SALES MANAGEMENT AND MARKETING FORECASTING
Cold calling - contacting a lead for the first time
Commission – a form of sales force compensation in which the amount paid is in direct
proposition to the accomplishment of specific objectives.
Company sales forecast - a prediction of unit or dollar sales for the given period in
total or broken down by product, segment or other categories’ and based on the
marketing strategy that will be put in place
A Prospect - a potential buyer interested in the seller’s product
Quotas are quantitative objectives used to direct sales force activity and evaluate
performance.
Sales territory – all the actual and potential customers often within a specific
geographic area, for which the salesperson has responsibility
Sales management is the management of Personal Selling function.
Personal Selling is a person to person process by which the seller learns about the prospective
buyers want and sees to satisfy them by offering suitable goods or services and making a sale.
(Keokemoer 2005)
Selling is convincing the prospect to convince him or her to buy a product or service.
Buyers can
buy without a salesman being presented but they tend
to buy minimum
quantities and to confine their orders to known lines.
Importance of Salespeople in management
A sales function covers such activities
1. The presentation, demonstration and sale of company goals, negotiation on
quality price and delivery etc
2. The continuous examination of the market and reporting on competitive methods
, profits and prices. Reporting on shortages oversupply and changes in trading
conditions
3.
The maintenance of adequate stocks of his company ‘s good by distributors
and users. Care in ensuring that customer keep the goods under suitable storage
conditions
4. They advice and instruct dealers and their staff in the sale and display of his
company ‘s products
5. The continuous acquisition of knowledge of his company’s profits and their
application, selling points and benefits of the user
6.
Prospecting for new outlets and new business and extension of
company
influence on his territory
7. The maintenance of good customer relations
8. The handling of complaints by distributors and users etc
Why are sales people important in a company? Is there really a need for company to
have a sales person?
Advantages of Personal Selling
Qualifications and Personal Attributes of a Salesman
1. Personality – enthusiasm, integrity,
intelligence, friendliness, self control,
confidence, industrious, diligent (someone who works without close supervision)
reliability, courage, initiative.
2. Knowledge
Company, product, service, competition, trade information, human relation, training,
territory
3. Judgment
Judgment can cover the
kind of sales arguments
likely to appeal to indigenous
buyers, the methods of presenting different sales arguments, the moment when it is
opportune to ask for an order
4. Power of persuasion
Sales offering similar prices and it is the sales man with the greatest power of
persuasion who is likely to book the order.
Sales Management Cycle (S.M. C)
The major activities that sales Management personal do can be summarized in
what
is known as the S.M.C.
Analyzing
planning
Control
Directing
1. Analysis - analysis of the environment
a) Competitors strength
b)
Industry trends
c)
Internal sales records ) parastatals, lowest , highest sales achiever
d)
Sales reports
2. Planning - involves settings sales objectives for the firm and mapping out strategies and
tactics and achieving these objectives
3. Directing - involves staffing and supervision of the day to day implementation of sales
policies, programs and plans
4. Control and Evaluation -involves caring out performance comparison of actual and
planned outcomes of sales results. Examination of the reasons for observed divergence and
examination are need for planning
5. Organizing - setting up structures and procedures for smooth
execution of sales programmers’ and plans
Primary responsibilities of Sales Manager
It is to staff the organization with the right people for the job.
Other related responsibilities include:
and effective
Perf revaluation
Motivation
supervision
Strategic
planning
Organising the sales
force comm control
intergration
and
Training
and Dvpt
Recruiting , selection
and assimilation of
people
Coordination- of personnel, marketing department and sale people e.g if there are
as in taste production should be informed
Communication -with all departments
Control- Sales forecasts, sales budget any expenditure within
the department and
need to be monitored
Skills a Sales Manager should have
1. Teacher – trainer, coach , recruiter, employer, counselor
2. Leader, implementer , decision maker who accept responsibilities for his decisions
3 A communicator, analyst , planner, skillful manipulator
4
Teammate, referee, advisor, friend
5
Innovator creator of new ideas
Roles of Sales Manager
1 . Prepare sales plans and budget
2. Set sales force goals and objectives
3. Estimate demand and
forecast sales
4. Determine the size of the sales force
5. Designs sales territories, set sales quotas and defines sales force performance standards
6. Conducts sales volume, costs and profit analysis
7. Monitor the ethical and social conduct
3. PERSONAL SELLING PROCESS
Selling as a process according to Smith goes through 7 steps ( 7P approach)
Prospecting
Identify
prospect
and
qualify
Preparation
Presentation
-customer research
-Need probing
- Objective setting
-convincing prospects
Possible Problems
- handling objections
Post - Sales Follow up
Pen on Paper
Please Give me order
- Recording details
-closing a sell
Step 1: Prospecting
This involves identifying potential customers and qualifying them to determine if they are
valid prospects. It involves defining the market, generating sales leads and qualifying
prospects.
How do salespersons get prospects?
From friends , sales people , previous customers, suppliers, social and professional
contacts , spotters, satisfied customers provide names, contacts, spotters, use of referrals,
direct marketing , telemarketing, direct mail, cold calls (without appointment), directories
etc.
Why is prospecting necessary?
a) Existing accounts are lost to competitors
b) Clients go out of business or merge with other business
c) An organization may have the goal of profits or increasing customer-base
d) New products may be better suited to new customers rather than to present
customers
Qualifying prospects

One can use the M.A.N approach i.e. Money, Authority and Need

Once sales people have a list of leads they must identify or qualify the
prospects

The salesperson needs information about customer needs, buying authority and
ability to buy.

The salesperson needs to ask these questions such as ‘Does the prospect have
an unsatisfied need and will that product or service be able to satisfy the
need?

Does the prospect have the authority to make a commitment therefore identifying
the decision marker?

