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Q1. Explain the classification of retailer in detail.

Ans: The classifications of Retailer are as follows:

Department stores - very large stores offering a huge assortment of "soft" and "hard goods; often bear a resemblance to a collection of specialty stores. A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service. Discount stores - tend to offer a wide array of products and services, but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices. Normally retailers sell less fashion-oriented brands. Warehouse stores - warehouses that offer low-cost, often high-quantity goods piled on pallets or steel shelves; warehouse clubs charge a membership fee; Variety stores - these offer extremely low-cost goods, with limited selection; Demographic - retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals). General store - a rural store that supplies the main needs for the local community; Convenience stores: is essentially found in residential areas. They provide limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases as it often works with extended hours, stocking every day; Hypermarkets: provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats. Supermarkets: is a self-service store consisting mainly of grocery and limited products on non-food items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere between 20,000 and 40,000 square feet (3,700 m2). Example: SPAR supermarket. Malls: has a range of retail shops at a single outlet. They endow with products, food and entertainment under a roof. E-tailers: The customer can shop and order through internet and the merchandise are dropped at the customer's doorstep. Here the retailers use drop shipping technique. They accept the payment for the product but the customer receives the product directly from the manufacturer or a wholesaler. This format is ideal for customers who do not want to travel to retail stores and are interested in home shopping. However it is important for the customer to be wary about defective products and non-secure credit card transaction. Example: Amazon, Pennyful and eBay.

Q2. Describe the four principal component of Physical Distribution management. Ans: The four principal components of Physical Distribution Management are as follows 1. Order processing

Order processing is the first of the four stages in the logistical process. The efficiency of order processing has a direct effect on lead times. Orders are received from the sales team through the sales department. Many companies establish regular supply routes that remain relatively stable over a period of time providing that the supplier performs satisfactorily 2. Inventory Inventory, or stock management, is a critical area of PDM because stock levels have a direct effect on levels of service and customer satisfaction. The optimum stock level is a function of the type of market in which the company operates. Few companies can say that they never run out of stock, but if stock-outs happen regularly then market share will be lost to more efficient competitors. 3. Warehousing When a firm markets goods that are ordered regularly, but in small quantities, it becomes more logical to locate warehouses strategically around the country. Transportation can be carried out in bulk from the place of manufacture to respective warehouses where stocks wait ready for further distribution to the customers. This system is used by large retail chains, except that the warehouses and transportation are owned and operated for them by logistics experts (e.g. BOC Distribution, Excel Logistics and Rowntree Distribution). Levels of service will of course increase when numbers of warehouse locations increase, but cost will increase accordingly. Again, an optimum strategy must be established that reflects the desired level of service. 4. Transportation Transportation usually represents the greatest distribution cost. It is usually easy to calculate because it can be related directly to weight or numbers of units. Costs must be carefully controlled through the mode of transport selected amongst alternatives, and these must be constantly reviewed. During the past 50 years, road transport has become the dominant transportation mode in the UK. It has the advantage of speed coupled with door-to-door delivery. Q3. Discuss the formulation of Sales strategy in brief. Ans: Sales Strategy formulation refers to the process of choosing the most appropriate course of action for the realization of organizational goals and objectives and thereby achieving the organizational vision. The process of strategy formulation basically involves five main steps. Though these steps do not follow a rigid chronological order, however they are very rational and can be easily followed in this order. 1. Setting Organizations objectives - The key component of any strategy statement is to set the long-term objectives of the organization. It is known that strategy is generally a medium for realization of organizational objectives. Objectives stress the state of being there whereas Strategy stresses upon the process of reaching there. Strategy includes

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both the fixation of objectives as well the medium to be used to realize those objectives. Thus, strategy is a wider term which believes in the manner of deployment of resources so as to achieve the objectives. Evaluating the Organizational Environment - The next step is to evaluate the general economic and industrial environment in which the organization operates. This includes a review of the organizations competitive position. It is essential to conduct a qualitative and quantitative review of an organizations existing product line. The purpose of such a review is to make sure that the factors important for competitive success in the market can be discovered so that the management can identify their own strengths and weaknesses as well as their competitors strengths and weaknesses. Setting Quantitative Targets - In this step, an organization must practically fix the quantitative target values for some of the organizational objectives. The idea behind this is to compare with long term customers, so as to evaluate the contribution that might be made by various product zones or operating department Aiming in context with the divisional plans - In this step, the contributions made by each department or division or product category within the organization is identified and accordingly strategic planning is done for each sub-unit. This requires a careful analysis of macroeconomic trends Choice of Strategy - This is the ultimate step in Strategy Formulation. The best course of action is actually chosen after considering organizational goals, organizational strengths, potential and limitations as well as the external opportunities.

