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UNITY UNIVERSITY

COLLEGE OF BUSINESS, ECONOMICS AND SOCIAL SCIENCE DEPARTMENT OF


MARKETING MANAGEMENT

ASSESSMENT OF COMPANY ABILITY IN MANAGING AND


EVALUATING SALES FORCE PERFORMANCE: CASE OF TOP WATER
COMPANY

ECONOMICS AND SOCIAL SCIENCES, UNITY UNIVERSITY,


DEPARTMENT OF MARKEING MANAGEMENT. IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE DEEGRE OF
BACHELOR ARTS IN MARKETING MANAGEMENT

By: Meryem Oumer

ID: UUA00486R

Advisor: TADESSE CHERU

May 31, 2023


Addis Ababa, Ethiopia

i
DECLARATION

I, the undersigned, hereby declare that this work is my original creation, prepared under the
guidance of Mr. Tadesse Cheru, and all sources of materials used for this manuscript have been
duly acknowledged.

Name: Meryem Oumer


Signature:

Place of Submission: Unity University Keranyo Campus


Date of Submission: May 31, 2023

ADVISOR'S APPROVAL

This paper is submitted for examination with my approval as the university advisor.

Name: Tadesse Cheru


Signature:
Date of Submission:

ii
APPROVAL SHEET

The undersigned certify that I have read and hereby recommend the department of Marketing
management; Unity University to accept the seminar and senior essay submitted by Meryem
Oumer and entitled “ ASSESSMENT OF COMPANY ABILITY IN MANAGING AND EVALUATING
SALES FORCE PERFORMANCE: CASE OF TOP WATER COMPANY ” in partial fulfillment of the

requirements for the award of Bachelor Degree in Marketing Management.

Submitted by:
___________________________ ___________________ ______________
Name of the Student Signature Date

Approved by:
____________________________ __________________ _______________
Name of advisor Signature Date
____________________________ __________________ ______________
Name of Examiner Signature Date

iii
Acknowledgement

Above all I would like to thank God the owner of what we get and what we achieve. Next, I
would like to extend my heartfelt thanks to our Advisor to Mr. Tadesse Cheru, without his
support, excellence proof reading, suggestion and comments it would have been difficult to come
up with this successful result.

I also want to express my deepest love, acknowledgment and appreciation to my beloved family
for their love, support and wisdom; without them I couldn’t have made it far. I also want to
extend my deepest gratitude to the study participants for providing me with valuable information
specifically, and all the department for their willingness and letting us to do this research by
giving us all the necessary data and information.

Furthermore, I would like to extend my heartfelt thanks to my dear friend, Mr. Zahid Badri, who
is pursuing a degree in Mechanical Engineering. His unwavering support, encouragement, and
shared experiences have been a source of inspiration and strength throughout my academic
endeavors.

Zahid's willingness to lend a helping hand, engage in insightful discussions, and provide valuable
perspectives have enriched my learning experience and contributed to my personal and
professional growth.

Lastly, I would like to acknowledge the contributions of the academic resources, journals, and
publications that I referred to during the literature review phase of our research. Their insights
and findings have laid the foundation for the study and have helped me gain a deeper
understanding of the subject matter.

So, I will gladly say thank you to Mr. Tadesse, my family and Zahid, for being part of this
success.

Sincerely,

Meryem Oumer

iv
Abstract

This research would be conducted under the title of assessment of company ability in managing
and evaluating sales force performance. (In the case of Top water Addis Ababa.) The purpose of
the study would be tried to assess how the company sales force performance in relative to the
ability of the company to manage sales force performance in a systematic way. The research
focuses on identifying and clarifying the main problems associated with the assess of company
ability in managing and evaluating sales force performance. The researcher has used census
method. Both primary and secondary data would be used in this study. Primary data was
obtained from the company sales force performance through interview. Secondary data was
obtained from different documents of the company such as magazines and letters of the
company. The researchers used census techniques to take sample from employee’s respondent
and used descriptive approach to describe the company’s ability in managing and evaluating
sales force performance in the company. The researchers would collect data from employees,
and manager the company. The analysis and interpretation were made through the usage of table
and percentage. Finally, the researcher would conclude and would give recommendation based
on the finding of the study.

v
Table of content

Contents
DECLARATION ............................................................................................................................ii
APPROVAL SHEET....................................................................................................................... iii
Acknowledgement ..................................................................................................................... iv
Abstract ....................................................................................................................................v
Table of content......................................................................................................................... vi
List of Table ........................................................................................................................... viii
CHAPTER ONE ...................................................................................................................... 1
INTRODUCTION.................................................................................................................... 1
1. BACKGROUND OF THE STUDY ................................................................................. 1
1.1 Background of the organization ...................................................................................... 2
1.2 Statements of the problem .............................................................................................. 2
1.2.1Research Questions ........................................................................................................... 3
1.3 Objective of the study.......................................................................................................... 3
1.3.1 General objective.............................................................................................................. 3
1.3.2 Specific Objective............................................................................................................. 3
1.4Significance of the Study ...................................................................................................... 3
1.5 Scope of the Study............................................................................................................... 4
1.6 Limitation .......................................................................................................................... 4
1.7 Organization of the Paper.................................................................................................... 4
CHAPTER TWO....................................................................................................................... 6
2. LITERATURE REVIEW .................................................................................................. 6
2.1 OVERVIEW OF PERSONAL SELLING ........................................................................ 6
2.2 SALES FORCE MANAGEMENT .................................................................................. 7
2.2.1 RECRUITING AND SELECTION.................................................................................... 7
2.2.2 IMPORTANCE OF RECRUITMENT ............................................................................... 8
2.2.3. THE PROCESS OF RECRUITMENT .............................................................................. 8
2.3. CAREFUL SELECTION.................................................................................................... 9
2.3.1 PROCEDURES OF CAREFUL SELECTION ................................................................ 9

