TITLE

Sales Management Performance Evaluation: A Residual Income Perspective

AUTHOR(S)
Cron, William L.; Levy, Michael
PUB. DATE
August 1987
SOURCE
Journal of Personal Selling & Sales Management;Aug87, Vol. 7 Issue 2, p57
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article discusses the appropriateness of residual income as a measure of sales management's performance. Strategy implementation is of critical importance in the projected slow-growth economy of the 1980s and into the 1990s. Appropriate sales force behavior is critical for effective implementation of marketing strategy. Sales managers and salespeople have traditionally been evaluated on sales volume or sales-based ratios, e.g., sales growth, sales to quota, or market share. Surveys of sales managers suggest these are still the most common measures of sales force performance. The purpose of this paper is to discuss the appropriateness of residual income as a measure of sales management's performance. By including in a single measure both sales growth and profit performance, residual income is shown to be conceptually superior to the most comprehensive sales force profit measure currently used, return on assets managed. Despite slower forecasted economic growth, organizations are unlikely to focus exclusively on profits. This can be seen by examining the successful business strategies of individual firms.
ACCESSION #
6652344

 

Related Articles

  • General managers are linchpins of sales activity. Feiertag, Howard // Hotel & Motel Management;5/21/2007, Vol. 222 Issue 9, p10 

    The article focuses on the different areas that a general manager should focus to achieve growth in its sales activity including planning, organizing and directing. Managers are demanded to create good plans for the property to attain success in the sales operation of their companies. The...

  • The secret is in the... rules of engagement.  // Long Island Business News (7/1993 to 5/2009);3/18/2005, Vol. 52 Issue 12, p21A 

    This article describes the business model titled "Intelligent Engagement," created by the author. The author says that he began to expand and refine it. After two years of personally using the model, he has come to a better understanding of how powerful it really is. This strategy completely...

  • To improve your sales results, focus on improving your focus.  // Hudson Valley Business Journal;6/4/2007, Vol. 18 Issue 23, p10 

    The article presents the author's five-step process for improving sales results. According to the author, the process works for individual business leaders and commissioned sales personnel. A list of the things that are distracting should be created. The most important objectives must be...

  • Committing to the Sales Process. Kelley, Iris // Cleanfax Magazine;Oct2013, Vol. 28 Issue 10, p42 

    The article offers the author's insights regarding the importance of commitment on sales processes. The author states that this commitment will not just enhance the effectiveness of sales representatives on their daily sales activities but it can also help them to increase their sales. She...

  • Power Process. Kahle, Dave // Sales & Service Excellence Essentials;Jul2006, Vol. 6 Issue 7, p9 

    The article presents tips on creating a strategic approach to sales. A sales executive should develop standard process which come in two steps: gaining a new customer and expanding business with that customer. Sales people should be equipped by training them properly. Tools should also be...

  • Application of Operations Research to Personal Selling Strategy. Montgomery, David B.; Webster Jr., Frederick E. // Journal of Marketing;Jan1968, Vol. 32 Issue 1, p50 

    Effective application of operations research to selling strategy offers significant opportunities for understanding how the market responds to sales effort and for better strategy decisions. Lack of progress to date may have created premature disillusionment. New information technology will...

  • MARKETING AND SALES STRATEGY REQUIREMENTS FOR COMPETING IN TURBULENT MARKETS. Shipp, Shannon H.; Moncrief III, William C.; Cravens, David W. // Journal of Marketing Management (10711988);Spring1992, Vol. 2 Issue 1, p55 

    Marketing and sales executives are experiencing a new era of intense competition and rapid change in markets. The impact of these changes is particularly acute in the design and management of communications strategies for business-to- business markets. The pressures created by market turbulence...

  • SALESPERSONS' SELLING STRATEGIES: AN EMPIRICAL INVESTIGATION OF THEIR EFFECTS ON BUYER AND SELLER. Tadepalli, Raghu // Journal of Marketing Management (10711988);Spring1992, Vol. 2 Issue 1, p100 

    This paper proposes and tests a model of the antecedents and consequences of role stress among purchasing professionals. The findings suggest that the customer-orientation of salespeople and their use of closed influence tactics are marketer-controlled antecedents of role stress. With regard to...

  • Take The Lead In The Sales Process With These Strategies.  // Customers First;May2013, Vol. 18 Issue 5, p7 

    The article offers tips on the strategies to advance sales in a short time. It suggests that a time limit and benefit must be offered to capture the prospect's attention and to have time to provide the details of the product. It also recommends that developing interest with questions, providing...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sign out of this library

Other Topics