GROUP 7 ANKIT GOEL08FT-006 P RANDHEER08FT-026 VIKAS GUPTA08FT-059 VINCENT PIERQUET 09FRN-064...
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Transcript of GROUP 7 ANKIT GOEL08FT-006 P RANDHEER08FT-026 VIKAS GUPTA08FT-059 VINCENT PIERQUET 09FRN-064...
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