SALES QUOTAS AND TERRITORY

Rahul dhar

SALES QUOTAS
A Sales Quota refers to an expected routine assignment to sales units, such as territory, districts or branches etc. Sales Quotas can be set for individuals Used to Plan, Control and evaluate the selling activities of a company.

EVALUATE Control

Appraisin g

Expences,profitability Sales Plans,Forecasts,Budgets

Plan

TYPES OF QUOTAS
Sales Volume Quotas Profit Quotas Expense Quotas Activity Quotas Quota Combinations

SALES VOLUME QUOTAS

Sales Volume Quotas include Sales in Rupees or Product Unit objectives for a Specific period of time, Eg Bajaj calculates sales as number of vehicles sold. It can be set in following areas
Product

Line Product range Sales Divisions Sales Territories Sales Districts Branch Offices Sales Force (individuals)

EXAMPLE
A.

B. C. D.

Quota Actual Sales Index 5696000 5792000 5584000 4842000 6012000 6046000

Differencce 96000 -742000 34000

Performace 101.7% 86.7% 100.6%

PROFIT QUOTAS
Used in Multi product Companies Where different products contribute to varying levels of profits . Concentrate on the high profit products by the sales person.

EXAMPLE
Product SP Margin Volume Net profit A 400 280(70%) 60000 168 lac B 200 80(40%) 25000 2 lac C 100 20(20%) 10000 2lac

EXPENSE QUOTA
Expense Quotas are related to Selling costs . Set Quotas for expenses linked to different levels of sales attained by their sales force % of sales volume in a territory and sales person many spend only this amount as an expenditure.

ACTIVITY QUOTAS
Set objectives for job related duties useful for attaining salesperson performance targets Help in attaining long term objectives as goodwill Eg
No

of No of No of No of No of

sales presentation made service calls made dealers visited calls made for recovery new accounts opened

QUOTA COMBINATIONS

Commonly used are Sales and activity Quotas

TERRITORY MANAGEMENT
A Sales Territory Comprises a group of customers or a Geographical area assigned to a sales unit. It many or may not have a geographical boundary. It includes
Market

potential No of customer Accounts Firms Experience Market Share Capability of sales person and frequency of calls made

ACTIVITIES IN TERRITORY MANAGEMENT

Trade relations Potential business Coverage Reports Territory Size Selling Technique Customer Satisfaction Selling Abilities

WHY ESTABLISH SALES TERRITORIES

Entire Coverage Assign Sales Persons responsibilities Evaluate Performance Improve Customer relation Reduce Sales Expences

DESIGNING TERITORIES

Select a basic geographical Unit Determining the Sales potential in control units Combining the Control units into tentative territories Adjusting for coverage Difficulty and relocating tentative territories

ASSIGNING TO TERRRITORIES
Straight line Pattern Cover Leaf pattern Major City Pattern

BASE

First Call

COVER LEAF PATTERN

C BASE C C C C C C

MAJOR CITY PATTERN

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