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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
Two issues:
 ½valuation of salesman¶s performance
 Developing a rational compensation package for the
sales force
— To evaluate sales force and improve efficiency
2
otivation of salesman and supervisory leadership
3
aking decisions regarding training, promotion etc
4 mproving sales planning
5 ntroducing sound compensation and incentive system
 ›esults achieved by him should be:
— hould offset the cost of efforts expended on him by
the company and
2 hould leave some surplus thereafter
 ½ 


 

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 Helps to make direct comparisons between the
salesmen taking into account their dissimilar sales
efforts
 The standard deviation helps to cope up with the
dissimilar performance data
 º score = P ±

D
P = A raw performance measured for salesman

=
ean(average) raw performance for the sales group
 D = tandard deviation of raw performance
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% 
|l. No. Evaluation Weightage Norms Basis of score
criteria Max 12 for each
(6 pts for
achieving norms
+ or ± for
deviation)
—
arket share 30 25% +(-) — for
increase(decrease)
every 5% or part
2 al e of orders —5 Rs —0 lakhs o y every Rs —
lakh
3 atting average —0 Rs 25,000 o y every Rs
5000 or part
4 ales val e —0 Rs —0 lakhs o y every Rs —
lakh or part
5  ratio —5 40% o every 5% or
part
6
arketing RO 20 20% o-do-

otal —00
 |l. No Criteria |alesman A |alesman B
Figures |core W-score Figures |core W-score

—
arket 35% 8 240 20% 5 —50

share
2 Value of s 8 lakhs 4 60 s —— lakhs 7 —05
orders

3 atting s 27,000 7 70 s 22,000 5 50

average

4 ales value s  lakhs 5 50 s —0 lakhs 6 60

5  ratio 35% 5 75 30% 4 60

6
arketing 22% 7 —40 —2% 4 80

635 505

Weighted average score 6 35 5 05