Does the prospect have the money or resource to buy?
2. Preparation
Two key activities involved at this stage are:
a) Pre- approach / Customer research/ Fact finding
What is the customer’s dominant motive behind buying?
Personal motives include the need for respect, approval, power and recognition
A respect-oriented buyer wants to demonstrate and prove his or her expertise. They are
interested in research that not only supports your product / service but also reinforces the
work they have already done.
A buyer focusing on approval wants to be sure that others affected by the decision to
buy are pleased ( sell profits that reduce conflict and provide minimum risk e.g. family
car)
A buyer interested in power is looking for ways to gain greater control over some real
practical aspect of their situation e.g. in an African setup, this would involve politics, money,
knowledge, innovative products, flags/ business ideas.
A buyer interested in recognition is interested in products /services that give them greater
visibility and provide
opportunities to demonstrate their leadership
abilities e.g.
Chiyangwa. It is however difficult to identify these personal motives but it can be done
through identifying their actions and taking statements they say into consideration. E.g. ‘isu
takaita maMasters kare kare’
b) Planning for a call.
You need to write down what you will say. Clearly identify yourself and your company.
The activities include;
i) Defining the objectives of our visit. You need to write down what you would say for
example, are you there to attend to complaints, for restocking or to acquire a new order
ii) Developing a strategy (how to present) for example use of demonstrations, visual aids, role
plays, testimonials, guarantees etc.
iii) Making an appointment. When making an appointment, you need to give the prospect a
choice, prepare brief sales message, and present enough information to stimulate interest.
Reasons for making an appointment
i)
To know whether the prospect will be available.
ii)
To know what additional data or information is required by the prospect
iii)
To show concern about work schedules
Time of arrival
Arrive on time for the interview, because arriving late suggests lack of respect of the
prospect’s time and arriving early puts pressure on the prospect.
Step 3: Presentation
Exercise: In sets of two, I would like you to get to know more about your classmate
Presentation refers to the face to face meeting between the prospect and the salesperson. It is
not just important but very crucial.
There are two main approaches to presentations:
1) It aims to stimulate interest and attention (AIDA approach). AIDA stands for
Attention, Interest, Desire and Action.
Activities include self-introduction, stating purpose of visit, establishing an
understanding and motivating the prospect to built better interest in the topic.
A prominent salesperson; John Molly once wrote that “a salesman fails not when he or she
opens their mouth but before they open mouth”. His argument is that their appearance
conveys that they are not likeable or that they are not honest, sincere, and trustworthy.
When the buyer is not well-known to the salesman, or is a complete stranger, the salesman
must immediately try to establish a relaxed atmosphere. The first few minutes of an interview
with the stranger are important. Each individual is sizing up the other and there is probably a
slight air of tension. A good technique for a salesman to follow is to make some agreeable
and pleasant general remarks which refers to the business. The remark should not be
provocative although starting the interview with an argument will undoubtedly get the
buyer’s attention; it is unlikely to benefit the salesman. Examples of the kind of general
opening remarks are;
‘I noticed on my way in, that you had an attractive window display featuring…’
‘Your workshop looks very busy…’
The kind of opening remark which a salesman makes will obviously depend upon his
judgment of the buyer and may be influenced by the buyer’s own conversation. If the buyer
starts off by saying, ‘I am a busy man, you have five minutes, now what do you want?’, the
sales man must react according and in this case, he may pointedly look at his watch and say,
‘Right Mr Blank, I will just tell you the main points and show you our best selling line.’ It
may be advisable to make an appointment and return at a more convenient time. If the
salesman ahs handled the situation well, it is almost certain that the buyer will grant an
extension of time because he is sufficiently interested in the proposition.
If suppose the buyer and the salesman are well known to each other, their opening remarks
will be both personal and friendly. As such the interview will get off to a good start.
According to Alan Gillam (1982): The Principles and Practices of Selling
Therefore, salesmen must know that;
i)
The first impression is essential therefore they must wear neat and conservative
clothes
ii) Be clean and carefully groomed
iii) Know the prospect’s name and be able to pronounce it properly.
iv) Be alert and let the prospect offer to shake hands.
v) Forget about him or her and concentrate on the prospect
vi) Avoid smoking or chewing gum
vii) Avoid issuing a damaged business card
viii) Use a properly maintained car (avoid using cars that require hill start/push start. The
car
should be kept clean because you may need to take the prospect out to
lunch/dinner.
Other Do’s and Don’ts
Avoid discussions on;
Encourage discussion on;
Organizational Challenges (especially you Products and services you offer
organization)
Politics
Weather
Health and wealth
Sport
Marital Status
Religious discussions
NB the issues outlined as discussion issues to avoid represent zones of uncomfortable debate.
Techniques for getting favorable attention from the prospect
a) Ask questions that relate to the sales presentation and avoid questions like how the
prospect’s business because it dampens the mood
b) Use a referral i.e. using someone’s name to catch the attention of the prospector. This
could be someone the prospector is connected to. Use the good name of our company
to sell accounts e.g. saying Comet purchased … Check the people whom you know
that the prospect might also know.
c) Offer a benefit. For example something like; ‘Mr. Paraiwa, I have an idea that could
save you some money on your budget. You could….’
d) Compliment the prospect. For example saying “Ms Ngwenya, congratulations on …’
e) Giving something of value. Offer a small gift from the company usually a product that
you are selling. You must know that however, in some communities, this act may be
viewed as bribe. Usually accepting a gift is associated with an obligation to
reciprocate with a gift as well. As such, know beforehand the guidelines of giving
gifts as they vary between cultures.
One area of importance in cross cultural awareness is in the different gift giving etiquettes of
the world. Understanding gift giving and the etiquette surrounding it can help international
business people cement better relationships with foreign colleagues, clients or customers.
Cross cultural gift giving etiquette involves considering the following points:
a) Who is receiving the gift?
b) Is it a person or a group?
c) What is the status of the receiver(s)?
d) What types of gifts are acceptable or unacceptable?
e) What is the protocol associated with gift giving and receiving in the country?
f) Should gifts be reciprocated?
In North America, UK amongst other like-cultured countries, gift giving is rare in the
business world. In fact, it may carry negative connotations such being construed as bribery.
On the other hand, in many Middle East and Asian countries, gift giving and its etiquette
have a central place in business practices.
Highlights of the different aspects of cross cultural gift giving etiquette;
Gift Giving Etiquette in China

It is the proper etiquette for gifts to be exchanged for celebrations, as thanks for
assistance and even as a sweetener for future favors.

It is however important not to give gifts in the absence of a good reason or a witness.

When the Chinese want to buy gifts it is not uncommon for them to ask what you
would like.

It would be wise to demonstrate an appreciation of Chinese culture by asking for
items such as ink paintings or tea.

Business gifts are always reciprocated. Not to do so is bad etiquette.

When giving gifts, do not give cash.

Do not be too economical with your choice of gift otherwise you will be seen as an
'iron rooster', i.e. getting a good gift out of you is like getting a feather out of an iron
rooster.

