PROCEDURE FOR SETTING SALES QUOTAS

Presented by SHILPA.P Reg No:383

Territorial Sales Potential

Sales volume quotas derived from territorial sales potentials this approach is appropriate when 1. 2. Territorial sales potential are determined in conjunction with territorial design

Bottom up planning and forecasting procedures are used in obtaining the sales estimate in the sales forecast However, in both the cases further adjustment is needed

Total Market Estimates

Here, management has neither statistics nor sales force estimates of territorial sales potential. Management may either 1. Breakdown the total company sales estimate, using various indexes of relative sales opportunities in each territory, and then make adjustments to arrive at territorial sales volume quotas Convert the company sales estimate into a company wide sales quota and then break down the company volume quota, by using an index of relative sales opportunities in each territory

2.

Past Sales
 Companies assume not only that past and future sales are related but that past sales have been satisfactory  Companies perpetuate past errors  Average sales lag behind actual sales during long periods of rising or falling sales

Executive Judgment

 justified when there is little information to use in setting quotas  Qutas can be of no higher quality than the judgement of those setting them

Compensation Plan
 Based solely upon the projected amounts of compensation that management believes sales personnel should receive  Poor standards for appraising sales performance

Sales personnel Estimate

Sales personnel are closest to the territory and know them best

Thank you..!!