Linking Salary With Monthly Targets For Marketing Personnel - CiteHR
Leolingham2000
Management Consultant
Deeepali27
Student
+1 Other

Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
Hello Seniors ! ! !
I work in a manufacturing unit as a HR Generalist. My Marketing Manager has complaint me about his Marketing Team of their Non-Performance. Thus, he has decided to link up their travel plans with their salary.
E.g.: Like they have to compulsorily travel for atleat 15 days (excluding Sundays & Holidays). All this exercience is to achieve & then increase their individual sales target.
Can anyone suggest me more ideas to motivate my Marketing Team ???
Deepali
Community Prime Sponsors
FactoHR.com - Payroll Software with GPS Enabled Attendance, Travel, Performance Management, HRMS.
Talentedge.com "Interactive Anywhere Learning". Executive courses from top reputed institutes like IIM, XLRI, MICA.
DEEPALI,
HERE IS SOME USEFUL MATERIAL.
REGARDS
LEO LINGHAM
==========================================
Before you develop an incentive system for your
sales team, you must check whether
YOUR SALES team MAY HAVE PROBLEMS LIKE
-lack of understanding of the market
-sales policies may be rigid, requires flexibility.
-lack of right sales skills for the team
-prospecting new customers in your business is a highly skilled job
are your sales team well equipped to manage it.
ETC ETC

TAKING THESE FACTORS INTO CONSIDERATION, YOU
MAY HAVE TO CONDUCT A SALES AUDIT--A QUICK ONE.
================================================== ==========
The Sales Audit can be defined as: A process which examines the entire sales effort of the company, systematically and critically.
Professional Sales Audits incorporate all the aspects implied in Sales Activities:
Sales Review
Market Review
Sales Policy Review
Product Performance Review
Distribution Review
Customer Service Review
Reseller (Trade) Review
Sales Organization Review
Sales Performance Review
Salesforce Review
Sales Management Review
Sales Promotion Review
Merchandising Review
Sales Support Review
Sales Territory Review
Sales Training Review
Competition Review
Pricing Review

The most important purpose and prominent characteristic of the Sales Audit:
It is a carefully programmed appraisal of the total sales organization including: objectives, policies, organization, methods, procedures and personnel.
It's aim is prognosis as well as diagnosis.
It is a search for sales strengths, opportunities and means of exploiting them, as well as for weaknesses and means of their elimination.
It is vitally concerned with determining and appraising what is being done and recommending what should be done.
It is a regular activity, not a crisis motivated activity.[ IN YOUR CASE, IT CAN BE A CRISIS ONE]
How the audit is organized depends to a large extent on your company operation, its size, its market/distribution and its product time.
In each of the 18 areas, you should look at the following:
A. Objectives - whether clearly stated/specific.
B. Policies -whether explicit.
C. Methods- whether appropriate.
D. Procedures - whether written/simple.
E. Personnel - whether the roles have been defined.
In each of the 18 areas, you should examine the strengths and weaknesses.
The purpose of the Sales Audit is not simply the analysis of the past with a view to apportioning blame. It's main purpose is to help build a better and more profitable future.

================================================== ====================
THE SALES AUDIT OBJECTIVES ARE
Identify the actions you can take to ensure that sales team members have high motivation levels.
Identify the functions of a sales compensation plan.
Identify the factors to consider when evaluating motivation levels.
Identify actions you can take to increase your sales team's motivation.
Sequence the steps for addressing substandard sales performance.