Depending on the item, avoid giving one of something. Chinese philosophy stresses
harmony and balance, so give in pairs.
Gift Giving Etiquette in Japan

Gift-giving is a central part of Japanese business etiquette.

Bring a range of gifts for your trip so if you are presented with a gift you will be able
to reciprocate.

The emphasis in Japanese business culture is on the act of gift-giving not the gift
itself.

Expensive gifts are common.

The best time to present a gift is at the end of your visit.

A gift for an individual should be given in private.

If you are presenting a gift to a group of people have them all present.

The correct etiquette is to present/receive gifts with both hands.

Before accepting a gift it is polite to refuse at least once or twice before accepting.

Giving four or nine of anything is considered unlucky. Give in pairs if possible.
Gift Giving Etiquette in Saudi Arabia

Gifts should only be given to the most intimate of friends.

Gifts should be of the highest quality.

Never buy gold or silk as a present for men.

Silver is acceptable.

Always give/receive gifts with the right hand.

Saudis enjoy wearing scent. The most popular is oud which can cost as much as
£1000 an ounce.

It is not bad etiquette to open gifts when received.
It is advisable to try and ascertain some facts about the gift giving etiquette of any country
you plan to visit on business. By doing so, you maximize the potential of your cross cultural
encounter.
Probing of need
It involves asking questions to find out what the prospect really needs. A SPIN approach is
used. This is a selling approach that teaches a salesman to ask questions in a logical series of
questions to identify the needs of the prospect. SPIN stands for;
S
-Ask situational questions to obtain background and factual information.
P
-Define the specific problem or find the needs
I
-Ask implication questions to help the prospect understand the seriousness of the
need.
N
-Need payoff questions to show the prospect how you can solve problems at hand?
Problem-solving will be effective only if the salesperson understands the prospect’s needs
and concerns which means that he has to learn how to probe for needs very carefully. Only
then can the salesperson focus only on those problems that are most important to the
prospect.
The SPIN approach discussed
For example, if the prospect’s company produces gas cylinders using welding machines and
you are a sales representative of a company that services welding machines, using the SPIN
approach, you can ask the prospect questions such;
Situational questions
Are asked to obtain factual and background information. Such questions could include;
i)
The name of the prospect’s company
ii)
Their production capacity at present
iii)
Their objectives for the next six months
iv)
How many welding machines they have etc
Problem questions
These are more focused on difficulties, dissatisfactions and problems which the customer
is currently experiencing and which the salesperson can solve with his or her product or
service. Such questions could be;
i)
How satisfied are you with the current welding operations?
ii)
What prevents you from achieving your quality standards?
iii) What problems are you experiencing in moving cylinders from the stores to the
welding bays?
Implication questions
These are questions about the effects or consequences of the customer’s problem. Such
questions allow the customer to see that the problem is serious. Implication questions could
include;
i)
What effect does the level of re-work have on your production schedule?
ii)
How will this problem affect your welding productivity?
iii)
Could that lead to an increase in your production costs?
Need pay-off questions
NB These are a mirror image of an implication question
These questions are designed to get the customer to tell you about the benefit that the
solution offers rather than forcing you to explain the benefits to the customer yourself. Such
need pay-off questions could be;
i) If you had a reliable welding machine delivery service, would that allow you to
reduce your productions cost or re-work?
Reasons for asking questions includes
i)
To maintain control
ii)
To learn more about the prospect need
iii)
To involve the prospect
iv)
To build relationships
v)
To establish trust NB the salesperson should show that he has sincere interest in
the prospect needs
Convincing the prospect
The seller should make sure that the prospect is aware of the benefits of the product. Benefits
of a product can be further
stressed using demonstrations or testimonials or referring to
someone who used the product and was satisfied.
Salesperson must use personal skills to convince the prospect to purchase the product.
Demonstrations and Presentation
Where there is a product to be demonstrated the salesman;

Should make himself an efficient operator in the technical sense

Product
should
be
carefully examined
and
major
selling
points
and
advantages over competitor product should be listed

The method of demonstration should be planned so that the major selling
points and advantages are clearly placed before the customer

The plan should be simple and the sequence of operation should be in a
logical order

The salesman should preface/ introduce the demonstration with a simple
explanation of the principle by which the product works, how it operates
and results which can be expected.

During explanation various features of the product can be shown so that the
buyer gets to know something about it before the actual demonstration starts

Customer cannot absorb at the same time as they watch it in an action

Let the customer use the product
Non-verbal communication when making presentations
In the early 1900 Sigmund Freud (psychologist) noted that people cannot keep a
secret, even if they do not speak. A person’s gestures and actions reveal hidden feeling about
something.
The four major non-verbal communication channels
i)
Physical space between the buyer and the seller
ii)
Appearance
iii)
Hand shake
iv)
Body movements
The concept of space
Territorial space refers to the area around the self that a person will not allow another
person to enter without consent.
a) Intimate space
This is two feet, arms length. It is for loved ones or someone who is close to. In a buyerseller relationship, this space is socially unacceptable and possibly offensive. During
presentation, one should carefully listen and look for signs that indicate that the
buyer feels uncomfortable, perhaps the salesperson is too close for comfort.
b) Personal space
It is two to four feet. It is the closest zone a stranger or business acquaintance is normally
allowed to enter. Even at this one, there may be discomfort. Barriers such as desks are
used to reduce the threat implied when someone enters this zone.
c) Social zone
It is four to twelve feet, six arms length. It is normally used for presentations
d) Public space
It is 12 feet and above. It is used by a salesperson making a presentation to a group of
people
A salesperson who pulls up a chair, learns over the prospect desk, picks up objects on
the prospect’s desk runs the risk of invading a prospect’s territory. However should
you feel some friendliness between yourself and the prospect, use territorial space to
your advantage. Be careful not to create defensive barriers
Handshake
It is said to have evolved as a gesture of peace between warriors
a) A prolonged handshake is more intimate than a brief one can cause discomfort
b) A loosely clasped, cold or limp handshake is usually interpreted as indicating aloofness
and unwilling to become involved, unfriendly and unaffectionate.
c) Maintain eye-contact with the customer during the handshake, grip the hand
firmly. These actions will help you establish an atmosphere of honesty and mutual
respect, starting the presentation on the positive manner.
At times you may want your customer to initiate the gesture
Step 4 Possible problems/handling objections
Objections are a natural part of any sales presentations and should be viewed by a
salesperson as an opportunity rather than a hurdle. When prospects raise objections, they
are actually showing more interest and are asking for more information
Objections come as a result of doubt or negative feeling. The most difficult prospect is one
who does not say anything during the presentation, refuses to buy or gives no reason for
the decision.
It is important that salespersons distinguishes between real and pseudo/excuses
a) Real objections are likely to be about
i)
Time- I don’t have to make a decision now. There is plenty of time
ii)
Price objections- Your competitor is much cheaper
iii)
Source – I have heard that our company has poor reputation for sales service.
iv)
Competition e.g. I like Geisha why change ?
Pseudo/Excuse objections
These are objections designed to hide the fact that the prospect just doesn’t want to
show his or her hand or make the decision yet. People often fear change and many not
trust their own decisions.
Examples include

