Which of the following are the two types/categories of salesperson performance criteria?


  1. Carry out the sales force performance evaluation process using the outcome-based, behavior-based, and professional development measures.

    Stages in the sales force performance appraisal process include (1) establish sales goals and objectives; (2) develop the sales plan; (3) set sales force performance standards; (4) allocate resources and sales force efforts; (5) devise a plan for sales force performance improvement; (6) conduct the sales force performance evaluation process; and (7) provide feedback on sales force performance appraisals. Outcome-based measures can be separated into sales efforts, sales results, and profitability indices. Sales efforts include such measures as number of sales calls made, selling expenses as a percentage of sales volume, and number of service calls. Sales results include measures such as number of orders obtained, dollar sales volume, number of new accounts, and collections of accounts receivable. Profitability indices include net profit contribution, and performance as measured by financial/economic indicators, such as return on investment, return on sales, return on assets, and return on assets managed. Behavior-based outcomes include sales-related activities such as customer relations, territory management, report preparation and timely submission, product knowledge, and personal characteristics. Successful sales organizations usually employ a mixture of quantitative and qualitative performance standards. Competence assessment, which tries to determine the characteristics needed to do a job rather than the specific tasks of the job, has been successfully used to select high-achieving salespeople. Professional development measures for assessing sales force performance include professional selling skills, professional knowledge, and personal characteristics.

  2. Establish different types of sales goals and objectives, and develop the sales plan.

    After establishing long-run sales goals, the sales manager can focus on the shorter-run, more quantifiable targets, called sales objectives, that should be aligned to the company's goals and objectives. For example, these goals may be to become the most service-oriented sales force in the industry or to increase profitability on sales by 10 percent. If these sales goals and objectives are not communicated to salespeople, they can become little more than "wish lists" without the organizational commitment needed for achievement. In essence, the sales plan provides the detailed "road map" showing how to achieve sales goals and objectives. It includes four major parts: (1) situation analysis, (2) opportunities and problems, (3) action programs, and (4) performance evaluation systems.

  3. Set sales force performance standards.

    Performance standards are planned achievement levels the sales organization expects to reach at progressive intervals throughout the year. Ideally, they should be agreements between subordinates and superiors as to what level of performance is to be acceptable in some future period, and they should be formalized based on the detailed job description for the sales subordinate. In setting performance standards for the sales force, managers need to consider efforts expended as well as results obtained. Business-to-business sales may require several months of intense sales efforts before the prospective buyer makes a final decision. Thus, where there's a time lag between effort and tangible results, sales managers must use qualitative, as well as quantitative, measures in setting sales performance standards.

  4. Describe the procedure for marketing costs and profitability analyses.

    Sales analysis, whether by territory, sales rep, product line, or customer, involves five major steps: (1) specify the purpose of the analysis, (2) identify functional cost centers, (3) convert natural expenses into functional costs, (4) allocate functional costs to segments, and (5) determine the profit contribution of segments.

  5. Allocate resources and efforts through sales quotas.

    There are four types of sales quotas: sales volume, financial, activity, and combination. The rationale to use a specific type of sales quota is largely based on the quantitative and qualitative sales goals a salesperson is expected to achieve in a given time frame. Three variants of volumes quotas are dollar-based sales quotas, unit volume quotas, and point quotas. Two categories of financial quotas are expense quotas and profit quotas. Activity quotas are measured by factors such as the number of prospects called on, number of demonstrations made, number of displays set up, and number of new accounts established. Combination quotas are used when management wants to control the performance of both the selling and non-selling activities of the sales force. These quotas generally use points as a common measuring tool to overcome the difficulty of evaluating the different units used across quotas.

  6. List the major steps in the sales force performance evaluation monitoring system (PEMS).

    An effective performance evaluation monitoring system (PEMS) has three stages: performance planning, performance appraisal, and performance review. Specific steps in the performance measurement and evaluation process include (a) establish sales goals and objectives, (b) develop the sales plan, (c) set performance standards, (d) allocate resources and sales force efforts in implementing the sales plan, and (e) evaluate sales force performance and implement corrective actions, if needed.

  7. Provide feedback and evaluation, and improve sales force performance.

    Four widely used evaluation techniques are descriptive statements, graphic rating scales, behaviorally anchored rating scales (BARS), and management by objectives (MBO). Descriptive statements about a salesperson may be short responses to a series of specific criteria such as job knowledge, territorial management, customer relations, personal qualities, or sales results. Two commonly employed devices in graphic rating scales are "semantic differential" and Likert-type scales. The semantic differential uses bipolar adjective extremes to anchor several scale segments. Likert-type scales provide descriptive anchors under each segment of the scale. BARS, which concentrates on measuring behaviors key to performance that the individual salesperson can control, includes four basic steps: (a) identify critical incidents, (b) refine critical incidents into performance dimensions, (c) rate the effectiveness of the described behaviors, and (d) select a set of incidents as behavioral anchors for the performance dimension. MBO involves mutual goal setting by the sales manager and the sales representative, who jointly agree on the salesperson's specific goals or performance targets for the coming period. Traditional performance evaluation systems have limitations including the halo effect, central tendency, varying evaluation standards, psychological resistance to negative evaluations, recent performance bias, no outcome focus, inadequate sampling of job activities, political concerns, fear of reprisal, interpersonal bias, questionable personality traits, and the influence of special organizational use. Prompt evaluation feedback should be provided to salespeople, so they can take measures to enhance their performance by improving selling skills and ultimately their sales performance through sales training programs.

  8. Apply twenty-first century sales force performance appraisal methods.

    Current developments in the area of sales force performance appraisals include 360-degree performance perspectives, performance appraisals of team selling, and performance review ranking systems. Just as in evaluating individual sales force members, team performance evaluation involves selecting the relevant performance criteria and employing appropriate appraisal methods. The 360-degree performance appraisal process systematically elicits information on a salesperson's skills, abilities, and behaviors from various individuals with whom the salesperson is in ongoing contact?all internal and external constituents, including the sales manager, sales team peers, sales subordinates, other departmental coworkers, purchasing managers, and accounts payable managers. Also included is a self-assessment, thus providing appraisal from many different perspectives. Performance review ranking entails sales managers evaluating each of their salespeople by ranking them using multiple performance dimensions and then placing them in different performance categories using a scale (e.g., A _ excellent performance, B _ above-average performance, C _ average performance, D _ satisfactory performance, and E _ sub-par performance).

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Which of the following are the two types/categories of salesperson performance criteria?

Which of the following are the two types/categories of salesperson performance criteria?

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