vi
2.4. TRAINING OF SALES FORCE ........................................................................................11
2.5 MOTIVATION OF SALES FORCE ...................................................................................12
2.6 CONTROL AND SUPERVISION OF THE SALES FORCE.................................................13
2.7. EVALUATION OF PERFORMANCE ...............................................................................14
CHAPTER THREE ................................................................................................................18
3. Research Methodology.........................................................................................................18
3.1. Research Design................................................................................................................18
3.2. Type and source of data.....................................................................................................18
3.3 Method of sampling technique ............................................................................................18
3.4 Method of data collection....................................................................................................18
3.5 Method of data analysis and interpretation ..........................................................................18
Chapter four...........................................................................................................................19
4. Data analysis presentation and interpretation ........................................................................19
4.1Demographic characteristics of the respondents ....................................................................19
Table 4.1 Demographic characteristics of the respondents ...........................................................20
Table 4.2. Shows the sales forces in Top Mineral Water Factory. .................................................21
Tables4.3 Response forces at Top mineral water Factory .............................................................21
Table 4.4 Resources of sales forces at Top mineral water factory .....................................................22
Table 4.5 How do you treat /give service/ for your customers.......................................................23
Question concerned with organizational management control ..........................................................23
Interview questions for the marketing manager..............................................................................23
CHAPTER FIVE ....................................................................................................................26
5. SUMMARY CONCLUSION AND RECOMMENDATION.................................................26
5.1 SUMMARY..................................................................................................................26
5.2 CONCLUSION.............................................................................................................27
5.3 RECOMMENDATIONS ....................................................................................................27
Reference ................................................................................................................................29
APPENDIX I ...........................................................................................................................31
APPENDIX II ..........................................................................................................................34

vii
List of Table

Table 4.1 Demographic characteristics of the respondents ................................................... 20


Table 4.2. Shows the socio-demographic ........................................................................... 21
Tables4.3 Response forces at Top mineral water Factory ..................................................... 21
Table 4.4 Resources of souse forces at right mineral mater factor ............................................ 22
Table 4.5 How do you treat /give service/ for your customers .............................................. 23

viii
CHAPTER ONE
INTRODUCTION

1. BACKGROUND OF THE STUDY

In today's highly competitive business environment, having an effective sales force is critical to
the success of any company. The ability and willingness of the sale s force to work towards
achieving the desired goals largely determines the success of the selling organization (Palmer
and Catherine 1994; p19.). While in the past, the role of sales force was not as important, it has
become increasingly vital in the modern era. In the production-oriented era, there was excess
demand for products, and companies did not prioritize having a qualified sales force. However,
as demand decreased, the promotional efforts of companies failed to attract customers, and
effective and qualified sales forces became necessary (palmer and Catherine 1995 p.20). Sales
forces are found both in profit and nonprofit making organizations and used as the company’s
link to its customer sales force are representative who brings much informatio n about the
customers to the company. A carefully planned and systematic managing and evaluating sales
force performance is essential for the successful implementation of the sales objectives. Policies
and programs of an organization, hardworking and high caliber sales force is of prime
importance for an organization to be successful in the modern competitive business world.

Today, all business organizations recognize the importance of having an effective sales force and
invest heavily in recruiting, selecting, training, motivating, supervising, controlling, and
evaluating their sales teams. Personal selling is evidence of the importance of sales, not only by
its universal use and variety of forms, but also by the obvious fact that without it, the marketing
mechanism would break down (PKSAHU and KL KAUT 2003 P 174). It is necessary or
important to say that managing and evaluating sales force performance will be an important
aspect of the organization, the quality of sales force has influence on the performance of the
organization, effective sales force should possess good personality, product knowledge and
customer psychology because the success of sales person depend s on the extent of his ability to

1
impress a customer and through knowledge of the product makes every sales person efficient
and successful in this job. So, every company should have effective recruiting, selecting,
training, supervising controlling and evaluating procedure. Therefore, the student researches will
assess the company ability in managing and evaluating sales force performance.

1.1 Background of the organization

Top Water Company is located on the outskirts of Addis Ababa Oromia special zone
particularly around Tatek Geffersa Nono area – some 18 kilometers from the capital Addis
Ababa. This company was established nine years ago. I.e., in 1999 E.C but it has started to
operate in 2003 E.C at the beginning it had started the business with 73 workers with an
initial capital of 12 million. But now a day the number of workers rose to 104 and its capital
was remarkably grown to 30 million birr.

It produces three different sized packed water small medium and big and the num ber of
packed waters produced per day its 1800 from each size totally 5400 packs of water the
researcher has decided to know how the business were grown at an accelerating rate and the
force has played in increasing the sales volume of its product.

1.2 Statements of the problem

Assessment of managing and evaluating sales force performance should not be ou tlooked, in
our country. The practice of effective managing and evaluating sales force performance was not
developed when compared with developed countries. In earliest time special attention was, given
to production. But now in the period of stiff competition special attention turns to identifying
customer’s needs and wants and exerting the maximum efforts to satisfy customers and to be
competent in the market. For this there must be effective sales force. Hence, Top water company
being was one of the companies working in the country is not unique and suffering from the
problem. So this research would be conducted at the organization by assessing the company’s
ability in managing and evaluating sales force performance. According to the manager of the
company, there is no research conducted based on this study. Therefore, this inspires the
researcher to conduct this study on this particular company.

2
1.2.1Research Questions
✓ How the company is currently managing and evaluating its sales force?
✓ How does the company recruit, select, Trans, supervise motivate and evaluate sales
force?
✓ What factors are affecting company’s sales force management and evaluate?
✓ What should be done to improve the company’s sales force management and evacuation?

1.3 Objective of the study

1.3.1 General objective

The objective of the study would be to assess the company’s ability in managing and
evaluating sales force performance.

1.3.2 Specific Objective

The specific objective of the study was including the following points.

