evaluation & control of sales personnel

1. Evaluation & Control of
Sales Personnel

2. SALES
PERSONNEL
EVALUATION
OUTCOME
CONTROL
BEHAVIOR
CONTROL
QUALITATIVE
PERFORMANCE
STANDAEDS
QUANTITATIVE
PERFORMANCE
STANDAEDS

3. 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.

4. 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.

6. 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

7. 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

8. 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

10. 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

11. 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.

12. SALES
PERSONNEL
EVALUATION
OUTCOME
CONTROL
BEHAVIOR
CONTROL
QUALITATIVE
BASE
QUANTITATIVE
BASE

14. Personal
Factors
Adaptability
Cooperation
Dress &
Appearance
General
Attitude
Punctuality