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sales people sometimes pay inadequate attention as they are caught up in the maze of
everyday activities - many related to individual sales personnel & customer problems they
neglect long term perspectives
To find out strengths and weaknesses, opportunities and threats to the organization.
To locate the defects and take corrective steps to improve the situation
Sales audit
Cost analysis
These tools provide means to a sales management to find out strengths and weaknesses, opportunities and
threats to the organization. By using the above different tools of control, the management can locate the
defects and take corrective steps to remove the shortcomings and improve the situation and tone up the
functioning of his department.
Sales audit
Sales audit is defined as
a systematic, critical and unbiased review and appraisal of the basic objectives and policies of the
selling function and of the organization,
The main purpose of the sales audit is to find out the opportunities for improving the effectiveness of the
sales organization. It also brings out strengths and weaknesses of the individual sales personnel, which
allows the management to take steps to improve their functioning.
There is no standard methods of sales audit. Normally, a sales audit examines six main aspects of a sales
organization. They are
Objectives
(clearly set the objectives. For example if the co is already commanding 15% market share, then the
objective is to increase the share by 10% next year)
Policies
Organisation
(with respect to the structure of the organization, whether the organization has the facilities and
capabilities to achieve the sales objectives. For example, if overstaffed, it may achieve objectives but
profit may fail. If there is a complement of inefficient personnel, then it may fail I its achievement)
Methods
(Management should devise and adopt proper methods and measures to implement the stated policies
and strategies)
Procedures &
(Procedures should be clearly laid down. It should explain how to implement the policy to achieve the
stated objectives. It should clearly assign the responsibility to specified persons who should be
accountable for implementation)
Personnel
(All sales Personnel are subjectively evaluated as to their ability, efficiency and effectiveness in achieving
pre-determined objectives, policies and other aspects of sales operations)
Sales analysis
Sales analysis involves a systematic in-depth study of sales volume operations to find out strengths,
weaknesses, opportunities and threats.
It tries to find out the sales and profit trend, its reason and what steps to be taken for better sales
performance.
It gives information about
Contribution margin