Based on HBR article on the same subject

1. LOG
O
Sales Force Management & Measurement
Sales Management
Presented by :
Faiza Hammad
Noman Ameen
Shah Rukh (12485)
Sana Sadiq (12877)

2. Introduction
• Sales Force management is determinant of
MARKETING SUCCESS

3. Sales Force Management ELEMENTS
1. Integration
2. Resource Allocation
3. Rewards
4. Correct hiring & Training
LOGO
Your site here

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. 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. 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. 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. 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. 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. Forecasting Sales

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. Calculating Effectiveness

13. Sales Resulting from calls to Customers
LOGO
Your site here

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. 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. 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. 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. 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. 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

21. LOG
O
Thank you!