Page 204 - DMGT205_SALES_MANAGEMENT

Sales Management

Notes controlling the sales efforts and becomes the input in the formal appraisal of the salesmen's
performance.
Sales reports are the basic tools used for the monitoring of sales personnel. They help the sales
manager to know that the sales person is calling on the right people, making the desired
number of visits and also to determine what can be done to secure larger orders. The data
furnished also tells the manager as to what kind of help is needed by the salesmen. A well
designed monitoring system aids in self improvement of the salesman by taking stock of his
own work. He can evaluate his performance and compare it with his own past performance
which also acts as a motivating force. The main reasons for which a good monitoring system is
designed are:
1. To keep the sales manager informed of all the activities of sales personnel.
2. To enable the sales manager to evaluate the performance in terms of number of calls
made, orders obtained, expenses incurred, displays arranged, missionary work undertaken.
3. It enables the salesmen to detect deviations from standard performance and take timely
action.
4. To help the sales person to plan his work which includes planning for specific accounts
and planning a travelling schedule.

5. To record consumer reactions and complaints about a new product.
6. To record information on competitor's activities like changes in promotion, pricing, service
or credit, etc.

7. To record information on local changes.
8. To build a rich database of territorial information which can be put to a variety of uses.
9. To furnish information requested by marketing research - data on dealers, sales, product,
etc.

Did u know? Sales reports are used to monitor sales performance. A weekly report or daily
report is submitted depending on the product and its movement. It assists in product
planning, cost planning and portfolio planning. A summary of daily/weekly report for
all branches is made on a monthly basis and its variance for estimated sales is studied and
accordingly budget for the next month is revised.

13.2 Parameters Used to Monitor Sales Force

Monitoring of sales force is closely related to monitoring of sales as one depends on the other.
A number of parameters are used.

1. Sales per salesman, per dealer, per product
2. Expense to salesman, ratio for each dealer to salesman
3. Calls per day
4. Order call ratio (i.e., orders received per call)

5. Average cost per call
6. Direct selling expense
7. Number of accounts lost

198 LOVELY PROFESSIONAL UNIVERSITY