Mini case 1
Finding new customers to buy a product or service is the responsibility of the entire sales force. It can be challenging for some people, but they must increase the sales, and for that to happen, proper strategies should be used in creating a successful sales force. Victory Pharmaceutical Company used the following strategies to develop a sales force that was successful in dealing with the customers. First, when recruiting the sales force, the company uses an extensive selection process. It is important because it ensures that the company hires competent and loyal salespersons who will help the company reach its goals. Salespersons not only deal with selling the products but also the goodwill and reputation of the company.
Secondly, after recruitment, victory pharmaceutical company empowers them through training and development. Empowering them will enable them to make decisions that are sound and timely. Salespeople will learn work ethics; learn how to influence the potential customer with correct negotiation skills along with the right information of the product, pricing, and presentation. A trained person will perform well in the field. Salespeople will learn communication skills that are crucial to marketing; they will be able to identify the potential customer, listen attentively, and give appropriate feedback.
Thirdly the company supports the sales force team without criticizing them when they make mistakes. The company helps the salespersons succeed by providing resources and support they need to overcome their weakness. It creates an environment where salespeople are free to communicate, free to share their ideas, and they will feel that their work is appreciated hence becoming more committed to their work. This is a reflection of how a company can motivate its employees for better performance.
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Mini case 2
Performance ratios
Sales growth = (present sales- past sales) ÷ past sales
Derek Francona sales growth = ($481,000-$480,000) ÷ $480,000= 0.002
John Schilling sales growth = ($883,000-$750,000) ÷$750,000=0.177
Daphne Gellar growth rate= ($613,000-$576,000) ÷$576,000=0.064
Robert Smythe sales growth = ($852,000-$745,000) ÷$745,000=0.144
Jennifer McCararver sales growth= ($860,000-$765,000) ÷$765,000=0.124
Manuel Lopez sales growth= ($835,000-$735,000) ÷$745,000=0.136
Samantha Kerrey growth rate= ($670,000-$665,000) ÷$665,000=0.008
Erin McCloud growth rate= ($925,000-$775,000) ÷ $775,000=0.194
Sales to quota = current sales ÷ current quota
Derek Francona sales to quota = $ 481,000 ÷ $575,000= 0.837
John Schilling =$883,000 ÷ $835,000=1.057
Daphne Gellar =$613,000÷ $657,000=0.933
Robert Smythe =$ 852,000 ÷$ 850,000 =1.002
Jennifer McCararver =$860,000 ÷$850,000=1.011
Manuel Lopez =$835,000 ÷ $825,000=1.012
Samantha Kerrey=$670,000÷ $720,000=0.931
Erin McCloud=$925,000 ÷ $875,000=1.057
Sales per account= sales dollar volume ÷ total number of accounts
Derek Francona = $481,000 ÷ 1,100= $437.27
John Schilling = $883,000÷1600= $551.875
Daphne Gellar=$613,000÷1150=$533.043
Robert Smythe=$852,000÷1350=$631,111
Jennifer McCararver=$860,000 ÷ 1300=$661.538
Manuel Lopez = $835,000 ÷ 1400=$596.428
Samantha Kerrey=$670,000÷ 1600=$418.75
Erin McCloud=$925,000 ÷ 1910=$484.293
Average order = sales dollar volume ÷ total number of orders
Derek Francona = $481,000 ÷ 780=$616.667
John Schilling = $883,000÷1970=$448.223
Daphne Gellar=$613,000÷1020=$600.980
Robert Smythe=$852,000÷1650=$516.364
Jennifer McCararver=$860,000 ÷ 1730=$497.11
Manuel Lopez = $835,000 ÷ 1790=$466.480
Samantha Kerrey=$670,000÷ 960=$697.917
Erin McCloud=$925,000 ÷ 1910=$484.293
Sales expense = expenses ÷ sales
Derek Francona = $9300 ÷ $481,000= 0.0193
John Schilling = $ 12300 ÷ $883,000=0.014
Daphne Gellar=$7500 ÷ $613,000=0.012
Robert Smythe=$11000÷ $852,000=0.013
Jennifer McCararver=$11300÷ $860,000= 0.0131
Manuel Lopez = $11500÷ $835,000= 0.0138
Samantha Kerrey=$10800÷ $670,000=0.016
Erin McCloud=$12800÷ $925,000=0.0138
Calls per day=number of calls ÷ number of days worked
Derek Francona = 1300÷235=6
John Schilling=1800÷223=8
Daphne Gellar=1650÷228=7
Robert Smythe=1700÷230=7
Jennifer McCararver=1750÷232=8
Manuel Lopez=1750÷220=8
Samantha Kerrey=1550÷200=6
Erin McCloud=1850÷225=8
Orders per day= number of orders ÷ number of days worked
Derek Francona=780÷235=3.32
John Schilling=1970÷223=8.83
Daphne Gellar=1020÷228=4.47
Robert Smythe=1650÷230=7.17
Jennifer McCararver=1730÷232=7.5
Manuel Lopez=1790÷220=8.14
Samantha Kerrey=960÷200=4.8
Erin McCloud=1910÷225=8.5
Massachusetts Restaurant Appliance’s salesperson’s performance
From the performance ratios above the following is a list of how the salespersons performed from the best to the least
1. Erin McCloud
2. John Schilling
3. Robert Smythe
4. Manuel Lopez
5. Jennifer McCararver
6. Daphne Gellar
7. Samantha Kerrey
8. Derek Francona
Advice that Epstein should give the salesperson for them to improve their performance
Epstein should motivate and support his sales team by encouraging them never to give up but rather focus on specific sales activities instead of results. Sales representatives are always bombarded by outside factors that affect their motivation. For example, Derek Francona thinks of quitting because one of his largest customers went out of business, and he feels that he will not be able to meet the target. Epstein should also remind his team about the autonomy they already have. It will allow them to make more sales. He should also remind the sales team that they should focus more on customer satisfaction. Creating a positive customer experience will retain and attract new customers. Finally, he should encourage them to communicate freely with him, raise their concerns, and share new ideas.
Limitations of this evaluation system and adjustments for a more accurate evaluation
Performance evaluation using ratios does not represent the future performance of the salesperson because they are based on past results. Another disadvantage is that some salespeople are placed in areas where there is minimal demand for the products. In contrast, others are posted where there is a high demand; therefore, evaluating them based on performance ratios will be unfair to those in low product demand areas. Objective measures of performance distill the complex process into a single score. For a more accurate evaluation, Epstein should utilize both subjective and objective measures in the assessment of the salesperson’s performance. Subjective measures rely on how an individual is doing because some of the salespersons are doing well, but because of their location, their sales growth rate is low.
