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SALES MEETING AND CONTESTS c.

Sales meetings at home

d. Travelling sales meetings

Meeting is the session of sharing ideas, notion,


facts and experiences from one to another
colleague. SALES CONTESTS - A special selling campaign
offering incentives in the form of prizes or
awards beyond the compensation plan

ACMEE: It is a tool for planning sales meeting,


based on Aim, Contents, Methods, Execution,
and Evaluation. - It is an important tool to motivate sale force
by comparing their performance.

A-C-M-E-E approach:
OBJECTIVES OF SALES CONTESTS
A- Aims
I. To obtain new customers.
C- Contents - of a meeting mean to plan the
agenda of meeting II. To secure larger orders per sales call.

M- Method III. To push slow moving items, high-margin


goods, or new products.
E- Execution
IV. To overcome a seasonal sales slump.
E- Evaluation
V. To sell a more profitable mix of products.

VI. To improve the performance of distributors


Sales Meeting: Sales meeting is the session sales personnel.
of sharing ideas, notions, facts, and
experience from one to another colleague to VII. To promote seasonal merchandise.
improve performance of sales force. VIII. To obtain more products displays by dealers.

IX. To get reorders.


TYPES OF SALES MEETINGS X. To promote special deals to distributors,
1. National sales meetings dealers, or both.

2. Regional sales meetings

3. National and regional sales meetings: Contest prizes:


executive resistance C - ash
4. Local sales meetings M- erchandise
5. Travelling and remote-control sales T - ravel
meetings
S - pecial honours or privileges

a. Closed-circuit television The


program is live at one meeting site and Awarding the prizes for sales contests
is telecast to others
Contest Duration
b. Sales meetings by telephone
Contest Promotion
Evaluation of contests the marginal profit generated exceeds the
cost of servicing them.

REASONS FOR ESTABLISHING


TERRITORIES PROCEDURE FOR SETTING UP SALES
TERRITORIES
1. To obtain thorough coverage of the market
(1) Select a geographic control unit,
2. To Establish Salespersons Job and
Responsibilities (2) Make an account analysis

3. To evaluate sales performance (3) Develop a salesperson workload analysis

4. To Improve Customer Relations (4) Combine geographic control units in to


territories
5. To Reduce Sales Expenses
(5) Assign sales personnel to territories.
6. To improve control of the sales forces

7. To co-ordinate selling with other marketing,


functions Political units (state, district, or city) are
presently used quite often as geographic control
units
BASES FOR TERRITORY DEVELOPMENT: a. Counties: In the United States and U.K., the
county is the most widely used geographical
G- eography
control unit.
P- otential and servicing requirements:
b. Zip code areas: It is also used in USA.
W- orkload Typical Zip code area is smaller than the
typical county.

c. Cities: When a companys sales potential is


APPROACHES OF DESIGNING located entirely or almost entirely, in
TERRITORIES urbanized areas, the city is used as the
control unit.
1. Building up approach - of designing
territories involves combining enough d. Trading areas: The trading area is perhaps
pieces of a companys overall market to the most logical control unit, since it is based
create units presenting sufficient sales mainly on the natural flow of goods and
challenges. services rather thin on political or economic
boundaries.

e. States: A state may be an adequate control


2. Breakdown approach It starts with the
unit if used by a company with a small sales
overall sales forecast for the entire
force that is covering the market selectively
company, which is in turn derived from a
rather than intensively.
projection of the total market potential and
an estimate of the companys likely share
of it.
Territory Shape

Wedge - is appropriate for territories


3. Incremental approach - is conceptually containing both urban and non-urban areas.
the most appealing. With this approach, It radiates out from densely populated urban
additional territories are created as long as centre.
b. To furnish goals and incentives for the
sales force
Circle - is appropriate when accounts and
prospects are evenly distributed c. To control salespeoples activities
throughout the area. Circular territory
d. To evaluate the productivity of sales
involves starting at the office and moving
people
in a circle of stops until the salesperson
ends up back at the office. e. To control selling expenses
Cloverleaf - is desirable when accounts f. To make effective compensation plan
are located randomly through a territory.
Careful planning of call schedules results in g. To evaluate sales contests results
each cloverleaf being a weeks work,
making it possible for the salesperson to be
home weekends. TYPES OF QUOTAS

Hopscotch - the salesperson starts at the Sales volume quota - set for an individual
farthest point from the office and makes sales person, geographical areas, product lines
calls on the way back to the office. The or distributive outlet or for only one or more of
salesperson would typically go non-stop to these in combination.
the farthest point in one direction and on
the way back stops at many places.
Financial or budget quotas are determined
to attain desired net profit as well as to control
Territory Management problems & the sales expenses incurred.
Remedies

Expense quotas: In order to make the sales


force conscious of the need to keep selling costs
within reasonable limits, some companies set
quota for expenses linked to different levels of
sales attained by their sales force.

