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GROUP 7

A N K I T G O E L 0 8 F T- 0 0 6

P R A N D H E E R 0 8 F T- 0 2 6

V I K A S G U P TA 0 8 F T- 0 5 9

V I N C E N T P I E R Q U E T 0 9 F R N - 0 6 4

Supervision & Controlling of Sales Effort

Flow of Presentation

IntroductionFormulation of Plans - APESControlling of Sales Effort through Sales

ControlSales Control As A ProcessControlling Sales Personnel

Performance Standards Recording Actual Performance Comparing Actual Performance With Standards Action Taken

Organizations Studied By The Group

Management Process

Planning

Organizing

Coordinating

Controlling

Importance of Sales Control

Why to do Sales Control?

To ensure that the company’s actual sales is as per the plan

Sales executives responsible for many activities so they might pay inadequate attention to selling and profit objectives

Requirements of Sales Control

Sales control requires Establishment of standards The evaluation of actual performance The correction of deviation in performance

Sales control implies not only managerial action with regard to actual sales, but it also embraces all other marketing functions required for the even flow of products or services from producers to consumers.

Flow of Presentation

IntroductionFormulation of Plans - APESControlling of Sales Effort through Sales

ControlSales Control As A ProcessControlling Sales Personnel

Performance Standards Recording Actual Performance Comparing Actual Performance With Standards Action Taken

Organizations Studied By The Group

APES

Helps in establishing Sales standards and control for the company

Done at a very senior levelActs as a source of direction for the sales

team. The superiors ensure that their team is on/ahead of target.

Usually done on an annual basis, may vary from company to company.

Annual Plan Profitability Plan

Objectives and goals for the year Product lines Markets

Setting Key performance indicators

Potential changes to the market, customers and competition

Issues or problems in Sales Operations

Financial performance and forecasts

Planned sales volume Planned Revenue Planned Expense on Sales

Direct Expenditure Indirect Expenditure Overheads

Planned Profits

Efficiency Plan Strategic Plan

Efficiency Targets Conversion rate

Efficiency gains in Sales Source Application

Best value reviewsMonitoring

arrangements

Environmental Analysis Macro Micro

SWOT AnalysisAction plan to

achieve the Annual plan Objectives

Flow of Presentation

IntroductionFormulation of Plans - APESControlling of Sales Effort through Sales

ControlSales Control As A ProcessControlling Sales Personnel

Performance Standards Recording Actual Performance Comparing Actual Performance With Standards Action Taken

Organizations Studied By The Group

Doing Sales Control

How to do sales control?

Sales Audit Sales Analysis and Cost Analysis

Sales Audit

a systematic and comprehensive appraisal of the total selling operation

Examines: Objectives Policies Organization Methods Procedure Personnel

Sales Analysis

detailed study of sales volume performance to detect strengths and weaknesses

Purpose How much being sold and where? Who is selling the most and why?

Examines Allocation of Sales effort (80 / 20 rule) Data for Sales Analysis

Cost Analysis

determines the relative profitability of particular aspects of sales operations

Helps in answering: Which territories are profitable and why? What are profit contributions of Individual Sales

personnel? What is the profitability of individual products? How small can an order be and still be profitable?

Flow of Presentation

IntroductionFormulation of Plans - APESControlling of Sales Effort through Sales

ControlSales Control As A ProcessControlling Sales Personnel

Performance Standards Recording Actual Performance Comparing Actual Performance With Standards Action Taken

Organizations Studied By The Group

Types Of Control

Control

Outcome Control

Behavior Control

Controls based on immediate salesExtrinsic in nature

Controls based on selling behaviorIntrinsic in nature

Widely preferred

Types Of Control

Behavior Control

Activity Control

Capability Control

Activities salesman expected to perform

Emphasizes the improvement and Application of selling skills.

Proposed by Challagalla and Shervani

Flow of Presentation

IntroductionFormulation of Plans - APESControlling of Sales Effort through Sales

ControlSales Control As A ProcessControlling Sales Personnel

Performance Standards Recording Actual Performance Comparing Actual Performance With Standards Action Taken

Organizations Studied By The Group

Introduction

Controlling Sales Personnel ensures that

All sales are recorded Made at correct prices Fulfilled to customers' satisfaction.

Steps In Control

Establishing performance

standards

Recording actual performance

Evaluating performances against

the standards

Taking action

Static

Dynamic

Flow of Presentation

IntroductionFormulation of Plans - APESControlling of Sales Effort through Sales

ControlSales Control As A ProcessControlling Sales Personnel

Establishing Performance Standards Recording Actual Performance Comparing Actual Performance With Standards Action Taken

Organizations Studied By The Group

Arriving At Performance Standards

Selling Strategy

Sales Job Analysis

Setting standards of performance

Types of Performance Standards

Performance Standards

Quantitative

Qualitative

Quantitative Performance Standards

QuotasSelling expense ratioTerritorial net profit or gross margin ratioTerritorial market shareSales coverage effectiveness indexCall frequency ratioCalls per dayOrder call ratioAverage cost per callAverage order sizeNon selling activities

Qualitative Standards

Cannot be precisely measured

Job Factors: Product Knowledge Awareness of Customer needs Relationship with Customers

Personal Factors: Punctuality General Aptitude Dress & Appearance etc.

