssignmentA2: Group Assignment/ ProjectA3: Open Book ExaminationA4: Close Book ExaminationA5: Group Presentation

Teaching Map

This table shows main delivery methods which are used across module and its stages:

Module T1 T2 T3 T4 T5 T6

Going to Market * * * * *

Notes:T1: LecturesT2: Seminars/TutorialsT3: Projects & PresentationT4: Case DiscussionT5: Guest Lectures/Industrial VisitsT6: Lab Sessions

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Curriculum Map

This table shows the main learning outcomes which are developed and/or assessed in this module:Module L1 L2 L3 L4 L5 L6 L7 L8 L9Going to Market * * * * * * * *

Notes:L1: An understanding of organizations, their external context and their management.L2: An awareness of current issues in business & management which is informed by research & practice in the field.L3: An understanding of appropriate techniques sufficient to allow investigation into relevant business & management issues.L4: The ability to acquire & analyze data and information.L5: The ability to apply relevant knowledge to practical situation.L6: The ability to work & lead effectively in a team based environment.L7: An improvement in both oral & written communication skills.L8: Be cognizant of the impact of their individual & corporate actions on society and recognize ethical business practices.L9: Be sensitive to the social economic and environmental responsibilities of business.

RUBRICS for AssessmentFail Unsatisfactory Average Good Very Good Excellent

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F E D C B AAssessment Component

CRITERIA 0 1 2 3 4 5

Field/Project Report

and

Presentation

1-Project content and analysis

1-Project data and analysis lacks originality2-The analysis is not relevant and the objective of the project is not met.

1-Barely manages to meet the project objectives2-Inadequate report writing with limited understanding of the concepts

1- Part of the data plagiarized2-Superficial analysis not mapping with project objectives

1-Some of the project objectives are met2- Application of the concept not very clear3-Analysis does not integrate relevant theories to the issue under concern

1-All project objectives are met2-Analysis includes concepts and theories discussed in class however integration is missing

1-Original work with respect to data collection and analysis2-Analysis done integrating all the concepts and theories done within the class3-Report discusses real life examples and highlights industry trends

1-Participation of members2-Engaging audience3-Relevance

1-Presentation is not on time with members missing or is irrelevant

1-Dominates discussion, not allowing students to contribute creating distractions2-Comments are not relevant with confusing language difficult to interpret3-Very few members participate

1-Little contribution at times the interrupt the flow of discussion2-Irrelavant comment and use of vernacular3-Few members participate with almost no connect with the audience

1-Some contribution of the comments but they may be repetitive 2-Few members can answer the audience and that too not completely3-All members present with complete presentation

1-Contributes regularly to the discussions and allows others to share the comments as well2-Relevant contribution to the concept with clear language3-Presentation is organized, complete and all members participate

1-Frequency of comments is optimal and is sensitive to when to comment2-Contributions enhance discussions and brings in relevant personal knowledge3- Presentation is highly organized, complete and all members participate

Case/Situational

1-Application of the key

1-No understanding

1-The application of

1-Little application of

1-Able to apply some

1-Application

1-Concepts and ideas are

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Analysis concept2-Creative in approach3-Clear and precise4-Identifying and analyzing the discussion areas

of the concepts taught in the class. 2-The answers are vague with no application and analysis

concept is not satisfactory2-Vague understanding

the concepts2-Not able to respond in clear and precise manner3-

concepts though key areas missing 2-Lack of integration of ideas3-Unable to answer all questions

of concepts are competent2- Appropriate concepts and theories included but not fully integrated to the solution

relevant and clearly stated2-demontrate a high level of competence3-Concepts and theories are well integrated and responses well framed

Written Test 1- Understanding of the question2-Response

1-Complete mis- understanding of the question2-No answer or copied answer

1-Student did not understand the question2-Wrong or copied answer

1-Partial understood the question2-Correct answer to an extent

1-Understoodthe concept well2-Still missed to write the complete answer

1-Very well understood the question2-Complete answer though a little structuring and analysis can be improved upon

1-Absolutely well the concept is understood2-Complete,structured and well analyzed answer

S No Texts and References Lodhi Road

Gurgaon Total

1 Marketing Channels - Bert Rosenbloom, The Drydon Press

20 20 40

2 Sales Management – Tanner Honeycutt Erffmeyer 30 40 703 Fundamentals of Selling – Charles M Futrell 4 3 74 Selling and Sales Management – David Jobber Geoffrey Lan-

caster 37 20 57

5 Sales and Distribution Management - Havaldar, Cavale 52 10 626 Marketing Channels – Coughlan Anderson 35 30 657 Rural Marketing - Pradeep Kashyap & Siddhartha Raut 15 5 20

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gtm manual

Documents

supply chain

moodle reference

channel information

moodle learning

physical distribution

supply chain

channel information

supply chain