Definition A quota refers to an expected performance

objective.Quotas are tactical in nature and thus

derived from the sales force’s strategic objectives.

Individual sales target figure assigned to each sales unit such as sales person, dealer, distributor, region, or territory as required minimum for a specified period (month, quarter, year).

WHY ARE QUOTAS

IMPORTANT?

• Quotas provide performance targets.

• Quotas provide standards.

• Quotas provide control.

• Quotas provide change of direction.

• Quotas are motivational.

A GOOD OBJECTIVE AND

QUOTA PLAN IS SMART

Specific

Measurable

Attainable

Realistic

Time specific

TYPES OF QUOTAS

• Sales volume quotas.

• Profit quotas.

• Expense quotas.

• Activity quotas.

• Quota combinations.

1.SALES VOLUME QUOTASales Volume Quota includes sales in rupees or product unit

objectives for a specific period of time.

e.g. Bajaj calculates sales as number of vehicles sold.

Sales volume quota communicates management’s expectations as to “how much for what period”

It can be set in the following areas:- Geographical areas- Product lines- Product range- Sales territory- Branch offices- Sales force (individual)

2. PROFIT QUOTA• Gross margin quota determined by subtracting cost of

goods sold from sales volume.

• Net profit quota determined by subtracting cost of goods sold and salespeople’s direct selling expense from sales volume.

3. EXPENSE QUOTAExpense quotas are aimed at controlling

costs of sales units. Often expenses are related to sales volume or to the compensation plan.

4. ACTIVITY QUOTAThe desire to control how sales personnel

allocate their time and efforts among different activities explains the use of activity quotas.

Activity quotas set objectives for job related duties useful toward reaching salesperson’s performance targets.

- Number of sales presentations made- Number of service calls made- Number of dealers visited- Number of new accounts opened

5. QUOTA COMBINATIONCombination of any two or more quota types.The most commonly combined are sales

volume and activity quotas. These quotas influence selling and non selling activities.

METHODS FOR SETTING SALES

QUOTAS

• Quotas based on forecasts and potentials.

• Quotas based on forecasts only.

• Quotas based on past experience.

• Quotas based on executive judgments.

• Quotas set by salespeople.

• Quotas related to compensation.

SELLING BY OBJECTIVES SETS FUTURE TARGETS

Two basic steps to implementing sales strategies:

Step 1: Organize the jobs.

Step 2: Define annual objectives in important areas.

FIGURE 7.2 THE FOUR MAJOR AREAS TO ESTABLISH OBJECTIVES WITH EACH SALESPERSON

Step 1: Organizing the Job

Step 2: Defining Annual Objectives

SALESMANAGEMENT

Salesperson

Account ManagementCall

ManagementSelf-

ManagementTerritorial

management

1. Regular2. Problem Solving3. Innovative

• Portfolio of Accounts• Potentials• Coverage• Records• Order Size• Penetration• Reports• Customer Satisfaction

• Preparation• Selling Technique• Training• Communication• Buyer Behavior• Impact• Handling Resistance

• Appearance• Manner• Communication Skills• Abilities• Attitudes• Selling Abilities

• Limits• Potential Business• Size• Customer Base• Prospects• Leads• Market Share• Growth• Trade Relations• Dealer Relations

SELLING BY OBJECTIVESSelling by objectives (SBO) is the process

whereby the manager and salesperson jointly identify common goals, define major areas of responsibility, and agree on the results expected.

SETTING OBJECTIVES AND QUOTAS IS A TWO-WAY PROCESS BETWEEN MANAGER AND SALESPERSON

M u tu a lly S et O bjecti ves a n d Q u ota s

M ea su re P erform a n ce

E va lu a te P erform a n ce

R ewa rd or P en a lty

P u bliciz e P erform a n ce R esu lts

Definition Sales display is the act of putting things for

view or on view. In sales management, sales display means “arranging systematically saleable goods so as to attract the attention of the customer”.

Advertising helps in creating awareness, reminding and informing customers about the product, the actual product is not displayed in advertising. Sales displays fulfill that need by appealing to the eyes of the customer.

Objectives of sales displayIt shows the product or service to the potential

customerIt gives an idea about every detail of the

product such as variety, quality, size, colour etc.

It helps the customer to see and examine the goods before they actually buy them.

Sales display appeals visually to the prospects and induces them to purchase

Sales display reminds the customer about their needs and subsequently they are attracted to buy.

Types of Displays

Displays: Types of Displays

A window display appears in store windows that face the street or the walkways of a mall.

Displays: Types of DisplaysAn interior display is located inside a

store. They are strategically placed to catch a customer’s eye and to generate traffic flow within the store.

Displays: Types of Displays

A point-of-purchase display is designed to provoke impulse purchases as the customer is waiting to pay for his or her purchases.

Display DevelopmentThe following steps will help you plan a

display:1. Determine the goal of the display.

Ex. – promote new merchandise? Show how to wear new style?

2. Choose the merchandise.Should be eye-catching or notable, or subject

of current promotional campaign.

Display Development

3.Choose a theme.Artistic: color, Theme: beach,

holiday, back-to-school4. Select props.

Props are objects used in a display to support the theme or to physically support the merchandise.

5. Arrange the merchandise and props.

Display Development6. Develop signs.

Signs should give info, like price.Signs should be brief and easy to read.

7. Design the lighting.Lighting should provide enough light to see

merchandise and read signs.Spotlights can be used to focus on specific

items.

Display MaintenanceDirty, messy displays can ruin a store’s image. To maintain a good image, a display must be kept

clean and orderly.Some guidelines for good display maintenance are

to check display at least once a day, clean regularly, replaces damaged goods, replace moved items, and replace lights as necessary.

Display EvaluationThe purpose of displays is to promote store image

and sell products.Evaluate each display to determine whether it is

meeting these goals.Does the display fit our store image?Does it grab customers’ attention?Is focus on merchandise?Are signs clear and easy to read?Is there enough light?Is the display neat and clean?

Design and Visual Merchandising

Success in visual merchandising involves the use of design.

Design is the purposeful arrangement of materials so that a certain effect is produced.

Design and Visual MerchandisingThe elements of design include:

1. Color 4. Texture2. Line 5. Light3. Shape 6. MotionThe elements of design are building blocks

that can be manipulated to create an effect.