Selling and Sales Management

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By :
Prof. Amit Kumar

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“A student pursuing management education from IILM-
Graduate School of Management, for example may find
himself or herself placed in a firm as a Sales Manager.
Our goal is to prepare the student for the exciting
challenges related to leading sales organizations in
today’s hyper-competitive global economy”.
IILM-GSM
Importance of this course
Selling & Sales Management

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IILM-GSM
Selling & Sales Management

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Contents
• Sales Force Evaluation Process
• Measures of Performance
– Quantitative Measures of Performance
– Qualitative Measures of Performance
• Salesperson Evaluation Matrix
IILM-GSM
Selling & Sales Management Sales Force Evaluation

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Sales Force Evaluation Process
Sales Force evaluation is the comparison of sales
force objectives with results.
• It begins with the setting of sales force objectives…
IILM-GSM
Selling & Sales Management Sales Force Evaluation

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Sales Force Evaluation Process
Sales Force evaluation is the comparison of sales
force objectives with results.
• It begins with the setting of sales force objectives which may
be financial, such as sales revenues, profits and expenses,
market-oriented or customer-based.
• Then sales strategy must be decide to show how the
objectives are to be achieved.
• Next performance standards should be set
• Results are then measured and compared with standards.
• At last, action taken to improve performance.
IILM-GSM
Selling & Sales Management Sales Force Evaluation

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Sales Force Evaluation Process
IILM-GSM
Selling & Sales Management Sales Force Evaluation
Set Sales force Objectives including:
Revenues
Profit Contribution
Customer Satisfaction
Customer Service
Expenses
Set Performance Standards for:
Company
Regions
Products
Salespeople
Accounts
Determine Sales Strategy
Measure results & compare with standards
Action Taken to Improve Performance

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Measures of Performance
1. Quantitative Measures of Performance
2. Qualitative Measures of Performance
IILM-GSM
Selling & Sales Management Sales Force Evaluation

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Quantitative Measures of Performance
Assessment using Quantitative Performance measures
falls into two groups:
• Specific output measures for individual salespeople
– Sales Revenue Achieved
– Profit Generated
– Sales Per Active / Potential Account
– No of Orders / Number of New Customers
• Specific input measures for individual salespeople
– No of Calls Made
– Calls Per Active Account
– No of Calls on Prospects
– Calls per Potential Account
IILM-GSM
Selling & Sales Management Sales Force Evaluation

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Quantitative Measures of Performance
Assessment using Quantitative Performance measures
falls into two groups:
• Specific output measures for individual salespeople
• Specific input measures for individual salespeople
• By combining output and input measures a number of
hybrid ratios can be determined. Example:
– Strike Rate ( No of Orders / No of Quotations )
– Sales Revenue per Call Ratio
– Prospecting Success Ratio
– Average Profit Contribution per Order (Profit Generated / No of
Orders)
– Order Call Ratio
IILM-GSM
Selling & Sales Management Sales Force Evaluation

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Quantitative Measures of Performance
All these ratios help to answer the following questions:
• Is the salesperson achieving a satisfactory level of sales?
• Is sales success reflected in profit achievements?
• Is salesperson devoting sufficient time to prospecting?
• Is time spent prospecting being rewarded by orders?
• Are calls being reflected in sales success?
• Does the salesperson appear to be making a satisfactory
number of calls per week?
IILM-GSM
Selling & Sales Management Sales Force Evaluation

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Qualitative Measures of Performance
The usual dimensions of Qualitative Measures:
1. Sales Skills
• Handling the opening and developing rapport, Quality of sales
presentation, ability to overcome objections, ability to close
2. Customer Relationships
3. Self-Organization
• Prepare Calls, Organize Unproductive Traveling, Conduct self-
analysis of performance in order to improve weaknesses
4. Product Knowledge
• Relative Strengths and Weaknesses between his or her own and
competitive offerings
5. Co-operation and Attitudes towards company & its products
• Respond to the objectives determined by management in order to
improve performance, e.g. increase prospecting rate.
IILM-GSM
Selling & Sales Management Sales Force Evaluation

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Sales Force Evaluation Matrix
IILM-GSM
Selling & Sales Management Sales Force Evaluation
- Praise
- Reward
- Promote
- Limited Praise
- Guide
- Train
- Discuss
- Train
- Punish
- Remove
- Limited Praise
- Advice
- Educate
Average
Bad
Good
Good Average Bad
Quantitatively Measured Results
QualitativeMeasuredResults