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.