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Assignment-1 (Sales and Distribution Management) : Prepared For Prof. Joydeep Biswas Assistant Professor (Marketing Area)

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ASSIGNMENT-1

(Sales and Distribution Management)

Prepared for
Prof. Joydeep Biswas
Assistant Professor (Marketing Area)

Prepared by
Shashanka Neog (19202180)
Sreyashi Khetua (19202186)
Rituparna Poddar (19202236)

26-July-2020
Q1) What are the different types of sales roles in B2B and B2C sales profiles?
Answer- B2C deals includes focusing on an enormous and various market, nearly everybody is a
potential client except if you are offering to a specialty gathering. Various sales role under B2C sales
profile are as follows:
i. B2C field sales
ii. Revenue manager
iii. Relationship manager- primary sales
iv. Sales associate
v. Inside sales manager
vi. Business development executive
B2B sales is the exchange of the various goods and services between businesses, rather than
between business and customers. Various sales roles under B2B sales profile are as follows:
i. Outside Salesperson
ii. Inside Salesperson
iii. Regional Sales Manager
iv. Sales Operations Manager
v. Sales Engineer
vi. Director of Sales
vii. VP of Sales
viii. Chief Sales Officer

Q2) Describe a retail consumer buying process.


Answer- Retail consumers are the consumers who are going to buy in small quantity and it is generally
for self-consumption or for a family or friends use. Various stages buy which consumer buying process
is influenced are as follows-
a) Problem Recognition-It is the first step in the buying decision process. The buying decision
starts as soon as the buyer senses a need or a problem. The consumer develops a recognition
that he has a problem or generates a need, and that he needs something to fulfil that particular
issue. The consumer before purchasing has to realise the need for the product.
For example- The laptop is not working and it’s in damaged condition, and he/she need to
attend the online examination. So, attending the online exam becomes his/her need and my
want becomes the laptop.
b) Information search- Once you have the need or a problem, buyer tries to search for more
information regarding the product which will help buyer understanding the concern. They try to
evaluate all the various possible sources that could solve the particular problem that is
recognized in the first stage. For the information he/she may check in the google or may browse
various retail websites to collect the required information. Or may seek out personal sources
such as friend, family, colleagues for their opinion about the chosen product. Another possible
way to check is the print ads and the television ads. Another way of checking the information is
by visiting the showrooms personally.
c) Evaluation of Alternatives- In this stage, the consumer evaluates all the products
available on a scale of attributes which have the ability to deliver the benefit that they are
seeking. Customers checks different brands available, makes a comparison between them
and figures out the best alternative that fits for the listed criteria for the product.
For example- In this phase, I make a comparison list of multiple laptops. The list includes
brands (like HP, Lenovo, Acer, Dell, etc.), prices, features, and reviews. I select the one
that best fits my budget and expectations.
d) Purchase Decision- Once the customer has made up his mind about buying a certain
product or services, he/she needs to decide the brand, the retailer, location, the quantity,
purchase mode and the timing of the purchase. For buying an expensive product, besides
the brand and retailer, the customer is more interested in knowing about the various
payment mode as to whether it can be made through debit or credit card or EMI on credit
card or may be finance through a bank.
e) Post-Purchase Evaluation- This is the last stage where the consumer analyses whether it
was a right decision to purchase the product or it was a mistake. It evaluates the
experience after buying the product and the expectations and the satisfaction level met by
the product. If the consumer is satisfied with the product after the usage, then he/she can
also refer it to the others by providing positive feedback of the product or service. This in
turn can help others who look for the reviews before the purchase.

Q3) Describe an organizational customer buying process.


Answer- The behaviour that the industrial buyers exhibit while making a purchase decision, is known as
organizational customer buying process.
Industrial buyers go through the following 8 stages in the organizational buying process –
a)Problem Recognition- The process begins when somebody in the organization recognizes a
problem or need that can be met by acquiring a good or service.
b)General Need Description- In this stage of process, company describes the general characteristics
and quantity of the needed item.
c)Product Specification- Once the general specifications have been laid down, the buyers look for
the information about various product alternatives and lays down well defined product
specifications that is to be bought.
d)Supplier Search- At this stage of the business buying process buyer tries to find the best
vendors. The purchaser leads a standard inquiry to distinguish which suppliers offer what
they need, and which ones have gained notoriety for good quality, great organization, and
great incentive for the cash. Marketers can participate in this stage by maintaining well-
designed Web sites with useful information.
e)Proposal Solicitation- The stage of the business buying process in which the buyer invites
qualified suppliers to submit proposals.
f) Supplier Selection- The stage of the business buying process in which the buyer reviews proposal
and selects a supplier or suppliers.

g)Order Routine Specification- The stage of the business buying process in which the buyer writes
the final order with the chosen suppliers, listing the technical specifications, quantity needed,
expected time of delivery, return policies and warranties.
h)Performance Review- The stage of the business buying process in which the buyer rates its
satisfaction with suppliers, deciding whether to continue, modifies or drops them.

Q4) List the different types of purchasing decisions by organizations – (a) straight rebuy (b)
modified rebuy (c) new tasks.

