Evaluation is to measure the performance of salespeople.
A important process which enhances the way organization is managed & provide recommendation for further improvements.
It is a critical function.
It constitutes comparing objectives with results.
Provide feedback.
Take steps to further improvement.
Methods:
Ranking Methods
Management by objectives (MBO)
Graphic Rating and Checklist methods
2. Introduction to performance evaluation
• Evaluation is to measure the performance of salespeople.
• A important process which enhances the way organization is managed & provide
recommendation for further improvements.
• It is a critical function.
• It constitutes comparing objectives with results.
• Provide feedback.
• Take steps to further improvement.
7. Components of performance evaluation
Sales Volume Analysis
Related Marketing Expenses/Cost Analysis
Performance of individual salespeople
8. Performance Evaluation and Misdirected Marketing Efforts
The 80-20 principle
Sales executive must make decision on
- What should have been spent on marketing
- Standards for determining
A> What should have been spent on marketing
B> What result should have been obtained from these expenditures
9. The Need for Detailed Data
Sales Administrator who is analysing sales volume need subdivision of
- Sales Territories
- Salespeople
- Products
- Customers
- Size of Order
10. Bases for Analysing Sales Volume
Total sales volume.
Sales by territories.
Sales by product.
Sales by Customer Classifications
Insufficiency of Sales Volume Analysis
Salesforce Automation and Performance Evaluation
11. Models of Salespersons performance evaluation
Qualitative methods are:
Personal observation by sales executive.
Customer opinion of salesman.
Quantitative methods are:
Analysis of sales record & reports.
Comparison of salesman’s performance with quota.
Ratio analysis.
Profit & loss statements.
12. Review Performance Evaluation with salespeople
Performance review/ appraisal session is conducted, after evaluation of the salesperson’s performance.
Sales managers should first review high/ good rating, and then review others ratings.
Both should decide objectives/ goals and action plan for future period
After the review, sales managers should write about performance evaluation & objectives for the future.
Guidelines for reviewing performance of salespersons:
sales managers presents his views
Establish mutual agreement on the performance
13. Sales Analysis
Sales analysis is the study of sales volume operations to find the sales and profits
trend. It help in achieving better sales performance. It also provides insights on the
sales territories type of customers and products.
14. Marketing cost Analysis
Marketing cost analysis is a strategy applied in marketing where the cost connected
with selling, storing, advertising and distributing of products to particular buyers,
are analysed in order to determine their profitability. Distribution.