control of sales force

7/30/2019 control of sales force

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Sales Management 1

Controlling the Sales Force

Evaluation

Supervision

Steps

1) Set Performance Standards

2) Record actual performance

3) Evaluate performance against standards

4) Corrective Action


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Sales Management 2



Important Issues Information and Knowledge

Related to sales objectives

Personal selling

a) Quantitative Targets / Standards Sales Volumes

Sales value

Market share

Expenses Profitability

No. of new customers

No. of competitor customers


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Sales Management 3



b) Qualitative Targets / Standards

Personal effectiveness

Customer contact

Customer relations / rapport building

Customer knowledge

Product knowledge

Team development

Dealer development

Attitudes

Selling techniques

Communication effectiveness

Generally measured by rating scale


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Sales Management 4


2) Record Actual Performance

1) Field Reports

Progress / Call / Visit reports

Expense reports

Work Plan

Lost order reports

New business / project reports

Competition reports

Field failure reports

2) Report Designa) No. of reports

b) Frequency of reporting

c) Format for reports

d) Information / Details required


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Sales Management 5


3) Evaluation of Performance

Performance Appraisal

Judgement

Motivation

Appraisal feedback and interview

4) Corrective Action

Performance Improvement

Action plan for development

Training


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Sales Management 6

Examples

1) HCL Office Equipment

Control over sales persons Evaluation and supervision

1) Reports

Daily reports to manager Customer calls

Type of calls

Business prospects

Orders collected

2) Evaluation

Check against performance standards 10-12 calls per day

New customers met in month


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Sales Management 7

Examples

1) HCL Office Equipment

2) Evaluation Random checks by manager

3) Sales Expenses control

Expenses report Weekly / quarterly evaluation

Credit / collection control

4) Other reports Monthly report

Market data

Order book

Inventory


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Sales Management 8

Examples

1)HCL Office Equipment

4) Other reports

Sales clearances for next month

Orders expected

Competitor activities report


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Sales Management 9

Example - Target Setting / Controls

Type of Target Target Acceptable

Deviation

Follow-up Frequency

Sales

1) Quantitative Efforts

300 Demos, 50 permonth, 1000 visits,170 per month

0+ Monthly

2) Qualitative Efforts 3 Demos to get 1Buying customer,

10 visits to get 1Demo

3 Demos

11 visits

Once a quarter at endof each quarter

3) Additional Efforts

a) Sales Promotions

2 per month onagreed dates

0+ Monthly

b) Direct Mailers 4 per day with

follow-ups

0+ Monthly

Spare Parts

Quantitative Efforts

3 calls per day, 15per week

3 visits per week

2 direct mailers permonth

0+ Monthly


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Sales Management 10

Example Target Setting / Controls

Type of Target Target AcceptableDeviation

Follow-up Frequency

Skills

1) Product Knowledge

Rating 7 0 Monthly

2) Customer Knowledge 8 -1 Monthly

3) Customer Handling 8 -1 Monthly

4) Presentation Skills 7 0 Monthly

Sales

Quantitative Results

1) Total 1000 0+ Monthly

2) Product MixA

B

C

D

E

100

240

200

400

60

0+

0+

+-20

+-10

O+

Monthly


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Sales Management 11

Example Target Setting / Controls

Type of Target Target AcceptableDeviation

Follow-up Frequency

Sales

3) Customer Mix

Counter

Major Buyers

Individuals

500

200

300

+-10%

+-20%

+-15%

Monthly

Spare Parts

Quantitative Results

1) Total TO 1000 0+ Monthly

2) Product Mix

Accessories

PartsSundries

250

600150

+-20%

+-20%+-10%

Monthly

3) Customer Mix

Retail

Workshop

Warranty

300

550

150

+-15%

+-10%

+-5%

Monthly


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Sales Management 12

Case Study Evaluation of Sales Results

SalesPerson

SalesRs.