Answer-
a) Straight rebuy- A business buying situation in which the buyer routinely reorders
something without any modifications. Here time taken for taking decision is less as
organization is already aware of the product, need of the product and has a great personal
experience.
b) Modified rebuy- A business buying situation in which the buyer wants to modify product
specifications, prices, terms or suppliers.
c) New Task- A business buying situation in which the buyer purchases a product or service for
the first time. It is also called as extensive problem solving situation. To purchase the new tasks, an
organization takes more time as it has greater risk and compare the cost with other alternative products
or services.

Q5) How is organizational buying different from consumer buying?


Answer- Consumer buying is where the consumer buys goods and services for the personal
consumption. In other words, consumer buying means the day to day purchases by
individuals to satisfy their daily needs.

On the other hand, Organizational buying involves purchasing goods and services to produce
another good with the intention of reselling it to final consumers to earn profits. The
organizational buying is also known as business buying.

Difference between consumer buying and business buying can be summarized as follows:

 Consumer markets contains many small scale buyers whereas business markets
consist of few large buyers. As an example consumer market for clothing would be
the every individual who purchases their cloths at a small scale and business market
for clothing would be retailers who purchases cloths from manufacturers for reselling
at a larger scale.
 In a consumer market consumers demand for goods when they recognize their needs.
As a result, the demand for a goods created in large scale. The demand for goods in
business market is derived from the summation of the demand for goods in the
consumer market. As an example the the business market demand for clothes (the
quantity purchased by the clothing retailer) depends of the quantity demanded by the
final consumer of clothing.
 Demand for goods in consumer markets is heavily affected by the changes in the
prices where it can be concluded that consumer market demand is price elastic.
Demand for goods in business markets are not affected by the price changes in short
run where it can be concluded that demand for goods in business market is price
inelastic.

Q6) Who are the different members in Group Buying in case of organizational sales? Illustrate
with example of KIIT University buying laptops at the start of an academic session.
Answer- A buying centre is comprised of all those individuals and groups who participate in the buying
decision-making process, who share some common goals and the risks arising from these decisions.
Before identifying the individuals and groups involved in the buying decision process, a marketer must
understand the roles of buying centre members. Understanding the buying centre roles helps industrial
marketers to develop an effective promotion strategy.
The different members of the Buying Centre of an Organisation are as follows:

1. Initiators: Usually the need for a product/item and in turn a supplier arises from the
users. But there can be occasions when the top management, maintenance or the
engineering department or any such recognise or feel the need. These people who
“initiate” or start the buying process are called initiators.
2. Users:
Under this category come users of various products. If they are technically sound like
the R&D, engineering who can also communicate well. They play a vital role in the
buying process. They also act as initiators.

3. Buyers: They are people who have formal authority to select the supplier and arrange the
purchase terms. They play a very important role in selecting vendors and negotiating and
sometimes help to shape the product specifications.

The major roles or responsibilities of buyers are obtaining proposals or quotes, evaluating
them and selecting the supplier, negotiating the terms and conditions, issuing of purchase
orders, follow up and keeping track of deliveries. Many of these processes are automated now
with the use of computers to save time and money.

4. Influencers:
Technical personnel, experts and consultants and qualified engineers play the role of
influencers by drawing specifications of products. They are, simply put, people in the
organisation who influence the buying decision. It can also be the top management when the
cost involved is high and benefits long term. Influencers provide information for strategically
evaluating alternatives.

5. Deciders:

Among the members, the marketing person must be aware of the deciders in the organisation
and try to reach them and maintain contacts with them. The organisational formal structure
might be deceptive and the decision might not even be taken in the purchasing department.

Generally, for routine purchases, the purchase executive may be the decider. But for high
value and technically complex products, senior executives are the deciders. People who
decide on product requirements/specifications and the suppliers are deciders.

6. Approvers:

People who authorise the proposed actions of deciders or buyers are approvers. They could
also be personnel from top management or finance department or the users.

7. Gate Keepers:

A gatekeeper is like a filter of information. He is the one the marketer has to pass through
before he reaches the decision makers.

By being closest to the action, purchasing managers or those persons involved in a buying
centre may act as gatekeepers. They are the people whom our industrial marketer would first
get in touch with. Hence, it so happens that information is usually routed through them.

In the case of KIIT University, buying laptops at the start of an academic session:

1. Initiators: For KIIT buying laptop process initiators are mainly students and top
management level. As both think there is need of laptop for management students.

2. Users: Students and teachers are the users here. They are the ones who use the laptop.
3. Buyers: Central Administration is the buyer in case of KIIT UNIVERSITY. They select
the supplier and arrange the purchase terms.

4. Influencers: ICT CELL’s are the influencer here. These people are Technical personnel,
experts and consultants and qualified engineers, they draw specifications of products.

5. Deciders: CHINTAN block is the decider here.

6. Approvers: For KIIT, the approvers are Finance department and Chancellor and
Registrar.

7. Gate Keepers: In KIIT they are mainly the secretary and ICT cell persons who contact
directly with the vendor and control the flow of information within the different members in
the buying centre.

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