Discuss the relationship between sales management and distribution management
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Sales refers to the exchange of goods/ commodities against money or service. It is the only revenue generating function in an organization. It has formed an important part in business throughout history. Even prior to the introduction of money, people used to exchange goods in order to fulfill the needs, which is known as the barter system.
Example of Barter System
A has 100 kg of rice and B has 50 kg of wheat. Here, A needs wheat and B needs rice. They agree to exchange 50 kg of rice and 25 kg of wheat upon mutual understanding.
Conditions of Sales
There are two parties involved in the transaction, the seller and the buyer.The seller is the provider of goods or services and the buyer is the purchaser in exchange of money.
The seller of goods has to transfer the title of ownership of the item to the buyer upon an agreed price. A person who sells goods or services on behalf of the seller is known as the salesman/woman.
Distribution is the process of making a product or service available for use or consumption to the end consumer or business.
Distribution could be of the following two types −
Direct Distribution
It can be defined as expanding or moving from one place to another without changing direction or stopping. For example, Bata has no distribution channel; it sells its products directly to the end consumers.
Indirect Distribution
It can be defined as means that are not directly caused by or resulting from something. For example, LG sells its product from the factory to the dealers, and it reaches the consumers through dealers.
The following image shows the end-products stored at a warehouse, ready for shipment to the dealers/consumers.
Example of Barter System
A has 100 kg of rice and B has 50 kg of wheat. Here, A needs wheat and B needs rice. They agree to exchange 50 kg of rice and 25 kg of wheat upon mutual understanding.
Conditions of Sales
There are two parties involved in the transaction, the seller and the buyer.The seller is the provider of goods or services and the buyer is the purchaser in exchange of money.
The seller of goods has to transfer the title of ownership of the item to the buyer upon an agreed price. A person who sells goods or services on behalf of the seller is known as the salesman/woman.
Distribution is the process of making a product or service available for use or consumption to the end consumer or business.
Distribution could be of the following two types −
Direct Distribution
It can be defined as expanding or moving from one place to another without changing direction or stopping. For example, Bata has no distribution channel; it sells its products directly to the end consumers.
Indirect Distribution
It can be defined as means that are not directly caused by or resulting from something. For example, LG sells its product from the factory to the dealers, and it reaches the consumers through dealers.
The following image shows the end-products stored at a warehouse, ready for shipment to the dealers/consumers.
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Answer:
SALES MANAGEMENT :
- Sale refers to the exchange of goods/goods for money or services. It is the only revenue generating function in an organization. It has played an important role in the economy throughout history. Even before money was introduced, people exchanged goods to cover their needs, the so-called barter system.
Example of an exchange system :
A has 100 kg of rice and B has 50 kg of wheat.Here A needs wheat and B needs rice. They agree to exchange 50 kg of rice and 25 kg of wheat by mutual agreement.
Conditions of sale :
- There are two parties involved in the transaction, the seller and the buyer. The seller is the supplier of goods or services and the buyer is the buyer for money.
- The seller of the goods must transfer ownership of the thing to the buyer at an agreed price.A person who sells goods or services on behalf of the seller is referred to as a seller/woman.
DISTRIBUTION MANAGEMENT :
- Distribution is the process of making a product or service available for use or consumption by the end user or business.
Distribution could be of the following two types:
- Direct distribution :It can be defined as extension or movement from one place to another without changing direction or stopping. For example, Bata has no distribution channel; sells its products directly to end users.
- Indirect Distribution: It can be defined as a means not directly caused or caused by something. For example, LG sells its products to retailers ex works and reaches consumers through retailers. The finished products stored in a warehouse are now ready for shipment to retailers/consumers.
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