Unit 1: Building Motivation in a Sales Team
Identify the actions you can take to ensure that sales team members have high motivation levels.
Apply the appropriate actions to ensure that sales team members have high motivation levels.
Identify the functions of a sales compensation plan.
Identify the four benefits of having an effective sales compensation plan.
Simulation Overview

Unit 2: Improving Sales Performance
Identify the factors to consider when evaluating motivation levels.
Identify actions you can take to increase your sales team's motivation.
Apply the appropriate actions to increase your sales team's motivation.
Simulation Overview:

Unit 3: Addressing Substandard Sales Performance
Identify the factors you should consider when identifying opportunities for improvement.
Sequence the steps for addressing substandard sales performance.
Follow the steps for addressing substandard sales performance.
Identify the actions you should take when following up on substandard performance.
Apply the actions for following up on substandard performance.
Simulation Overview
==================================================
FOR SUCCESSFUL IMPLEMENTATION OF ANY INCENTIVE
SYSTEM , THE SYSTEM MUST BE TAILORED TO THE
NEEDS / OBJECTIVES OF THE ORGANIZATION. HENCE
THE FOLLOWING FACTORS NEEDS TO BE TAKEN CARE OF

-CORPORATE OBJECTIVE
-CORPORATE STRATEGY
-MARKETING OBJECTIVEcustomer
-MARKETING STRATEGY
-SALES OBJECTIVE
-SALES STRATEGY
-SALES TERRITORY SPLIT
-SALES ORGANIZATION
[do you want to include field sales staff -reps/area managers/regional manager etc]
[do you want to include internal sales / customer service staff ]
-PRODUCT GROUP
-PRODUCTLINES
-DIRECT SALES TO CUSTOMERS OR SELLING THROUGH RESELLERS
-NATURE OF SELLING [ TENDERS OR CONTRACTS OR 30 DAYS CREDIT ETC
-METHODS OF PRODUCT DISTRIBUTION
-GOODS RETURN POLICIES
-IS NET SALES OR GROSS SALES
-HOW DO YOU WANT TO TREAT TRADE DISOUNTS
-DO YOU WANT MONTHLY INCENTIVES OR QUARTERLY
OR ANNUAL OR COMBINATION
-DO YOU WANT TO PAY CASH OR OTHER REWARDS
-WHAT IS THE TAX POLICY ON THIS
-HAVE YOU CONSIDERED FRINGE BENEFIT TAX
-NATURE OF THE PRODUCTS
[big ticket items like tractors or consumables or parts or accessories etc]
-what is the current incentives system [ if any ]
-CUSTOMERS FROM ONE TERRITORY ORDERING FROM
ANOTHER TERRITORY--how will you allocate incentives

-DO YOU WANT TO PAY EACH INDIVIDUAL REPS ON HIS/HER TARGET
-DO YOU WANT TO PAY FOR TEAM / GROUP EFFORT
OR BOTH COMBINED

-WHAT ABOUT THE INCENTIVES, WHEN PEOPLE LEAVE IN BETWEEN
-WHAT ABOUT THE INCENTIVES, WHEN PEOPLE JOIN MID-STREAM

-IF A REP IS SACKED FOR MISCONDUCT OR DISCIPLINE
WILL YOU PAY THE INCENTIVES

-IS THERE A LIMIT TO THE EARNINGS OF INCENTIVES
-WILL YOU LIMIT THE INCENTIVES -AT WHAT LEVEL

-IS THE INCENTIVE LIMITED TO SALES TARGET
-DO YOU PLAN TO INCLUDE OTHER PERFORMANCE FACTORS
-WHAT ARE THEY -HOW WILL IT BE MEASURED

-WHEN A REP GOES ON ANNUAL LEAVE OF 4 WEEKS
how will you account for the incentives
-IF YOU EMPLOY A RELIEF REP., will he/she be paid incentive

