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has built a £ billion…plus home delivery business on the back of its store 
structure。 Amazon; the sector’s pioneer; now has in effect the first online 
department store; with a neat sideline in selling on second…hand items 
once the customer has finished with the product。
Marketing 107 
。 Door…to…door selling: Traditionally used by vacuum cleaner distributors 
and encyclopaedia panies; this is now used by insurance panies; 
cavity…wall insulation firms; double…glazing firms and others。 
Many use hard…sell techniques; giving door…to…door selling a bad name。 
However; panies such as Avon Cosmetics have managed to sell 
successfully door…to…door without a。。racting the stigma of unethical 
selling practices。 
。 Party…plan selling: This is a variation on door…to…door selling that is on 
the increase; with new party…plan ideas arriving from the United States。 
Agents enrolled by the pany invite their friends to a get…together 
where the products are demonstrated and orders are invited。 The agent 
gets a mission。 Party plan has worked very well for Avon and other 
firms that sell this way。 
Selecting distribution channels 
These are the factors you should consider when choosing channels of distribution 
for your particular business: 
1。 Does it meet your customers’ needs? You have to find out how your 
customers expect their product or service to be delivered to them and 
why they need that particular route。 
2。 Will the product itself survive? Fresh vegetables; for example; need 
to be moved quickly from where they are grown to where they are 
consumed。 
3。 Is it patible with your image? If you are selling a luxury product; 
then door…to…door selling may spoil the impression you are trying to 
create in the rest of your marketing effort。 
4。 How do your petitors distribute? If they have been around for a 
while and are obviously successful; it is well worth looking at how your 
petitors distribute and using that knowledge to your advantage。 
5。 Will the channel be cost…effective? A small manufacturer may not find it 
cost… effective to sell to retailers over a certain distance because the direct 
‘drop’ size – that is; the load per order – is too small to be worthwhile。 
6。 Will the mark…up be enough? If your product cannot bear at least a 
100% mark…up; then it is unlikely that you will be able to sell it through 
department stores。 Your distribution channel has to be able to make a 
profit from selling your product too。 
7。 Push–pull: Moving a product through a distribution channel calls for 
two sorts of selling activity。 ‘Push’ is the name given to selling your 
product in; for example; a shop。 ‘Pull’ is the effort that you carry out on 
the shop’s behalf to help it to sell your product out of that shop。 That pull 
may be caused by your national advertising; a merchandising activity 
or the uniqueness of your product。 You need to know how much push 
and pull are needed for the channel you are considering。 If you are not 
108 The Thirty…Day MBA 
geared up to help retailers to sell your product; and they need that help; 
then this could be a poor channel。 
8。 Physical distribution: The way in which you have to move your product 
to your end customer is also an important factor to weigh up when 
choosing a channel。 As well as such factors as the cost of carriage; you 
will also have to decide about packaging materials; warehousing and 
storage。 As a rough rule of thumb; the more stages in the distribution 
channel; the more robust and expensive your packaging will have to 
be。 
9。 Cash flow。 Not all channels of distribution se。。le their bills promptly。 
Mail…order customers; for example; will pay in advance; but retailers can 
take up to 90 days or more。 You need to take account of this se。。lement 
period in your cash…flow forecast。 
Logistics 
The goal of a marketing logistics system is to manage the whole process of 
ge。。ing products to customers in an efficient and cost…effective manner to 
meet marketing goals; and to get faulty or unwanted products back。 This 
interfaces with a host of related areas of business; including physical transportation; 
warehousing; relationships with suppliers; and inventory and 
stock management。 Some important considerations in logistics include: 
。 Just in time (JIT) aims to reduce the need for warehousing through 
accurate sales forecasting。 All parties in the distribution channel carry 
minimum stock and share information on demand levels。 
。 Vendor managed inventory (VMI) and continuous inventory replenishment 
systems (CIRS) require customers to share real…time data on 
sales demand and inventory levels with suppliers。 
Both supplier and customers; while benefiting from cooperation; have 
mutually conflicting goals in that they want to shi。。 costs onto the other 
party。 Their capacity for doing so depends on their relative strengths。 For 
example; giant retailers such as Tesco and Marks & Spencer have been 
very successful in ge。。ing their suppliers to carry a major part of the cost of 
stockholding。 
SELLING 