Inc. /dec.overprev. yr

Prod.Mix

A

Prod.Mix

B

Changeoverlast yr

A

Changeoverlast yr

B

Cust.Mix

X

Cust.Mix

Y

Om 10000 +250 30% 70% -20% +20% 40% 60%

Prakash 9000 +1000 70% 30% +10% -10% 60% 40%

Quyam 8000 -1000 50% 50% -10% +10% 60% 40%

Rajesh 7000 +2000 60% 40% +10% -10% 70% 30%

Sunil 6000 -2000 40% 60% -10% +10% 80% 70%

Average 8000 50% 50% 52% 48%


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Sales Management 13

Case Study Evaluation of Sales Results

SalesPerson

Change lastyear X

Changelastyear Y

No. ofcustomers

Changeoverlastyear

Potential percustRs.

Changeoverlast yr

SalesperCust.Rs.

Changeoverlastyear

Om -20% +20% 110 -10 550 -50 90 +8

Prakash +10% -10% 120 +10 600 +100 75 +2

Quyam -10% +10% 110 0 450 -50 73 -8

Rajesh +20% -20% 90 +10 450 +50 80 +18

Sunil -10% +10% 80 0 400 +50 75 -25

Average 102 490 79


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Sales Management 14

Case Study Evaluation

Market Information

Market for Product A increasing at 10% per annum

Market for Product B decreasing at 10% per annum

Customer Segment X increasing by 10%

Customer Segment Y

decreasing by 10%

Profitability and selling costs are same for bothproducts


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Sales Management 15

Case Study Evaluation of Activity Results

SalesPerson No. ofvisits

Total

No. ofvisitsSeg X

No. ofvisitsSeg Y

Prop.Of timeonProd A

Prop.Of timeonProd B

Avg.salespervisit Rs

Avg.salespercust Rs

Avg.salesperprosp

Om 600 250 350 35% 65% 16.6 20 2

Prakash 500 300 200 70% 30% 18.0 25 8

Quyam 400 200 200 35% 65% 20.0 22 4

Rajesh 650 350 300 70% 30% 10.8 20 5

Sunil 500 200 300 30% 70% 13.0 15 1

Average 530 260 270 48% 52% 15.5 20.4 4


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Sales Management 16

Case Study Evaluation and Control

Sales Paramter O P Q R S

A) Product KnowledgeProduct A

5 7 5 7 3

Product B 7 7 6 5 6

B) Competition Knowledge 5 5 4 4 5

C) Customer KnowledgeCustomer X

3 6 5 7 5

Customer Y 6 6 5 4 5

D) Selling skills

Prospecting

3 8 5 7 2

Qualifying 4 7 6 5 2Presenting 6 8 6 6 4

Objections Handling 5 6 4 6 4

Negotiating 6 8 4 6 2

Closing 4 8 5 5 2


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Sales Management 17


Sales Paramter O P Q R S

E) Other SkillsTelephone Technique

7 8 6 5 4

Correspondence 3 4 7 2 4

Time Planning 6 3 2 8 3

Interpersonal skills 7 6 8 4 4

Weak inprospecting andclosingStrong inIP skills

Weak intimeplanning

Strong IPskills butweak intimeplanning

Strongtimeplanningbut weakin IPskills

Weakoverall


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Sales Management 18

Case Study Development Plan

Area Target Action Date

1) General Condition(Hygiene)

6 Go through layoutDiscuss withManager

Visit 3 dealers

1 week

4 weeks

3rd week

2) Prospect System 5 Maintain register ofimportant prospectsfor follow-up

1 week

3) Customer Handling 7 Spend one week indemonstration /lecture

Visit Customers

1 week

3rd week

4) Product Knowledge B,C

7 Product training withService Manager / atfactory

Week 7


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Sales Management 19


MHBD India Ltd.

