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A-C-M-E-E approach:
OBJECTIVES OF SALES CONTESTS
A- Aims
I. To obtain new customers.
C- Contents - of a meeting mean to plan the
agenda of meeting II. To secure larger orders per sales call.
Hopscotch - the salesperson starts at the Sales volume quota - set for an individual
farthest point from the office and makes sales person, geographical areas, product lines
calls on the way back to the office. The or distributive outlet or for only one or more of
salesperson would typically go non-stop to these in combination.
the farthest point in one direction and on
the way back stops at many places.
Financial or budget quotas are determined
to attain desired net profit as well as to control
Territory Management problems & the sales expenses incurred.
Remedies
STANDARDS OF PERFORMANCE
Performance standards - are designed to (x) Average order size - Average order size
measure the performance of activities that the standards control the frequency of calls on
company considers most important. different accounts. The usual practice is to set
different standards for different sizes and
classes of customers. Using average order size
(i) Sales Quotas - quota is a quantitative standards along with average cost per call
objective expressed in absolute terms and standards, management controls the
assigned to a specific marketing unit. salespersons allocation of effort among
different accounts and increases order size
(ii) Selling expense ratio - Sales manager obtained.
uses this standard to control the relation of
selling (xi) Non-selling activities - Some companies
establish quantitative performances standards
expenses to sales volume. for such non-selling activities as obtaining
dealer displays and cooperative advertising
(iii) Territorial net profit or gross margin contracts, training distributors personnel, and
ratio - Target ratios of net profit or gross goodwill calls on distributors customers.
margin to sales for each territory focus sales Whenever, non-selling activities are critical
personnels attention on the needs for selling features of sales job, appropriate standards
a balanced line and for considering relative should be set.
profitability.