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Evaluation & Appraisal of Sales Force..: Presented By:-Urvashi Baghel IITTM, Gwalior

The document discusses evaluating and appraising sales force performance. It outlines the purposes of performance evaluation as monitoring progress, providing feedback, and determining training needs. It also discusses dimensions of evaluation including behaviors, professional development, results, and profitability. The evaluation process involves setting standards, monitoring performance, and providing feedback. Key factors that influence sales force performance include internal motivations as well as external environmental and organizational factors. Both qualitative and quantitative criteria are used in a structured evaluation process.

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Raman Kulkarni
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176 views18 pages

Evaluation & Appraisal of Sales Force..: Presented By:-Urvashi Baghel IITTM, Gwalior

The document discusses evaluating and appraising sales force performance. It outlines the purposes of performance evaluation as monitoring progress, providing feedback, and determining training needs. It also discusses dimensions of evaluation including behaviors, professional development, results, and profitability. The evaluation process involves setting standards, monitoring performance, and providing feedback. Key factors that influence sales force performance include internal motivations as well as external environmental and organizational factors. Both qualitative and quantitative criteria are used in a structured evaluation process.

Uploaded by

Raman Kulkarni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Evaluation & appraisal

of sales force..

Presented by :-
Urvashi Baghel
IITTM, Gwalior
Contents :-
 Sales force & its importance for a company.
 Sales force performance.
 Performance evaluation- purpose & reason.
 Dimension of salesforce performance evaluation.
 Sales force performance evaluation process
 Determinants of sales force performance.
 Criteria for the evaluation- qualitative & quantitative
 Establishing standards
 Monitoring & feedback system.
 Conclusion.
Sales force & its importance :-

Sales force is the number of sales person employed by a company to :-

- promote its product .

- create customer.

- represent the company in the market.

- to generate profit for the company.

-to deal with customer query & so an..


Sales force performance :-

-work done by sales force.

-Impact of sales force onto the company ,on profit etc is the
result of sales force performance.
Performance evaluation :-
 Evaluation is to measure the performance of sales persons.

 A important process which enhances the way organization is managed &


provides recommendation for further improvements.

 It is a critical function. Steps to Setting


improve objective

 It constitutes ‘comparing objectives with results.

 Provide feedback.
Actual
feedback
work done
 Take steps to further improvement.
Comparing
actual work
with
objectives
set
Purposes :-
 It is vital for an organization to evaluate the performance of sales
force consistently & frequently, so that it would be able to close deal
quickly & move to the next one.

 To monitor the performance & ensure that it is in alignment with


corporate goals & objectives.

 To keep track on progress.

 To take decision regarding compensation, promotion & transfer.

 To determine the specific training & counselling needs of individual


sales people & the overall sales force.

 To provide information for effective human resource plan.


 To identify criteria that that can be used to recruit & select
sales people in the future.

 To advise sales people of work expextations.

 To motivate sales people.

 To help sales people in setting career goal.

 To enhance communication between sales person & sales


manager.

 To improve sales person performance.


Dimension of sales force performance
evaluation :-

behavioral results

dimensions

professional profit
development
Behavior:

Consists of criteria related to activities performed by


individual salespeople.
• Sales calls,
• customer complaints,
• required reports submitted,
• training meetings,
• letters and calls

Professional Development:

• Assess improvements in certain characteristics of salespeople that are


related to successful performance in the sales job
• Characteristics include - Attitude, product knowledge, initiative and
aggressiveness, communication skills, ethical behavior
Results:

 Salespeople measured objectively based on results such as – sales, market


share, and accounts

 A sales quota represents a reasonable sales objective for a territory, district,


region, or zone

 Some research shows that rewards for achieving results have a negative
effect on performance and satisfaction

Profitability:
 Salespeople have an impact on gross profits through the specific products
they sell and/or through the prices they negotiate for final sale.

 Salespeople affect net profits by the expenses they incur in generating sales.

 Criteria Examples : Net profit dollars


Gross margin per sale
Return on investment
Number of orders secured
Selling expenses versus budget
Sales evaluation process:
Determinants of sales force performance:-

 Changing dynamics of the market have increased the pressure on


sales force.

 Many studies were conducted to know the factor which will


influence sales force performance.

 They are :
- internal factors
- external factors
Internal factors External factors

 Motivation  Environmental factors


 Skill level  O9rganizational factors
 Job satisfaction - communication & work flow
- compensation system
 Role perception
 Sales management ffunction
 Personal factors
- sales force planning
 Ego drive
- forecasting
 empathy - territory management
- compensation
- control
Criteria for sales force evaluation:-
Qualitative methods are :

-Personal observation by sales executives.


-Merit rating
-Customer opinion of salesmen.

Quantitative methods are :

-Analysis of sales record & reports.


-Comparison of salesman’s performance with quota.
-Ratio analysis.
-Profit & loss statement.
Establishing standards :-

 Carrying out the sales force performance evaluation process by using the
outcome-based
behavior-based
professional development measure.

 By establishing different types of goals & objectives.


for ex.- increasing sales by 5% each year ovr the next five year.

 By developing the sales plan.


e.g. increase market share by 4%, reducing defections by 12% , increasing the
new customer base by 10% each year.- source: flying colours ltd.

 By setting sales force performance standards

 Allocate & efforts through sales quotas.


Monitoring & feedback system:-
(360 degree feedback system)
Sales Manager

Evaluation
 Salesperson is evaluated by
multiple raters.

 It helps salespeople better Salesperson


understand their ability to add
value to their organization and
their customers
Conclusions :-
1. Most evaluate on an annual basis

2. Most combine input and output criteria which are evaluated using quantitative
and qualitative measures

3. When used, performance standards or quotas are set in collaboration with


salespeople

4. Many assign weights to different objectives and incorporate territory data.

5. Most use multiple sources of information

6. Most are conducted by the field sales manager who supervises the salesperson

7. Most provide a written copy of the review and personal discussion.

8. Helps salespeople better understand their ability to add value to their


organization and their customers
Thank you

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