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Productivity of the sales organization to include: sales analysis, cost analysis, and profitability

Customer satisfaction and sales analysis are important for the effectiveness of the sales organization. This process involves survey that helps the organization to determine the satisfaction level of the people towards the products and services of the companies. To evaluate the effectiveness of the sales organization the following steps could be conducted;

Sales Analysis:

There are different methods that are used to perform the sales analysis that helps the organization to know the effectiveness of the sales. Sales analysis depend on the organization level of analysis that is; is the organization is selling its products and services based on Zones, Regions, Districts or accounts etc. sales analysis also involves, the type of sales that is; type of products sales, types of accounts sales by the organization, type of distribution sales and order size sales. Organization can use different methods to analyze the sales that are; by comparing sales Quotas (effectiveness index), by comparing the sales with the previous period (i.e. sales growth) and comparing the sales with the sales of competitors (i.e. market share).

Cost Analysis:

To know the effectiveness of the sale organization it is important to know the cost incurred by the organization in achieving the desired level of sales. To analyze the cost of the sales, it is important for the organization to determine the compensation expenses, travel expenses, administrative expenses etc. These includes salaries, commissions bonuses, lodging, transportation costs etc. organizations after determining these cost they can organize total budget that includes actual cost and original cost. On comparing the actual cost with the budgeted cost, the organization can find out variance between these costs that is; either they incur a higher cost than expected of lower than expectations. Moreover, they can find out the difference between the cost of a percentage of the sale of actual products in a specific region and budgeted expenditure percentage (Ingram T. N., LaForge, Avila, Schwepker, & Jr., 2012).

Profitability:

Sales analysis and cost analysis data both help the organization to determine the profitability of the sales organization. Different methods are used to determine the profitability; income statement approach that focuses on net profit from the different levels of the sales organization, Activity bases costing that involves the cost of the individual unit. The third method is Return on asset-managed approach. On this, organizations can find out the productivity of the sales (Ingram, LaForge, Schwepker, & Williams, 2015).

  1. What type of evaluation perspective is appropriate for your employee and why? Outcome-based or behavior based? How will this help to control sales person performance?

Outcome –based perspectives: sales managers focus their interest on measuring the results with the help of little monitoring or directing the behavior of the salesperson. On the other hand, in Behavior-based perspective; sales manager, measure the result with considerable monitoring or directing the behavior of a sale person. This process also involves the subjective and complex assessment of the characteristics and behavior of the salesperson.

Behavior-based perspective is more appropriate for the employee because it involves, considerable monitoring, it involves the direction of high-level managers, it involves the subjective measure of the sales person, it also involves the activities and strategies of the sales person. All these points help the manager to increase the performance of the sale person (Ingram, LaForge, Schwepker, & Williams, 2015).

  • What three things you have learned, which you did not know before and will they be useful in the future?

 The three things that I have learned in this course about the sales management that I did not know before is the cost analysis, sales analysis, and profitability analysis to determine the productivity of the sales organization.  From the sales manager point of view, this information is important to know as this information involves different methods regarding analyze, determine and increase the performance of the organization as well as to increase the customer satisfaction etc. For the future, this information is helpful because it will help to determine the actual performance of the sales of products, and will help to know the satisfaction level of the people towards the products.

  • As a mean of self-evaluation, please give yourself a letter grade of what you perceive this level of participation to be

Based on the participation by me, in the discussion, material regarding the course, and material for the in-class projects etc.  I would like to grade myself A.

Reference:

Ingram, T. N., LaForge, R. W., Avila, R. A., Schwepker, C. H., & Jr., M. R. (2012). Sales Management: Analysis and Decision Making. M.E. Sharpe.

Ingram, T. N., LaForge, R. W., Schwepker, C. H., & Williams, M. R. (2015). Sales Management: Analysis and Decision Making. Routledge.

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