▪ To assess whether the company is effective in managing its sales force or not.
▪ To assess the company’s recruitment, selection, training supervision motivation and
evaluation procedures.
▪ To identify the factors that affect the company’s sales force management and evaluation.
▪ To forward suggestion that can improve the company’s sales force performance.

1.4Significance of the Study

The study will have many advantages of which the following are some.

▪ It will enable the company to manage and evaluates its sales force performance of the
past and take corrective measures in the future to correct past weaknesses.
▪ It will helpful to the other researches as they used the study as the bench mark for their
research to be carried out for future time.
▪ T helps the sales force of the company themselves to know there, weaknesses and
strengths to carry out their job in an effective and efficient manner.

3
▪ As a beginner for the researcher the study will provide the necessary basic experience of
the conducting a detailed research process.
▪ The findings of the study will help organization to improve it sales process as a result the
customers will obtains better sales service.

1.5 Scope of the Study

Undertaking the research in a country as a wheel is time consuming and needs much cost to be
incurred therefore this study was limited to assessing and evaluating the sales force performance
in case of top mineral water company, since it was still difficult to conduct the research by
involving all customers of the company. The study highly depends on census technique since;
the populations who are targeted for respondent are simple in number. So the research would
take all the population as a respondent.

1.6 Limitation

Time constraint

During the collection of the data there is shown time constraint because data collection and
interpretation has been taken more than the given period that is 5-10 days this is considered as
the major limitation.

Financial constraint

The cost is to be spent on the research highly costly and the faculty. Did not share any cost for
this research.

Limitation the study

Assessment on managing and evaluating sales force performance in case of Top mineral water
company there were many difficulties and different problem I faced thus, could be time, money
and willingness of the respondents to sick the appropriate information.

1.7 Organization of the Paper

4
The overall content of this study can be described as follows. Th e first chapter of the study was
include background of the study back ground of the organization, statement of the problem,
objective of the study, significance of the study and scope of the study.

The second chapter was dealing with literatures review part. The third chapter was explain with
the research methodology part including, source and types of data method of data collection,
method of sampling and method of data analysis and in perpetration.

The fourth chapter includes result and discussions, finally the fifth chapter would be making a
conclusion and forwarding possible recommendations. Generally the result of this study would
classify into five chapters as stated above.

5
CHAPTER TWO
2. LITERATURE REVIEW

This chapter reviews theories and concepts that are related to managing and evaluating sales
force performance which has considered the research to proceed easily.

2.1 OVERVIEW OF PERSONAL SELLING

The nature of personal selling jobs and the role of personal selling can vary from one company to
another. Therefore, it is important to assess the company's ability to manage and evaluate sales
force performance. Sales force management involves the analysis, planning, implementation, and
control of sales force activities. This includes designing sales force strategy and structure,
recruiting, selecting, training, compensating, and supervising the firms' salespeople ; (1996; p
532).

The term "salesperson" encompasses a wide range of positions, from retail clerks to engineering
salespeople who work with client companies. Sales force management involves the analysis,
planning, implementation, and control of sales force activities. This includes designing sales
force strategy and structure, recruiting, selecting, training, compensating, a nd supervising the
firms' salespeople.

Designing sales recruiting and training

Force strategy and structure → selecting sales people → compensating sales people →
supervising sales people → evaluating sales people Major steps in sales force management

As an element of the marketing mix the sales force is very effective in achieving certain
marketing objectives and carrying out such objectives as prospecting, communication selling and
serving and information gathering. A market oriented sales force need skills in marketing
analysis and planning in addition to the traditional selling skills; (Kotler: p 533).

6
The success of any selling organization largely depends on the ability and willingness of
the sales force to work towards achieving the desired goals. Sales forces are found in both profit
and non-profit organizations. Today, all business organizations recognize the importance of
having an effective sales force and invest significant resources in proper recruitment, selection,
training, motivation, supervision, and evaluation. The importance of personal selling is evident
not only by its universal use and variety of forms, but also by the fact that without it, the entire
marketing mechanism would break down (Kotler: p 533).

The sales force should possess good personality, product knowledge of customer
psychology because the success of the sales personal depends on the extent of his ability to
impress up on the customers and a thorough knowledge of the product makes very sales person
efficient and successful in his job and strengthen his self -confidence so every company should be
careful in selecting sales force careful selection could be followed by, recruitment, training has to
be followed by compensation plan contentment, efficiency and loyalty of sales force are closely
related with the method by which the selling efforts of the sales force are compensated for
having effective management and evaluation of a sales force every company uses the following.

2.2 SALES FORCE MANAGEMENT

✓ Recruitment and selection


✓ Training of a sales force
✓ Motivation of sales force
✓ Central and supervision of a sales force
✓ Evaluation of performance

2.2.1 RECRUITING AND SELECTION


Recruiting and selecting the right people for the right job is crucial for all organizations. The
quality of the sales force directly influences the performance of the organization. Recruitment of
the right type of salespeople possessing all the essential qualities in sufficient number is
necessary to carry out the selling activities of an organization. A sound recruitment policy is
essential in achieving organizational goals and objectives in a planned and systematic manner ;
(PK SAHU and KC RAUT: 2003; p 175).

7
Recruitment and selection are closely related terms and considered as two sides of the same coin.
Recruitment is the process where the prospecting candidate are found and encouraged to apply.
On the other hand selecting is the process of choosing a few out of the total large reserve. So,
provided by recruitment, selection is the process of weeding out or reflecting the misfits. Thus, it
can be said that selection is the step following recruitment is positive in approach, whereas
selecting is negative by its function, thus clearly distinguished between the two.

