Definition

y A quota refers to an expected performance objective. y Quotas are tactical in nature and thus derived from

the sales force s strategic objectives. y 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 QUOTA
y Sales 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 ³how 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 QUOTA
y Expense quotas are aimed at controlling costs of sales

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

4. ACTIVITY QUOTA
y The desire to control how sales personnel allocate

their time and efforts among different activities explains the use of activity quotas. y 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 COMBINATION
y Combination of any two or more quota types. y 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: Step 2: Organize the jobs. Define annual objectives in important areas.

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

Step 1: Organizing the Job

Salesperson

Territorial management ‡ Limits ‡ Potential Business ‡ Size ‡ Customer Base ‡ Prospects ‡ Leads ‡ Market Share ‡ Growth ‡ Trade Relations ‡ Dealer Relations

Account Management ‡ Portfolio of Accounts ‡ Potentials ‡ Coverage ‡ Records ‡ Order Size ‡ Penetration ‡ Reports ‡ Customer Satisfaction

Call Management ‡ Preparation ‡ Selling Technique ‡ Training ‡ Communication ‡ Buyer Behavior ‡ Impact ‡ Handling Resistance

SelfManagement ‡ Appearance ‡ Manner ‡ Communication Skills ‡ Abilities ‡ Attitudes ‡ Selling Abilities

Step 2: Defining Annual Objectives 1. Regular 2. Problem Solving 3. Innovative

SELLING BY OBJECTIVES
y Selling 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

Mutually Set Objectives and Quotas

Measure Performance

Evaluate Performance Publicize Performance Results

Reward or Penalty

Definition
y 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 . y 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 display
y It shows the product or service to the potential

customer y It gives an idea about every detail of the product such as variety, quality, size, colour etc. y It helps the customer to see and examine the goods before they actually buy them. y Sales display appeals visually to the prospects and induces them to purchase y Sales display reminds the customer about their needs and subsequently they are attracted to buy.

Types of Displays

Displays: Types of Displays
y A window display a

ears i st re i t e street r t e alk ays f a all.

s t at face

Displays: Types of Displays
y An i teri r is l

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
y A poi t-of-purch se ispl

is designed to provo e impulse purchases as the customer is waiting to pay for his or her purchases.

Display Development
y The following steps will help you plan a display: y 1. Determine the goal of the display. y Ex. promote new merchandise? Show how to wear new style? y 2. Choose the merchandise. y Should be eye-catching or notable, or subject of current promotional campaign.

Display Development
y 3.Choose a theme. y Artistic: color, Theme: beach, holiday, bac -to-school y 4. Select props. y Props are objects used in a display to support the theme or to physically support the merchandise. y 5. Arrange the merchandise and

props.

Display Development
y 6. Develop signs. y Signs should give info, li e price. y Signs should be brief and easy to read. y 7. Design the lighting. y Lighting should provide enough light to see merchandise and read signs. y Spotlights can be used to focus on specific items.

Display Maintenance
y Dirty, messy displays can ruin a store s image. y To maintain a good image, a display must be ept clean and

orderly. y Some guidelines for good display maintenance are to chec display at least once a day, clean regularly, replaces damaged goods, replace moved items, and replace lights as necessary.

Display Evaluation
y The purpose of displays is to promote store image and sell

products. y Evaluate each display to determine whether it is meeting these goals.
y y y y y y

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

y Success in visual merchandising involves the use of

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

Design and Visual Merchandising
y The elements of design include: y 1. Color 4. Texture y 2. Line 5. Light y 3. Shape 6. Motion y The elements of design are building bloc s that can be manipulated to create an effect.