1. Evaluating the Performance of Salespeople
Module Ten
Evaluating the Performance of Salespeople

2. Purposes of Salesperson Performance Evaluations
To ensure that compensation and other reward disbursements ___________________________
_______________________________________
To identify salespeople ___________________
To identify salespeople whose employment ____________________ and to supply evidence to ____________________________________ 2

3. Purposes of Salesperson Performance Evaluations
To determine the specific _____________ and ___________ needs of individual salespeople and the overall sales force
To provide information for __________________ ________________
To ______ criteria that can be used to _________ and ________ salespeople in the future 2

4. Purposes of Salesperson Performance Evaluations
To advise salespeople of ________________
To _____________ salespeople
To help salespeople ________________
To ___________ salesperson _____________ 2

5. Salesperson Performance Evaluation Approaches
General conclusions:
Most evaluate on an _________ basis
Most combine _______ and _________ criteria which are evaluated using __________ and _____________ measures
When used, ___________________ or ________ are set in collaboration with salespeople
Many assign ___________ to different ___________ and incorporate territory data. 3

6. Salesperson Performance Evaluation Approaches
General conclusions:
Most use _____________________________
Most are conducted by the _______________ who ______________ the salesperson
Most provide a ________________ of the review and personal discussion 3

7. 360-Degree Feedback System
Salesperson is evaluated by ________________
Helps salespeople better understand their ____________ ______________ to their organization and their customers
Sales Manager
Evaluation
Salesperson
Team Members
Evaluation
Oneself
Evaluation
Internal Customers
Evaluation
External Customers
Evaluation 3

8. Key Issues in Evaluating and Controlling Salesperson Performance
Outcome-Based Perspective
Focuses on __________________________ with _________ monitoring or directing of salesperson behavior by sales managers
Behavior-Based Perspective
Incorporates complex and often subjective _______________________________________ and ______________ with ____________ monitoring and directing of salesperson behavior by sales managers 4

9. Perspectives on Salesperson Performance Evaluation
Outcome-Based
_________ monitoring of salespeople
__________ managerial direction of salespeople
Straightforward ___________ measures of results
Behavior-Based
___________ monitoring of salespeople
________________ of managerial direction of salespeople
___________ measures of salesperson characteristics, activities, and strategies 6

10. Dimensions of Salesperson Performance Evaluation7

11. Criteria for Performance Evaluation
Behavior:
Consists of criteria related to ______________ by individual salespeople
Sales calls, customer complaints, required reports submitted, training meetings, letters and calls
Should not only address activities related to short-term sales generation but ___________________ ________________________________________________________________________________ 8

12. Criteria for Performance Evaluation
Professional Development:
Assess ___________ in certain characteristics of salespeople that are related to _______________ ________________in the sales job
Characteristics include - ________________________________________________________________________________________________________________________ 8

13. Criteria for Performance Evaluation
Results:
Salespeople _____________________ based on ___________________ such as – sales, market share, and accounts
A sales quota represents a ________________ __________ for a territory, district, region, or zone
Some research shows that rewards for achieving results have a ______________ on performance and satisfaction 8

14. Market Response Framework
Salesperson Factors
Characteristics
Behavior
Planning and Control Unit
Environmental Factors
Organizational Factors 12

15. Elements Important in Assigning Sales Quotas
____________________________ within the territory
_______________________ of the territory
_____________________ within the territory
______________ by the sales manager _______________the sales representative
_______________ of products sold 13

16. Elements Important in Assigning Sales Quotas
Sales representative’s past ______________
_____________ of product line
Financial support (e.g., compensation) a firm provides
Relationship of product line
Amount of ____________ support 13

17. Criteria for Performance Evaluation
Profitability:
Salespeople have an __________________ through the specific products they sell and/or through the prices they negotiate for final sale.
Salespeople affect _____________ by the expenses they incur in generating sales.
Criteria Examples
Net profit dollars
Gross margin per sale
Return on investment
Number of orders secured
Selling expenses versus budget 8

18. Performance Evaluation Methods: Characteristics any method should include
_______________ 12

19. Performance Evaluation Methods Graphic Rating/Checklist Methods
Salespeople are evaluated using some type of ______________________________
Especially useful in evaluating behavioral and professional development criteria
May be filled out by ______________
Disadvantage is providing evaluations that ____________________________ 13

20. Performance Evaluation Methods: Ranking Methods
________ all salespeople according to _______ performance on each performance criterion
These methods _________________ as to the performance of individual salespeople
May be complex
Rankings only reveal __________________ evaluation 14

21. Performance Evaluation Methods: Objective-Setting Methods
Management By Objectives (MBO)
_________________ of well-defined and measurable goals within a specified time period.
Managing activities within the specified time period toward the accomplishment of the stated objectives.
Appraisal of performance ____________________. 15

22. Performance Evaluation Methods Behaviorally Anchored Rating Scales (BARS)
Links ___________ to specific __________
__________ are used to develop performance _________ and critical ________________
Positive feedback about _________ may be more affective than positive ___________ feedback 16

23. Performance Evaluation Bias
Occurs when a manager’s evaluation of a salesperson ________ by considerations other than the specified criteria
Common sources of bias:
_________________________________ 17

24. Evaluating Team Performance
_________________ on which members will be evaluated and the methods used to evaluate performance
______________ between team performance and positive outcomes to promote individual and team effort
May be beneficial to ___________ team to help _______________________________ 18

25. Framework for Using Performance Information
Evaluate Salespeople against ________________________
__________ Salesperson Evaluations to _________ Problem Area
_________Problem Areas to _____________ of Performance Problems
_________ Sales Management Actions to ________ Causes of Future
Problems and to _________ Existing Problems 19

26. Salesperson Job Satisfaction
Job satisfaction _______ to turnover, absenteeism, motivation, and organizational commitment
Job satisfaction may be ___________________ (direction of relationship is unknown)
INDSALES may be used to measure job satisfaction
Results may identify areas where manager may intervene to improve job satisfaction 20