I will get back to you

I am too busy right now

Our budget is tight this year

We have no room to store it
A suggestion for responding to the above excuses could be;

If you are busy now, may I see you for half an hour this afternoon, at 3pm or
would tomorrow at 9am be better
How to handle real objections
Wilson Learning Corporation suggested a method for handling objections that it refers to by
the acronym LSCPA. This stands for Listen, Share, Clarify, Problem and Ask

Listen to the buyer’s feelings e.g. I am here to help you. Exercise empathy and put
yourself in the customer’s shoes.

Share the concerns without judgment. Don’t be defensive because it is a personal
opinion

Clarify the real issue with a question e.g. Let me see if I get this correct, it seems
to me that you are saying…

Problem- solve by presenting options and solutions. Quality, convenience and value
for money

Ask for action to determine the commitment

Listening and sharing steps help to reduce tension by helping the buyer get
objections out into the open and that shows that you care enough to acknowledge
and try to understand. Listening and sharing takes maturity, energy and patience.

Clarifying takes the form of questions such as “ it seems to me you are saying ...
It will uncover misinterpretations
Problem solving will depend on the type of objection. You can provide pros and cons of
the action requested or admit objection is valid and point out
compensate for the objective. A case history could be
the advantage that
presented describing
how
another prospect purchased the offering and benefited. For example, a customer might
still have 90%
of the product you sold to him last time. So suggest ways in which the
customer can push stock by price discounts, displays and advertising in order to meet
customer needs best (political sales person)
Step 5 Please give me order / closing the sale
Having made a presentation there is needed to close the sale. Closing occurs when the
salesperson asks for the order or closes the sale.
a) When to close
Body language gives you clues
i) Acceptance signals
These indicate that your buyer is favorably inclined towards you and your
presentation. while this may not end in a sale, at the very least the prospect is saying
“ I am willing to listen” What you are saying is both interesting and acceptable.
NB acceptance signals indicate that the buyer’s perceive that they may have a
need that your product might meet. You have obtained their interest and attention.
You are free to continue with your planned presentation.
Body angle- learning forward/ up right at attention, face smiling, pleasant expression,
relaxed, eyes examining, direct eye contact, positive voice tones.
Arms relaxed and generally open
Hands- relaxed and generally open perhaps performing business calculations on
paper, firm handshake
Legs- crossed and pointed towards you or uncrossed
ii)
Caution signals
Body angle- learning away from you
Face- puzzled, little / no expression, averted eyes, saying little
Arms- crossed and tense
Hands- moving, fidgeting with something, clasped, weak handshake
Legs- moving, crossed away from you
Adjust to the situation by slowing up or departing from planned presentation. Use
open-ended questions to allow buyer to talk and express attitude and beliefs e.g. “
have you have been interested in improving efficiency of your workers?’
NB you need to change caution signals to go ahead signals because if you continue to have
caution statements, you need to proceed carefully.
iii)
Disagreement signals
It tells you immediately to stop your planned presentation and quickly adjust to the
situation. Anger or hospitality may develop. If one decides to continue with the
presentation, it results in pressure.
Body angle - retracted shoulders, learning away from you, moving the entire
body away from you or wanting to move away.
Face - tense, showing anger, very little eye contact, negative voice tones, may
became suddenly silent
Arms- tense, crossed over the chest
Hands- there is motion of rejection or disapproval, tense and clenched, weak
handshake
Legs- crossed and away from you
How to handle disagreement
1st step is to stop your planned presentation.
2nd step is to temporary eliminating putting pressure on the prospect. Let the buyer relax
3rd let the buyer know that you are aware that something upsetting has occurred. Show that
you are there to help, not to sell at any cost. E. g have I said something
you do not agree
with?
Although a prospect may say no to make a purchase, body movements may indicate
uncertainty. Richard Dreyfuss says in ’The goodbye girl’, your lips say no, no , no but your
eyes say yes, yes, yes! This phrase sometimes holds true for marketers
NB you need to have a cluster or pattern of actions to come up to a judgment
Importance of body language
a) Be able to recognize non verbal signals
b) Be able to interpret them correctly
c) Be prepared to alter a selling strategy by slowing, changing/ stopping a planned
presentation
d) Respond verbally/ none verbally to a buyer’s non-verbal signals.
When one observes a possible signal, a trial close should be made. Trial closes are questions
that ask for opinion that will serve as indicators of how close the buyer is to making a
purchase. An example is ‘how does this look to you? How important is this to you? Is this
what you had in mind? Will this equipment be consistent with what you have now?
If the prospect makes a positive response to one of these questions, the sales person can
assume that the customer is leaning towards buying and can move direct to the final close.
ABC’s of Selling. Charles Futrell (2005; 2nd Edition)
B) How to close
Closing is simply asking for an order and it can be done using various techniques
i)
Alternative proposal close
Would you accept rail or ship, cash/ credit? Its asks for a choice between details i.e.
colors, models, number of cases that would suit you.
ii)
Assumptive close
Make an assumption that the prospect will accept the offer and make a
commitment therefore the salesperson writes an order form and asks the prospect
to sign.
iii)
Action close
The sales representative takes action to close the sale
e.g. ‘Can I arrange an
appointment with your bank to work out the details of the transactions?’
iv)
One more ‘Yes’ close
The sales representative reinstates the benefit of the product in a series of questions
that result in positive response then ask for an order. The final questions ask the
prospect complete the sale.
Salesperson ‘George, you have said that our word processor has no memory,
better graphics and is easy to use than other machines you have seen is that
correct?’.
Prospect ‘Yes’
Sale person ‘ Well, I recommend that you lease off our machines for 3 months
and lease payment will apply to the purchase price if you decide to keep it.’
v)
Balance sheet close
Some prospects delay in making the order. Analyze the
reasons
for delay and
give reasons for immediate action which will outnumber the reasons for delay.
Trying to point out the advantage of prompt action therefore the sales person
should build a persuasion case in order to outweigh reasons for delay
vi)
Direct close
It is suitable when all prospects needs have been identified and addressed. The sales
person only asks for action e.g. ‘Can you take the order now or shall I wrap that
for you now.
Step 6 Pen on paper
Checking the details accurately of the order
For example the quantities, color, models etc
Step7 Post Sales service follow - up
After sales service is done to ensure customer satisfaction in order to obtain repeat business.
One can also uncover other needs to supply if you keep selling to an organization
One salesperson said, ‘I will be there after sales because after I have sold something
to someone I can sell them many more ,I just do not disappear ,I want to make sure
my competitor doesn’t get in the door’.
Post sales Activates include:

Installation

Training on how to use the product

Send congratulatory messages welcome to the world of Derby

Handling customer concerns promptly

Maintaining contact with customer by inviting them to sales and special events e. g
MSU invites captains of industries on their graduations.

Send them Christians cards

Remind them that they are still the companies valuable customers
Wilson learning corporation identified for pillars of sales support involved in after
sales service follow -up
Sales support
Support the buying
Decision
Manage
implementation
the
Deal
with
dissatisfaction
Enhance
the
R/ship
The 4 pillars of sales support
i)
Support the buying Decision
How? Some buyers have cognitive dissonance after buying a product
Therefore as a sales representative you need to make follow up calls, write a card/ letter
thanking the buyer for the order or congratulating them for the splendid decision they
have in buying the product.
ii)
Managing the implementation
How? Offering support service, assisting in any personal training and reporting
implementation and utilization progress
iii)
Dealing with dissatisfaction
How? -responding in an empathetic prompt manner to any problems that arises
iv)
Sales people should always be on the alert to enhance the relationship by being
available, ensuring that the quality of offering is maintained and being a source
of information, help and ideas.
NB It is important to perform these activities successfully to ensure repeat business.
Other types of selling methods
a) Key account selling
b) Team selling
c) Electronic selling
d) Tele selling
Ethical issues in selling
Diversities of Personal Selling situations
Mc Murray and Arnold come up with three different groups of sales positions which are;
Group a (Service selling)
It aims at obtaining sales from existing customers whose habits and patterns of thought are
already conducive to such sales.
i)
Inside order takers - they wait on customers
ii)
Delivery sales person – e.g. pizza or bread people
iii)
Route or merchandising - they operate an order taker but work in the field e.g.
soap sales person calling on retailers
iv)
Missionary –it aims only to build goodwill or to educate the actual or
potential users, they are not expected to take an order
v)
Technical sales person. They emphasis on technical knowledge e. g engineering
salesperson, who is primarily a consultant for a company.
Group B Developmental selling
It aims at converting prospects into customers
vi)
Creative salesperson of tangible- e.g. selling automobile, vacuum cleaners etc.
the salesperson has to make the prospect dissatisfied with his/her present
appliance or situation then begin to sell the product.
vii)
Creative salesperson of tangible - e.g. insurance sales person selling insurance,
advertising services, educational programs etc. it is more difficult than tangibles
because people cannot feel, touch, smell or taste making the intangibles more
difficult to comprehend. The sales person needs to be persistent and must possess
a high need to achieve success.
Group C Basicaly developmental selling but requires unusual creativity
viii)
Political, indirect or backdoor salesperson
Positions that require the political, indirect or back door sales of big ticket
items that have no truly competitive features . Here it is not the product
primarily that is sold, it is the salesperson who sells her/ himself, hence the
political connotation (underlying meaning) e. g sales of flour to a bakery. The
product is made to precise specifications. Quality and service offered by all the
suppliers are essentially uniform, price is standard everywhere. There is no price
advantage or special features to offer. The only thing being sold is oneself as one
who can offer something to the buyer which is needed. If a salesperson can satisfy
the need then the product follows almost automatically.
ix)
Salesperson engaged in multiple sales
It involves sales of big ticket items where
presentation
to several
individuals
the salesperson must make
in the customer organization probably a
committee, only one of which one can say yes/ no.
3. Planning and organizing the Sales force
Why planning is necessary for sales Management

It provides direction and focus for organizational purpose

Improves moral when the entire organization participates in the process

Improves cooperation and coordination of sales efforts

Develops individual and collective standards by which sales force performance
can be measured and deviations in time to take corrections

It increases the sales organization’s flexibility in dealing
with
unexpected
developments

Therefore, planning help decrease inefficient and wasteful actions and better
coordinate efforts towards achieving desired goals
Sales Management Planning Process (SMPP)
The SMPP is a never completed, it is continuous because as soon
the 1st plan is
prepared something else has changed in the environment. Managers should make sure
that they adopt a proactive approach rather than a reactive one.
A proactive manager needs to be going through the following questions?
i)
Diagnosis - where are we now?
ii)
Prognosis- where are headed if no changes are made
iii)
Objective - what do we want to achieve?
iv)
Strategy - what is the best way to get there?
v)
Tactics- what specific action is needed to be taken by who, when, where?
vi)
Control - what measures should be put in place
To do this or answer these questions, a sales manager has to go through a series of steps in
the sales management process. Selling and Sales Management. David Jobber and Geoffrey
Lancaster (2009)
a) Situational analysis
b) Setting Objectives
c) Determining the market and Sales potential
d) Selecting Strategies
e) Developing activities or tactics
f) Allocating necessary resources
g) Implementing the plan
h) Controlling the plan
a) Situational analysis

Conduct a market analysis, number, type, actual or potential buyers, the buying
patterns, needs, attitudes, demographics.

