Sales force evaluation and control
- 1. Evaluating Sales ForceEvaluating Sales Force PerformancePerformance Presented by: Bhoomi Ahuja
- 2. TABLE OF CONTENTSTABLE OF CONTENTS ⢠Sales Force PerformanceSales Force Performance ⢠Performance EvaluationPerformance Evaluation ⢠Establishing Of Performance StandardsEstablishing Of Performance Standards ⢠Methods Of Sales Force EvaluationMethods Of Sales Force Evaluation ⢠Monitoring & Reviewing Of Sales Force PerformanceMonitoring & Reviewing Of Sales Force Performance ⢠Sales ControlSales Control ⢠Sales AuditSales Audit ⢠Sales AnalysisSales Analysis ⢠Marketing CostMarketing Cost
- 3. SALES FORCE PERFORMANCESALES FORCE PERFORMANCE ⢠The division of a business that's responsible for selling products or services. In this case, you may expect your sales force to handle only the larger accounts, leaving the smaller orders to customer service personnel and order-takers. ⢠A judgment or assessment of the value of something, especially a formal one. A performance appraisal evaluates how well the salesperson met their prior stated objectives.
- 4. DETERMINANTS OF SALES FORCEDETERMINANTS OF SALES FORCE PERFORMANCEPERFORMANCE ⢠Changing dynamics of the market have increased theChanging dynamics of the market have increased the pressure on sales forcepressure on sales force ⢠Many studies were conducted to know the factors whichMany studies were conducted to know the factors which will influence sales force performancewill influence sales force performance ⢠They areThey are 1.1. Internal factorsInternal factors 2.2. External factorsExternal factors
- 5. INTERNAL FACTORSINTERNAL FACTORS ⢠MotivationMotivation ⢠Skill levelSkill level ⢠Job satisfactionJob satisfaction ⢠Role perceptionRole perception ⢠Ego driveEgo drive ⢠EmpathyEmpathy
- 6. EXTERNAL FACTORSEXTERNAL FACTORS a)a) Environmental factorsEnvironmental factors b)b) Organizational factorsOrganizational factors a)a) communication & work flowcommunication & work flow b)b) compensation systemcompensation system c)c) Sales management functionsSales management functions a)a) Sales force planningSales force planning b)b) ForecastingForecasting c)c) Territory managementTerritory management d)d) CompensationCompensation e)e) ControlControl
- 7. PERFORMANCE EVALUATIONPERFORMANCE EVALUATION ⢠The process of assessing an employee's job performance and productivity. ⢠Important process which enhances the way organization isImportant process which enhances the way organization is managed & provides recommendations for furthermanaged & provides recommendations for further improvement.improvement.
- 8. SALES FORCE EVALUATIONSALES FORCE EVALUATION PROCESSPROCESS Determine the factors that influence sales force performance Select criteria for sales force evaluation Establish performance standards Compare sales force performance Performance review & feed back Evaluation process
- 9. MAJOR SOURCES OF INFORMATIONMAJOR SOURCES OF INFORMATION ⢠Company recordsCompany records ⢠Sales volumes, sales order to call ratio, profitability, selling expenses etc.Sales volumes, sales order to call ratio, profitability, selling expenses etc. ⢠Reports from sales personsReports from sales persons ⢠Activity, expenses, call reportsActivity, expenses, call reports ⢠CustomersCustomers ⢠Inadequacy of sales persons reports can be removedInadequacy of sales persons reports can be removed ⢠Managerâs field visitManagerâs field visit ⢠Communication skills, interpersonal skills, technical product knowledge,Communication skills, interpersonal skills, technical product knowledge, personality traitspersonality traits ⢠Other sourcesOther sources ⢠Distributors, personal contacts, published & electronic sources etc.Distributors, personal contacts, published & electronic sources etc. ⢠Information from peers & subordinates (360Information from peers & subordinates (36000 feed back)feed back)
- 10. ESTABLISHING OF PERFORMANCEESTABLISHING OF PERFORMANCE STANDARDSSTANDARDS ⢠Based on the criteria standards are to be formulated.Based on the criteria standards are to be formulated. ⢠Standards act as a bench mark & helps in evaluating performance.Standards act as a bench mark & helps in evaluating performance. ⢠Can be prepared by a sales manager singly or in consultation withCan be prepared by a sales manager singly or in consultation with other sales personnel.other sales personnel. ⢠No. of standards to be used is one of major decisions & difficultyNo. of standards to be used is one of major decisions & difficulty involved in the weight to be given to each factor.involved in the weight to be given to each factor. ⢠Large companies will have common set of performance standards.Large companies will have common set of performance standards. ⢠Relationship between input & output measures to be kept in mindRelationship between input & output measures to be kept in mind while setting standards.while setting standards.
