How Avon is changing the way it reaches and sells to customers illustrates
the challenges companies face today as they try to better manage
their sales and distribution activities. As we discussed in Chapter 10, customers
are fickle buyers. They constantly search for products that better meets their needs
and need to be persuaded to buy and try new products. As a result, companies need
to use marketing to find the best ways to promote and place their product to attract
the most customers to buy them and increase sales and revenues. In this chapter, we
focus on specific aspects of the promotion and place components of the marketing
mix discussed in Chapter 10. Specifically, we examine the distribution and sales
methods a company uses to place, promote, and dispose of its products. The ways
Avon is changing the methods it uses to reach and attract customers illustrates the
many challenges involved in managing a company's sales and distribution activities
today. Avon is using new distribution channels, such as the Internet, to attract new
and existing customers. It is also changing its sales approach by targeting a new customer
group, younger women, and recruiting younger sales reps to distribute and sell
to these customers.
First, we discuss the kinds of distribution channels a company uses to sell and distribute
its products. Second, we examine the different kinds of personal selling
approaches a company uses to manage these distribution channels. The stages
involved in the face-to-face personal selling process and the ingredients that lead to
successful personal selling are then described. We pay a great deal of attention to the
issue of personal selling because in today's world, each of us has to be able to "sell
ourselves." We need to be able to sell ourselves to prospective employers, for example,
or make a bargain on a vehicle at a car dealership, or negotiate a real estate deal.
Even finding a spouse requires a bit of "salesmanship." This is why we discuss the
sales process in detail in this chapter. Finally, we examine the ways new information
technology, such as CRM software, can improve the profitability of a company's
sales, distribution, and marketing activities. By the end of this chapter, you will understand
how a company's sales and distribution methods affect its ability to reach customers
and deliver more value to them.