Net profit quotas: are particularly useful in


multiproduct companies where different
products contribute varying level of profits.

Activity quotas: Good performance in


competitive markets requires the sales force to
perform the sales as well as market
development related activities.

Sales quota - is a quantitative goal assigned


to a sales unit for a specific period of time. Combination Quotas: Depending upon the
nature of product and market, selling tasks
required to be performed as well as selling
PURPOSE OF THE SALES QUOTA challenges facing the company, some
companies find it useful to set quotas in
a. To provide standards for evaluating
performance
combination of the two or three types Sales Volume Quota: It is the number of
discussed above. products to be sold by an individual sales
person.

Activity Quota: It is the various activities


PROCEDURE FOR SETTING SALES VOLUME assigned to sales force to be performed
QUOTA regarding sales.
1. Quotas based on sales potential Budget/Financial Quota: It is determined to
2. Quotas based on past sales alone attain designed net profit as well as to control
the sales expenses incurred.
3. Quotas based on past sales alone

4. Quotas based on total market estimates

5. Quotas related only to compensation plan


SUPERVISION AND EVALUATION OF SALES-
6. Salespersons set their own quota FORCE

Evaluation system should do three essential


things for the sale manager and sales-people:
CHARACTERISTICS OF A GOOD QUOTA
SYSTEM Provide feedback to each salesperson on
individual job performance.
(i) Realistic attainability: If a quota is to
spur the sales force to maximum effort, the Help salespeople modify or change their
goal must be realistically attainable. If it is too behavior toward effective work habits.
far out of reach, the salespeople will lose their
incentives. Provide information to sales managers on
which to base decisions on promotion, transfer
(ii) Objective Accuracy: Regardless of what and salespeople.
type of quota management uses, it should be
related to potentials. Executive judgement is
also required, but it should not be the sole TIME HORIZON FOR EVALUATION
factor in the decision.
Sales evaluation normally is of three types:
(iii) Ease of understanding and
administering: A quota must be easy for 1. Short run evaluation- In this, performance
both management and the sales force to is evaluated over one year and the focus is on
understand. Also, the system should be the achievement of targets in terms of sales.
economical to administer.
2. Intermediate run evaluation- The
(iv) Flexibility: Particularly, if the quota performance is judged over 2 to 4 years time
period is as long as a year, management may period and focus is on evaluation in terms of
have to make adjustments because of creating and identifying new opportunities while
changes in market conditions. adapting to competitive and environmental
threats.
(v) Fairness: A good quota system is
perceived as fair to the people involved. 3. Long run evaluation- This is on long-term
basis and focus on evaluation in terms of
surviving in an uncertain and increasingly
Sales Quota: It is quantitative goal assigned competitive world.
to a sales person.

STANDARDS OF PERFORMANCE
Performance standards - are designed to (x) Average order size - Average order size
measure the performance of activities that the standards control the frequency of calls on
company considers most important. different accounts. The usual practice is to set
different standards for different sizes and
classes of customers. Using average order size
(i) Sales Quotas - quota is a quantitative standards along with average cost per call
objective expressed in absolute terms and standards, management controls the
assigned to a specific marketing unit. salespersons allocation of effort among
different accounts and increases order size
(ii) Selling expense ratio - Sales manager obtained.
uses this standard to control the relation of
selling (xi) Non-selling activities - Some companies
establish quantitative performances standards
expenses to sales volume. for such non-selling activities as obtaining
dealer displays and cooperative advertising
(iii) Territorial net profit or gross margin contracts, training distributors personnel, and
ratio - Target ratios of net profit or gross goodwill calls on distributors customers.
margin to sales for each territory focus sales Whenever, non-selling activities are critical
personnels attention on the needs for selling features of sales job, appropriate standards
a balanced line and for considering relative should be set.
profitability.