Q4. Compare and contrast the various types of sales organization structure. Ans: Sales organization development refers to the formal, coordinating process of communication, authority and responsibility for sales groups and individuals. An effectively designed sales organization has a frame work that enables the organization to serve its customers. Once the sales people know what their responsibilities are and who they report to, they can concentrate on doing their expected jobs to the best of their ability. Thus a sales manager must recognize and deal with some basic problems faced by organizations, when developing his own sales organization. The sales organization structured can be Line and staff components of organization Marketing organization also feature line and staff components. A line function is a primary activity and a staff function is a supporting activity. In a marketing organization, the selling function is the line component whereas advertising, marketing research, marketing planning, sales training and distributor relations are usually considered staff roles. Formal and informal organizations Every firm has a formal and an informal organization. The formal organization is a fixed set of rules of intra organization procedure and structured that of the management whereas the

informal organization is often developed from the informal relationships exiting within the organization. It is also called as grapevine. Horizontal and vertical organizations A sales force can have either a horizontal or a vertical organizational format. This arrangement varies among companies even within the same industry. The factor that determines whether a vertical or horizontal organizational structure should be employed is the effective span of control. The span of control refers to the number of employees who report to the next higher level in the organization. Centralized and decentralized organizations In a decentralized organization, responsibility and authority are delegated to lower level of sales management while in a centralized sales organization; the responsibility and authority for decisions are concentrated at higher levels of management you find higher degree of decentralization as an organization grows in size. Q5. Explain the formulation of Sales organization. Ans: The formulation of sales organization is a three step process. Step 1- Sales strategy: The first step is to segment the population into different categories, by using various methods of segmentation. The population can be segmented on the basis of demographics, location, psychographics etc. Mostly the segments with similar sales processes are identified so that they could be easily targeted by the sales organization. After deciding on the segments, the products and services that relate to each decided segment is specified. Effectively reaching the segments with right products and services holds the key to success. Step 2- Marketing strategy: At this stage, the ways to inform customers about the product and services available and ways to reach them are decided. The company decides the channel through which it will reach the prospective buyers. Some companies adopt an indirect channel including intermediaries and some adopt a direct approach. Step 3- Sales force design: At this step, the sales organization decides the structure of its sales force. It decides the roles of different sales person, number of sales persons to be devoted to a particular segment, the formal relationships between sales person, appraisal and evaluation methods, compensation etc. Q6. Describe the types of sales strategies. Ans: The types of sales strategies are stated below: 1. Relationship strategy Successful businesses don't just communicate with prospects and customers for special sales. Today, making your company indispensable is a vital key to

marketing success. It's a terrific way to add value, enhance your brand and position against your competition. Here are seven relationship-building strategies that will help you transform your company into a valuable resource: 2. A win-win game Is a game which is designed in a way that all participants can profit from it in one way or the other. In conflict resolution, a win-win strategy is a conflict resolution process that aims to accommodate all disputants 3. Instant service Use Instant Prescreen to identify profitable cross-selling opportunities by automatically qualifying new or existing customers for pre-selected products or services. You can increase sales opportunities at the point-of-sale and build customer loyalty through highly-targeted offers. 4. Hard sell vs. soft sell strategy Hard sell strategies are aggressive and usually put a high amount of pressure on the client. The clerk who sold me the shovel is a simple example. Other tactics include cold calls, forceful sales letters, and unsolicited pitches. Youre there to sell, they know it, and you know it theres no gray area. The main advantage of hard selling is that it gets straight to the point. This is especially important for clients who are ready to buy and arent looking around to do a few more meetings. The decision should be made now, and you want to step up and offer yourself as a part of their team. Soft Sell soft selling focuses on the relationship-building aspect of sales. You dont put psychological pressure on potential buyers. Instead, you find passive ways to show them that you have the solutions they need. In online freelancing, this could be done through your blog, by providing a free eBook or white paper, or even by participating in online discussions. With all the available online tools for these, its no wonder that this tends to be the approach chosen by more techsavvy freelancers. 5. Integrated sales strategies In many businesses, the relationship between sales and marketing is akin to that of the Montagues and Capulets, both equally stacked in the game of love and war. Today, we extend the olive branch and show that sales and marketing are fundamentally intertwined; one is not as effective without the other.