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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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