Conduct a competitor analysis to find out the number, type of competitors in your
market, product, price, market share etc. establish their weaknesses and strengths

Conducts business environment analysis. Review the macro environment and see
how supportive it is to the company strengths and opportunities. PESTLEG

Conduct a company analysis to find out where we are right now

Identify the resource you have; your workforce demographics, management style,
policies, selling styles etc
b) Setting goals and objectives
Goals are broader than objectives therefore for one to achieve a goal; you need to have
several objectives. In trying to determine objectives, one should therefore look at the ultimate
goal as a guiding principle and selling objectives should come from that goal. Objectives
should be SMART. There are 3 general objectives
i) Sales volume
ii)
Contribution to profit
iii)
Continuing growth
Objectives form the basis for selection of marketing strategies and tactics.
c) Determine the market potential
Market potential is an estimate of the maximum possible sale opportunities present in a
particular market segment and open to all sellers of a good or service during a stated future
period.
A sales potential is an estimate of the maximum possible sale opportunities present in a
particular market segment and open to a specified company selling a product or service
during a stated future period.
Why do marketers need this information?
Such that organizations can plan for the future
Elements that make up the market potential and sales potential;
a) Items being marketed
b) Sales for the industry or company in dollars or units of product
c) A specific market denoted either geographically or by type of customer.
Techniques for estimating market and sales potential
a) Market factor derivation
b)
Survey of buyer’s intensions
c) Test market
Market Factor Derivation
It is any item or element in the market that pose a rise in the demand of a particular
product or service. Example; the number of births increases the demand for pumpers.
Number of dual sim phones will increase the demand for sim cards therefore using dual sim
phones a market factor, the market and sales potential can be determined as follows;
Estimated number of dual sim phones in 2012= 300000.
Percentage of dual sim phone users=70%
Econet market share =60%
Therefore market potential for 2012 = Estimated number of dual sim phones x percentage of
dual sim phone users
=300000 x 0.70
=210000 units
Sales potential = Market share x Estimated number of dual sim phones
=0.60 x300000
=180000 units
Test Market
It
is a method of establishing market and sales potential through introducing and
marketing a new product in a market that is similar to the company’s other markets.
The demand of the product in the test market is used to forecast sales of the product
in other markets. It measures sales in selected area, and then projects the results into a
broader area.
Survey of buyer’s intensions
Conduct a field research to find out who buys the product? Who uses it? Who are the
prospective buyers and users? The survey will reveal the characteristics that differentiate
the market segment making up the product’s market potential. Survey provides
customer data on factors such as purchase frequency, searching time, unit of purchase
and seasonal buying habits. When assembled and analyzed, this data helps in establishing
market and sales potential
d) Selecting strategies
Looking for best way to achieve your objective, one can use the Ansoff matrix BCG; Cost
strategy, Differentiation strategy etc. this step in the process is complicated by the fact that
there are often many alternative ways in which each objective can be achieved. Although
several strategies may be evaluated, only one strategy can be applied. This gives rise to the
formula; one strategy per objective.
e) Developing activities or tactics
These are detailed plans of what needs to be done. When, whom, where, what
communication tools, how much to spend, marketing mix etc
f) Allocating necessary resources
Once
tactics are developed, resources must be allocated to carry out the plans. 5 Ms
(machinery, minutes, material, manpower, money)
g) Implementing the plan
The procedure so far would have resulted in the preparation of detailed document setting out
what is to be done, when it will be done, who is responsible and estimated cost and revenues
as well as agreed time frames for the various activities in the plan. It requires close
monitoring, some companies use full time project coordinators to see who does what and at
what time. For example, if you are using different communication tools, is the message
being delivered single and consistent. It should seek to achieve a distinctive voice of one
clear message. Details of the marketing plan should be communicated to everyone involved.
Many companies have elaborate marketing plans that are not implemented because key
people have not been informed or have not agreed to the proposed plan.
h) Controlling the plan
It is necessary that during planning you put down control measures in case of
deviations. Details of major objectives and key parameters in the measurement of the degree
of success in achieving the objective should be included, enabling corrections and
modifications to be made as the plan unfolds. The control part of marketing plan should
specify what should be measured, how it should be measured and what data will be required
for measurement. It may also include details of what action is to be taken in the light of
deviations from the plan. This contingency planning is a key feature of any planning process,
recognizing as it does that plans need to be flexible in order to accommodate possible
unforeseen and unpredictable changes in the market. Performance measures usually used as
sales volume, new account, selling costs, sales force turnover, market share and profit
margins.
4. Sales Forecasting
Still R ( 2005) defines sales forecast as an estimate of sales, in dollars or physical units,
in a future period under a particular marketing programmer and an assumed
set of
economic and other factors outside the unit for which the forecast is made. It maybe
for a single or the entire product line.
Therefore, sales forecast can be said to be a prediction of how much of a company
particular product / product line can be sold during a future period under a given
marketing program and an assumed set of outside factors.
Short term forecasts are usually up to three months ahead are of use for tactical matters such
as production planning. Medium term forecast are normally for one year ahead. Medium term
forecasts have a direct implication for planners and they are of most importance in the area of
business budgeting ie if the sales forecast is incorrect, then the entire budget is incorrect. If
the forecast is over optimistic, then the company will have unsold stocks which must be
financed for out of working capital. If the forecast is pessimistic, then the firm may miss out
on marketing opportunities because it is not geared up to produce the extra goods required by
the market.
Long term forecasts are usually for periods of three years and upwards depending on the
industry being considered. They are worked out form macro environmental factors such a
government policies, economic trends etc. Such forecasts are needed mostly by financial
accountants for long term resource implications and are generally the concern of the Board of
Directors.
Why it is important to do sales forecasting?
1. Production need to know about sales forecasting so that they arrange production
planning.
2. Determine budget, sales quotas and compensation for sales people
3. A sales forecast will enable the purchasing department to be more effective from a
price and delivery viewpoint when acquiring materials.
4. Human resource management is interested in the sales forecast from the staffing view
point.
5. Financial accounts would want to make provision for capital items such as plant and
machinery needed in order to replace to replace old plant and machinery to meet
anticipated sales in the long term.
Sales forecasting techniques:
Qualitative methods;
1. Jury of executive opinion
2. The Delphi technique
3. Pull of sales force opinion
Quantitative techniques
1. Moving averages
2. smoothing exponential
3. Regression analysis
The Jury of executive opinion
There are two steps in this method.
i) high ranking executives estimates probable sales
ii) An average estimate is calculated
The assumption is that the executives are well informed about the industry outlook and
the company market position, capabilities and marketing program. Such people can come
from the company eg marketing or financial personnel, and or outside the company eg
management consultants who operate within the particular industry. Sometimes, external
people can include customers who are in a position to advise from a buying company’s view
point. All should support their estimates with factual material and explain their rationales.
Individual stances may be altered following such discussions. In the end, if disagreement
results, mathematical aggregation may be necessary to arrive at a compromise
Advantages
a) It is quick and easy to develop
b) It is a way to pull the experience and judgment of well informed people.
c) It is a feasible approach if the company is still young i.e. it has not yet
accumulated the experience to use other forecasting methods
Disadvantages of Jury of executive opinion
1) The
finding are based primarily on opinion and factual evidence to support the
forecast is often sketchy
2) It leads to workload of key executives; it requires spending time they would otherwise
spend in their areas of main responsibility
3) A forecast made by this method is
difficult to break down into estimates of
probable sales by product, time intervals, by markets, by customers etc, because the
forecasting method is termed a top=down method whereby a forecast is produced for the
industry and then the company determines what its share will be of the overall forecast
because the statistics have not been collected from basic market data ie from bottom-up.
The Delphi Technique
It involves using expert panelists to make forecasts by individually and anonymously
sending them to a moderator. After moderation, the average forecast is sent back to each
panelist for another forest. This is repeated until a consensus has been reached.
Advantages
1) Its more accurate
2) The technique eliminates bandwagon effect of majority opinion.
3) Objectivity. You feel ownership of the forecast
Disadvantages
1) Time consuming
2) Minimum value to application to various territories
3) There is non-compliance.
4) Others may be influenced by average
Pull of sales force opinion
Individual sales personnel forecast sales for their territories. Then individual forecasts are
combined to form the company’s sales forecast. It is sometimes termed the grass root
approach. The sales person produces figures broken down by product and customer and the
area manager produces figures for the sales person territory. They then meet and reconcile
any differences in figures.
Advantages
1) Forecasting responsibility is assigned to those who produce results
2) There is also a merit in utilizing the specialized knowledge of those in closest
touch with marketing conditions
3) Sales people have greater confidence in individual quotas assigned to them because
they participate in developing the quotas (quantitative objective are expressed in
absolute terms and assigned to the specific marketing unit)
Disadvantages
Sales people are not trained in forecasting therefore they tend to be either optimistic or
pessimistic.
The Sales person may underestimate their forecast so as they reach their forecast more easily.
Quantitative techniques
Moving
averages
Sales for the coming period are assumed to be equal to those in the past period.
Because of minor changes that may occur from period to period, it is necessary to take
an average of sales from several periods to construct
the sales forecast for the following
years
Data
2008: 7m
F (t + 1)
St + St-1
S
t-1
St- n
n
2009: 5m
2010: 9m
F (t + 1) = forecast for the next period
2011: 10m
St= sales in current period
2012
Sales t-1= past sales
n= no of periods in the moving average
F (t+1) = 10 + 9m + 5m +8 = 32
4
Therefore Ft+1 for 2012=8m
Exponential Smoothing
4
It is a type of moving average that represents a weighted sum of all past numbers in a
time series. Sales for different periods are given different weights and do not have the
same impact on future sales. The impact of the period is determined by the smoothing
constant (A) determined by the forecaster
The forecasting equation in other words would be;
St+ 1 = a (St) + (1-a) (Ft)
next year sales = a (this year’s sales)+(1- a)(this year’s forecast)
a- Represents the smoothing constant and is set between 0.0 and 1.0.
Example;
2011 actual sales = 320 units of product
Sales forecast for this year = 350 units
Smoothing constant= 0, 3
Next year’s sales = 0, 3 (320) + (0, 7) (350) = 341 units of products
a is estimated by trying several values and making retrospective test of associated
forecast errors.
Historical data is used to see which (a) forecasts better
Regression analysis
The relationship between sales (y) and independent variable (x) can be represented by a
straight line. Past sales are plotted for each past time; (time plotted on the X- axis and
sales one the Y- axis) and a straight line can be fitted within the points.
The equation for the line is Y = a+ bx
a= intercept value i.e. the y value when x=0
b= shows the average increase of sales changes or the impact of the independent variable
x = is the independent variable (Unit of time)
y = dependent variable which is sales
Using this formula, the statistical procedure involves determining the average increment of
changes in y (sales, the dependant variable) resulting from one increment of change in time
(time/independent variable). The relationship identified in the first step is the used to predict
sales. An estimate of independent variable is then used to project further sales.
For example, sales of 2010 and 2011 (on the x axis) are 280 and 300 respectively (on the y
axis). Then within the points, the analyst can draw a straight trend line. The line can then be
extended to project sales in future periods.
A more accurate method of estimating this line is the use of mathematical least squares
procedure which minimizes error between actual and predicted sales. It is given by the
equation;
y= a+ bx
Where a=
∑y – b (∑x)
n
b=
n (∑x y) - ∑x (∑y)
N ( ∑x2) - ( ∑x) 2
DATA
Units
2008
250
2009
220
2010
280
2011
300
2012
?
Y
XY
X2
1
250
250
1
2
220
440
4
3
280
840
9
4
300
1200
16
N=4
∑y=1050
∑xy=2730
∑x2=30
X
∑x=10
y
300
250
Sales
200
1
2
3
4
Calculation for value of b;
4 (2730) – 10(1050)
4 (30) - (10) 2
= 10 920 - 10 500
120- 100
=
420
20
Therefore:
b = 21
Calculation for value of a;
a= 1050 - 21(10)
4
=
1050 – 210
4
=
840
4
Therefore
a =
210
Y = 210 + 21 (5)
= 210 + 105
Y = 315 units
Sales budget
It is the blue- print for making profitable sales. It details who is going to sell how much
of what during the operating period and to which customers or classes of trade.
It
is therefore a projection of what a given sales programme means in terms of sales
volume, selling expense and net profit.
The sales forecast is the source for the sales volume portion of the sales budget. The sales
volume objective is broken down into;

