Budget quotas
The intension in setting budget quotas is to make it clear to sales personnel
that their jobs consist of some thing more than obtaining sale volume.
Budget quotas indirectly controlling gross margin and net profit contributions.
Type of budget quotas
Expense quotas
Gross margin or net profit quotas
Activity
Activity quotas are appropriate when sales personnel perform important
Non-selling and activities, normally in insurance selling, drug detailing etc.
Combination
Combination quotas are used to control performance of both selling and
Non-selling activities.
Creating the sales force
The process of creation of sales personnel involves the following activities.
Recruitment
Selection
Induction/orientation
Recruitment
Recruiting sales personnel categorized into two types – Internal sources and
External sources.
Internal sources Company sales personnel
Company executives
Internal transfers.
external source Direct unsolicited applications
Sales people making calls on the company
Sales Force of non-competing companies
Sales force of competing companies
Employment Agencies
Employee of customers
Sales Executive club
Educational institutions
Selection
A selection system is a set of successive ‘screens’ at any of which an applicant
may be dropped from further consideration.
Steps involved in sales personnel selection
Normally following are the steps use in most of the company’s for the selection of
the sales personal:
Preliminary Interview & pre interview screening.
Formal application Form
Interview
Patterned interview / non directive interview / interaction interview
Rating scales
References & credit check
Tests
Habitual characteristics / Interest tests / Achievement tests
Physical examination
Managing the sales force
Compensation
It is necessary to design a good sales compensation plan according to experts
sales compensation plan meets the following requirements.
It provides a living wage.
The plan fits with the rest of the motivational program.
Plan should be fair.
It must easy for sales personnel to understand.
Plan must adjust pay according to change in performance.
It must be economical to administer.
It must help in attaining the objectives of the sale organization.
Steps in devising the good compensation plan
Whether contemplating major or minor changes or drafting completely new sales
compensation plan, the sale executive approaches the project systematically,
good compensation are built on solid foundations. A systematic approach
assures that no essential step is overlooked, they are :
Define the sales job
Consider the company’s general compensation structure.
Consider compensation patterns in community and industry.
Determine compensation levels.
Provide for the various compensation elements.
Consider special company needs and problems.
Consult the present sales force.
Reduce tentative plan to writing and pretest it.
Revise the plan.
Implement the plan and provide for follow up.
The intension in setting budget quotas is to make it clear to sales personnel
that their jobs consist of some thing more than obtaining sale volume.
Budget quotas indirectly controlling gross margin and net profit contributions.
Type of budget quotas
Expense quotas
Gross margin or net profit quotas
Activity
Activity quotas are appropriate when sales personnel perform important
Non-selling and activities, normally in insurance selling, drug detailing etc.
Combination
Combination quotas are used to control performance of both selling and
Non-selling activities.
Creating the sales force
The process of creation of sales personnel involves the following activities.
Recruitment
Selection
Induction/orientation
Recruitment
Recruiting sales personnel categorized into two types – Internal sources and
External sources.
Internal sources Company sales personnel
Company executives
Internal transfers.
external source Direct unsolicited applications
Sales people making calls on the company
Sales Force of non-competing companies
Sales force of competing companies
Employment Agencies
Employee of customers
Sales Executive club
Educational institutions
Selection
A selection system is a set of successive ‘screens’ at any of which an applicant
may be dropped from further consideration.
Steps involved in sales personnel selection
Normally following are the steps use in most of the company’s for the selection of
the sales personal:
Preliminary Interview & pre interview screening.
Formal application Form
Interview
Patterned interview / non directive interview / interaction interview
Rating scales
References & credit check
Tests
Habitual characteristics / Interest tests / Achievement tests
Physical examination
Managing the sales force
Compensation
It is necessary to design a good sales compensation plan according to experts
sales compensation plan meets the following requirements.
It provides a living wage.
The plan fits with the rest of the motivational program.
Plan should be fair.
It must easy for sales personnel to understand.
Plan must adjust pay according to change in performance.
It must be economical to administer.
It must help in attaining the objectives of the sale organization.
Steps in devising the good compensation plan
Whether contemplating major or minor changes or drafting completely new sales
compensation plan, the sale executive approaches the project systematically,
good compensation are built on solid foundations. A systematic approach
assures that no essential step is overlooked, they are :
Define the sales job
Consider the company’s general compensation structure.
Consider compensation patterns in community and industry.
Determine compensation levels.
Provide for the various compensation elements.
Consider special company needs and problems.
Consult the present sales force.
Reduce tentative plan to writing and pretest it.
Revise the plan.
Implement the plan and provide for follow up.
No comments:
Post a Comment