-SUCCESS FOR THE INCENTIVES SYSTEMS COMES FROM
SALES LEADERSHIP ON THE FIELD AND OFF THE FIELD
HENCE THERE MUST BE SUITABLE REWARDS FOR
THE LEADERSHIP
------------------------------------------------------------------------------------------
THE BASE PAY
-should be retained.
================================
THE PERFORMANCE INCENTIVE COULD CONSISTS
OF BOTH QUANTITATIVE AS WELL AS QUALITATIVE.
1.QUANTITATIVE COULD INCLUDE
-sales quota for the individual.
-sales quota for the team .
-actual sales this year against this year budget
-actual sales this year against the last year actual sales.
-sales expenses against sales target.
-market share target for the territory
-gross margin against the sales. [ this year ]
-this year gross margin against last year.
-call frequency ratio.
-call per day.
-order call ratio.
-average sales percall.
-average expenses per call.
-average order size.
-sales coverage index.
etc etc
-------------------------------------
2.QUALITITATIVE COULD INCLUDE
-product knowledge index.
-customer knowledge index.
-level of customer satisfaction index.
-monthly reports index
etcetc
=============================
General Measures. Performance standards should be objective, measurable, realistic, and stated clearly in writing (or otherwise recorded). The standards should be written in terms of specific measurers that will be used to appraise performance. In order to develop specific measurers, you first must determine the general measure(s) that are important for each element. General measurers used to measure employee performance include the following:
Quality address how well the work is performed and/or how accurate or how effective the final product is. Quality refers to accuracy, appearance, usefulness, or effectiveness.
Quantity addresses how much work is produced. A quantity measure can be expressed as an error rate, such as number ore percentage of errors allowable per unit of work, or as a general result to be achieved. When a quality or quantity standard is set, the Fully Successful standard should be high enough to be challenging but not so high that it is not really achievable.
Timeliness addresses how quickly, when or by what date the work is produced. The most common error made in setting timeliness standards is to allow no margin for error. As with other standards, timeliness standards should be set realistically in view of other performance requirements and needs of the organization.
Cost-Effectiveness addresses dollar savings or working within a budget. Standards that address cost-effectiveness should be based on specific resource levels (money, personnel, or time) that generally can be documented and measured in agencies' annual fiscal year budgets. Cost-effectiveness standards may include such aspects of performance as maintaining or reducing unit costs, reducing the time it takes to produce a product or service, or reducing waste.
=========================================
TYPE ONE.
*actual sales performance against set sales target.= %
*actual sales performance against actual last year.= %
*gross margin / sales %
=======================================
TYPE TWO
*actual sales performance against set sales target.= %
*actual sales performance against actual last year.= %
*gross margin / sales %
PLUS
*MARKET SHARE FOR THE TERRITORY [ actual / target =%]
*TOTAL SALES EXPENSES / TOTAL ACTUAL SALES = %
==============================================
TYPE THREE
QUANTITATIVE
*actual sales performance against set sales target.= %
*actual sales performance against actual last year.= %
*gross margin / sales %
PLUS
*MARKET SHARE FOR THE TERRITORY [ actual / target =%]
*TOTAL SALES EXPENSES / TOTAL ACTUAL SALES = %

QUALITATIVE
1.JOB ELEMENT
-keep trying to maintain sales / volume target despite obstacles.

PERFORMANCE STANDARDS/ PERFORMANCE INDICATORS
-makes effective sales planning
------------------------------------------------------------------------------------------------------------------------------------------
2.JOB ELEMENT
-taking action to capitalize on identifying sales opportunities

PERFORMANCE STANDARDS/ PERFORMANCE INDICATORS
-makes regular effective sales presentation / negotiation
---------------------------------------------------------------------------------------------
3.JOB ELEMENT
-preparing proposals for gaining opportunities

PERFORMANCE STANDARDS/ PERFORMANCE INDICATORS
-makes sales presentation / promote sales.
-------------------------------------------------------------------------------------------
4.JOB ELEMENT
-identify sales opportunities within individual customers

PERFORMANCE STANDARDS/ PERFORMANCE INDICATORS
-anlayse the performance within the customer/ plan increase share
----------------------------------------------------------------------------------------
5.JOB ELEMENT
-indentifying more product ranging opportunities within customers

PERFORMANCE STANDARDS/ PERFORMANCE INDICATORS
-plans increase sales of products
----------------------------------------------------------------------------------
6.JOB ELEMENT
-reviews customers performance on monthly basis

PERFORMANCE STANDARDS/ PERFORMANCE INDICATORS
KPI ACTUAL SALES VS SALES TARGET [ CURRENT YEAR]
ACTUAL SALES VS LAST YEAR SALES
------------------------------------------------------------------------------------------
7.JOB ELEMENT
-reviews sales by products on a monthly basis