Quantities of profits that are sold

Sales personnel / districts that are to sell them

Customers or classes of trade that are to buy them

Quantities that are to be sold during different time segments in the operating period.
As these breakdowns are made, the selling expenses that will be incurred in
implementing this sales programme are estimated thereby coming up with a
budget. A sales budget is expressed in financial terms, can be called a financial
plan of financial statement of revenue and expense flows.

Sales
budgeting is concerned with cost reduction and improved selling
efficiency.
Budgeting types to choose from;
a) Zero-based budgeting.
In a dynamic business, it often makes sense to start afresh when developing a budget
rather than basing ideas too much on past performance. In this way, change is built
into budget thinking.
b) Strategic budgeting
This involves identifying new, emerging opportunities and then building plans to take
full advantage of them.
c) Rolling budget
Given the speed of change and general uncertainty in the external environment,
shareholders see quick results. Rolling budgets involves evaluating the previous
twelve months performance on an ongoing basis and forecasting the next three
months.
d) Activity based budgets
This examines individual activities and assesses their contribution company success.
They can then be ranked and prioritized and be assigned appropriate budgets.
Purpose of the sales budget
1) Mechanism of control
Sales budget serves as a yardstick against which progress is measured. Comparison of
accomplishments’ with relevant breakdown of the budget measures the quality of
performance of
individual sales
personnel, sales
regions, products,
marketing
channels and customers. With current and complete information on sales volume and
selling expense, the sales manager spots variations from the budget and takes
corrective actions before they get further out of line.
2. Instrument of planning

The sales forecast shows where it is possible for the business to go and during
the budgeting process, planners determine ways and means for the business to
get from where it is to where it wants to go.