2.2.2 IMPORTANCE OF RECRUITMENT


Recruitment of sales personal is an endless job for any organizations. Recruitment of the right
type of sales people possessing all the essential qualities in sufficient number are necessary to
carry out the selling activities of an organizations. This is totally dependent on a sound
recruitment policy. It has been rightly pointed out that sales person is spear head of any business.
The aim of any recruitment policy should always be to the right man job. Otherwise recruitment
became a burden on the organization. Good recruitment policies build a stable and efficient work
force and helps in achieving organizational goal and objectives in a planned and systematic
manner. Good recruitment policies also reduce the works of the management by considerably
reducing the supervising responsibilities. In sum a good sales force once recruited, contributes
significantly to increased sales as well as higher profit of an organization. This increases the
sales manager as the cleared of the sales force; (PK SAHU KC. RAUT: 2003; p 176)

Recruitment of sales person is considered as an endless job any organization. The need for
continuous recruitment is felt because of the following reasons.

1. To replace the vacancy created


2. To cope up with expansion programs

2.2.3. THE PROCESS OF RECRUITMENT

Recruitment of a sales force involves certain steps or processes these are:-

1. Analysis of the job to be done by the salesman


2. Determination of the characteristics and qualities to be possessed by a sales person
(personal analysis)

8
3. Tapping the various source of recruitment.
4. Appointment agreement

All these steps or process are basically sequential and at most care is needed at each step in order
to select the right man for the right job success or failure of an organization depends a lot on the
type of sales man selected.

Therefore, selection must be made very carefully; (PK RAUT: 2003; P 175).

2.3. CAREFUL SELECTION

After candidates have been solicited for the job using various sources of recruitment, the sales
manager must take steps to select the best possible candidates as salespeople. The main purpose
of selection is to find the right person for the right job in an organization. The selection
procedure adopted usually varies from firm to firm, depending on the management and sele ction
policy of the organization, however, in general, as (PK SAHU and KC RAUT: 2003; p 181).
Describes the usual procedure adopted for selecting candidate as sales person is as follows: -

2.3.1 PROCEDURES OF CAREFUL SELECTION


A. Application blank

It is a form of application submitted by the person in search of a job usually this contains a
number of questions having blank spaces to be filled by the applicant, the question so included
are framed in such a way that answer to them would give a clear idea abo ut the candidates as
sales man as follows.

i. Personal data sheet


ii. Hob description sheet
iii. Man specification sheet

The personal data sheet is to be filled up by the applicants; it contains questions seeking
information about all possible personal data about the candidate which are considered essential
for the job.

9
A job description sheet or job analysis outlines the specific job responsibilities, activities, and
authority related to the job only, not any individual. A person specification sheet indicates the
specific requested qualities usually related to educational qualifications, experiences, physical
fitness, mental aptitude, and personality. The number of personal interviews conducted depends
on the type of job being interviewed for (PK SAHU AN KC RAUT; 2003; p 182).

B. References

In almost all cases, candidates are required to provide the names of two or three individuals who
can act as referees. Reference information may relate to the integrity, character, educational
qualifications, previous experience, and more of the candidate. After receiving the references
provided by the candidate, it is one of the important duties of the sales manager to verify the
general character and ability of the applicant concerned from the reference. The sales manager
can also ask for confidential reports about the candidates. Sometimes, telephone calls or personal
inquiries can be made from the reference to obtain correct and accurate information about the
candidates. Personal contact is one of the best ways to obtain honest an d frank opinions from the
reference, as people are more frank orally than in writing; (PK SAHU AN KC RAUT; 2003; p
182).

C. Personal interview

Personal interview is the most common as well as important stage in the selection process. It is
used to weed out the misfit or unfit candidates. The interview should start with friendly and
cordial welcome to put the candidates at ease and the atmosphere should be relaxed. The
interview should begin with routing questions which generally expected by the candidates.

D. Psychological test

This test help the organization in measuring the candidate’s ability, attitude, interest and capacity
from an integral part of such psychological test intelligence test usually measures the mental
capacity knowledge, memory fact etc. of the candidate.

E. Medical examination

10
The next step in selection procedure is the physical examination of the candidates. To be
efficient, a sales man is required to possess a good health. The candidate is medically examined
by a panel of company doctors who certify his/her fitness; (PK SAHU AN KC RAUT; 2003; p
182).

F. Final interview

Here all the information regarding the qualification experience, reference of the candidates and
the formal test helps to arrive at a final decision. Thus is a formal interview to the candidate
during this the candidates may be asked about the willingness to accept the job and term and
condition; (PK SAHU: 2003; p 183).

2.4. TRAINING OF SALES FORCE

For both in acquired abilities proper training is essential for effective sales performance. Since
training make man perfect, even new born sales people need formal training. Training enables
the sales force of an organization to perform their duties in the most efficient manner and
according to the need of our; (Kotler: 1996; p 539).

According to C.L. Hudson, training is a learning process that is specifically directed towards
acquiring and developing specific attitudes and skills for the successful carrying out of specific
objectives and tasks. Newly selected salespeople, however efficient they may be, need some
formal training. Even the existing sales force needs training from time to time to acquaint
themselves with new products and selling techniques; (PK SAHU: 2003; p 184).

Importance of sales training includes improving sales performance, to influence prospect in a


better way, provides expert knowledge, reduce wastage, control and supervision, low turnover
sales force and so on. There are methods of involves four steps. These are:-

i. Telling the sales personals what to do


ii. Showing them how to do it
iii. Let them to do it
iv. Monitoring and controlling their work

11
As (PK SAHU: 2003; p 185) states, there are a number of sales training method out of which a
company may choose its own method depending up on sweat, ability and requirement. These
are:-

✓ Initial training
✓ On the job training
✓ Institutions
✓ Correspondence training
✓ Sales manual
✓ Sales meeting and conference
✓ Visual training
✓ Role playing
✓ Brain storming
✓ Field training

2.5 MOTIVATION OF SALES FORCE

It is observed that in spite of having best possible sales force, many organizations have failed to
achieve the sales objectives because of lack of motivation within the sales force. Therefore,
performances of the sales force is determined by two factors

1. Level of ability to work and


2. Level of motivation

While the ability of the sales force is governed by education and training willingness to perform
can be affected by the factors influencing sales force behavior. A thoroughly motivated sales
force, infect, is able to achieve greater selling efficiency in the form of higher sales volumes. A
motive is an idea, a need or an emotion within an individual which incites to action.

