1
Siksha Srijan Academy of Technology and Management
Siksha Srijan Academy of Technology and Management
Contact : 7449393135 / 6291355543
BHM 4th Semester
Sales and Distribution
Directing the Sales force
Directing a sales force involves several key areas: supervision, territory management,
setting quotas and targets, determining compensation, and leading and motivating the
team. Effective sales management encompasses recruiting, training, and managing sales
staff to achieve sales goals.
1. Supervision: Sales managers guide and coach their team, providing feedback and
support to help them improve performance. This includes regular meetings, performance
evaluations, and addressing any issues that may arise.
2. Territory Management: This involves organizing the sales territory into manageable
units, often based on geographic location or customer type. Effective territory
management helps salespeople focus their efforts on specific areas and customers,
improving efficiency and productivity.
3. Quota and Target Setting: Sales managers set realistic and achievable quotas and
targets for individual salespeople and the team as a whole. These targets should be
specific, measurable, achievable, relevant, and time-bound (SMART).
4. Compensation Determination: Compensation plans should motivate salespeople while
also being fair and reasonable for the company. This may include a base salary,
commissions, bonuses, and other incentives.
5. Leading and Motivating: Effective sales leaders inspire and motivate their teams to
achieve their goals. This involves creating a positive and supportive work environment,
providing opportunities for growth and development, and recognizing and rewarding
strong performance.
6. Other important aspects of sales force management:
Recruiting and Selection:
Hiring the right people with the skills and experience needed to succeed is
crucial.
Training:
Ongoing training programs can help salespeople improve their skills and
knowledge.
Performance Evaluation:
Regularly evaluating sales performance provides valuable insights into what's
working and what needs improvement.
Communication:
Clear and consistent communication is essential for keeping the team informed and
motivated.
Controling
Controlling in sales involves analyzing sales figures, costs, and profitability, as well as
evaluating sales force performance. This process helps ensure that sales goals are met
and that the sales operation is running efficiently.
1. Sales Analysis:
Analyzing Sales Data:
This includes reviewing sales reports, tracking sales trends, and identifying
patterns in sales performance.
Forecasting Sales:
Using historical data and market analysis to predict future sales, helping with
inventory management and resource allocation.
Benchmarking:
Comparing sales performance against industry standards or internal targets.
2. Cost and Profitability Analysis:
Cost Analysis:
Examining the costs associated with selling, storing, advertising, and
distributing products, including marketing costs and the costs of sales
operations.
Prepared by Joy Bhowmick
2
Siksha Srijan Academy of Technology and Management
Profitability Analysis:
Determining the profitability of different products, sales territories, or customer
segments to identify areas for improvement.
Variance Analysis:
Comparing actual costs and sales performance to budgeted figures to identify
discrepancies and their causes.
3. Evaluation of Sales Force Performance:
Setting Standards and Goals:
Establishing clear performance standards for sales representatives, including
sales quotas, call frequency, and order sizes.
Monitoring Performance:
Tracking sales activities, such as calls made, leads generated, and deals closed,
using sales force automation tools and CRM systems.
Evaluating Performance:
Assessing sales representatives against established standards and goals, using
metrics such as sales revenue, market share, and customer satisfaction.
Taking Corrective Action:
Identifying areas where sales performance is below expectations and
implementing corrective actions, such as retraining, adjusting compensation, or
reallocating resources.
Feedback and Development:
Providing regular feedback to sales representatives on their performance and
development, including coaching, mentoring, and training.
Tools and Techniques:
Sales Audits:
Systematic reviews of the sales operation to assess its effectiveness and identify
areas for improvement.
Marketing Audits:
Evaluations of the overall marketing strategy and its alignment with sales goals.
Expense Analysis:
Analyzing sales representatives' expenses to identify potential areas for cost
reduction or improvement.
Sales Force Automation (SFA) tools:
Software used to manage sales processes, track performance, and provide
insights into sales activities.
CRM (Customer Relationship Management) systems:
Software used to manage customer interactions, track sales opportunities, and
analyze sales data.
Prepared by Joy Bhowmick
