Tybba Sem 6

Personal Selling and Sales Force Management

1060201605
Khushboo Lalwani

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 UNIT 4 Targets and Sales Management

Contents
4.1 Meaning of Target ............................................................................................................................. 4
 Sales revenue .............................................................................................................................. 4
 Sales volume ............................................................................................................................... 4
 Market share ............................................................................................................................... 4
 Customer acquisition .................................................................................................................. 4
4.2 Objectives of using Target................................................................................................................. 4
 Providing a clear focus ................................................................................................................ 4
 Measuring performance ............................................................................................................. 5
 Motivating individuals and teams ............................................................................................... 5
 Aligning efforts with organizational goals................................................................................... 5
 Improving decision-making ......................................................................................................... 5
4.3 Types of targets................................................................................................................................. 5
 Sales revenue targets: ................................................................................................................. 5
 Sales volume targets: .................................................................................................................. 6
 Margin targets:............................................................................................................................ 6
 Market share targets: ................................................................................................................. 6
 Customer acquisition targets: ..................................................................................................... 6
 Customer retention targets: ....................................................................................................... 6
 Sales activity targets ................................................................................................................... 6
4.4 Steps for setting target procedures:- ................................................................................................ 6
 Define the objective .................................................................................................................... 7
 Gather data ................................................................................................................................. 7
 Determine the timeframe ........................................................................................................... 7
 Set the target: ............................................................................................................................. 7
 Establish a plan ........................................................................................................................... 7
 Assign responsibilities ................................................................................................................. 7
 Monitor progress ........................................................................................................................ 7

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  Celebrate success ........................................................................................................................ 8
4.5 Administering target setting procedure ........................................................................................... 8
 Communicate clearly .................................................................................................................. 8
 Involve stakeholders ................................................................................................................... 8
 Train personnel ........................................................................................................................... 8
 Monitor progress ........................................................................................................................ 8
 Evaluate effectiveness ................................................................................................................ 8
4.6 Difference between Goals and Targets............................................................................................. 9

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4.1 Meaning of Target

In sales force management, a target refers to a specific sales goal or objective

that a salesperson or team is expected to achieve within a certain period of time.
Targets are typically set based on the organization's overall sales goals and are
designed to help ensure that individual sales efforts are aligned with these
broader objectives.

Targets in sales force management may be expressed in a variety of different

ways, such as:

 Sales revenue: The total amount of revenue that a salesperson or team is

expected to generate within a given period of time.
 Sales volume: The total number of products or services that a salesperson
or team is expected to sell within a given period of time.
 Market share: The percentage of total sales in a particular market that a
salesperson or team is expected to capture within a given period of time.
 Customer acquisition: The number of new customers that a salesperson
or team is expected to acquire within a given period of time.

Targets in sales force management are typically set based on a variety of

factors, such as past performance, market trends, and the overall sales strategy
of the organization. They are used to motivate salespeople, measure
performance, and provide a clear focus for sales efforts.

4.2 Objectives of using Target

The objectives of using targets in various contexts can include the following:

 Providing a clear focus:

Targets can help individuals and teams to stay focused on achieving specific
goals or objectives, which can help them to prioritize their efforts and work
more efficiently

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  Measuring performance:

Targets can be used to measure performance and determine whether

individuals or teams are meeting their goals. This information can be used to
identify areas for improvement and adjust strategies as needed.

 Motivating individuals and teams:

Setting targets can help to motivate individuals and teams to work harder and
more effectively, as they have a clear goal to strive towards.

 Aligning efforts with organizational goals:

Targets can be used to align individual and team efforts with broader
organizational goals, helping to ensure that everyone is working towards the
same objectives.

 Improving decision-making:

Targets can provide useful information that can be used to make informed
decisions about resource allocation, strategic planning, and other important
aspects of business operations.

Overall, the use of targets can help individuals and organizations to achieve
greater focus, efficiency, and effectiveness in their efforts to achieve specific
goals and objectives.

4.3 Types of targets

In sales force management, there are several types of targets that can be used to
measure and drive performance. Here are some common types of targets in
sales force management:

 Sales revenue targets:

These are targets that focus on the total amount of revenue that a salesperson or
team is expected to generate within a given period of time.

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  Sales volume targets:
These are targets that focus on the total number of products or services that a
salesperson or team is expected to sell within a given period of time.

 Margin targets:
These are targets that focus on the profit margin that a salesperson or team is
expected to achieve on the products or services they sell within a given period
of time.

 Market share targets:

These are targets that focus on the percentage of total sales in a particular
market that a salesperson or team is expected to capture within a given period of
time.

