evaluating sales performance [compatibility mode]

7/27/2019 Evaluating Sales Performance [Compatibility Mode]

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Evaluation &Development of Sales

Personnel- Session 8

Sanjeev Varshney


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Issues in Sales Force

Evaluation

Absence of system

Biaseness on the part of evaluator

Quantitative vs Qualitative system


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Process of Sales Force Evaluation

Set targets for the sales force

Establish the evaluation criteria

Establish evaluation process

Conduct evaluation Feedback

Carry development process


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Set Targets for the sales force

Can be set on Sales volume Expense

Profit margin

Activity

Customer satisfaction and combination

Match with the sales budgets

Break it down into salespersons, distributors,

dealers, product wise etc


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Method of Setting Sales

Quotas

Territory Potential

Past sales experience

Total market estimates

Executive judgment Sales people estimates


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Issues with regard to quota

settings

Set realistic quotas

Overestimation or underestimation New product launches

Large customer base

large geographic area

Varied range of customers Lack of quota communication to the sales people

Absence of sales man participation

Absence of co-ordination between quota and marketing

environment


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Framework for Identifying the

Evaluation Criteria

Market

Condition

(Product Life

Cycle)

Search

attributes (eg:

non durables)

Experience

attributes (eg:

durables)

Credence

attributes (eg:

Services)

Introductory Displays

organised

Demonstration Trials, and

number of calls

Growth Phase

(Low

competition)

New retail outlets

opened and Sales

New service

outlets

Number of calls

Maturi ty phase

(high

competition)

Market share Sales Customer base


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Criteria for Performance

Evaluation

Behavioral

Sales personperformance

Professional

developmentProfitability

Results

Behaviour-based

perspective

Outcome-based

perspective

Question is what to use when ? Or else

what kind of mix we should have ?


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Some of the Common Evaluation

Criteria

Quantitative

Sales volume Debtors control

Territory development

New outlets

Length and breadth of goods in each outlet

Promotion/ Publicity

Market Feedback

Qualitative

Adherence to company norms, reporting etc.

Relationship with dealers

Innovativeness, sincerity and diligence


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Common Ratios used to

evaluate sales people

Expense ratio

Account development and servicing ratio Call activity or productivity

Sales = Days worked X Calls X Orders X Sales

-------------- --------------- -------------

Days worked Calls Orders

Sales = Days worked X Call rate X Batting average X Average order size

Target achieved

Total coverage

Effective coverage

Range sold

Credit control

Average order size

Common Output Indicators Used in Indian Industry


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Ways and Means of Evaluating the

Sales Force

Evaluation based on targets

Appraisal by the superior (qual+ quan)

MBO

360degree appraisal


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Model of Sales Force

Evaluation

Sales person

satisfaction

Salesperson

Motivation

Sales person

skill/ aptitude

Task difficulty

-economic

condition

Unexpected

Events

Input Variables

Expected

performance

Perceived

Performance

Outcome Sales

Behaviour

Stage I

PerformanceEvaluation

Stage II

Rewardallocation

Stage III


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Outcome of Sales Force

Evaluation

Review the performance

Provide feedback

Redefine targets

Redefine the sales territories

Reassign sales people to sales territories

Redefine the evaluation criteria

Determine the development /career advancement

process


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Sales Personnel Development

Gaps identified in terms of performance forms the

basis for developmental program

This can be identified by the supervisor/ or by HR

department through general HR audit

Provide feedback to the sales person Carry out the development exercise

Development centre

Training etc.


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Assignment 2

To launch Safe and soft mosquito repellant cream (Jyothy

Laboratories) what will be your sales force objective, strategy and

tactics? For details visit http://www.thehindu.com/health/medicine-

and-research/article1454879.ece Prepare a sales forecast for launching Safe and soft in the market.

Prepare a sales territory plan and assign quotas at regional level.

What will be the evaluation criteria for sales staff (Company

executives and distributor ) Suggest an Incentive plan to motivate the sales force

What other decisions you will like to take?

1. Take assumptions wherever needed but be realistic2. More focus on process than on correctness of data

3. The total no of slides should not exceed 6 (excluding cover slide and

thank you slide)

4. Any kind of copying or plagiarism will be evaluated negatively

evaluating sales performance [compatibility mode]

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