Manufacture and market industrial products

Partly own manufactured and partly as agent for foreign suppliers

Product A Technically complicated

Product B Average technical complexity

Product C Raw Material Technically simple

Product D Capital Goods Average technical complexity

Price range medium to average

ProductCustomerGroup

A B C D Total

X 20 20 30 20 90

Y 10 10 20 10 50

Total 30 30 50 30 140


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Sales Management 20


Sales

Person

Sales Chan

geprev.yr

Prod

ASales

Prod

AChange

Prod

BSales

Prod

BChange

Prod

CSales

Prod

CChange

Prod

DSales

Prod

DChange

O 25 0 6 +2 4 -1 11 +2 4 -3

P 23 +3 5 +1 7 +2 4 -1 7 +1

Q 21 0 6 +1.5 5 0 5 +1.5 5 -3

R 20 0 5 0 4 0 7 -1 4 +1

S 19 +3 4 -1 6 +2.5 3 -1 6 +2.5

T 17 -2 2 0 2 -1 10 0 3 -1

U 15 -1 2 -1 2 0 10 +1 1 -1

Total 140 30 30 50 30


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Sales Management 21


Sales

Person

Mkt X

Sales

Mkt X

Change

Mkt Y

Sales

Mkt Y

Change

No. of

custTotal

No. of

cust.Change

No. of

custX

No. of

cust.Xchange

No. of

custY

No. of

custYChange

O 12 -2 13 +2 95 +4 35 -6 60 +10

P 18 +3 5 0 90 +8 50 +10 40 -2

Q 11 -3 10 +3 65 +7 25 -7 40 +14

R 15 0 5 0 100 0 40 0 60 0

S 15 +2 4 +1 105 +24 65 +11 40 +13

T 9 -0.5 8 -1.5 80 -9 40 -2 40 -7

U 10 +1 5 -2 95 -12 50 +6 45 -18

Total 90 50 650


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Sales Management 22


Sales

Person

No. of

visitsTotal

No. of

visitsCust X

No. of

visitsCust Y

Prop. Of

time onProd A

Prod B Prod C Prod D

O 450 250 200 35% 10% 45% 10%

P 650 500 150 25% 35% 10% 30%

Q 700 300 400 30% 20% 30% 20%

R 550 300 250 25% 20% 20% 35%

S 700 500 200 15% 35% 15% 35%

T 475 175 300 20% 10% 60% 10%

U 600 300 300 10% 15% 70% 5%

Average 588 352 256 23% 21% 35% 21%


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Sales Management 24


SalesPerson /Characteristics

O P Q R S T U

1) Age 53 years 35 30 44 44 45 56

2)Experience

20 years 4 3 8 5 7 15

3) Tech.Background

Somebut outof date

Good Quitegood

Nil Weakbutstudious

Quitegood

Weak

4) Prod.Know.

Avg. Good Avg. QuiteGood

Good Fair Avg.

5) Cust.Know

Avg. Verygood

Poor inX

Good Good Poor Avg.

6)Contact

ability

Verygood

Avg. Difficult Good Difficult Weak Weak


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Sales Management 25


SalesPerson /

Characteristics

O P Q R S T U

7) SalesTech

Quitegood

Good Avg. Weak Verygood

Good Poor

8) Effort

inclintn

Lazy Hard

working

Hard

working

Quite

hardworking

Very

hardworking

Low Good

9)Interest /Motivn.

Notmotivated

Interestlevelhigh

Wellmotivated

Quitemotivated

Verywellmotiv.

Low Motivated

10)

Directab

Difficult Easy Least

resistance

Very

easy

Easy Does

notlisten

Avg.

11) Phy.Cond.

Notgood

Good Verygood

Good Verygood

Notgood

Verygood

12)Emot.

Stab.

Prestigeminded /

erratic

Stable Verystable

Stable Somewhat

unstable

Unstable Somewhat

unstable


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Sales Management 26


Sales

Person /Characteristics

O P Q R S T U

13)PlanningAbilit

y

PoorHaphazard

Verygood

Good Planswell

Verygood

Planswell

Poor

14)Intelligence

Avg. High Avg. Avg. High High Avg/


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Sales Management 28

Sales Control / Analysis

2) Sales Analysis

Analysis of Feedback / data

Re-direct sales efforts for better results / moreeffectiveness

3) Marketing Cost Analysis

Selling expenses

Branch expenses Common expenses allocation

Profit margins / contribution

control of sales force

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