Scribd Logo
Upload

Welcome to Scribd!

  • 35 views

    Evaluating Sales Force Performance

    Uploaded by

    Girish Jethani
    This document summarizes various methods for evaluating sales force performance, including sales audit, sales volume analysis, marketing cost analysis, profitability analysis, and productivity analysis. Sales volume analysis examines sales by product, territory, accounts and customers, using hierarchical analysis moving from high levels to lower levels or effectiveness analysis comparing actual to target sales. Marketing cost analysis studies expenses through variance analysis of actual vs budgeted costs or as a percentage of sales. Profitability is analyzed using return on assets managed (ROAM) for each district. Productivity analysis measures inputs like expenses, sales calls and outputs like sales across districts. The information is used to adjust territories, product lines or customer classes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd

    Evaluating Sales Force Performance

    Uploaded by

    Girish Jethani
    35 views26 pages
    This document summarizes various methods for evaluating sales force performance, including sales audit, sales volume analysis, marketing cost analysis, profitability analysis, and productivity analysis. Sales volume analysis examines sales by product, territory, accounts and customers, using hierarchical analysis moving from high levels to lower levels or effectiveness analysis comparing actual to target sales. Marketing cost analysis studies expenses through variance analysis of actual vs budgeted costs or as a percentage of sales. Profitability is analyzed using return on assets managed (ROAM) for each district. Productivity analysis measures inputs like expenses, sales calls and outputs like sales across districts. The information is used to adjust territories, product lines or customer classes.

    Original Description:

    ppts abt marketing

    Original Title

    CHAP15

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document summarizes various methods for evaluating sales force performance, including sales audit, sales volume analysis, marketing cost analysis, profitability analysis, and productivity analysis. Sales volume analysis examines sales by product, territory, accounts and customers, using hierarchical analysis moving from high levels to lower levels or effectiveness analysis comparing actual to target sales. Marketing cost analysis studies expenses through variance analysis of actual vs budgeted costs or as a percentage of sales. Profitability is analyzed using return on assets managed (ROAM) for each district. Productivity analysis measures inputs like expenses, sales calls and outputs like sales across districts. The information is used to adjust territories, product lines or customer classes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    35 views26 pages

    Evaluating Sales Force Performance

    Uploaded by

    Girish Jethani
    This document summarizes various methods for evaluating sales force performance, including sales audit, sales volume analysis, marketing cost analysis, profitability analysis, and productivity analysis. Sales volume analysis examines sales by product, territory, accounts and customers, using hierarchical analysis moving from high levels to lower levels or effectiveness analysis comparing actual to target sales. Marketing cost analysis studies expenses through variance analysis of actual vs budgeted costs or as a percentage of sales. Profitability is analyzed using return on assets managed (ROAM) for each district. Productivity analysis measures inputs like expenses, sales calls and outputs like sales across districts. The information is used to adjust territories, product lines or customer classes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 26

    CHAPTER 15

    Evaluating Sales force Performance

    THE SALES AUDIT


    ...a comprehensive, periodic review and evaluation of the sales function

    THE SALES AUDIT


    The audit includes an appraisal of
    objectives personnel tactics

    STEPS IN THE SALES AUDIT


    Find out what happened Find out why it happened Decide what to do about it

    EVALUATING EFFECTIVENESS
    Sales Volume Analysis Cost Analysis Profitability Analysis Productivity Analysis

    SALES VOLUME ANALYSIS


    A study of the net sales section of the profit and loss statement. Examine sales by product lines, territories, key accounts, and general classes of customers.

    SALES VOLUME ANALYSIS


    Two approaches:
    Hierarchical Sales Analysis Effectiveness Analysis

    HIERARCHICAL SALES ANALYSIS


    A multistage analysis which proceeds from one sales organization level to the next by
    identifying major deviations investigating these in more detail at the next lower level.

    Example of Hierarchical Sales Analysis


    Main Office

    Region 1 $40,000,000

    Region 2 $ 45,000,000

    Region 3 $ 35,000,000

    District 1 $ 7,000,000

    District 2 $ 8,000,000

    District 3 $ 7,500,000

    District 4 $ 4,000,000

    Territory 1 $ 700,000

    Territory 2 $ 800,000

    Territory 3 $ 750,000

    Territory 4 $ 850,000

    Territory 5 $ 200,000

    Additional Analysis

    EFFECTIVENESS INDEX
    Examine territory performance relative to potential

    STEPS IN AN EFFECTIVENESS ANALYSIS


    Select a market index that indicates what percentage of total sales should be obtained from each sales territory.

    STEPS IN AN EFFECTIVENESS ANALYSIS


    Determine the companys actual total sales in dollars or units during the period being studied.

    STEPS IN AN EFFECTIVENESS ANALYSIS


    Multiply the territorial index by the total sales figure to determine the goal in each district.

    STEPS IN AN EFFECTIVENESS ANALYSIS


    Compare actual regional sales with the regional goals to see how much variation has occurred.

    Example Effectiveness Analysis


    Region Market Actual Sales Index Sales Goals A 27% $900 $1,215 B C D E Total 22% 15% 20% 16% 1,230 828 852 690 $4,500 990 675 900 720 % 74% 124 123 95 96 Dollar Variance $-315 240 153 -48 -30

    HIERARCHICAL AND EFFECTIVENESS ANALYSIS


    Territories Different products Sales by accounts Channels of distribution

    MARKETING COST ANALYSIS


    A study of marketing expenses to determine profitability of marketing segments in the firm. Two Approaches
    Variance Analysis Percentage of Sales

    VARIANCE ANALYSIS
    Variance represents the difference between actual costs and budgeted costs. High variances should be examined further.

    PERCENTAGE OF SALES
    Examines costs as a percentage of sales.

    PROFITABILITY ANALYSIS
    Return on Assets Managed (ROAM)

    RETURN ON ASSETS MANAGED (ROAM)


    Measures how productively the assets in each segment of the business have been employed.
    ROAM= Profit contribution/Assets Managed

    ROAM Example
    District 1 Sales $ 12,000,000 COGS 6,000,000 Gross Margin 6,000,000 Selling Expenses 3,600,000 Profit Contrn 2,400,000 Accts Receivable 4,000,000 Inventory 4,000,000 Assets Managed 8,000,000 Profit Contrn % 20% Asset Turnover 1.5 ROAM 30% District 2 $ 12,000,000 6,000,000 6,000,000 4,800,000 1,200,000 2,000,000 2,000,000 4,000,000 10% 3.0 30% District 3 $12,000,000 7,000,000 5,000,000 2,600,000 2,400,000 8,000,000 8,000,000 16,000,000 20% .75 15%

    PRODUCTIVITY ANALYSIS
    Additional productivity analysis may be required to get a fuller picture of organizational effectiveness. Measured in terms of inputs and outputs.

    Example Productivity Analysis


    District 1 Sales Expenses Sales Calls Proposals Salespeople Sales/Person Expenses/Person Calls/Person Proposals/Person 1,000,000 5,000 100 10 1,000,000 100,000 500 10 District 2 1,200,000 4,500 105 15 800,000 80,000 300 7 District 3 $ 10,000,000 1,500,000 4,500 120 10 1,000,000 150,000 450 12 $ 10,000,000 $ 12,000,000

    WHAT IS DONE WITH THIS INFORMATION?


    Adjust territorial boundaries Adjust product line Change classes of customers

    FROM THE TEXT


    Read everything except Residual Income Analysis on pages 724 to 726.

    You might also like