Evaluating the Performance of Salespeople

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Evaluating the Performance of Salespeople

• Module Ten

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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
  ____________________________________

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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

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Purposes of Salesperson Performance Evaluations

• To advise salespeople of ________________
• To _____________ salespeople
• To help salespeople ________________
• To ___________ salesperson _____________

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Salesperson PerformanceEvaluation Approaches
General conclusions

• 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.

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Salesperson PerformanceEvaluation Approaches
General conclusions

• Most use _____________________________
• Most are conducted by the _______________ who
  ______________ the salesperson
• Most provide a ________________ of the review and
  personal discussion

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360-Degree Feedback System

• Salesperson is evaluated by ________________
• Helps salespeople better understand their
  ____________ ______________ to their organization
  and their customers

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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

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Perspectives on Salesperson Performance
Evaluation

• 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

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Dimensions of Salesperson Performance
Evaluation
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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
  ___________________ ______________________________
  __________________________________________________
  

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Criteria for Performance Evaluation

• Professional Development
• Assess ___________ in certain characteristics of
  salespeople that are related to _______________
  ________________in the sales job
• Characteristics include - ________________________
  __________________________________________________
  ______________________________________________

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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

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Market Response Framework
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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

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Elements Important in Assigning Sales Quotas

• Sales representatives past ______________
• _____________ of product line
• Financial support (e.g., compensation) a firm
  provides
• Relationship of product line
• Amount of ____________ support

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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

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Performance Evaluation Methods Characteristics
any method should include

• _______________
• _______________
• _______________
• _______________
• _______________
• _______________
• _______________
• _______________

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Performance Evaluation MethodsGraphic
Rating/Checklist Methods

• 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
  ____________________________

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Performance Evaluation Methods Ranking Methods

• ________ 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

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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 ____________________.

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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

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Performance Evaluation Bias

• Occurs when a managers evaluation of a
  salesperson ________ by considerations other than
  the specified criteria
• Common sources of bias
• _________________________________
• _________________________________
• _________________________________

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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
  _______________________________

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Framework for UsingPerformance Information
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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