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Unit 11: Controlling the Sales Effort




             the mid-lower income, working-class family man who owned a second-hand car which   Notes
             was over three years old.
             He decided to buy a consignment of tyres and visited tyre centres to sell them. Initially,
             business was slow but, gradually, as distributors began to believe in the quality of the
             tyres, sales picked up.

             By 1999, MacLaren had taken on the role of general manager and had recruited  five
             salespeople to handle the sales function. A brief personal profile produced by MacLaren of
             each of his salespeople is given below.
             Profile of Raj Tyres Salesmen
             Raj Mani
             Joined the company in 1995. Has an MBA (Marketing) and has previously worked as an
             insurance salesman for three years. Aged 27. Handles the South  area. Gregarious and
             extrovert.

             Raj Lata
             Joined the company in 1996. No formal qualifications but sound track record as a car
             salesman and, later, as a toy salesman. Aged 35. Handles the North area. Appears to be
             hard-working but lacks initiative.
             Raj Laxmi
             Joined the company in 1996. Has an MBA (Marketing). Was a technical representative for
             an engineering firm. Aged 28. Handles the East area. Appears to enjoy his work but lacks
             the necessary 'push' to be really successful in selling.

             Rajan
             Joined the company in 1997. Has a degree in Industrial Management. Previous experience
             includes selling bathroom suites and textile fabrics. Aged 29. Covers the Western area.
             Appears to lack enthusiasm but sales record is about average.
             Raj Kumar
             Joined the company in 1997. Has a degree in Business Studies. Only previous experience is
             as a marketing assistant during the industrial training period of his  degree. Aged 25.
             Handles the Central area. Keen but still very raw.

             Sales Force Data
             Raj Tyres decided that the time had come to look in detail at the sales records of his men.
             The plan was to complete a series of statistics which would be useful in evaluating their
             performance. Basic data for the year 1997-98, relevant to each man, is contained in the
             following table
                                       Gross        Live       Calls     Number  of
                           Sales       Profits    accounts     made       different
                          (   000's)  (   000's)  (1997.98)              customers
                                                                         called  upon
               Raj Mani     298         101         222        1,472        441
               Raj  Lata    589         191         333        1,463        432
               Raj  Laxmi   391         121         235        1,321        402
               Rajan        440         132         181        1,152        211
               Raj  Kumar   240         65          296        1,396        421

                                                                                 Contd...



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