It can be aroused by some external influence or incentive or stimuli such motivations for the
sales force are highly essential in order to put the firm on the road to progress and prosperity;
(MICHAEL J. BAKER: 1996; P 305).

12
Motivation is the process of stimulating people to perform in order to accomplish desired goals
(William Scott). The need for motivation arises due to the following reasons.

• Improve efficiency,
• Receive the tension keep the sales force happy, and
• Human treatment

There are a number of tools of motivation. They are incentive remuneration, promotion, personal
contact, correspondence, sales contest and sales conference.

2.6 CONTROL AND SUPERVISION OF THE SALES FORCE

In an organization, the success of planning largely depends on the efficient supervision and
control of the sales force. It is an important aspect of sales force management to ensure that the
activities of the sales force are properly supervised and controlled to ensure that the job is done
properly and efforts are made towards achieving the sales objectives. An organization may have
a talented and efficient sales force with an adequate training and compensation plan, but unless
the activities of the sales force are properly supervised and controlled, it is hardly possible for the
organization to achieve its sales targets; (MICHAEL J. BAKER: 1996; P 307).

Therefore, a continuous evaluation of the performance of each sales force is essential for the
following reason

✓ To measure the performance in comparison to the planned target.


✓ To recognize efficient sales people and suitably reward them for their effort and hard
work.
✓ To guide the sales force
✓ To identify inefficient sales people measurement of the performance of each individual
sales man can be made with the help of the following six methods as painted by pro. H.E
YOSDAL, in these book principles of personal selling.
They are:-
A. Volume of sales
B. Relation of sales to quota
C. Expense In relation to sales
13
D. Call and sales
E. Number of call and relation of calls to sales
F. Other records

The management can obtain information about sales representatives in several ways:-

1. Sales plan report


2. Personal observation
3. Customer letters and complaints
4. Customer survey and conversation with other sales representatives; (Kotler: 1996; p 563)

We have thus for described how management communicate what sales people should be doing
and how it motivates them to do it.

Control is the process of trying to achieve conformity between goals and avoid actions
controlling is an act of checking and verifying an act to know whether everything is taking place
in accordance with the predetermined plan. The process of controlling consists of the following
step.

i. Establishing standard or measures for performance


ii. Measuring and recording of actual performance
iii. Compiling actual with the planned measures to find out the deviations
iv. Taking corrective measures

The need for exercising control and supervision in a sales organization are to: - improve
efficiency in saving, evaluate the performance, coordinate effort, and guide the sales force. Thus,
control is one of the important ingredients for the success of the sales department. Therefore, an
effective method of supervision direction and control of the sales force is extremely important in
order to secure the most productive and economic performance from the establishment of sales
territories and sales quotas are the specific control devices by which the sales manager exercise
control on the sales people.

2.7. EVALUATION OF PERFORMANCE

14
The work of sales force in general and the individual sales man should be continuously evaluated
by the sales organization. When the sales force is aware that the management is having a
constant watch over the selling activities and keenly observing the sales reports for jading their
efficiency and merit, their level best and put extra effects.

This process requires good feedback. And good feedback means getting regular information
from sales people to evaluate their performance.

Source of information

Management gets information about it sales people in several ways. The most important source
is the sales report. Additional information comes from personal observation customer letter and
complaints, customer surveys, and talks with other sales people; (Kotler: 1996; p 545).

Sales reports are divided into plans for future activities and written reports of completed
activities. The work plan describes intended calls and routing. From this report, the sales force
plans and schedules activities. It also informs management of where the salespeople are and
provides a basis for comparing plans and performance. Salespeople can then be evaluated on
their ability to plan their work and work their plan. Sometimes, managers contact individual
salespeople to suggest improvements in work plans; (Kotler: 1996; p 545).

Companies also are beginning to require their sales people to draft annual territory marketing
plans in which increasing sales from existing accounts. Formats vary greatly some ask for
general ideas on territory development others ask for detailed sales and profit estimates such
reports cost sales people as territory marketing managers. Sales managers study these territory
plans, make suggestions, and use the plan to provide sales quota; (Kotler: 1996; p 545).

Sales people write up their completed activities on call reports. Call reports keep sales
management informed of the sales person’s activities, show what is happening with each
customer account and provide information that might be useful in later calls. Sales people also
turn in expense reports for which they are partly or new business lot and local business and
economic condition.

15
These condition reports supply the raw data from which sales management can evaluate sales
force performance. Are sales people making too few calls per day? Are they spending too much
money on entertainment? Are they founding enough new customers and holding on to enough
old customers?

Using sales force reports and other information, sales management formally evaluates members
of the sales force formal evaluation produces four benefits. First, management must develop and
communicate clear standard for judging performance second management must gather well
rounded information about each sales person. Third, sales people receive con structive feedback
that helps them to improve future performance. Finally, sales people are motivated to perform
well because they know they will have to sit down with the sales managers and explain their
performance.

Comparing sales peoples performance

One type of evaluation compares and ranks the sales performance of different sales people. Such
comparisons can be misleading; however sales people may perform differently because of
difference in territory potential, work load, level of competition, company promotion effort and
other factors.

Furthermore, sales are not usually the best indicator of achievement. Management should be
more interested in how much each sales person contributed to new profit, a concern that requires
looking at each sales person’s sales mix and expenses; (Kotler: 1996; p 546).

Comparing current sales with the past sales

A second type of evaluation is to compare a sales person current performance with past
performance. Such a comparison should directly indicate the person’s progress.

