Sales management is continually working to improve the productivity of selling efforts.During the last decade personal selling costs increased much faster than advertising costs,so achieving high sales force performance is important.The evaluation of sales force performance considers sales results,costs,salesperson activities and customer satisfaction.
Where to focus the analysis:
Evaluation extends beyond the salesperson to include other organizational units,such as districts and branches.Selling teams are used in some types of selling.Companies that use teams focus evaluations on team result.
Performance Measures:
Management needs yardsticks for measuring salesperson performance.For example the sales force of a regional food processor that distributes through grocery wholesalers and large retail chains devotes most of its selling effort to calling on retailers.Since the firm does not have information on sales of its products by each individual retail outlet,evaluations are based on the activities of salespeople rather than sales outcomes.
Setting performance standards:
Although internal comparisons of performance are frequently used,they are not very help full if the performance of the entire sales force is unacceptable.A major problem in setting sales performance standards is determining how to adjust them for factors that are not under the salespersons control.
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