Professor Chip Besio Sales Management Marketing 3345 Evaluating Sales Force Performance

Set goals and objectives for sales force, including: Revenues Contribution profits Market share Expense ratios Design sales plan Set product performance standards for: OrganizationSalespeople RegionsAccounts Districts Measure results against standard Take Corrective Action A Sales Force Evaluation Model

Output Measures Used in Sales Force Evaluation Source: Donald W.Jackson, John L. Schlacter, and William G. Wolfe, “Examining the Bases Utilized for Evaluating Salespeoples’ performance,” Journal of Personal Selling & Sales Management, Vol. 15, No. 4 (Fall 2005), p. 62.

Input or Behavior Bases Used in Sales Force Evaluation

Source: Donald W.Jackson, John L. Schlacter, and William G. Wolfe, “Examining the Bases Utilized for Evaluating Salespeoples’ performance,” Journal of Personal Selling & Sales Management, Vol. 15, No. 4 (Fall 2005), p. 63. Qualitative Bases Used in Sales Force Evaluation

Input-based System Behavior Calls Reports Complaints Demonstrations Dealer meetings Display set up Travel/entertainment expenses Results Sales revenues Sales growth Sales/quota Sales/potential New accounts Contribution margins Contribution percentage Output-based SystemSalespersonEvaluation A Model of Salesperson Evaluation

Company Percentage Industry Company Volume Change from Volume Market Share Year ($ millions) Previous Year ($ millions) (percent) Sales Data for Bear Computer

2007 Sales2008 Sales Comparing Dollar and Unit Sales at the Bear Computer Company Comparing Dollar and Unit Sales at the Bear Computer Company

Market Sales ‘07Sales ‘08PotentialSalesPercentageSales Jan-SeptJan-SeptDollarSalesindexQuotaof QuotaVariance Territory(000)(000)ChangeGrowth(percent)(000)Achieved(000) Jones$ 750$ 825+ $7510.0%26.0%$ 94387%– $118 Smith %+ 27 Brown %– 50 West %+ 23 $3235$3505+$2708.3%100.0%$3623 Measuring Sales Force Output for Bear Computer Company Measuring Sales Force Output for Bear Computer Company

Measuring Territory Profit Output for Bear Computer Company Measuring Territory Profit Output for Bear Computer Company

Calls per day = # Calls____ # Days worked Calls per account = #Calls__ # of Accounts Planned Call = # Planned calls Total # Calls Total # Calls Batting Average = # Orders__ Total # Calls Total # Calls Call Productivity Ratios

Expense to Sales = Expenses Expense to Sales = Expenses Sales Sales Cost per Call =Total Costs Cost per Call =Total Costs # of Calls # of Calls Expense Ratios

Sales to Account = Dollar Sales _ # Accounts # Accounts Average Order Size = Dollar Sales # Orders # Orders Growth Ratio = # New Accounts Total # Accounts Total # Accounts Account Success = Accounts sold_ Total # Accounts Total # Accounts Account Related Ratios

Inputs Attitude Motivation Skills Abilities Job Perception Inputs Behavior # Calls Days worked Expenses Selling vs. non- selling time Quotas Outputs # Orders Order Size # New, lost, or active accounts Models Combining Input & Output Controls