Qualitative evaluation of sales people

A qualitative evaluation usually looks at a salesperson's knowledge of the company, product,


customer, territory, and tasks. Personal traits such as manner, appearance, speech, and
temperament can also be rated. The sales manager can also review any problems in motivation or
compliance. Each company must decide what would be most useful to know and communicate

16
these criteria to salespeople so that they understand how their performance is evaluated and can
make an effort to improve it; (Kotler: 1996; p 547).

17
CHAPTER THREE
3. Research Methodology

3.1. Research Design


This research was a descriptive design so that the researcher was describing the variables under
study in their setting.

3.2. Type and source of data


In conducting this research both primary and secondary data were used. The primary data was
collected from the interviewing company’s sales force marketing manager. The secondary data
was obtained from related books, company broacher, sales manual, sales report, executive
summary and other written materials.

3.3 Method of sampling technique


The target population of the study was the marketing department of Top mineral water company
especially the sales force of the company the study was censes method. This method takes the
employees of marketing department of Top mineral water company, the sales force in marketing
department permanent employees with its members 13.

3.4 Method of data collection


The primary data was collected through both open ended and close ended questionnaire. The
questionnaire helps to increase the response rate by providing easier response way. Interview
schedule was developed and used for the overall control manager and marketing manager.
Secondary data was obtained from company documents.

3.5 Method of data analysis and interpretation


The collected data first was sorted to facilitate for proper analysis, then for proper analysis a
descriptive technique was used, and censes data was used for percentage calculation, and
tabulation of data was used for percentage the result. The tool facilitates the process of
comparison and summation. The processed and analyzed data was interpreted based on the
common patterns identified through the data analysis.

18
Chapter four
5. Data analysis presentation and interpretation

This section deals about analysis and interpretation that were collected from employees and
manager of the company. The analysis of the data is based on the respondent’s respective
response to summarize the finding.

To assess of company ability in managing and evaluating sales forces performance of the Top
mineral water factory, the researchers distribute the questionnaires to the employees of the
company as well as the personal interview questions were prepared to the manager of the
company.

To collect from the respondents, 13 questionnaires to the employees of the company, all
distributed questionnaires are collected successfully.

The data presentation was interpreted as follows:

4.1Demographic characteristics of the respondents


To analyze the data the researcher presented demographic question s to the employees of the
company. The data was analyzed as follows:

19
Table 4.1 Demographic characteristics of the respondents
No. Variable Category Customer response in
No. Percentage (%)
• Sex Male 8 61.53
Female 5 38.46
Total 13 100%
• Age 18-25 4 30.76%
26-35 5 38.46%
36-45 3 23%
Above 50 1 7%
Total 13 100%
• Level of Primary - -
education Secondary 1 8%
Certificate 3 23%
Diploma 5 38%
First degree 4 31%
Total 13 100%
• Work <1 year 3 23%
experience 1-5 years 6 46%
5-10 years 4 31%
>10 years 0 0%
Total 13 100%
Source questionnaire 2023

This study enrolls 13 sales forces at Top Mineral Water Factory from selected 13 total target
populations. There were 8(61%) males and 5(38%) female’s sales forces participated in this
study. Nearly half of sales forces were diploma and in their education followed by 3 certificate
and 1 secondary school graduates. Only ones sales force was with degree level of education.
Workers were with five to ten years of work experience in the company. There is no one in Top
mineral water company that has a work experience of more than ten years.

20
Table 4.2. Shows the sales forces in Top Mineral Water Factory.
Items No respondent Percentage

Is that your salary is enough or


match with your expediture

Very enough 2 15%


Enough 4 31%
Not enough 7 54%
Total 13 100%
Source: own survey 2023

The above table indicates, that 2(15%) of the respondents stated that their salary is very enough
to cover their expenditures, where 4(35%) of the respondents said their salary is enough as to
cover their expenditure. However, the rest 7(54%) of the respondents informed that their salary
was inadequate, when compared to the expenditure they made.

Tables4.3 Response forces at Top mineral water Factory


Item No respondent Percentage
Does your salary motive
you to work well
Yes 8 61.53%
No 5 38.46%
Total 13 100%
Source; own survey 2023

21
Motivating factor for them to do well in their job.

The respondent also added other factory such as job. The above table indicates that out of the
total respondents, 8(61.54) are motivated to work well because their salary is satisfactory. The
rest of respondents, more specifically 5(38.46%) indicated that their salary does not really
motivate them. Experience in the respective work area and their love to their work makes them
to do well in their work besides their salary.

Among the reasons mentioned as to they are happy majority of them said personal selling gives
them a chance to help customers to buy by understanding the customer. Need & presenting the
advantage & disadvantage of their products.

Table 4.4 Resources of sales forces at Top mineral water factory


Item Respondent Percentages
Are you happy on your job
position
Yes 7 54%
No 6 46%
Total 13 100%
Source, own survey 2023

As shown in the table above, 7(54%) of the respondents where happy on their job position and
the other 6(46%) of the respondents where not happy by their position. From this, we can
conclude that most of the respondents were happy by their job positions. Additionally strong
relationship with their customer that from the basis for a competitive advantage was mentioned
as a reason for their happiness at work.

22
Table 4.5 How do you treat /give service/ for your customers
Response No respondent Percentage %
Strategies for treating According to manager 8 61%
customers order
On basis of my self 1 8%
Both 4 31%
Total 13 100%
Source own survey 2023

The above table indicated that 8(61%) respondents of sales force were treating their customers in
accordance with their managers’ order, 1(8%) respondent gave service on the basis of their own
strategy and 4(31%) were using both approaches of handling their customers.

Question concerned with organizational management control


➢ What type of mechanism do you use to control the sales forces performance?
• The employee replied that through recording data properly and customer profile
➢ Are there any complaints from customers?
• The employee replied that on the quality of the product lack of distribution in their product
➢ What mechanism do you use to attract new customers?
• The employees replied promotion, advertising, sales on different exhibitions.
➢ Do you have enough service to your customers?
The employees replied that they have enough service for their customers, by adding extra
time with working time sometimes service by order plan.
➢ What do you recommend for the sales force performance improvement of the
organization?
• The employees replied that as organization must be produced branded and standardized
product to local and export markets.
• The sale is the key core for the firms (organization) so that controlled and scheduled day to
day.

