tailieunhanh - Lecture Sales and distribution management: Chapter 7 - Krishna K Havaldar, Vasant M Cavale
Chapter 7, controlling the salesforce. After studying this chapter you will be able: To know criteria and types of salesforce expense plans; to understand salesforce audit and its evaluation process; to learn evaluation of effectiveness of a sales organisation through sales, cost, profitability, and productivity analysis; | Chapter 7 Controlling the Salesforce Learning Objectives To know criteria and types of salesforce expense plans To understand salesforce audit and its evaluation process To learn evaluation of effectiveness of a sales organisation through sales, cost, profitability, and productivity analysis To know purposes and procedure for evaluating and controlling the performance of salespeople To understand ethical, social, and legal responsibilities of sales managers and salespeople Salesforce Expense Plans Salesforce expenses include travel, meals, lodging, telephone, and customer entertainment Firms have salesforce expense plans to ensure proper spending Objectives / Criteria of effective expense plans are: It should be Fair to the salesperson and company Simple and economical to administer Clear to prevent misunderstanding Reimbursed without much delay Allowing differences in expenses among different territories Salesforce Expense Plans (Continued) Four types of salesforce expense plans . | Chapter 7 Controlling the Salesforce Learning Objectives To know criteria and types of salesforce expense plans To understand salesforce audit and its evaluation process To learn evaluation of effectiveness of a sales organisation through sales, cost, profitability, and productivity analysis To know purposes and procedure for evaluating and controlling the performance of salespeople To understand ethical, social, and legal responsibilities of sales managers and salespeople Salesforce Expense Plans Salesforce expenses include travel, meals, lodging, telephone, and customer entertainment Firms have salesforce expense plans to ensure proper spending Objectives / Criteria of effective expense plans are: It should be Fair to the salesperson and company Simple and economical to administer Clear to prevent misunderstanding Reimbursed without much delay Allowing differences in expenses among different territories Salesforce Expense Plans (Continued) Four types of salesforce expense plans Salespeople pay all expenses Merits: Simple, less cost for company, salespeople get income tax advantage Demerits: Less control on salespeople’s activities; non-selling activities not done properly Company pays all expenses / Unlimited payment plan Merits: Good control on salespersons activities; no anxiety for sales people on spending money Demerits: Salespeople spend more and may make money unethically Salesforce Expense Plans (Continured) Company partially pays expenses / Limited payment plan Merits: Useful in budget planning; less disputes; better control on salesperson’s activities Demerits: Needs more time to set expense limits and administer; Inflexible plan, not liked by good salespeople Combination plan / Expense-quota plan Combines limited and unlimited plans Advantages of both plans Company has control on selling expenses; salespeople have flexibility within total expense budget Salesforce Audit Salesforce or sales management audit is a part of marketing audit A marketing or .
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