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SALES & DISTRIBUTION MANAGEMENT. 4B. SALES RELATED MARKETING POLICIES. SALES MANAGEMENT’S ROLE To participate as a member of an executive group responsible for determining all marketing policies. A : PRODUCT POLICY. PRODUCT OBJECTIVES RELATED Based on feedback from the market
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SALES MANAGEMENT’S ROLE To participate as a member of an executive group responsible for determining all marketing policies.
A : PRODUCT POLICY • PRODUCT OBJECTIVES RELATED Based on feedback from the market • PRODUCT LINE RELATED Related to the width of the product line - relating to changes what is to be retained what is to be dropped
- Relating to Line Simplification Compared to competition Strength / Weaknesses identified Profitability - Relating to Line Diversification Considered with growth objectives - New Product Ideas Based on market needs - Appraising Proposed New Products Will it add value?
PRODUCT DESIGN RELATED Is Market Ready for a Design Change? • PRODUCT QUALITY & SERVICE RELATED Guarantee Policy
B DISTRIBUTION POLICY • CHANNEL RELATED - Channel Levels - Sales Volume Potential Am I covering the market? - Cost of Channel Length
DISTRIBUTION INTENSITY RELATED - Mass Distribution - Selective Distribution - Exclusive Agency Distribution
C PRICING POLICIES • COMPETITION RELATED - Meeting Competition - Pricing above Competition - Pricing under Competition • COST RELATED - Full-cost Pricing No sale lower than fixed + variable cost - Promotion Pricing Introductory Offers Fight Competition - Contribution Pricing Large volume OEM sales
UNIFORM PRICING TO DIFFERENT BUYERS • POLICY ON LIST PRICING • POLICY ON DISCOUNTS - Trade Discounts - Quantity Discounts
GEOGRAPHICAL PRICING POLICIES - FOB Pricing - Delivered Pricing • POLICY ON PRICE LEADERSHIP • PRODUCT LINE PRICING POLICY • COMPETITIVE BIDDING PRICING