Interview questions for the marketing manager


Assessing the identifying of an effective control in sales force, training, motivation and
evaluation procedures to the factors that can affect sales force and evaluation

23
• How the companies identify the vital sales force roles?
The manager replied that sales force as the front of the company plays an important role
in meeting the company’s sales target as well as building image.
• How does the company recruit, train, supervise and motivate sales force performance? And
what are the criteria for recruiting and selecting sales force performance?
The manager replied that
✓ Personality
✓ Fitness
✓ Time management
✓ Relationship management are the criteria for recruiting and selecting sales forces in Top
water factory
• What do you think about the importance of these criteria?
The manager replied that its critical and of equal importance. Training has to be
providing to internalize the above criteria.
• What type of training method you use in the factory?
The manager replied that in the factory they give a lot of trainings like, initial training, on
the job training, off the job training and sales meeting and conferences.
• What are the factors that affect the company’s sales force management and evaluation?
The manager replied that motivation and rewards are the factors that affect the company
sales force management and evaluation the next is independent work assignments given
to the employee to improve their quality of service.
• What do you recommend to improve the company’s sales force performance evaluation?
The company manager replied that the objective evaluation with rewarding mechanism.

Discussions

Many firms believe in developing strong and effective controls in administrating sales activities
to gain higher market share. Such administrative controls include policies and practices that are
built around training a salesperson on strategic perspectives, effective supervision of assigned
tasks, providing motivation and cognitive support to sales personnel, developing surveillance
over sales territories and conducting periodical performance appraisals. In Top water factory

24
majority of workers were with diploma level of education that indicate the company should give
a chance for sales force to get higher level of education that would benefit the company.

The payment to workers at Top water factories was no as to their expectations. Managers need to
acknowledge that certain salespeople respond positively to fixed salary plans whereas others
respond positively to incentives (pappas and Flaherty, 2006). The information provided by the
respondent revealed managerial approaches is needed in marketing the payment as to sales force
expectations. So that an incentive to sales force should be considered in order to improve their
performance. Sales manager needs to predict how and alternative and relatively complex
compensation schemes would affect sales revenues and profit, as well as their likely impacts on
sales force morale and turnover (Darmon, 1997). Majority of the workers were happy at their job
because of their enthusiasm to the relational marketing and managers should use this advantage
in order to measure the performance of sales forces.

Sales forces were using so many innovative strategies in attracting new customers that shows
their dedication to work. Majority of them believe their ability to serve their customer this can be
attributed to their devotion to work with the company and honesty in presenting sales effectively.
Even though sales forces have the motive to work with the company absence of training for them
many make them to decline from their regular duty. This shows there should be a training of the
sales team that directed at developing awareness of the advantages of adopting relational
behaviors and boosting capabilities and skills. Continuous evaluation of workers was not
implemented as it is intended by the organization. The system for controlling and appraising the
sales force may be designed for the long term (Schultz and good, 2000) and provide incentives
for relational behaviors, if behavior-based control system are used and utilizing relational
performance indicators is a good approach.

25
CHAPTER FIVE
6. SUMMARY CONCLUSION AND RECOMMENDATION

This chapter serves to summarize and draw a conclusion about the outcomes of the research and
give some recommendation, which could be important for the organization of the research that is
entitled as assessment on managing and evaluate sales force performance. The study involved
raising basic questions, conducting literate review, carrying out relevant interviews, and
distributing over 13 questionnaires. Based on the analysis and findings, the following summaries,
conclusions, and recommendations have been prepared.

6.1 SUMMARY

Although typical organization is making up number of different resources, now in the period of
stiff competition, each company needs to have effective sales force because it occupies an
important place in the sales organization. The success of any selling organization largely depends
on the ability and willingness of the sales force to work towards achieving the desired goals. In
the past, during the production orientation era when there was excess demand, the need for a
qualified sales force was limited. However, in today's market, the role of the sales force is crucial
to the success of the sales organization.

The objectives of this study were to assess whether the company effectively manages its sales
force, evaluate the company's recruitment, selection, training, supervision, motivation, and
evaluation procedures, and identify the factors that affect the company's sales force management
and evaluation.

The research reviewed some important aspects of managing and evaluating sales force
performance, including an overview of personal selling, careful selection, motivation of sales,
controls and supervision of the sales force, and evaluation of performance.

In this finding and analyses parts the research has used research method like deals with results
and discussion of data collected through primary data colocation method, interview, questioner
and the secondary data collection method like documentary evidence. The information gathered

26
through these methods was analyzed and presented in table form to facilitate interpretation of the
data. This section of the research focuses on the assessment of managing and evaluating sales
force performance in the case of Top Mineral Water Factory.

6.2 CONCLUSION

This study reveals that a payment to sales forces at Top mineral water factory was not enough
and that didn’t motivate them to work.

Despite the fact that the payment did not motivate those sales forces at Top water factory they
were happy at their position because of personal selling that gave them a chance to help
customers to buy by understanding the customers’ needs and presenting the advantages and
disadvantages of their products.

High rate of customers compliance was identified by the sales force of the company, because of
the company policy followed such as production oriented strategy of the company as a primary
factor for customers to complain.

Absence of continuous evaluation of workers for sales force to know their position to towards
achievement of company’s strategies and objective was also identified in this study no
refreshment training was conducted for sales forces at Top mineral water factory that would
benefit the company from its workers with personal development.

5.3 RECOMMENDATIONS
Effective management of sales people is important to managers of a give company. Sales
manager may implement such control effectively by establishing coordination, training and
feedback rather than imposing command and control policy. Respondents information revealed
that managing and evaluation of sales force performance are needed. For this the following pints
are forwarded on the basis of findings.