Marketing is the thinking process behind selling; in other words; finding 
the right people to buy your product or service and making them aware 
that you are able to meet their needs at a petitive price。 But just because 
customers know you are in the market is not in itself sufficient to make 
them buy from you。 Even if you have a superior product at a petitive 
price they can escape your net。
Marketing 109 
Ge。。ing customers to sign on the do。。ed line almost invariably involves 
selling。 This is a process that business people have to use in many situations 
other than in persuading customers to buy。 MBAs have to ‘sell’ bank 
managers the idea that lending their business money is worthwhile; that 
shareholders should invest; that employees by working for them are making 
a good career move or that their boss should back one of their proposals。 
Though essential; selling on its own is an inefficient method of ge。。ing 
potential customers to the point of buying。 Understanding the ‘ascending 
ladder of influence’; as marketers call it; puts the salesperson’s role in 
perspective。 This is a method to rank the ‘warm bodies’ a customer will 
encounter in the selling process in the order in which it is most likely to 
influence your customers favourably。 At the top of the scale is the personal 
remendation of someone whose opinion is trusted and who is known 
to be unbiased。 An example here is the endorsement of an industry expert 
who is not on the payroll; such as an existing user of the goods or services 
who is in the same line of business as the prospective customer。 While 
highly effective; this method is hard to achieve and can be expensive and 
time consuming。 Further down the scale is an approach by you in your 
role as a salesperson。 While you may be seen to be knowledgeable; you 
clearly stand to gain if a sale is made。 So you can hardly be unbiased。 Sales 
calls; however they are made; are an expensive way to reach customers; 
especially if their orders are likely to be small and infrequent。 
How selling works 
There is an erroneous view that salespeople; like artists and musicians; 
are born; not made。 Selling can be learnt; improved and enhanced just like 
any other business activity。 First; you need to understand selling’s three 
elements: 
。 Selling is a process moving through certain stages if the best results 
are to be achieved。 First; you need to listen to the customers to learn 
what they want to achieve from buying your product or service; then 
you should demonstrate how you can meet their needs。 The next stage 
is handling questions or objections; a good sign as it shows that the 
customer is sufficiently interested to engage。 Finally es ‘closing 
the sale’。 This is li。。le more than asking for the order with a degree of 
subtlety。 
。 Selling requires planning in that you need to keep records and 
information on customers and potential customers so you know when 
they might be ready to buy or reorder。 
。 Selling is a skill that can be learnt and enhanced by training and 
practice; as shown in the case study below。 The Sales Training Directory 
(sales…training…courses。uk》Directory) lists sales course 
providers in the UK。
110 The Thirty…Day MBA 
NEGOTIATING 
Like selling; negotiating; of which it usually forms a part; is as much a 
science as an art。 There are a few immutable rules; easily understood but 
invariably difficult to execute: 
。 Aim high at the outset。 Unless you can find the point of resistance; you 
can’t find the outer limits of your negotiating range。 
。 You must be prepared to walk away from a deal and make that evident; 
if you are to have any negotiating leverage。 To achieve this you 
must have prepared plans B and C ready to execute if the terms you 
want can’t be achieved。 For example; when negotiating to buy out a 
petitor; have other businesses in the frame too; or have plans to 
enter that market without them。 
。 Search out a range of variables to negotiate other than price。 Delivery 
date; payment terms; quantities; currencies; shared future profits; knowhow 
swaps are just a handful of areas rich in negotiating possibilities。 
。 Never give a concession away。 Anything given for nothing is seen as 
being worth nothing。 Instead; trade concessions and always put the 
highest value possible on the concession。 ‘We will pay 30% upfront 
rather than the 20% you’re asking for (a gain for the seller) if you bring 
the price down to £1。2m rather than the £1。3m you’re asking’ (a gain for 
the buyer) is the place to start if you hope to hit a £1。25m final price。 
。 Talk as li。。le as possible。 The less you say the less you can give away。 
。 Once you have put a proposition on the table; shut up。 The first to blink 
is the loser。 
When Sumir Karayi started up in business in the spare room of his flat in 
West Ealing; London; he wanted his business to be distinctive。 He was 
a technical expert at Microsoft and with two colleagues he set up 1E 
(1e) as a mune aiming to be the top technical experts in 
their field。 The business name es from the message that appears on 
your screen whe

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