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Sales force managemnet and


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Based on HBR article on the same subject

Based on HBR article on the same subject

Published in: Marketing, Business, Technology
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  • 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
  • 20. LOG O Thank you!