Enhancing Sales Performance: Evaluating and Improving Salesperson Effectiveness

1. Evaluating the Performance of Salespeople Module Ten

2. Purposes of Salesperson Performance Evaluations • To ensure that compensation and other reward disbursements ___________________________ _______________________________________ • To identify salespeople ___________________ • To identify salespeople whose employment ____________________ and to supply evidence to ____________________________________

3. Purposes of Salesperson Performance Evaluations • To determine the specific _____________ and ___________ needs of individual salespeople and the overall sales force • To provide information for __________________ ________________ • To ______ criteria that can be used to _________ and ________ salespeople in the future

4. Purposes of Salesperson Performance Evaluations • To advise salespeople of ________________ • To _____________ salespeople • To help salespeople ________________ • To ___________ salesperson _____________

5. Salesperson PerformanceEvaluation Approaches • Most evaluate on an _________ basis • Most combine _______ and _________ criteria which are evaluated using __________ and _____________ measures • When used, ___________________ or ________ are set in collaboration with salespeople • Many assign ___________ to different ___________ and incorporate territory data. General conclusions:

6. Salesperson PerformanceEvaluation Approaches • Most use _____________________________ • Most are conducted by the _______________ who ______________ the salesperson • Most provide a ________________ of the review and personal discussion General conclusions:

7. Sales Manager Evaluation Oneself Team Members Evaluation Evaluation Salesperson Evaluation Evaluation Internal Customers External Customers 360-Degree Feedback System • Salesperson is evaluated by ________________ • Helps salespeople better understand their ____________ ______________ to their organization and their customers

8. Key Issues in Evaluating and Controlling Salesperson Performance • Outcome-Based Perspective • Focuses on __________________________ with _________ monitoring or directing of salesperson behavior by sales managers • Behavior-Based Perspective • Incorporates complex and often subjective _______________________________________ and ______________ with ____________ monitoring and directing of salesperson behavior by sales managers

9. Outcome-Based _________ monitoring of salespeople __________ managerial direction of salespeople Straightforward ___________ measures of results Behavior-Based ___________ monitoring of salespeople ________________ of managerial direction of salespeople ___________ measures of salesperson characteristics, activities, and strategies Perspectives on Salesperson Performance Evaluation

10. Dimensions of Salesperson Performance Evaluation

11. Criteria for Performance Evaluation Behavior: • Consists of criteria related to ______________ by individual salespeople • Sales calls, customer complaints, required reports submitted, training meetings, letters and calls • Should not only address activities related to short-term sales generation but ___________________ ________________________________________________________________________________

12. Criteria for Performance Evaluation Professional Development: • Assess ___________ in certain characteristics of salespeople that are related to _______________ ________________in the sales job • Characteristics include - ________________________________________________________________________________________________________________________

13. Criteria for Performance Evaluation Results: • Salespeople _____________________ based on ___________________ such as – sales, market share, and accounts • A sales quota represents a ________________ __________ for a territory, district, region, or zone • Some research shows that rewards for achieving results have a ______________ on performance and satisfaction

14. Environmental Factors Characteristics Behavior Planning and Control Unit Behavior Salesperson Factors Organizational Factors Market Response Framework

15. Elements Important in Assigning Sales Quotas • ____________________________ within the territory • _______________________ of the territory • _____________________ within the territory • ______________ by the sales manager _______________the sales representative • _______________ of products sold

16. Elements Important in Assigning Sales Quotas • Sales representative’s past ______________ • _____________ of product line • Financial support (e.g., compensation) a firm provides • Relationship of product line • Amount of ____________ support

17. Criteria for Performance Evaluation Profitability: • Salespeople have an __________________ through the specific products they sell and/or through the prices they negotiate for final sale. • Salespeople affect _____________ by the expenses they incur in generating sales. • Criteria Examples • Net profit dollars • Gross margin per sale • Return on investment • Number of orders secured • Selling expenses versus budget

18. Performance Evaluation Methods: Characteristics any method should include _______________ _______________ _______________ _______________ _______________ _______________ _______________ _______________

19. Salespeople are evaluated using some type of ______________________________ Especially useful in evaluating behavioral and professional development criteria May be filled out by ______________ Disadvantage is providing evaluations that ____________________________ Performance Evaluation MethodsGraphic Rating/Checklist Methods

20. ________ all salespeople according to _______ performance on each performance criterion These methods _________________ as to the performance of individual salespeople May be complex Rankings only reveal __________________ evaluation Performance Evaluation Methods: Ranking Methods

21. Performance Evaluation Methods: Objective-Setting Methods Management By Objectives (MBO) • _________________ of well-defined and measurable goals within a specified time period. • Managing activities within the specified time period toward the accomplishment of the stated objectives. • Appraisal of performance ____________________.

22. Performance Evaluation Methods Behaviorally Anchored Rating Scales (BARS) • Links ___________ to specific __________ • __________ are used to develop performance _________ and critical ________________ • Positive feedback about _________ may be more affective than positive ___________ feedback

23. Performance Evaluation Bias • Occurs when a manager’s evaluation of a salesperson ________ by considerations other than the specified criteria • Common sources of bias: • _________________________________ • _________________________________ • _________________________________

24. Evaluating Team Performance • _________________ on which members will be evaluated and the methods used to evaluate performance • ______________ between team performance and positive outcomes to promote individual and team effort • May be beneficial to ___________ team to help _______________________________

25. Evaluate Salespeople against ________________________ __________ Salesperson Evaluations to _________ Problem Area _________Problem Areas to _____________ of Performance Problems _________ Sales Management Actions to ________ Causes of Future Problems and to _________ Existing Problems Framework for UsingPerformance Information

26. Salesperson Job Satisfaction • Job satisfaction _______ to turnover, absenteeism, motivation, and organizational commitment • Job satisfaction may be ___________________ (direction of relationship is unknown) • INDSALES may be used to measure job satisfaction • Results may identify areas where manager may intervene to improve job satisfaction