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Sales management- planning, direction, and control of personal selling, including recruitment, selecting, equipping, assigning, routing, supervising, paying and motivating. Objectives: Sales volume Contribution to profits Continuing growth
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4. 5. 6. 7.
Willingness to go to bat for the buyer Thoroughness and follow through Market knowledge and keeping the buyer posted Applying his product and services to buyers needs Preparation for sales calls Regularity of Sales calls Technical education
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Persuasion
Types of selling
Order taker sales people Order creators Order getters
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Types of Selling
Inside Order Taker Order Takers Delivery Sales People
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Order Getters
Technology
Customer orientation
Relationship selling
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Diversity
(9,9) Problem Solving Oriented I consult with the customer so as to inform myself of all the needs in his situation that my products can satisfy. We work towards a sound purchase decision on his part, which yield him the benefits he expects from it.
I am customers friend,
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7 6 5 4 3 2
I want to understand him and respond to his feelings and interests so that he will like me. It is the personal bond that leads him to purchase from me. (5,5) Sales technique Oriented
I have tried an effective routine for getting a customer to buy. It motivates through a blended personality and product emphasis
(1,1) Take it or Leave it
(9,1) Push the product Oriented I take challenge of the customer and hard sell him, polling on all the pressure it takes to make him buy
I place the product before the customer and it sells itself as and when it comes.
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SELLING SITUATIONS
Sales task and function Listening function Information dissemination function Negotiation& bargaining function Problem solving function
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SELLING SKILLS
Selling Skills
Listening Skills Negotiation and bargaining skills Conflict management and resolution skills
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COMMUNICATION PROCESS
Feedback Intended Message Perceived Message
Encoding
Decoding
Noise
Sent Message
Received Message
Channel
Sender
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Receiver
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COMMUNICATION PROCESS
CONTD.
Personal Appearance
Posture Gestures Facial Expressions Eye Contact
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Process of listening
Attendance
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Interpretation
Remembrance
Evaluations Response Action
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Pre-sale preparation
Prospecting
Follow up action
Sales Presentation
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Prospecting
Successful prospecting
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No
Successful prospecting
Yes
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Process of prospecting
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Methods of prospecting
Cold canvassing
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Endless chain customer referral Prospect pool Centers of influence Non competing sales force Observation Friends and acquaintances Lists and directories Direct mail Telemarketing Trade shows and demonstrations
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Selling process
Pre approach to selling Approach to the customer Sales presentation - approach to sales presentation
- attracting customer attention - creating interest - arousing desire and building conviction
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Superior feature method YesBut method Indirect denial method Comparison method Direct denial method Another angle method Narrative method Testimonial method Question or WHY method
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Assumptive close Caution method close Consent close Special induced close Direct order Ownership suggestion close
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Job qualification
Job description
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Identify best sources of recruitment: internal and external sources Recruitment Generate database of candidates Evaluate candidates Selection Socialization Select and induce candidates to accept positions Socialize
Organizational characteristics, company image and climate, styles of supervision, compensation, and motivation of the company
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personality types matching to job profiles one of the measures that the organization looks in an employee is:
- the ability to perform by an employee = ability x motivation
level of motivation
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internal sources
- existing employees - lateral and upward moves - interns and cooperative students - employee referral programmes
external sources
- industry sources
- educational institutions and campus recruitments - employment exchanges - placement consultants - walk in interviews
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External sources
contd...
Selection procedure
- inviting application forms - personal interviews - reference checks - physical examinations - psychological tests - intelligence - personality - aptitude and skills - determination of terms of service - appointment - initial orientation
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Socialization process
process of orienting a new salesperson to the sales organization, territory, or division in which he or she will be working three stages
Anticipatory stage Encounter stage Settling stage
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the training programme be effective in solving a problem? Will the investment in it be justified? Will it produce the desired or intended results?
