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What is Sales Control?
One of the most important responsibilities of a sales manager is to exercise control over sales and the performance of selling activities. Sales need to be controlled both on an ongoing (continuous) basis as well as overall, periodically.
Sales control function assists the manager in ascertaining which level of sales has been achieved, why there has been a variance, and which remedial action can be taken to achieve the target results.
Purpose of Sales Control
Purpose of Sales Control assists the sales manager in:
- Initiating remedial steps.
- Revising the sales policy and strategies followed.
- Implementing steps for improving the productivity of sales force.
- Improving the quality of target setting sales plans and budget functions.
- Increasing sales profitability.
Sales Control System
A sales control system should be set up on the following guidelines :
- Setting detailed objectives (round key result areas).
- Establishing standards for appraising performance.
- Gathering information on actual sales activities and results.
- Comparing actual with expected.
- Taking remedial action (need-based).
The existence of a comprehensive sales information system in the firm is a prerequisite for an effective sales control system. This can be done by recording sales by value, by the customer, by sales person, by territory, by distribution outlet, by cash or credit.
In addition to invoice other important documents are dispatch notes, customers call reports, daily activity reports, journey plans, sales quotations, sales expenses forum, discount, and allowance records.
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