Developing a control system to manage sales coverage effectiveness

Abstract

Construction equipment sales companies are faced with ongoing changing critical customer requirements driven by economic conditions and in particular, the exponential growth of the past few years. This has had a tremendous impact on the business requirements requiring operational changes affecting both processes and placing increased pressure on personnel. Furthermore, sales managers within the earth moving industry require an objective approach to the management and measurement of territory sales effectiveness. Therefore, the goal of this study was to determine key determinants of a control system to manage sales coverage effectiveness, and to recommend a model to help sales managers manage sales coverage effectiveness. Sales process improvements, sales management requirements, defined territory sales and quantitative indicators are conceptualised as key drivers of salespersons' performance, improved sales coverage and sales organisation effectiveness. The results of this study indicated a strong relationship between salespersons' outcome performance and sales organisation effectiveness, as long as sales managers implement a sales control system to manage sales coverage effectiveness. Managing sales coverage effectiveness entails a series of processes that ensure salespeople are spending most of their available time selling construction equipment. In order to achieve this, this study focused on the assessment of the sales force perception of the generic issues of sales force management; these include monthly reports, setting sales targets, territory assessment, territory realignment and sales management effectiveness. These findings identify important implications for managers in considering the effectiveness of a sales control system and implementation through sales operations that should impact favourably on an organisation's market share.