Page 172 - DMGT205_SALES_MANAGEMENT

Sales Management

Notes 11.6.2 Sales Management Audit

Sales analysis and marketing cost analysis focus on routine and operational aspects. The third
technique of sales control relates to strategic discussions of sales control.
Sales management audit is a comprehensive, systematic, independent and periodic audit of
sales policy, objectives, strategies, organisation and procedure followed by the firm. The purpose
of sales management audit is to evaluate the soundness of the sales management of firm. It
examines the validity of the very basis and assumption on which sales function is planned and
managed. By critically evaluating the sales management against the changing market
environment, it points out the emerging areas of opportunity as well as areas which need
observation.
Some aspects covered in sales management audit are:
1. Appropriateness of selling functions and objectives.
2. Role of selling function in promotional mix and sales marketing integration.
3. Organisation and work norms of the sales force and its size.

4. Recruitment, selection, promotion policy, compensation motivation of sales forces.
5. Basis of sales quota, sales budget, territory allocation and their market need suitability.
6. Quality of sales force, appraisal criteria, training and development of sales personnel.

7. Productivity of sales function.
8. Sales planning and control system.
9. Commercial procedures and sales promotion method.
It is a technique of management control. If conducted by outside experts and officials it is very
beneficial.

11.7 Sales Quotas

A sales quota is a quantitative goal assigned to a sales unit relating to a particular period of time.
A sales unit may be a territory, a branch office, a region, a distributor or a person. Sales quotas
plan, direct, control and evaluate the activities of a company and their effectiveness depends
upon the kind, quantity and accuracy of marketing information used in setting them and upon
management's skill in administering the quota system.
Sales quotas provide a source of motivation, a basis for incentive, compensation and increasing
standards of performance of sales persons and uncover the strength and weaknesses in the
selling structure of the firm. Sales persons are quota achievers and their motivation may fall off
if the quotas are easy to achieve. The sales quotas are set by sales manager for individual
salesman or a sales district. The executives who set sales quotas must have experience and
should be familiar with territories.

Budget Quotas

1. Set for various units in sales organization to control expenses, gross margins, or net profit
2. Expense quotas
3. Expense quotas are used most often in combination with sales volume quota

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