Marketing and Selling

Distributed Channels

The distribution function of marketing is comparable to the place component of the marketing mix in that both center on getting the goods from the producer to the consumer. A distribution channel in marketing refers to the path or route through which goods and services travel to get from the place of production or manufacture to the final users. It has at its center transportation and logistical considerations.
Business-to-business (B2B) distribution occurs between a producer and industrial users of raw materials needed for the manufacture of finished products. For example, a logging company needs a distribution system to connect it with the lumber manufacturer who makes wood for buildings and furniture.
Business-to-customer (B2C) distribution occurs between the producer and the final user. For instance, the lumber manufacturer sells lumber to the furniture maker, who then makes the furniture and sells it to retail stores, who then sell it to the final customer.

Types of Distribution Channels:

Broadly, Channel of distribution is of two types viz., 
(1) Direct Channel
(2) Indirect Channel.

1. Direct Channel or Zero Level Channels:

When the producer or the manufacturer directly sells the goods to the customers without involving any middlemen, it is known as direct channel or zero level channel. It is the simplest and the shortest mode of distribution. Selling through post, internet or door to door selling etc. are the examples of this channel. For example, Mc Donalds, Bata, Mail order etc.

Methods of Direct Channel are:

(a) Door to door selling

(b) Internet selling

(c) Mail order selling

(d) Company owned retail outlets

(e) Telemarketing

2. Indirect Channels:

When a manufacturer or a producer employs one or more middlemen to distribute goods, it is known as indirect channel.

Following are the main forms of indirect channels:

(a) Manufacturer-Retailer-Consumer (One Level Channel):

This channel involves the use of one middleman i.e. retailer who in turn sells them to the ultimate customers. It is usually adopted for speciality goods. For example Tata sells its cars through company approved retailers.

Manufacturer→ Retailer→ Consumer

(b) Manufacturer-Wholesaler-Retailer-Customer (Two level channels):

Under this channel, wholesaler and retailer act as a link between the manufacturer and the customer. This is the most commonly used channel for distributing goods like soap, rice, wheat, clothes etc.

Manufacturer→ Wholesaler→ Retailer→ Customer

(c) Manufacturer-Agent-Wholesaler-Retailer-Consumer (Three level channels):

This level comprises of three middlemen i.e. agent, wholesaler and the retailer. The manufacturers supply the goods to their agents who in turn supply them to wholesalers and retailers. This level is usually used when a manufacturer deal in limited products and yet wants to cover a wide market.

Marketing vs Selling

Marketing and sales are both aimed at increasing revenue. They are so closely intertwined that people often don’t realize the difference between the two. Indeed, in small organizations, the same people typically perform both sales and marketing tasks. Nevertheless, marketing is different from sales and as the organization grows, the roles and responsibilities become more specialized.

	Marketing	Sales
Definition	Marketing is the systematic planning, implementation and control of business activities to bring together buyers and sellers.	A sale a transaction between two parties where the buyer receives goods (tangible or intangible), services and/or assets in exchange for money. 2) An agreement between a buyer and seller on the price of a security.
Approach	Broader range of activities to sell product/service, client relationship etc.; determine future needs and has a strategy in place to meet those needs for the long term relationship.	Make customer demand match the products the company currently offers.
Focus	Overall picture to promote, distribute, price products/services; fulfill customer's wants and needs through products and/or services the company can offer.	Fulfill sales volume objectives
Process	Analysis of market, distribution channels, competitive products   and services; Pricing strategies; Sales tracking and market share analysis; Budget	Usually one to one
Scope	Market research; Advertising; Sales; Public relations; Customer service and satisfaction .	Once a product has been created for a customer need, persuade the customer to purchase the product to fulfill her needs
Horizon	Longer term	Short term
Strategy	Pull	Push
Priority	Marketing shows how to reach to the Customers and build long lasting relationship	Selling is the ultimate result of marketing.
Identity	Marketing targets the construction of a brand identity so that it becomes easily associated with need fulfillment.	Sales is the strategy of meeting needs in an opportunistic, individual method, driven by human interaction. There's no premise of brand identity, longevity or continuity. It's simply the ability to meet a need at the right time.

