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Sales force managemnet and


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Based on HBR article on the same subject

Published in: Marketing, Business, Technology
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Sales force managemnet and

  1. 1. LOG O Sales Force Management & Measurement Sales Management Presented by : Faiza Hammad Noman Ameen Shah Rukh (12485) Sana Sadiq (12877)
  2. 2. Introduction • Sales Force management is determinant of MARKETING SUCCESS
  3. 3. Sales Force Management ELEMENTS 1. Integration 2. Resource Allocation 3. Rewards 4. Correct hiring & Training LOGO Your site here
  4. 4. Sales Territories: Sales person’s battleground Territory Sub title Assignment Level 2: • Balance potential sales each territory contains Level 1: • Minimize Travel expenses • Minimize time associated with one customer based in one specific geography •
  5. 5. Under servicing & Over servicing Customers Sub title Under servicing Over servicing •Sales lost due to lack of activity •Lower sales directly & indirectly •Fewer lead sort •Direct result  sales person calling too much unless the customer become alienated •Fewer prospects identified •Sales person stretched too thin • Indirect Result  loss from sales in underserved category
  6. 6. Balanced & Unbalanced Territories Unbalanced Territory Balanced Territory Unfair sales potential Happier customer, sales person & company Distorted compensation Potential Main considerations are: • Balancing work load • Balancing Sales Potential • Develop compact Territories • Minimize disruptions during redesign Talented people leave company
  7. 7. Work load Sales Potential Parameters 1. 2. 3. No. of potential accounts exist in a territory Served Market Size of Population in territory 4. 5. Size Finding Time takes to travel a territory
  8. 8. Territory Changes  Minimizing customer disruption is a priority with any change  Sales people are very protective of territories and unwelcome changes  Possible Complaints are:
  9. 9. Setting Sales Goals  Profit and sales objectives  Support product plans, channel and market plans  Motivate sales force for consistent efforts  SMART Strategy  Discuss with sales force how do they feel about the goals set
  10. 10. Forecasting Sales
  11. 11. Measuring Sales Result  Effectiveness measures are driven by: 1.) Length of selling cycle 2.) Complexity of buying process 3.) No. of People involved in decision making  Effectiveness of a sales person is the key measure when analyzing performance  Important numbers to calculate effectiveness: 1.)Amount of each sale & contribution from sale 2.)No. of calls made 3.)Total accounts active 4.)Total Accounts in territory
  12. 12. Calculating Effectiveness
  13. 13. Sales Resulting from calls to Customers LOGO Your site here
  14. 14. Sales-Force compensation  The incentive plan needs to align the salesperson’s activities with the firm’s objectives.  What form of compensation is appropriate for compensation task , to setting the metrics which performance will be based , to finding the level of bonus , salary or commission the financial targets of the firms .  Commission works based when sales effort can be linked directly to a sales . LOGO Your site here
  15. 15. Rules of Compensation  Rule #1: Make the compensation plan easily understood so that the sales person understands what behaviors are expected, what the sales objectives are, and what outcomes lead to financial reward.  Rule #2: Don’t play game , state the compensation plan and don’t change it.  Rule #3: Try to set metrics that are objective.  Rule #4: Think about non financial incentives such as recognition program. LOGO Your site here
  16. 16. Designing Compensation plan When designing a compensation plan for sales force , there are four key areas:  Level of pay:  Mix between salary and incentive:  Measure of performance:  Performance-payout relationship: LOGO Your site here
  17. 17. Calculating Total compensation  There are many ways to motivate the sales person, For a multi-bonus system the compensation for a sales person:  Compensation($) = Salary($) + Bonus 1 ($) + Bonus 2($)  In a compensation system , the following would represent the compensation for a salesperson:  Compensation($) = Salary($) + [Sales ($) * Commission(%)] LOGO Your site here
  18. 18. Calculating Total compensation •Once the compensation plan for the sales force has been created , the sales-force manager may want to reevaluate the size of the sales-force. Based on forecast for sales in the coming year , there may be room to hire more sales people or need to cut back on the size of the force. LOGO Your site here
  19. 19. Sales Force Funnel: •A convenient way to forecast sales in the short term and also keep an eye on the sales-force activity is to create a sales funnel. •The concept of funnel comes from simple principle: From large number of possible customers , only a much smaller number will actually make purchases. LOGO Your site here
  20. 20. LOG O Thank you!