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The success of the training programme depends on the ability, skill, and motivation of the sales trainer
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TRAINING NEEDS
Identification
of specific problems Anticipating impending and future problems Management requests Interviewing and observing the personnel on the job Performance appraisal Questionnaire survey Checklist Attitude survey Interpersonal skill test
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Presentation
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TYPES OF TRAINING
Cross-functional training
Team training Creativity training
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TRAINING METHODS
Didactic
method
- structure the lecture - reinforce the Message - aid concentration - material used for the lecture - make it memorable for the participants - deliver with dynamism - use questions
Visual
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TRAINING METHODS
Seminars Discussions Role play Case study Fishbowl Workshops Transcendental meditation
CONTD..
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Aim
Content
Knowledge Proficiencies Location Evaluation
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PROCESS OF SOCIALIZATION
Anticipatory socialization
Accommodation stage Outcome stage
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Sales territory
a group of present and potential customers assigned to
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Territory shapes
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circle
wedge
Clover leaf
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Opportunity
The account may represent a good opportunity. The sales organization needs to overcome its competitive disadvantages and strengthen its position to capitalize on the opportunity.
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H i g h
The account offers a good opportunity. It has high potential and the sales organization has a differential advantage in serving it.
Strategy
Commit high levels of sales resources to take advantage of the opportunity.
Strategy
Either direct a high level of sales resources to improve the position and to take advantage of the opportunity or shift resources to other accounts.
L o w
Opportunity
The account offers stable opportunity since the sale organization has differential advantages to serving them.
Opportunity
The account offers little opportunity. Its potential is small and the sales organization is at a competitive disadvantage in serving it.
Strategy
Allocate a moderate level of resources to maintain current advantage.
Strategy
Strong
Either commit a minimal level of resources to the account or consider abandoning the account altogether.
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Weak
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Sales quota
a quota is an expected performance objective
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a quota is a sales assignments or goal to be achieved in a specific period of time it is routinely assigned to the sales units (e.g. departments, divisions, and individuals) sales units proceed to reach quotas in their respective domains
A sales quota is the sales goal set for a product line, company division, or sales representative. It is primarily a managerial device for defining and stimulating the sales effort.. Kotler
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quotas set above the achievable limit often demotivate and result in high turnover in the organization
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Principles..
contd.
flexible to the prevailing and emerging market conditions there should be a level of definiteness in the quota set for a salesperson it should be fixed either in terms of geographic territory, on money value, or on the basis of units of product(s)
a participatory quota setting procedure followed jointly by the sales manager and sales people together serves as a tool of motivation and leads to the realization of the organizational sales goals 57
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S M A R T
P E CI FI C E A S U R A B L E T T A I N A B L E
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Optimistic Results
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combination quota
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1. There is a high level of individual difference in every organization 2. A perfect quota is a combination of selling and nonselling activities 3. Often sales people do not give proper attention to the non-selling activities (e.g. searching for prospects, handling customer objections, and creating market for probable entry of new products)
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Financial Size
stability
Nature
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Financial compensation
Non-financial compensation
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FINANCIAL COMPENSATION
Straight salary plan Straight commission plan Bonus and incentive Salary plus incentive (combination plan)
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NON-FINANCIAL COMPENSATION
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Determine major compensation issues Implement long-term and short-term compensation plans Relate rewards to performance
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Process of motivation
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Motive
Behaviour
Tension reduction
Goal
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THEORIES OF MOTIVATION
Content Process
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CONTENT THEORIES
Need
Hertzbergs Alderfers
McGregor
Z
Theory X and Y
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PROCESS THEORIES
Equity theories- The motivation of the salespeople is influenced by the extent to which they feel that they are being treated fairly and equitably by the organization.
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Programme objective Motivational tools Individual methods Group methods Communication Feedback
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Deciding on the criteria for measuring performance Deciding in the conduct of the performance appraisal Deciding on the evaluation of individuals and teams Comparison of actual performance with standards Deciding on the frequency of the performance appraisal The external variables and their influences
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Appraisal Criteria- One has to identify what is to be measured. The sales manager can use performance measure techniques. o Relative and absolute judgements In relative judgement method, the sales manager is asked to compare the salespersons performance with that of other salespeople on the job. o The other method is based on the sales performance measured in sales volume, market share. o Trait based- Traditional business organization uses a trait based evaluation system. The most commonly used traits for this purpose are reliability, energy and loyalty. o Outcome based- Performance based on outcomes measure the result of the selling process
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Rating
scales can be used for evaluationRating forms, forced choice scales etc can be used. Forced choice scales allow the sales managers to rate salespeople on a series of adjectives that explain a salespersons performance Behavioural Observation Scales- The sales manager is asked to identify only that behaviour that significantly influences performance. Call reports- These are periodic accounts and customer statements prepared by salespersons.
