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