Page 206 - DMGT205_SALES_MANAGEMENT

Sales Management

Notes Complaint and Adjustment Component: Specific complaints and adjustments made by the sales
person are also recorded. The information generated is useful in detection of needed product
improvements, service improvements and changes in merchandising practices.

13.4 Basic Sales Reports and their Analysis

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. Sometimes sales are affected by stock outs and more stocks are to be
sent.

Tasks
1. Critically evaluate the monitoring and performance appraisal system followed by
M/s CIPLA Ltd. State the criteria used for evaluation of the system.
2. Study five organisations which have field sales operations.

13.4.1 Weekly Sales Report Format

Table 13.1

Week Current Cumulative Comparison with Comparison with Remarks
percentage change same week last last week
from last year year
Product A
Product B
Product C

Weekly sales report reveals the seasonality of sales. Monthly figure leads to quarterly
figures. Apart from volume of analysis, information on some other parameter is also sought, for
example:
1. Contribution from each product in terms of value. This contribution needs to be
maximised.
2. Sales are broken down geographically to monitor sales performance in the light of this
information.
3. Customer break-up or sales indicates whether right kind of customer is being serviced or
whether the salesman is concentrating upon a segment which is not a prospective customer
in the long run.

13.4.2 Regional Sales Analysis

Strength of sales in a region is indicated through this analysis. Regional sales figures are adjusted
according to population of that region. Boundaries of that region should be permanent to
compare trends over a long period of time.

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