Distribution And Sales Management Strategies
Sep 23,21Distribution And Sales Management Strategies
Question:
Discuss about the Distribution And Sales Management Strategies.
Answer:
Introduction
The success of an organization in the highly competitive market depends on the strategies related to distribution and sales management. The organization selects the strategies with the help of their available supply chain network otherwise (Gorchels, Marien and West, 2004). In this context, this paper is based on a case study of the Tropicana Fishing Lodge. This paper discusses the distribution and sales management strategies as well as their role in the development and success of the organization.
Distribution Strategy
A distribution strategy is a plan for making the availability of the product or service to target the customers via a supply chain. Starting with what the firm stated in marketing campaigns and what target demographic is to be serviced; the distribution strategy creates the whole method for making the offering available. A business can choose to provide its product or service with the help of its distribution channels or collaborate with other businesses for doing so through existing distribution channels. A company’s distribution plan ensures that a product or service reaches the greatest number of prospective consumers at the lowest possible cost of distribution (Gorchels, Marien, and West, 2004). A successful distribution strategy may increase your sales and profits, while a bad or haphazard distribution strategy can result in not just losses, but also competitors taking advantage of the market opportunity company generated.
Sales Management strategy
Sales management is the act of establishing a sales staff, coordinating sales operations, and executing sales strategies that enable a company to regularly meet, if not exceed its sales goals. Customer interactions are one area that is mainly addressed by sales management strategy. In the digital era, this entails both one-on-one communication and the development of social media connections with clients. Salespeople must be aware of the dynamics and possibilities provided by social media sites like Twitter, Facebook, and YouTube. All of these factors have a significant impact on customer perceptions and attitudes about a product or service. Analyzing consumer behavior online, especially how they engage with the website, is also part of developing customer connections (Venugopal, 2008). Strategic sales managers may divide clients into particular demographics and build marketing plans that target them if they are skilled at studying their behavior.
Distribution and Sales Management Strategy of Case Company
After reading the case study, it is clear that the concerned company, Tropicana Fishing Lodge, caters mostly to clients who are enthusiastic about the hobby of fishing. Tropicana Fishing Lodge expects visitors who wish to stay longer than five days since the organization prefers to give a variety of services and possibilities for catching fish, as evidenced by the case study. As a result, the organization’s most practical distribution approach would be selective distribution. A commercial organization or a manufacturer uses a selective distribution strategy to offer specialized goods or services to a specific target market through a specific channel and a specific number of intermediaries (Dent, 2011). To put it another way, selective distribution is a product or service distribution strategy that falls somewhere in between extensive and intensive distribution.
A competent intermediate develops selective distribution because it can skillfully preserve the reputation of a certain service provider while also establishing possible competitive advantages. The advantage of using a selective distribution plan is that it allows a company to save money, gain solid marketing control, and improve the existing efficiency of marketing strategies (Dent and White, 2018). In the case of Tropicana, it can be argued that the company has had numerous lean seasons and that the organization has to assess its current marketing worth.
Tropicana would benefit from selective distribution due to the company’s careful selection of a target market with characteristics connected to the hobby of fishing (Aronsson-Storrier, 2011). Tropicana also only covers a limited geographical region, namely Costa Rica’s Caribbean coast. Tropicana would benefit from a selective distribution strategy since it allows merchants to reach a specified geographic area.
Tropicana will be able to expand its market penetration, giving them a leg up on two of the company’s main competitors, Casa Fantastica and Azul Grande. However, even after adopting this method, Tropicana may find it difficult to choose appropriate dealers for distribution or broadcast who can meet Tropicana’s goals and criteria.
After recommending a feasible and practical distribution strategy and taking into account Tropicana Fishing Lodge’s current situation, it is reasonable to conclude that an effective tactical plan to increase demand for the products during the lean season should include aspects such as service modification, improved customer feedback and promotional activities (Aronsson-Storrier, 2011).
For a variety of reasons, the business would need to integrate the above-mentioned factors to increase demand from the target market during the lean months. During the rainy seasons, the group may consider expanding its offerings to include jungle expeditions, which would appeal to nature-loving tourists from all across the country. The government may potentially consider extending the guesthouse by acquiring some of the banana company’s property. The banana company’s profit will be lower as a result of the change, yet it may still exceed the guesthouse’s profit. Facilities for jungle expeditions, common space, and central air conditioning for recreation should all be taken into account.
At the same time, in comparison to holiday regions, there are fewer attractions and services. Furthermore, greater promotional efforts are necessary because the group exclusively promotes in the San Jose area through online social media. It’s also reasonable that Tropicana does not place a high priority on customer feedback. According to the case study, the above-mentioned factors are important to resolve because Tropicana’s main rival, Azul Grande, has stronger accommodation power in comparison to Tropicana. Most importantly, Azul Grande advertises their service in a specialized outdoor publication. It indicates the competitor organization mostly employs selective distribution tactics and focuses on delivering better lodging. The existing service quality will be improved as a well-attainable tactical strategy in the future.
Tropicana should spend in improving its hotel amenities while also including a variety of fishing facilities that will allow tourists to fish even during the wet months. Tropicana might consider a common area and central air conditioning for leisure time when it comes to upgrading its accommodations. The proposal should also include a stronger marketing strategy, such as advertising the new lodging and fishing facilities in various periodicals and on social media (Funk, 2014). Online broadcasting and the usage of social media should be key elements of the strategy since they are both cost-effective. It will help the company attract new customers.
In this regard, it is worth noting that, following the implementation of marketing efforts and service modification measures, the company would seek consumer feedback on their new advertising features and service, as per the plan. It would be ideal if the company offered clients the option of providing comments over the internet (Funk, 2014). As a result, a smart strategy for Tropicana would be to expand fishing facilities and enhance existing service, advertise online, on social media, and in magazines, and solicit consumer feedback.
Conclusion
As per the discussion, it concluded that the distribution and sales management strategies of the organization facilitate the organizations to develop the strategies to meet the objectives and aims of the organization. Without the effective use of the sales management strategies or the distribution management, an organization like the case study organization may not address the concerns of the customers but also meet the competitive advantages.
References
Aronsson-Storrier, M. (2011). Selective Distribution and Online Sales: The Transformation of European Competition Law Into the Electronic Society. Lambert Academic Publishing.
Dent, I. and White, M. (2018). Sales and Marketing Channels: How to Build and Manage Distribution Strategy. Kogan Page Publishers.
Dent, J. (2011). Distribution Channels: Understanding and Managing Channels to Market. Kogan Page Publishers.
Funk, T. (2014). Advanced Social Media Marketing: How to Lead, Launch, and Manage a Successful Social Media Program. Apress.
Gorchels, L., Marien, E. and West, C. (2004). The Manager’s Guide to Distribution Channels. McGraw Hill Professional.
Venugopal, P. (2008). Sales and Distribution Management: An Indian Perspective. SAGE Publishing India.