Flow of Presentation

IntroductionFormulation of Plans - APESControlling of Sales Effort through Sales

ControlSales Control As A ProcessControlling Sales Personnel

Establishing Performance Standards Recording Actual Performance Comparing Actual Performance With Standards Action Taken

Organizations Studied By The Group

Sources Of Performance Information

Sources

Sales and Expense Records

Reports of various sorts

Company Records

Filled by Salesmen

Various Types of Sales Force Reports

Progress or call reportExpense reportSales work planNew business or potential new business

reportLost sales reportReport of complaint and/or adjustment

Daily Call Report

Expense Statement

Monthly Stocks & Sales Statement

Factors For Reports

Number of reports Minimum

Design and construction of reports Short and consistent

Details required in sales reports Varies from company to company

Flow of Presentation

IntroductionFormulation of Plans - APESControlling of Sales Effort through Sales

ControlSales Control As A ProcessControlling Sales Personnel

Establishing Performance Standards Recording Actual Performance Comparing Actual Performance With Standards Action Taken

Organizations Studied By The Group

Comparing Actual Performance With Standards

Difficult stepRequires judgment

Not a mechanical step Relationships with dealers, stockist etc….

Differences in territories, competition, sales potential etc

Flow of Presentation

IntroductionFormulation of Plans - APESControlling of Sales Effort through Sales

ControlSales Control As A ProcessControlling Sales Personnel

Establishing Performance Standards Recording Actual Performance Comparing Actual Performance With Standards Action Taken

Organizations Studied By The Group

Taking Action

Possible actions Take “no action” Take action aimed to increase the degree of

attainment of objectives Revise the policy or plan or the strategies to attain

objectives To lower or raise the objectives

Flow of Presentation

IntroductionFormulation of Plans - APESControlling of Sales Effort through Sales

ControlSales Control As A ProcessControlling Sales Personnel

Establishing Performance Standards Recording Actual Performance Comparing Actual Performance With Standards Action Taken

Organizations Studied By The Group

Apollo Tyres

Setting Performance Objectives Sales Targets

Factors Considered Sales levels in previous year Projected growth and Market Acquisition Plan (MAP)

Other measures Product Knowledge – Tested through online quizzes Personal Factors - Punctuality, Attitude, Dress,

Appearance and Diligence are also evaluated during appraisal

Nation wide targets Zonal targets State targets District targets Territory targets

Apollo Tyres

Recording Performance

Daily call report (7 – 8 calls are expected per day) Passenger Vehicle Territory report – this report is

made during the mid and end of the month to by Sales executives. Report contains the KRA achievement and promotion activities undertaken.

Sales Process Enabler report: This report is made at the end of the month and contains daily call plan.

Expenses are not recorded (fixed in the salary)

Apollo Tyres

Evaluating Performance

Online performance appraisal system known as Performance Appraisal and Career Enhancement (PACE)

Product Knowledge – Tested through online quizzes

Performance evaluation of Sales Executives is done by District office Incharge during the month and at the start of the next month

National Head Sales and Marketing

National Head Sales Support

Zonal Manager

State Manager

District Incharge

Territory Incharge

Medicross Pharma – Chem Ltd

Setting Performance Objectives Sales Targets

Factors Considered Supply capability of the company Business potential of the territory/state/zone The expertise of the person heading the territory/state/zone

Other measures Product Knowledge – The need has come down in recent

past Personal Factors – Soft skills evaluated during appraisal.

Feedback taken from doctors.

Nation wide targets Zonal targets State targets District targets Territory targets

Medicross Pharma – Chem Ltd

Recording Performance Daily call report (Minimum 10 calls are expected per

day) Expense Reports Monthly sales report

Medicross Pharma – Chem Ltd

Evaluating Performance

Performance evaluation of Medical Representative is done by Territory incharge monthly

Continuous feedback from doctors is taken regarding potential of the territory and the medical representative done accordingly.

National Head Sales and Marketing

Zonal Manager

State Manager

District Incharge

Territory Incharge

Medical Representative

Birla Sun Life Insurance

Setting Performance Objectives Sales Targets

Factors Considered Sales levels in previous years Projected growth and Market potential as perceived by the company

Other measures Personal Factors – Marked based on feedback from

distributors (also called partners sometimes). The overall appearance of a salesman is never compromised.

Nation wide targets Zonal targets Regional targets Cluster targets Territory/Branch

targets

Birla Sun Life Insurance

Recording Performance

Daily Sales Call Report Expense Report Conveyance Reimbursement Report

Birla Sun Life Insurance

Evaluating Performance Performance appraisal

system: Immediate senior evaluates subordinate based on targets and achievements

Product Knowledge – Tested through online quizzes called Brahmastra

In case of targets not being met, past performance evaluated. Also, compared against the average across regions/territories.

National Sales Manager

Zonal Manager

Regional Head

Cluster Head

Branch/Territory Head

Relationship manager

Thank You