Ppt 0000009 | Sales | Economics

SALES QUOTA

Presented by Gaurav Dikshit (10022 ) Y2

or sales representative. . company division. It is primarily a managerial device for defining and stimulating sales effort.Introduction:A Sales Quota is the sales goal set for a product line.

Characteristics: These are set for specific time period  can be of various types  They serve as the standards  They can be set for different products. salesman. different territories  It is a motivational tool  It requires study of market tools .

Importance:Motivate sales people  Quota helps management by exception  It gives direction to sales people’s efforts and resources for specific needs  It serves as a control .

Principles of Quota Setting: SMART  Quota should be specific. . attainable. realistic and time specific. measurable.

 SELLING BY OBJECTIVES  Organization of Sales Job • Territory Mangement • Account Management • Call Management • Self Management  Defining annual objectives • Regular / Recurring objectives • problem solving objectives • Creative objectivess .

Procedure for setting Quota: Schedule Planning : orientation briefings. goals and responsibilities . predict and course-correct properly  Composite quota statement : usually a written guide for performance. filling up of individual sales goal setting forms  Conferencing with each sales person : basically to help out the sales person to plan.

Types of Sales Quota:Different organizations use different types of sales quotas depending on: .level of competition in the industry .design of the organization .nature of business .

types:  Sales volume Quotas: Can be set in the following areas • Product Line • • • • • • Product Range Sales Divisions Sales Territories Sales Districts Branch Offices Sales Forces (individuals) .

. gross margins and net profits • Main aim is to make clear to sales people that they are a responsibility centre • Expense quota is to limit expenses in line with sales volume and control the cost of acquiring customers • Profit quota enables sales people to generate profitable sales.Sales Budget Quotas: • Set by the organization by various units to control expenses.

etc. imparting information.Sales Activity Quota: • Salesman are involved in sales and non-sales • Sales activities could include lead generation. • The quota is fixed on the activities a salesman has to perform • Most widely used in insurance sales and pharmaceuticals sales • It helps sales people focus equally on the non-sales activities. . developing new business. prospecting.

Combination Quota: • Many organizations use a combination of the sales volume quota and the activity quota • Combination quota is used to control the sales force on both sales and non-sales activities Too many factors can be a demotivating factor for sales people hence sales managers must constantly brief them and exercise effective control over them • .

Methods of Setting Quota: Based on Sales Potential Based on Forecast Based on Past Sales Based on Executive Judgement Based on Sales Person’s Judgement Based on Compensation .

Problems in Setting Sales Quota:• Quota setting is a complex phenomena which many a times the salesperson does not understand • Quota setting has no relevance in seller’s market. where the demand for products is higher than the supply • Quotas are not accurate and based on estimates which are based on certain assumptions .

Thank You .

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