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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
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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.