Evaluation & Control of Sales Personnel
SALES PERSONNEL EVALUATION
OUTCOME CONTROL BEHAVIOR CONTROL
QUALITATIVEPERFORMANCE STANDAEDS
QUANTITATIVE PERFORMANCE STANDAEDS
Quotas
Quantitative Performance Standards:
a) Quotas:• Quota is a quantitative
objective expressed in absolute terms and assigned to a specific marketing unit.
• The terms can be Value or product units .
• Quotas specify desired levels of achivement for sales volume, gross margin, net profit, performance of non selling activities.
Quotas
Selling Expense Ratio
b) Selling Expense Ratio:• Control the relation of selling
expenses to sales volume .• Determined after analysis of
expense conditions & sales volumes potential in each territory.
• Can be affected by controlling expenses or improving sales
• Does not take into account variations in the profitability of different products .
• More popular in industrial selling where greater focus is on Personal selling & entertainment of customers.
c) Territorial Net Profit or Gross Margin Ratio:
• Needs for selling a balanced line & for considering relative profitability (Different Products or Individual Customers).
• Focus on more profitable products & devote more time & effort to potential accounts
• Neglect the solicitation ie:request, of new accounts or performance of new products
Quotas
Selling Expense Ratio
Territorial Net Profit
Quotas
Selling Expense Ratio
Territorial Net Profit
Territorial Market Share
Sales Coverage Frequency Index
d) Territorial Market Share:• Market share on a Territory-by-
Territory basis • Target Market share
percentages are set for each territory
• Comparison are made on basis of Industry sales
e) Sales Coverage Frequency Index:
• Thoroughness with which a sales person works in the assigned Territory
• Consists of the ratio of the number of customers to total prospects in a territory
Quotas
Selling Expense Ratio
Territorial Net Profit
Territorial Market Share
Sales Coverage Frequency Index
Call Frequency Ratio
Calls per day
f) Call Frequency Ratio:Dividing the number of sales calls on a particular class of customers by number of customers in that class Directs the selling effort to more profitable accounts
g) Calls per day:Standards for calls are set up individually for different territories, taking into account territorial differences as to customer density, road & traffic conditions and competitor's practices
Quotas
Selling Expense Ratio
Territorial Net Profit
Territorial Market Share
Sales Coverage Frequency Index
Call Frequency Ratio
Calls per day
Order Call Ratio
Average Order Size
h) Order Call Ratio:• Effectiveness of sales person in securing
orders • Dividing number of orders secured by
number of calls made
I)Average Order Size:• Controls the frequency of calls on different
accounts • Different standards for different sizes &
classes of customers
Quotas
Selling Expense Ratio
Territorial Net Profit
Territorial Market Share
Sales Coverage Frequency Index
Call Frequency Ratio
Calls per day
Order Call Ratio
Average Order Size
Non Selling Activities
Multiple quantitative performance standards
j) Non Selling Activities:Standards for non selling activities such as obtaining dealer displays, cooperative advertising contracts, training distributor’s personnel, and goodwill calls on distributor’s customers
k) Multiple quantitative performance standards:Widespread practice to asign multiple quantitative performance standards.
SALES PERSONNEL EVALUATION
OUTCOME CONTROL BEHAVIOR CONTROL
QUALITATIVE BASE
QUANTITATIVE BASE
Job Factors
Personal Factors
Adaptability
Cooperation
Dress & Appeara
nce
General Attitude
Punctuality