Chapter 5: Consumer Markets...For its marketing units
For certain period of time
Annual quotas can be broken down to quarterly and monthly quotas
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Sales forecast---- Sales budget (Sales volume and selling expenses)---- Sales quotas for regions and territories
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Sales Quota
A Quantitative goal assigned to a sales units relating to a particular period of time.
It plan, direct, control and evaluate the activities of a company and their effectiveness.
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Sales Quota
It provides a source of motivation, a basis for incentive, compensation & increasing standards of performance of sales persons.
Sales quotas are set by the sales manager for individual person or a sales district.
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To plan demonstrations
To realize money
To take corrective actions if salespersons fail to achieve their targets
To evaluate the performance of sales persons
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To plan demonstrations
To realize money
To take corrective actions if salespersons fail to achieve their targets
To evaluate the performance of sales persons
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Sales Quota---Purpose
Measurement of performance against quota also helps in identifying the strengths & weaknesses of the sales persons & their performance in qualitative and quantitative activities.
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product lines
Sales volume quotas are set for the entire year
The yearly total volume quota is then set for shorter time periods, such as three months, six months and nine months.
Sales force is assigned their yearly quotas.
Sales targets are set for the year for sales force, so their aim is to sell throughout the year to achieve the total sales objective.
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Sales volume quotas can be set in the following areas
Sales
Volume
Quotas
Ramesh K 56,96,000 57,92.000 96,000 101.7%
Ali Mohd 55,84,000 48,42,000 -7,42,000 86.7%
John Abrhm 60,12,000 60,46,000 34,000 100.6%
Neha Tyagi 43,10,000 43,34,000 24,000 100.6%
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Profit Quota
Used in Multi product Companies Where different products contribute to varying levels of profits .
Concentrate on the high profit products by the sales person
It is tough to establish high profit product in comparison to low profit product but sales force is motivated to spend maximum time on more profitable products/customers.
Otherwise they may be assigned enhance the sale of low margin product to ensure maximum profit.
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volume
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1000000 200 lac
Selling costs .
It is a % of sales volume in a territory
and sales person must spend only
this amount as an expenditure
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EXPENSE QUOTA
This amt of expense can be incurred by a salesperson in carrying out his or her duties in a particular region over a period of time.
Very strict adherence to the expense quota leads to de-motivation of the sales force.
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Selling expenses ± travelling, food, lodging
Customer entertainment expenses
Set objectives for job related duties useful for attaining salesperson performance targets
It refer to the no of selling activities that a
salesperson is expected to perform in his
or her area over a period of time.
Help in attaining long term objectives as
goodwill of the firm
No of dealers visited
No of new accounts opened
No of demonstrations made of the
new product
Commonly used are Sales and activity Quotas
Can be set in combination of the two or three types of quotas discussed above, Rupee Sales Volume Quota, Net Profit Quota, Unit Sales Volume Quota and Activity Quota
It controls performance of both selling and non-selling activities.
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or a Geographical area assigned to a sales unit.
It many or may not have a geographical
boundary.
made
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Determining the Sales potential in control units
Combining the Control units into tentative
territories
tentative territories