Page 211 - DMGT205_SALES_MANAGEMENT

Unit 13: Sales Personnel Performance

Sales Coverage Effectiveness Ratio Notes

Sales and marketing are closely related. Sales is a subset of marketing - in fact, sales is the
backbone, the end result of marketing. Without adequate sales marketing activities will come to
a halt.
There are other ratios that must be considered and set as quantitative standards.
Calls per day: The amount of calls made in a day. The calls can be further divided into the class
of customers A, B or C depending upon their size.
Order call ratio: The ratio of number of orders received to the number of calls made.
Average cost per call: Cost is a very important factor and the cost of calling on customers should
be reduced. The planning of the sales person and his sense of time management comes handy.
Average order size: This depends on the class of customers to be called upon. A judicious mix of
the customer must be planned to bring effectiveness & efficiency in his work.

Qualitative Standards: This an area which is difficult to measure and gives the feedback about
the sales person after sometime. These include customer relations, creating customer loyalty,
appearance and personality of the salesman. His application to the need and objection handlings
of the customer. His adaptability and handling of difficult situations confronted by him. His
reliability &+ve attitude etc.
Territorial Market Share

To study the market share of various territories and compare these with the performance of the
salesman.
Qualitative criteria: These qualitative standards are difficult to measure. These are subjective
and can have bias of the evaluation. These could be customer relation, satisfaction provided to
customers, product knowledge, services rendered, general attitude, loyalty, cooperation,
Presentation diligence, reliability etc. These qualitative standards are very important but are
sometimes over shadowed by the quantitative performance of the sales person.

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Caselet Performance Evaluation

A company wants to evaluate its sales representatives who have been operating in
various territories. Each salesman is given a quota to achieve the sales target.

The company wants to evaluate the salesman of two territories on the following criteria:
(a) Percentage of Sales Quota Achieved
(b) The expenses incurred in the territory

(c) Categories of products sold

Contd...

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