PERFORMANCE STANDARDS/ PERFORMANCE INDICATORS
KPI ACTUAL SALES VS SALES TARGET [ CURRENT YEAR]
ACTUAL SALES VS LAST YEAR SALES
------------------------------------------------------------------------------------------
8.JOB ELEMENT
-ensures the implementation / coordination of sales promotion programs

PERFORMANCE STANDARDS/ PERFORMANCE INDICATORS
-takes initiatives in the coordination / implementation
-------------------------------------------------------------------------------------------
9.JOB ELEMENT
-ensures promotions materials are distributed to all customers

PERFORMANCE STANDARDS/ PERFORMANCE INDICATORS
-distributes effectively and follows up
---------------------------------------------------------------------------------------
10.JOB ELEMENT
-ensures agreed ranging of products with each customers

PERFORMANCE STANDARDS/ PERFORMANCE INDICATORS
-maintains full stock level
-----------------------------------------------------------------------------------
11.JOB ELEMENT
-ensures the effective implementation of new product launch programs

PERFORMANCE STANDARDS/ PERFORMANCE INDICATORS
-takes initiiatives in the coordination and implementation of the program.
-----------------------------------------------------------------------------------
12.JOB ELEMENT
-Conduct research and analysis to propose a product or service
that addresses a customer need or want.

PERFORMANCE STANDARDS/ PERFORMANCE INDICATORS
-Identifies current/future needs and wants of consumers, businesses, or others
----------------------------------------------------------------------------------------
13.JOB ELEMENT
-Recognizes market and competitor attributes and determines an appropriate plan to
enter and exist within the market.

PERFORMANCE STANDARDS/ PERFORMANCE INDICATORS
-Researches the defined market for the proposed product or service offering.
---------------------------------------------------------------------------------------------
14.JOB ELEMENT
-manages the customer service

PERFORMANCE STANDARDS/ PERFORMANCE INDICATORS
-Research how existing needs and wants are being served.
-----------------------------------------------------------------------------------------------------------------------------------------------
15.JOB ELEMENT
-regularly maitains the customer satisfaction level

PERFORMANCE STANDARDS/ PERFORMANCE INDICATORS
-Assess end-users’ degree of satisfaction with existing goods and services to satisfy those needs and wants.
----------------------------------------------------------------------------------------------------------------------
YOU CAN HAVE A SELECTION OF THE ABOVE
AND USE THE FOLLOWING RATINGS
LEVEL 1 =ESSENTIAL FUNCTIONS not fulfilled =[below 30 points]
LEVEL 2 =ESSENTIAL FUNCTIONS fulfilled but need improvements = [31 - 49 ]points
LEVEL 3 =ESSENTIAL FUNCTIONS fulfilled [ 50 ---65] points
LEVEL 4 =ESSENTIAL FUNCTIONS exceeds [ 66 ---80 ] points
LEVEL 5 =ESSENTIAL FUNCTIONS far exceeds [ above 80 points]
================================================== ==========
AS PART OF SALES PERFORMANCE INCENTIVES,
YOU CAN SET STANDARDS FOR '' SALES BEHAVIOR''.

Functional activities
Use of time
Journey planning
Preparation
Sales call sequence
Call rate
Conversion rate
Product knowledge
Knowledge of the territory
Key accounts knowledge
Other:
Sales techniques
Approach
Identifying decision maker
Opening
Control
Listening
Identifying needs
Creativity
Objection handling
Closing techniques
Benefit selling
Communications
Use of sales aids
Product knowledge
Other:
Organisation
Call records
Information retrieval
Sales aids
Journey planning
Appointments
Vehicle
Administration
Communications
Other:

Attitudes
Empathy
Enthusiasm
Loyalty'
Positiveness
Team spirit
Other:
===========================================
################################################



IF sales persons read and understand all above advise by LEO Lingum then, when shall be able to start working? I don’t think they can start working before next year.......:icon8: Badlu
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™