Answer to Question #219398 in Management for Prince

Question

SUBJECT : ADVERTISING AND SALES MANAGEMENT

Discuss both formal methods of sales control (ELABORATE IN DETAIL) and informal methods of sales control (ELABORATE IN DETAIL) ?

Answer 1

Sales control ensures the sales force's productivity, and the mechanism used varies by company. Controlling the sales force keeps them awake, innovative, and active while also ensuring consistency in their operations. Both firms and salespeople require an effective and appropriate sales control system. In sales companies, choosing an effective method of management control is critical to attaining favorable salesperson outcomes. Formal control consists of high levels of output and process control. The development of written sales policies is early evidence of the advent of formal sales controls. Without policies, no business can last long, although smaller businesses can often function satisfactorily even if their policies aren't written down. As the sales organization grows, the parameters within which action is to be taken in specific instances must be clearly defined. A large organization not only has more complicated challenges than a small organization, but it also has a lower likelihood of everyone knowing what to do in every situation. Written sales and marketing policies are required in a large organization to ensure significant uniformity of activity. Uniformity is necessary for both different people dealing with similar difficulties and the same people dealing with comparable problems at various times. Written policies also save time for executives. Because policies have been created, more time may be spent planning and making decisions about issues that are not addressed by existing policies. Sales executives set aside time to deal with "policy exceptions," and if they encounter enough of them, a new policy is established and written down.

There are times when awareness of the changing circumstance and the ability to assess it are sufficient control mechanisms. Effective sales executives have their "fingers on the pulse of the business," which means they have an amazing capacity to spot circumstances that need to be addressed. However, the larger the organization and the higher the sales executive's position in the administrative hierarchy, the more difficult it is to apply "fingertip" control. As the company grows and the sales organization's structure becomes more complex, formal control becomes more important. A growing firm need dependable machinery to supply the statistics necessary for making sound judgments and creating appropriate policies.