(iv) Territorial market share - This standard


controls market share on a territory by Qualitative performance criteria
territory basis. Management sets target
market share percentages for each territory. Qualitative criteria are used for appraising
performance characteristics that affect sales
(v) Sales coverage effectiveness index - results, especially over the long run, but whose
This standard controls the thoroughness with degree of excellence can be evaluated only
which a sales person works in the assigned subjectively.
territory. The index consists of the ratio of the
number of customers to the total prospects in Job Factors
a territory. Product knowledge
(vi) Call frequency ratio - A call frequency Customers knowledge
ratio is calculated by dividing the number of
sales calls on a particular class of customers Competitors knowledge
by the number of customers in that class.
Handling sales presentations
(vii) Calls per day - In consumer product
fields, where sales personnel contact large Customer satisfaction
numbers of customers, it is desirable to set a Time management
standard for the number of calls per day.
Personal Factors
(viii) Order call ratio - This ratio measures
the effectiveness of sales personnel in Punctuality
securing orders. Sometimes called a batting
average, it is calculated by dividing the General Attitude
number of orders secured by the number of
Dress and Appearance
calls made.
Co-operation
(ix) Average cost per call - To emphasize
the importance of making profitable calls, a Adaptability
target for average cost per call is set.
Reliability
Communication skills 6. To report changes in local business and
economic conditions.
Decision-making ability
7. To keep the mailing list updated for
Initiative promotional and catalogue materials.

MEASURING ACTUAL PERFORMANCE Types of sales force reports


Field sales reports Reports from sales personnel fall into six
The fundamental purpose of field sales reports principle groups.
is to provide control information. They provide 1. Progress or call report
a basis for discussion with sales personnel.
2. Expense report
They also indicate the matters on which sales
personnel need assistance. 3. Sales work plan

Purposes of field sales reports 4. New-business or potential new-business


report
The general purpose of all field sales reports is
to provide information for measuring 5. Report of complaint and/or adjustment
performance; many reports, however, provide
additional information. Consider the following
list of purposes served by field sales reports: COMPARING ACTUAL PERFORMANCES WITH
1. To provide data for evaluating performance- STANDARDS
for example, details concerning accounts and The most difficult step in sales force control is
prospects called upon, number of calls made, the evaluation step the comparing of actual
orders obtained, days worked, miles travelled, performances with standards. This is more than
selling expenses, displays erected, a mechanical comparison; this step is difficult
cooperative advertising arrangements made, because evaluation requires judgement. The
training of distributors personnel, missionary same standards cannot be applied to all sales
work, and calls made with distributors sales personnel-there are differences in individual
personnel. territories, their sales potentials, the impact of
2. To help the sales person plan the work- for competition and the personalities of sales
example, planning itineraries, sales personnel and their customers. It is possible to
approaches to use with specific accounts and take territorial differences into account by
prospects. setting individual performance standards for
each territory, but it is not possible to adjust
3. To record customers suggestions and fully for differences in the personalities of the
complaints and their reactions to new salesperson and the clientele. Furthermore,
products, service policies, price changes, complications often develop in relating
advertising campaigns, and so forth. individual performances to standards, for
example, when two or more sales persons work
4. To gather information on competitors on the same account or when an account deals
activities- for example, new products, market both with the salesperson and the home office.
tests, changes in promotion, and changes in
pricing and credit policy.

5. To provide information requested by THE DYNAMIC PHASE OF EVALUATION


marketing research- for example, data on
dealers sales and inventories of company and 1. Adjust performance to the standards, thus
competitive products. increasing the degree of attainment of
objectives;
2. Revise the policy and/or plan, or the 2. Good performance in quantitative but poor in
strategies used for their implementation to qualitative evaluation- The good quantitative
better for the achievement of objects; result suggest performance in terms of
sales/profits and in front of customers is good.
3. Lower or raise the objectives or the
standards and/criteria used in measuring However, poor performance on qualitative
degree of attainment to make them more criteria warrants advice and training on
realistic. qualitative aspects.

3. Poor performance in quantitative but good in


qualitative evaluation- Good qualitative input is
Similarly actions to be taken depend on the failing to be reflected in quantitative success.
performance in terms of quantitative as well The specific causes need to be identified and
as quantitative evaluation. Four such training and guidance should be provided.
situations, as discussed below, may be
anticipated: 4. Poor performance in both quantitative and
qualitative evaluation- Critical and thorough
1. Good performance in both qualitative and discussion is required on problem areas. Training
quantitative evaluation- The appropriate may be provided to improve the performance. In
response would be praise, monetary rewards some situations, punishment including dismissal
and may be promotion. is required.