TYPES OF SALES

Aggressive Selling: 

This is one of those styles where the sales rep stays highly focused and the only intention is to sell. The sales rep with such a method indulges in a hard driving selling style, where they look to indulge in a sale that happens with one call. They are not the ones who believe in the so-called “sales process”, and try to get the job done in one shot. The sales rep with such a style is of the belief that, if the prospect walks then the sale is lost. The most peculiar aspect of such sales reps is that they work the best as an individual, rather than being a part of the team. 

Relationship building/Consultative Selling:

 Relationship building selling style is widely regarded as the most successful of all selling styles. The sales rep here indulges in a type of method, where they adjust well to any kind of selling situation. It does not matter to them whether the prospect is in line to become a buyer or not. With this style, the sales rep adjusts to whatever situation they have to deal with and get the best possible result. As the name itself suggests, this process includes majorly relationship building and the fact is, the sales process is not a one-time thing.

Need-oriented Selling: 

This is a kind of selling style, where you need to think quickly and adapt. The sales rep needs to be highly tactful and at the same time, be able to ask such questions to find out what the customer needs. Based upon the kind of need that pops up, you will have to show yourself as the problem solver. In simple terms, this selling style is about learning more about the client’s existing needs rather than create new ones.

Product-oriented Selling: 

With product oriented selling style, the sales rep is more inclined towards explaining the features and benefits of the product to the prospect. This style includes a lot of product demo till the time the prospect is fully convinced about the benefits. A point to be noted is that the sales rep must fully be aware of the product or service as there could be a lot of questions from the prospect and in order to give them a convincing answer, you must know all the salient features of the product and the benefits associated with the same.

Competition-oriented Selling:

 The competition-oriented salesperson is very persistent in trying to persuade a potential customer. Overcoming objections by never taking a no for an answer, they will do everything to close a deal resulting in direct and interpersonal influence. With a competition oriented mindset, the sales rep will go that extra mile to get the job done. With the motive of the sales rep is to be a step ahead of the competition, they will work their way out if the situation is tough and convince the prospect anyhow to get the sale done.

components of marketing mix

At first Prof. Neil H. Borden of Harvard Business School had named 'Marketing Mix'. However, Prof. Jerome McCarthy of Michigan State University presented marketing mix as four 'Ps" in his book ' Basic Marketing' published in 1960. Under these four 'Ps' include Product, Place, Price and Promotion. According to him, the components of marketing mix or four Ps are as follows:

* Product

* Place

* Promotion

* Price

So, marketing mix = Product mix + Place mix+ Promotion mix+ Price mix.

1. Product Mix

Product is the mist important component of marketing mix. Product means goods, materials, services and even ideas. in marketing the word 'product' does not indicate only physical goods or materials. It also indicates quality, price, brand, color, packaging, seller's service, goodwill, reputation, guarantee and warranty of goods with which the customers can get satisfaction. So, product mix is the important component.It includes product planning, development, standardization,grading, branding, packaging etc.

2. Place Mix

The another important component of marketing mix is place mix. This is also called distribution mix. In this include two components- selection of distribution channel and physical distribution of products.

i. Selection Of Distribution Channel

The means or medium used to carry products to the ultimate consumers is called distribution channel. The business firm, which can select proper channel to deliver goods to the customers at right place at right time, can get success. The selection of distribution channel is affected by the nature of product, distribution cost, financial position of the firm, market situation, market competition etc.

ii. Physical Distribution

Physical distribution works for carrying finished products to the consumers and supplying necessary raw materials to the manufacturing company. Physical distribution helps to supply products in right quantity to right place at right time at lower cost. Under this include the activities such as management of necessary means of transportation, warehouse for storing, inventory control, material handling, order processing, place analysis etc. Among them, management of transportation and warehouse are the most important. These create place utility and time utility of products.

                            

3. Promotion Mix

Promotion mix includes the activities such as personal selling, advertising, sales promotion, publicity and public relations etc. Promotional activity becomes very important in attracting customers towards the products and creating demands by giving information and message about the products. Today's tough competition and complex market situation have made promotional activities more challenging. Success can be achieved in business only through proper promotional policy and proper use of means and resources. So, a good business entrepreneur should make proper promotional policy and implement.

4. Price Mix

Price is very sensitive component of marketing mix. In it, decision on selling price, discount, commission etc. are taken. While taking decision on price, reasonable return of the investment of the firm and customers' services should be considered at a time. While determining price of the product, production cost, demand situation, competition, possible sale expenses, expected profit etc should be carefully analysed.