 Customer acquisition targets:

These are targets that focus on the number of new customers that a salesperson
or team is expected to acquire within a given period of time.

 Customer retention targets:

These are targets that focus on the percentage of existing customers that a
salesperson or team is expected to retain within a given period of time.

 Sales activity targets:

These are targets that focus on the number of sales activities, such as phone
calls, emails, or meetings, that a salesperson or team is expected to complete
within a given period of time.

Overall, targets in sales force management are used to motivate salespeople,

measure performance, and provide a clear focus for sales efforts. The specific
type of target used will depend on the organization's overall sales goals and
strategy.

4.4 Steps for setting target procedures:-

Here are some steps for setting target procedures:

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  Define the objective:

Start by clearly defining the objective or goal you want to achieve. This could
be a financial target, a market share target, or a customer acquisition target, for
example.

 Gather data:

Collect and analyze data related to the objective to help you understand the
current situation and identify areas for improvement. This could include sales
data, market research, customer feedback, or other relevant data.

 Determine the timeframe:

Decide on the timeframe for achieving the target. This could be a quarterly
target, an annual target, or a longer-term target.

 Set the target:

Based on the objective, data, and timeframe, set a specific and measurable
target that is challenging but achievable. Make sure the target is clearly
communicated to all relevant stakeholders.

 Establish a plan:

Develop a plan for achieving the target, including specific actions and
milestones that need to be accomplished along the way. Identify the resources
needed to achieve the target, such as personnel, equipment, or funding.

 Assign responsibilities:

Assign responsibilities for achieving the target to specific individuals or teams,

and establish clear expectations for their performance.

 Monitor progress:

Regularly monitor progress towards the target and make adjustments as

necessary. Use data and feedback to evaluate the effectiveness of the plan and
make changes as needed.

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  Celebrate success:

Celebrate when the target is achieved, and recognize the efforts of those who
contributed to its achievement. This will help to motivate and engage
individuals and teams to continue striving towards future targets.

Overall, setting targets requires careful planning, data analysis, and

collaboration across the organization. By following a structured process, you
can help ensure that targets are set effectively and achieved successfully.

4.5 Administering target setting procedure

Administering the target setting procedure involves implementing the steps
outlined in the target setting process in a systematic and consistent manner.
Here are some key considerations for administering the target setting procedure:

 Communicate clearly: Ensure that all relevant stakeholders are aware of

the target setting procedure and understand their roles and
responsibilities. Clearly communicate the objectives, data, timeframe, and
targets to be achieved, as well as the plan for achieving the targets.
 Involve stakeholders: Involve stakeholders in the target setting process,
including sales teams, managers, and other relevant personnel. Encourage
participation and feedback to help ensure that targets are realistic,
achievable, and aligned with organizational goals.
 Train personnel: Provide training and support to personnel involved in
the target setting process, such as sales managers or team leaders. This
can help to ensure that the process is consistently and effectively
implemented across the organization.
 Monitor progress: Regularly monitor progress towards achieving the
targets, and provide feedback and support as needed to help individuals
and teams stay on track. This can include regular performance reviews,
coaching and mentoring, and ongoing communication.
 Evaluate effectiveness: Periodically evaluate the effectiveness of the
target setting procedure, using data and feedback to identify areas for
improvement. Make changes as needed to improve the process and ensure
that it remains relevant and effective over time.

Overall, administering the target setting procedure requires strong

communication, collaboration, and ongoing monitoring and evaluation. By
effectively implementing the procedure, organizations can set and achieve
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challenging but achievable targets that drive performance and support their
overall goals and objectives.

4.6 Difference between Goals and Targets

While targets and goals are often used interchangeably, there is a subtle
difference between the two:

A target is a specific, measurable objective that is set to achieve a larger goal or

objective. Targets are typically short-term and focused on specific outcomes or
metrics, such as sales revenue, customer acquisition, or market share. They are
often used to track progress towards a larger goal or objective.

A goal, on the other hand, is a broader, more general objective that an

organization or individual aims to achieve over a longer period of time. Goals
are often qualitative in nature and may be more aspirational or visionary than
targets. Examples of goals might include increasing brand awareness,
improving customer satisfaction, or entering a new market.

In summary, targets are specific, measurable objectives that are set to achieve a
larger goal or objective, while goals are broader, more general objectives that an
organization or individual aims to achieve over a longer period of time. Both
targets and goals are important for driving performance and achieving success,
but they serve slightly different purposes and require different approaches to
achieve.