Through sales budgeting, sales management can reconcile these revenues and
expenditure with the firms’ hierarchy of objectives.
3. Coordination
Budgeting enables sales executives to coordinate their expenses with their sales
and with their other departments.
Budgets also restrict sales executives from
spending more than their share helps prevent expenses from getting out of
control.
Factors to consider when organizing a budget

Plant

Sales estimate

Orders in hand

Proposed expansion / discontinuous of product

Seasonal fluctuations

Potential market

Availability of material and supply

Financial aspect

Nature and degree and competition within the industry

Costs of distributing goods
capacity

Political and economic, legal environment
Determining the sales department budget
The sales department budget is merely the budget for running the marketing function for the
budget period ahead. It can be split into
i) The selling expense budget which includes those costs directly attributed to the selling
process eg sales personnel salary and commission, sales expense and training.
ii) The advertising budget includes those expenses directly attributed to the above the line
promotion (eg television advertising), and below the line promotion (eg a coupon redemption
scheme).
iii)The administrative budget represents the expenditure to be incurred in running the sales
office. Such expenses cover the cost of marketing research, sales administration and support
staff.
Methods of ascertaining the level of such budget are as follows;
a) Percentage of sales.
The sales manager uses his/ her own experience or feelings or published industry
averages. Sales forecast are multiplied with various percentages of each category of
expenses e. g product, customers or territories. For example, if an organization wants to
achieve 200 units, the sales budget will therefore be;
Sales forecast x percentage of any category of expenses. E.g. visiting customer = 15%
and sales forecast = 200 units. The sales budget = 200 x 0.15
Budgeting by objective and task method
Objectives can be to increase sales volume by 10% by end of the year.
Activities to achieve the objective are
1$x
2$x2
3$x3
4$ x4
5 $ x5
Total cost of Activity
$ xxx sales
Steps taken when budgeting using the Task or Objective Method

List the activities which should be done and then cost the activity

Sales objectives are outlined and task determined which must be accomplished
in order to achieve the objectives

Estimate cost for performing the task are projected
Based upon the marketing plan ahead, the marketing manager decides what portion of the
sales department budget must be allocated to each of the three parts of the budget described
above.
Sales budgeting procedure
Sales Forecast
Sales Budget
Sales Department Budget
Cash Budget
Revenue
Expense
Production Budget
Administration Budget
Profit Budget
Revenue
Expense
(Adapted from David Jobber and Geoffrey Lancaster (2005) Selling and Sales Management)

Budgeting procedure normally begins in the sales budget..

The nature and amount of predicted flow of sales revenue impacts directly upon
the activities of other departments. The sales budget is thus the revenue earner for
the company and the other budget represents expenditure in achieving the sales.

For example the production department takes its cue from
the sales budget in
preparing budgets for manufacturing expenses and inventory as well as planning
production schedules (unit sales), finance department in preparing budgets for
capital expenditure, earnings and cash positions and administration expenses.

The management of the sales budget requires involvement of sales people, sales
manager and the finance.

Once approved, budgets are redirected to all organizational units, and budgetary
control feature go into operation.

For control purpose, each sales manager receives budgetary progress reports.

In this way corrective action is indicated before actual performance moves too
far from budgeted performance.
Sales Quotas

A quota is a quantitative objective expressed in absolute terms and assigned to a
specific marketing unit.

Terms can be expressed in dollars or units of product.

Marketing unit may be a sales person or a territory.

Sales quotas guide the representatives activities and if accurately determined on
boost their morale.

However because quotas are performance standards, sometimes sales representatives
view them as threat to their well being.

Sales forecasts is a estimate of what the firm expects to sell during a time period
using a particular marketing plan.

Sales Quotas are related to Sales Potential and Sales Forecast but are used for entirely
different purposes.
Reasons for establishing quotas for sales people
a) To help management motivate salespeople – achievement- oriented people want
specific and challenging goals, with regular feedback on the performance.
b) To direct sales people where to put their efforts - when companies assign quotas
for each product in their total line of products , they are trying to communicate to
their sales force which products should be given priority.
c) To provide standards for performance evaluation - management can assess the
performance of people who are exceptional above or below the quota
Types of quotas
1. Sales volume quotas
They can be expressed in dollars or unit of product sold, usually set per territory over a
monthly, quarterly or yearly period. They are specific volume targets for each territory
and possibly for each product line or marketing channel for a specific period of time
(usually month, quarterly, yearly).
2. Profit based quotas

Similar to sale quotas in that they focus on sales force perfomance but focus on
profits generated instead of just volume

Usually based on gross margin (net sales - cost of goods sold) or contribution
margin (gross margin – direct selling expenses)

They are used when sales people make decisions that dramatically affect the
profit of company

Profit based quotas are more common among large firms which probably have
better information systems.
Activities quotas
Activity quotas set targets on specific activities that are considered important to meeting
a firm’s sales and profit objectives. Some of the activity quotas include;
a) Temporary point of purchase
b) Calls of new accounts
c) Dealer sales meetings held
d) Product demonstration
An advantage of an activity quota is that they are based on behaviors that are largely
under the control of the sales person. As a result, a sales person can be held more
accountable for the results and may be more motivated to achieve these quotas.
4. Expenses quotas
Sales manager use this standard to control the relation of selling expense to volume.
Selling expenses are set individually for each person on the sales force
because of
different territories they operate in. Practices however differ as to what is counted as
selling expenses eg travel and subsistence salaries, advertising, sales department expenses
etc. The advantage is that it encourages sales representatives to cut costs
Administering quotas
In order for the quota system to be successful, the quota must be realistically
attainable therefore they need to SMART
1) Include the sales person in quota setting.
2)
Keep the sales force updated on its performance relative to quotas.

Maintain control ie performance is monitored continuously for instance some
companies prepare weekly, monthly performance charts to show how
their
representative is performing toward the quota. This can also be used to rank
the sales force.