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Presented by:
Smitha Nair ( Roll No. 80)
Sowseelya Pedamallu ( Roll No. 84)
Source: B.K.Chatterjee
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Often marketing professionals are criticized since they are viewed as
creative and innovative people that tend to spend the company's money
without worrying about how effectively or efficiently it is being spent
Therefore a marketing manager must monitor the efficiency and
effectiveness of marketing activities, as well as other important
business functions such as production and the quality of products or
services
However since the purpose of a business is to earn a profit, finances
had better be one of the marketing foundations
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Two issues:
` Evaluation of salesmans performance
` Developing a rational compensation package for thesales force
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1. To evaluate sales force and improve efficiency
2. Motivation of salesman and supervisory leadership3. Making decisions regarding training, promotion etc
4. Improving sales planning
5. Introducing sound compensation and incentive system
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Results achieved by him should be:
1. Should offset the cost of efforts expended on him bythe company and
2. Should leave some surplus thereafter
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` Evaluation based on Qualitative judgement vis--
vis Quantitati
ve data
` Problem of comparison between salesmen based
on evaluation results
` Problem of determining standards
` Problem in determining the periodicity ofevaluation
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` Helps to make direct comparisons between the
salesmen taking into account their dissimilar salesefforts
` The standard deviation helps to cope up with the
dissimilar performance data
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` Z score = P M
S.D
P = A raw performance measured for salesman
M = Mean(average) raw performance for the sales group
S.D = Standard deviation of raw performance
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Scheme for compensating salesman is based on
two broad elements:
` Fixed remuneration` Incentive payments
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Sl. No. Evaluation
criteria
Weightage Norms Basis of score
Max 12 for each
(6 pts for
achieving norms+ or for
deviation)
1. Market share 30 25% +(-) 1 for
increase(decrease)
every 5% or part
2. Val e of orders 15 Rs.10 lakhs o y every Rs.1
lakh
3. Batting average 10 Rs. 25,000 o y every Rs.
5000 or part
4. Sales val e 10 Rs.10 lakhs o y every Rs.1
lakh or part
5. C/S ratio 15 40% o every 5% or
part
6. Marketing ROI 20 20% o-do-
otal 100
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Sl. No Criteria Salesman A
Figures Score W-score
Salesman B
Figures Score W-score
1 Market
share
35% 8 240 20% 5 150
2 Value of
orders
s.8 lakhs 4 60 s.11 lakhs 7 105
3 Batting
average
s.27,000 7 70 s.22,000 5 50
4 Sales value s.9 lakhs 5 50 s.10 lakhs 6 60
5 C/S ratio 35% 5 75 30% 4 60
6 Marketing 22% 7 140 12% 4 80
635 505
Weighted average score 6.35 5.05
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