Professor Chip Besio Sales Management Marketing 3345

1. Evaluating Sales Force Performance Professor Chip Besio Sales Management Marketing 3345

2. Take Corrective Action A Sales Force Evaluation Model Set goals and objectives for sales force, including: Revenues Contribution profits Market share Expense ratios Design sales plan Set product performance standards for: Organization Salespeople Regions Accounts Districts Measure results against standard

3. Output Measures Used in Sales Force Evaluation Source: Donald W.Jackson, John L. Schlacter, and William G. Wolfe, “Examining the Bases Utilized for Evaluating Salespeoples’ performance,” Journal of Personal Selling & Sales Management, Vol. 15, No. 4 (Fall 2005), p. 62.

4. Input or Behavior Bases Used in Sales Force Evaluation Source: Donald W.Jackson, John L. Schlacter, and William G. Wolfe, “Examining the Bases Utilized for Evaluating Salespeoples’ performance,” Journal of Personal Selling & Sales Management, Vol. 15, No. 4 (Fall 2005), p. 62.

5. Qualitative Bases Used in Sales Force Evaluation Source: Donald W.Jackson, John L. Schlacter, and William G. Wolfe, “Examining the Bases Utilized for Evaluating Salespeoples’ performance,” Journal of Personal Selling & Sales Management, Vol. 15, No. 4 (Fall 2005), p. 63.

6. Output-based System Input-based System Results Sales revenues Sales growth Sales/quota Sales/potential New accounts Contribution margins Contribution percentage Behavior Calls Reports Complaints Demonstrations Dealer meetings Display set up Travel/entertainment expenses A Model of Salesperson Evaluation Salesperson Evaluation

7. Sales Data for Bear Computer 1 2 3 4 Company Percentage Industry Company Volume Change from Volume Market Share Year ($ millions) Previous Year ($ millions) (percent) 2008 26 + 8.3 300 8.6 2007 24 +14.3 219 10.9 2006 21 +23.5 165 15.7 2005 17 --- 125 13.6

8. Comparing Dollar and Unit Sales at the Bear Computer Company 2007 Sales 2008 Sales

9. Measuring Sales Force Output for Bear Computer Company 1 2 3 4 56 7 8 Market Sales ‘07 Sales ‘08 Potential Sales Percentage Sales Jan-Sept Jan-Sept Dollar Sales index Quota of Quota Variance Territory (000) (000) Change Growth (percent) (000) Achieved (000) Jones $ 750 $ 825 + $75 10.0% 26.0% $ 943 87% – $118 Smith 500 570 + 70 14.0 15 543 105% + 27 Brown 1025 1110 + 85 8.3 32 1160 96% – 50 West 960 1000 + 40 4.2 27 977 102% + 23 $3235 $3505 +$270 8.3% 100.0% $3623

10. Measuring Territory Profit Output for Bear Computer Company

11. Call Productivity Ratios Calls per day = # Calls____ # Days worked Calls per account = #Calls__ # of Accounts Planned Call = # Planned calls Total # Calls Batting Average = # Orders__ Total # Calls

12. Expense Ratios Expense to Sales = Expenses Sales Cost per Call = Total Costs # of Calls

13. Account Related Ratios Sales to Account = Dollar Sales _ # Accounts Average Order Size = Dollar Sales # Orders Growth Ratio = # New Accounts Total # Accounts Account Success = Accounts sold_ Total # Accounts

14. Models Combining Input & Output Controls • Inputs • Behavior • # Calls • Days worked • Expenses • Selling vs. non- • selling time • Quotas • Outputs • # Orders • Order Size • # New, lost, • or active • accounts • Inputs • Attitude • Motivation • Skills • Abilities • Job Perception