• Salary and compensation for sales personnel should be implemented and it should be a
mix of salary and commission methods. Manager may emphasis more on commission
oriented task as they are liked with performance. A successful sales commission plan
should possess the following three characteristics

27
o The plan should offer an immediate positive reward to the sales person for his
achievement.
o The composition plan linked to the career path should be clear easy to understand.
o It should be relatively free of influence from factors outside the control of sales
personnel
• Sales teams need to be organized in view of territorial attribute such as a critical distance,
density of customers and location of service provider to improve extensive coverage of
customers spread across the operational area. As it is known managers may categorically
monitor and control the task of the sales personnel within the broad frame work of the
sales process to enhance their performance.
• Sales force should participate in collecting basic information about consumers, reference,
joining a prospect of organization, initiating communication, negotiation on the orders,
delivery, pre and post-sales service, organizational benefit and the like.
• The company must consider the relationship between the differing roles of internal sales
personnel and external selling partners, the size of the sales force, its degree of
specialization, and how sales personnel share their effort among different customers,
products and activity. Those variables are critical because they determine how quickly a
sales force a firm responds to the market opportunity, influences performance of sales
personnel and affect the revenue cost and profitability of the firm.
• Manager may define clear sales task to ensure significance results from sales people and
effective performance feedback. A firm may focus on administrating sales activity in four
major process, territory -target- based deployment of the sales force, efficiency in
managing the client accounts working with the improved

28
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Philip Kotler, marketing management 7 thed. New Delhi: India Put Ltd, 1996

PK. Sadhu and KC rout. Salesmanship and sales management 3 rded. New Delhi: vikas publishing
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Darmon, R.Y. (1997) predicting the long-run profit impact a contemplated sales force

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Schultz, R.J. and Good, D.J. 2000, impact of consideration of future sales consequence and
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industrial marketing

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Mullins.W, (2005) Marketing Management. Boston: McGraw-Hill.

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Mooji, (2004) Consumer Behavior and Culture. New delhi: saga publications.

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Shiffman.G&Kanuk.L, (2004) Consumer Behavior. New Delhi:Pearson

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Jordan Hill Ltd.

30
APPENDIX I
UNITY UNIVERSITY
DEPARTMENT OF MARKETING MANAGEMENT

Questionnaires to be filled by Marketing Manager

This questionnaire is prepared by a marketing management undergraduate student from Unity


University. Its purpose is to understand assessment of company ability in managing and
evaluating sales force performance (In the case of Top mineral water company). The data
collected through this questionnaire is relevant and important for obtaining comprehensive
results for the research paper.

Dear respondents.

This questionnaire is designed to assess company ability in managing and evaluating sales force
performance

The questionnaire is prepared by Meryem Oumer, for the partial fulfillment of the requirement of
award of degree in Marketing Management. Therefore, the information which is expected from
the respondents has a great role only for the success of the research. Please assist me in giving
correct and complete information to present a representative finding on the study. Your
participation is entirely voluntary and the questionnaire is completely anonymous.

Finally, I confirm you that the information that you share me will be kept confidential only used
for the academic purpose. No individual’s response will be identified as such and the identity of
persons responding will not be published and released to anyone. All information will be used
for academic purposes only. Thank you on advance for your kind cooperation and dedicating
your time in filling out this questionnaire.

Thank you in advance for your kind cooperation.

Sincerely,

Name: Meryem Oumer

31
Instructions:

1. Before you attempted to answer, please read the instruction.


2. Tick √ for close-ended question provided in part one.
3. You can choose more than one alternative in some question.
4. Write your opinion for open ended questionnaires.
5. Your name is not required.

QUESTUIONNAIRE FOREMPLOYEE

I. Demographic or personal data

1. Sex A. Male B. Female

2. Age A. 18-25 B. 26-35 C. 36-45 D. above 50

3. Educational back ground A. Primary B. Secondary C. Certificate

D. Diploma E. First degree and above

4. Work experience? A. Less than one year B. One up to five years


C. five to ten years D. above 10 years

5. If your salary is enough or match with your expenditure

A. Very enough B. Enough C. not enough

6. Is your salary motivating you o work well? A. Yes B. No

7. If your answer is yes or no please specify the research?

________________________________________________________________________
________________________________________________________________________
_______________________________________________________________________
8. Are you happy on your position / job A. Yes B. No

9. If you say yes or no why


________________________________________________________________________
________________________________________________________________________
____________________________________________________________________
10. How do you treat give service for your customer? n

32
A. According to manager B. On basis of myself C. Both

II. Question concerned with organizational management control

➢ What type of mechanism uses to control the sales forces performance?


---------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------
➢ Are there any complaints from customers?
---------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------
➢ What mechanism do you use to attract new customers?
---------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------
➢ Do you have enough service to your customers?
---------------------------------------------------------------------------------------------------------------
-----------------------------------------------
➢ What do you recommend for the sales force performance improvement of the organization?

33
APPENDIX II

Interview questions for the marketing manager

• How the companies identify the vital sales force roles?


----------------------------------------------------------------------------------------------------------------
--------------------------------------------------------
• How the company recruits, train, supervise and motivate sales force performance? And what
are the criteria for recruiting and selecting sales force performance?
----------------------------------------------------------------------------------------------------------------
--------------------------------------------------------
• What do you think about the importance of these criteria?
----------------------------------------------------------------------------------------------------------------
--------------------------------------------------------
• What type of training method you use in the factory?
----------------------------------------------------------------------------------------------------------------
--------------------------------------------------------
• What the factor that affects the company’s sales force management and evaluation?
----------------------------------------------------------------------------------------------------------------
--------------------------------------------------------
• What do you recommend to improve the company’s sales force pe rformance evaluation?
----------------------------------------------------------------------------------------------------------------
-------------------------------------------------------

Thank you for your time and insights. Your answers will provide me valuables information for
my research.

Thank you

34

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