Sales Analysis & Sales & Cost Control . Sales Control . Management policies and practices aimed at ensuring that all sales are recorded, made at correct prices, and fulfilled to customers' satisfaction . Sales Control and Cost Analysis.
Companies need to have proper mechanisms in place so that salespeople adhere to the top line and bottom line objectives
Sales Audit is a systematic, critical & unbiased review and appraisal of the basic objectives and policies of the selling function and of the organisation, policies, methods, principles and personnel employed to implement those policies and achieve those objectives
Ex- TLcin India
Salespeople tend to lose sight of this core objective over time; that is why this becomes critical
• Assessment of your key sales and marketing personnel, from the executive team to the sales reps.
• Do you currently have the right resources and infrastructure to reach your goals?
• Are your current sales and marketing processes operating efficiently and maximizing profits
• Are your marketing activities measured directly with sales increases?
• What are your Key Performance Indicators (KPI’s) and are they being effectively measured, reported, and managed.
Strategy- Is your sales strategy in line with your core values?
• Is your team farmers or hunters? What is their level of satisfaction and
• Does marketing, sales and other key departments or individuals in your
company communicate effectively with each other?
Sales analysis is the detailed examination of a company’s sales data and involves assimilating, classifying, comparing, and drawing conclusions.
Figures in Rs. Million unless otherwise specified
The data must then be analyzed in New Delhi, Chennai and Bangalore to ascertain which salesperson (s) in these areas missed the quotas. Then we can further analyze where he missed the quota by factors like sales account type, or by product line
Analysis is necessary to uncover the reason for poor performance:
The 80/20 or “concentration” principle states that the majority of a company’s sales (or profits) may result directly from a very small number of the company’s accounts, product or price lines, or geographic areas.
Marketing cost analysis, or distribution cost analysis, is the analysis of costs that affect sales volume, with the purpose of determining the profitability of different segment operations.
Profitability is determined by sales volume and its associated costs and expenses.
Marketing vs. Production Costs
A production cost is the cost incurred by processing a product from its raw elements to a finished state.
Marketing, or distribution costs, can be broken down into two distinct categories:
FIGURE 15.1 CATEGORIES OF MARKETING COSTS
Allocating sales effort: ‘Iceberg principle’ says that only a small part of the total situation is visible; the rest has to be gauged through sales analysis.
There are customers who account for a smaller percentage of sales but time, money and effort to tap them is no less. These situations must be analysed & corrective action taken.
The desirable outcome is that allocation be done based on sales potential and actual sales.