Page 212 - DMGT205_SALES_MANAGEMENT

Sales Management

Notes
Sale Expenses Product Product Product Total
40% profit 30% 20% profit
90% of
Quota Ratio
90,000/- 9,000/- 20,000/- 40,000/- 30,000/-
8,000/- 12,000/- 6,000/- 26,000/-
80% of quota
Ratio
80,000/- 5,600/- 40,000/- 10,000/- 40,000/-
16,000/- 3,000/- 8,000/- 27,000/-

Questions
1. Compare and contrast the two salesmen on the above data.

2. What other qualitative criteria must be considered to evaluate their performance?

13.8 Summary

 Sales managers must know whether sales effort is being operationalised as it was expected.
 Organisations design a monitoring system based on their needs.

 Sales reports are the basic tools used for the monitoring of sales personnel.
 A well designed monitoring system aids in self improvement of the salesman by taking
stock of his own work.
 Monitoring is gathering information on day to day activities and taking stock of deviations
from expected performance.
 The information generated is useful in detection of needed product improvements, service
improvements and changes in merchandising practices.

 Sales reports are used to monitor sales performance.
 Strength of sales in a region is indicated through this analysis.
 Evaluation is a complex task because of a variety of activities and different selling situations
which are to be compared.

13.9 Keywords

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.
Expense Component: It keeps a check on the nature of expenses and their extent.
Lost Business Components: Details about business lost to competitors acts as a pointer for gap
in training of salesmen, changes in service and credit policy and product improvement.
Monitoring: It is gathering information on day to day activities and taking stock of deviations
from expected performance.
Progress Report: It provides progress related to day to day work and furnishes data on company's
position in different territories and in respect of each account. Information on specific calls on
customers, extent of competitive activity.

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