evaluating sales force performance & controlling sales activities
Post on 24-Dec-2015
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Evaluating Sales force performance &
Controlling Sales activities
• Four steps that control the sales force activities are
• 1.Esatablishing Performance Standards.
• 2.Recording Performances
• 3.Evaluating Performance Standards
• 4.Taking Action
Standards of Performance
• Setting standards of performance requires consideration of the nature of the Selling job.
• Setting performance Standards for a new business sales personnel requires different measures .
• Setting sales performance standards requires considerable market knowledge.
• Performance Standards are designed to measure the performance of activities that the company considers most important.
• For e.g. Evaluating the job performance of a computer sales person requires standards that measure not only skill in new business selling but even more basically ,effectiveness as a management consultant & skill as a system analyst.
• .
• Sales Management puts together a combination of sales performance standards to fit the company’s needs, its marketing situation, its selling strategy & its sales organization
Recording Actual Performance
• Sales management next task is to measure actual performance. There are two basic sources of performance information:
• Sales & expense records & reports of various sorts.
System of field sales reports
• The fundamental purpose of field sales reports is to provide control information.
• Field sales report provides Sales Management with a basis for discussion with sales personnel.
• Sales reports assist in determining how to secure more & larger orders.
• A good field sales reporting system assists sales personnel in their self improvement programs.
Purpose of field sales report.
• 1.To provide data for evaluating performance:
• 2.To help the salesperson plan the work:
• 3.To record customers suggestions & complaints .
• 4.To gather information on competitors activities.
• 5. To report changes in local business & economic conditions.
• 6.To keep the mailing list updated for promotional & catalogue materials.
• 7.To provide information requested by Marketing research.
Types of sales force Reports
• 1.Progress or call report:
• 2.Expense Report
• 3.Sales work plan
• 4.New business or potential new business report
• 5.Lost sales report.
• 6.Report of complaint.
Evaluating
• Comparing actual performance with standards:• The most difficult step in sales force control is
evaluation step- The comparing of actual performances with standards.
• The same standards cannot be applied to all Sales personnel.
• It is possible to take Territorial differences into account by setting individual performance standards for each territory.
• Evaluating performance of sales personnel requires judgment & deep understanding of market factors & conditions.
Controlling sales personnel
• Management also controls sales personnel through supervision.
• Who should supervise?
• Companies having decentralized sales organization sometimes assign the supervision responsibility to branch or district managers.
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