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Ch7: Controlling the Salesforce

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Chapter 7 ,[object Object]
Learning Objectives ,[object Object],[object Object],[object Object],[object Object],[object Object]
Salesforce Expense Plans ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Salesforce Expense Plans (Continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Salesforce Expense Plans (Continured) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Salesforce Audit ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Evaluation of Effectiveness of Sales Organisation ,[object Object],[object Object],Effectiveness of a Sales Organisation ,[object Object],Sales Analysis Cost Analysis Profitability Analysis Productivity Analysis
Sales Analysis ,[object Object],[object Object],Sales Analysis All levels In Sales Organisation Different Type of Sales Different Type of Analysis National and/or international levels sales organisation Regional level Branch /district level Territory level Individual level Total sales of the company By type of products By type of distribution channels By type of customer classifications By size of orders Comparisons with sales quotas / targets Comparisons with previous periods Comparisons with industry / competitors Comparisons within sales organisations Comparisons with sales forecasts
Sales Analysis (Continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Marketing Cost and Profitability Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Convert Natural Accounting Expenses into Functional Expenses ,[object Object],[object Object],[object Object],Note: All figures are in Rupees 5,500,000 7,000,000 20,000,000 17,500,000 50,000,000 Total __ __ 15,000,000 __ 15,000,000 Adv. and Sales Promotion __ __ __ 5,000,000 5,000,000 Travel 1,500,000 5,000,000 1,000,000 2,500,000 10,000,000 Rent 4,000,000 2,000,000 4,000,000 10,000,000 20,000,000 Salaries Administration Warehousing & Inventory Adv. and Sales Promotion Personal Selling Functional Expenses Total Natural / Traditional Expenses
Allocate Functional Expenses to Marketing Units ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Bases of allocation of expenses Function
Prepare Profitability of Marketing Units ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
An Example of Profitability Analysis Note: All figures are in Rupees million - - - 39.0 Net profit (6-7) 8 - - - 36.3 Allocated indirect expenses 7 26.0 28.3 33.0 75.3 Contribution (3-4-5) 6 - - - 12.0 W. Region direct selling expenses 5 4 4.2 4.5 12.7 Branch selling expenses 4 30 32.5 37.5 100 Gross margin (1-2) 3 90 97.5 112.5 300 Cost of good sold 2 120 130 150 400 Sales 1 Branch C Branch B Branch A Western Region Contribution Approach Full-cost Approach Particulars SNo
Productivity Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Evaluating & Controlling Performance of Salespeople ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Procedure for Evaluating and Controlling Salesforce Performance ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Set Policies on Performance Evaluation & Control ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Decide Bases for Salespersons’ Performance Evaluation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Qualitative efforts / behavioural bases / criteria Quantitative efforts / behavioural bases / criteria Quantitative results / outcome bases / criteria
Establish Performance Standards ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Compare Actual Performance with Standards ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Review Performance Evaluation with Salespeople ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Decide Sales Management Actions and Control ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Business Ethics and Sales Management ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Social Responsibilities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Legal Responsibilities and Sales Management ,[object Object],[object Object],[object Object],[object Object],[object Object]
Key Learnings ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Key Learnings (Continued) ,[object Object],[object Object],[object Object],[object Object],[object Object]

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Ch7: Controlling the Salesforce

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  • 15. An Example of Profitability Analysis Note: All figures are in Rupees million - - - 39.0 Net profit (6-7) 8 - - - 36.3 Allocated indirect expenses 7 26.0 28.3 33.0 75.3 Contribution (3-4-5) 6 - - - 12.0 W. Region direct selling expenses 5 4 4.2 4.5 12.7 Branch selling expenses 4 30 32.5 37.5 100 Gross margin (1-2) 3 90 97.5 112.5 300 Cost of good sold 2 120 130 150 400 Sales 1 Branch C Branch B Branch A Western Region Contribution Approach Full-cost Approach Particulars SNo
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