Page 171 - DMGT205_SALES_MANAGEMENT

Unit 11: Controlling the Sales Effort

Notes
Tinku 120 125 104%
Bobby 130 106 81.5%
Babloo 120 120 100%

Total 910 891 97.9%
Manager should see his sales performance based on product line.

Table 11.2: Sales Analysis by Product Line

Product line Quota Actual Performance
Computers 50 55 110%
Portable Typewriter 40 40 100%
Manual Typewriter 30 06 20%
Electronic Typewriter 20 20 100%
Spares 20 18 90%
Total 160 139 86.9%

11.6.1 Marketing Cost Analysis

Here the cost incurred to achieve sales are considered. It is not just sales but sales with budgeted
profits or expenses that matter. It is a fact finding analysis which relates cost to sales volume and
resultant profitability. It relates cost and financial discussion of each selling transactions and
activity. It can generate

1. Cost of goods per rupee of sale;
2. Profit per territory, product pack, sales person;
3. Profit per rupee of sale;
4. Sales volume and turnover of receivables;

5. Turnover of stock and profitability;
6. Average value of order;
7. Average cost per order;
8. Total value of orders.

Usefulness of Marketing Cost Analysis: Successful cost analysis benefits the manager in
ascertaining:
1. Relative cost and profitability of sales operation;

2. Profitable, not so profitable and not profitable territories;
3. Products, packsize, market segments, distribution channel;
4. Minimum order level quantity;
5. Productivity of sales person;

6. Profitability of different sales promotion techniques;
7. Profitability of different marketing mix programmes.

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