- 11. SOME OF THE METHODS FORSOME OF THE METHODS FOR EVALUATIONEVALUATION 1. Essays: where sales manager describes the performance of sales person in few paragraphs. 2. Rating scales: based on standardized performance measures. 3. Forced choice method: where the sales manager is asked to go through groups of statements & select those that best explain the individual. 4. Ranking: useful when entire sales force has to be evaluated. Techniques used are alternative ranking, paired comparison ranking & multiple ranking.
- 12. SALES CONTROLSALES CONTROL Sales control is one of the functions of sales management whichSales control is one of the functions of sales management which ensures the sales achievement and profit objectives of theensures the sales achievement and profit objectives of the company by coordinating effectively and efficiently thecompany by coordinating effectively and efficiently the different sales functions.different sales functions. Goals of Sales controlGoals of Sales control â˘â˘ Optimize number of salesOptimize number of sales â˘â˘ Maximize profitMaximize profit â˘â˘ Control revenueControl revenue
- 13. ⢠Sales budget and sales programmes are the basic available toolsSales budget and sales programmes are the basic available tools to control the efforts.to control the efforts. ⢠Other available tools areOther available tools are â˘â˘ Sales AuditSales Audit â˘â˘ Sales AnalysisSales Analysis ⢠The above tools can be used in identifying the strength andThe above tools can be used in identifying the strength and weakness of the internal processes and opportunities and threatsweakness of the internal processes and opportunities and threats from the external environment. Further it will help thefrom the external environment. Further it will help the management in locating the defect in the functioning of the salesmanagement in locating the defect in the functioning of the sales department and take corrective measures.department and take corrective measures. SALES BUDGET
- 14. Sales AuditSales Audit Sales audit is the systematic and unbiased review of the basicSales audit is the systematic and unbiased review of the basic objective and policy of the selling function of an organization. Salesobjective and policy of the selling function of an organization. Sales audits help in improving the effectiveness of the sales arm of theaudits help in improving the effectiveness of the sales arm of the organization.organization. Audits normally examine six aspects such asAudits normally examine six aspects such as â˘â˘ Objective of the companyObjective of the company â˘â˘ Internal policiesInternal policies â˘â˘ Structure of the organizationStructure of the organization â˘â˘ Sales methodsSales methods â˘â˘ ProceduresProcedures â˘â˘ Sales personnelSales personnel
- 15. Sales Analysis :Sales Analysis : Sales analysis is the study of sales volume operations to find theSales analysis is the study of sales volume operations to find the sales and profit trend. It helps in achieving better sales performance.sales and profit trend. It helps in achieving better sales performance. It also provides insights on the sales territories, type of customers andIt also provides insights on the sales territories, type of customers and products.products. Marketing Cost Analysis:Marketing Cost Analysis: Marketing cost analysis is a strategy applied in marketing whereMarketing cost analysis is a strategy applied in marketing where the costs connected with selling, storing, advertising and distributingthe costs connected with selling, storing, advertising and distributing of products to particular buyers, are analysed in order to determineof products to particular buyers, are analysed in order to determine their profitability. Distribution.their profitability. Distribution.