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SALES MEETINGS
These are important both for communication and motivational purposes. Periodic group meetings are valuable for exchanging information and ideas.
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National Sales Meetings Regional Sales Meetings Local sales meetings Remote control sales meetings
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SALES CONTESTS
It is a special selling campaign offering incentives in the form of prizes or awards beyond those in the compensation plan. Contest formats- A format should be timely and its effectiveness is enhanced if it coincides with and activity in the news.
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Contest prizesCash, Travel, Special honors or privileges. To stimulate widespread interest in the contest, it is good idea to make it possible for everyone to win. Contest duration is important in maintaining the interest of sales personnel. Pre and post evaluation should be done- Pre-evaluation aims to detect and correct weakness. Post-evaluation seeks insights helpful in improving future contests.
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To adjust the discrepancy of assortment through the process of sorting, accumulation, allocation, and assorting To minimize the distribution costs through routinising and standardizing transactions to make exchange more efficient and effective To facilitate the searching process of both buyers and sellers by structuring the information essential to both the parties To provide a place for both parties to meet each other and reducing uncertainty
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Intermediaries can improve the efficiency of the exchange process Channel intermediaries adjust the discrepancy of assortment through the performance of the sorting process
Marketing intermediaries hang together in channel arrangements to provide for the routinisation of transactions Channels facilitate the searching process
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Spatial discrepancy
Temporal discrepancy Need to break the bulk Need to provide assortment
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Setting distribution objectives in terms of the customer requirements Finalizing the set of activities that are required to be performed to achieve the channel objectives Organizing the activities so that the responsibility of performing the activities is shared among the entities who are meant to perform these activities Developing policy guidelines for the smooth functioning of the channel on a day to day basis
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Distribution channel management encompasses all activities dealing with the distribution function of the firm The distribution strategy provides guidelines for decision making The distribution management function can be viewed as happening in two phases: the ex ante phase and the ex poste phase
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DISTRIBUTION CHANNEL
MANAGEMENT
(CONTD.)
The ex ante phase involves all the activities that are associated with the design and establishment of the distribution channel. These activities actually take place before the distribution channel actually starts functioning.
The exposte phase involves managing the day to day activities of the channel wherein the behavior of the individual channel members are coordinated
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Ex ante
Phase
Establishing the channel
Distribution Channel Strategy Channel Objective Activity Finalization Organizing the activities Developing Policy Guidelines
Motivating Channel Members Ex Poste Phase Resolving Conflicts among channel members
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DESIGNING CUSTOMER-ORIENTED
MARKETING CHANNELS
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Channel Design
The channel design is normally meant to give a clear idea about: The number of channel entities in the channel network, The way in which they are linked, The roles and responsibilities of the entities in the network The rewards for participating in the activities and also Clear cut guidelines for the major activities to be performed during the normal functioning of the channel. 104
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Waiting time
Spatial convenience Assortment Physical possession Ownership Promotion flow Risk taking flow Negotiation and financing flow
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Channels
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3.
Waiting time
4.
Assortment
Other consumer goods items including that of other competitors are available at all the outlets where the products are otherwise Available
Available
5.
Installation support
6.
Free for first two years, but available on payment afterwards. Also available at every city from where the product was bought.
Available
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7.
Consumer financing
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Direct contribution
Spatial convenience, bulk breaking, waiting time
Indirect contribution
Assortment
Other contribution
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Spatial convenience Spatial convenience Assortment Waiting time, bulk breaking, spatial convenience Assortment
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The service output levels The flows or activities that are associated with the achievement of the service output levels The type of entity who would be entrusted with the performance of each of these flows
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(CONTD.)
The main purpose of the channel to be set-up The profile of the customers who are the target market for the channel
The needs and requirements of the target market with regard to the identified service outputs provided by the proposed/ existing channel:
Analysis of the operations of the existing channels that deal in similar product/service lines Detailed activity chart for achieving the service output objectives
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PLAN..
CONTD.
Details about the various channel constituents who will be performing these tasks The cost of performing the activities The designated roles and responsibilities of the channel constituents The proposed remuneration for performing these roles and responsibilities Standards for measuring the performance Procedures for reporting and information sharing Monitoring mechanisms Criteria for appointing the channel members
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LOGISTICS STRATEGY
Cost
reduction
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Capital
reduction improvement
Service
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Logistics Planning
Inventory Management
Inventory levels Deployment of inventories Control methods
Transportation decisions
Modes of transport Carrier routing/scheduling Shipment size /consolidation
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Location decisions
Number, size and location of facilities Assignments of stocking points to sourcing points Assignment of demand to stocking points
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shipment
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Warehousing Cross-docking
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transfer
Stock keeping locations Inbound and outbound shipments Facility space utilization Order fulfillment data
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WHY INVENTORIES?
To
improve customer service To smoothen the operations of the logistics system To reduces costs Inventory procurement costs Inventory carrying costs Stock out costs Cost associated with inventory
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Echelon inventory
Stockist echelon lead time
Supplier
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Stockist
Retailer
Retailer
Retailer
Retailer
Retailer
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related factors
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Market
related factors
Intramode competition Location of markets Balance or imbalance of in freight traffic in and out of the market Seasonability of the product movements
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CHANNEL RELATIONSHIPS
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CHANNEL CONTROL
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Tolerance Function
PayOff Function
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Zone of acceptance
Supplier authority
Tolerance function B
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Coercion
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persuasion
Authority
control
Promotional Responsiveness support systems Financial returns Quality products Technical Reliable delivery assistance Competitive price National reputation Company
Training
policies
Market research
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Incentive programme
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Explanation
Where information on general business issues and the channel program is merely exchanged with channel member personnel.
In this type of strategy the consequences of the acceptance Unmediat or ed rejection of the channel Strategies programme or its implementation are stressed, but these consequences are based on a NFLUENCE STRATEGY TYPES (CONTD.) response from the market Leha 128 environment, not on the mediation of the
Reward and Economic reward Punishment Non-economic reward Economic punishment Strategies
Non-economic punishment Direct request
In this type of strategy rewards and punishments are directly given to channel members
This strategy involves making a direct request to the channel member where the Principal mainly communicates desires or wishes concerning the channel members acceptance of the channel program. In this type of strategy specific action is requested; consequences of acceptance or rejection are stressed and are based on the mediation of the channel principal.
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(CONTD.)
Conflict resolution
CONFLICT MANAGEMENT
CONFLICT
Institutional approaches
Latent conflict Joint membership of associations Exchange of executives Cooptation Dealer councils
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Felt conflict
Manifest conflict
Negotiation
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Retail Management
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Merchandise characteristic
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(contd.)
(i) the merchandise in the store affect the volume of sales as it is primarily the merchandise that attracts customers (ii) since profitability is based on the turnover rate of the inventory, the choice of merchandise and the quantity of merchandise of each category stocked affects the overall profitability of the establishment
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strategic objectives in terms of the level of profitability desired availability of target customers with manufacturers
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Space
Preferences
Relationships Availability
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CUSTOMER SERVICES
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Frequency Frequency
Average
Items
purchased
Range
purchased
service facilities used
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Customer
Product related
Purchase phase
Transaction related
Delivery Installation
Post purchase phase Repeat visits
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Convenient Locations Exclusive Store Merchandise Ample Parking Wide Choice Close to Other Task Oriented Prestigious Image Stores Relevant Merchandise Selection High Availability Competitive Pricing Rapid Cash Handling Ambience and Excitement Visual Merchandising In-store Facilities Product Services Centers
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in customer expectations across countries Differences in channel structure and trade practices Differences in governmental policies and regulations Differences in the quality of physical infrastructure
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C O N T R O L
Direct exporting
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R I S K
Joint venture
Wholly owned subsidiary
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distribution system
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suppliers
manufacturing
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