Your SlideShare is downloading. ×
0
Sales Quotas               1
Sales Quotasa) Provide goals: sense of directions, salespeople   have to focus on work in keeping with co.   objectives, p...
Sales Quotasa)  Provide goals: sense of directions, salespeople have to focus    on work in keeping with co. objectives, p...
Can compare performance throughout     organization irrespective of territories/productSales Person     Quota (in    Actua...
Sales Quotasc) Controlling expenses/salespersons’ activities;   failure to achieve quota enables sales manager to   spot d...
Sales Quotasc) Controlling     expenses/salespersons’  activities;   failure to achieve quota enables sales manager to   s...
Sales Quotasc)   Controlling expenses/salespersons’ activities; failure to     achieve quota enables sales manager to spot...
i.   Sales Volume Quotas: Most simple, set for     product/territory/line/channel or distribution;     may be re Sales/uni...
ii.   Gross margin / Net Profit Quotas: Fixed on gross      margin / net profit aimed at; cuts expenses (Sales /      Expe...
iii. Budget / Activity Quotas: Emphasis on non     selling activities; Have to know that apart from     selling there are ...
IV. Expense quotas: For making people cost conscious    – expense tied to sales volume.                                   ...
Combination Quotas: Apportionment of weightage   between various activities …                                  12
What is a good Quota?                        13
What is a good Quota? Fair;                        14
What is a good Quota? Fair; Challenging and Rewarding: Sufficiently                                        15
What is a good Quota? Fair; Challenging and Rewarding: Sufficiently high &  linked to bonus / commission Understandable...
What is a good Quota? Fair; Challenging and Rewarding: Sufficiently high &  linked to bonus / commission Understandable...
What is a good Quota? Fair; Challenging and Rewarding: Sufficiently high &  linked to bonus / commission Understandable...
Quota Setting Process     Based on                   19
Quota Setting ProcessBased onA. Sales forecasts and market potential                                          20
Quota Setting ProcessBased onA. Sales forecasts and market potentialB. Sales forecast alone (used when company does not   ...
Quota Setting ProcessBased onA. Sales forecasts and market potentialB. Sales forecast alone (used when company does not   ...
Quota Setting ProcessBased onA. Sales forecasts and market potentialB. Sales forecast alone (used when company does not ha...
Quota Setting ProcessBased onA. Sales forecasts and market potentialB. Sales forecast alone (used when company does not ha...
Quota Setting ProcessBased onA. Sales forecasts and market potentialB. Sales forecast alone (used when company does not   ...
Quota Administration   Motivating Quota   Setting understandable quotas   Involvement of sales person   Keeping them u...
Upcoming SlideShare
Loading in...5
×

Sales quotas

3,782

Published on

0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
3,782
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
248
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

Transcript of "Sales quotas"

  1. 1. Sales Quotas 1
  2. 2. Sales Quotasa) Provide goals: sense of directions, salespeople have to focus on work in keeping with co. objectives, present challenges to work harder and perform better 2
  3. 3. Sales Quotasa) Provide goals: sense of directions, salespeople have to focus on work in keeping with co. objectives, present challenges to work harder and perform betterb) Standard for measuring performance: • Sales representative • Dealer/Distribution • Branch / Region • Territory 3
  4. 4. Can compare performance throughout organization irrespective of territories/productSales Person Quota (in Actual Sales Difference (in Performance lakh rupees) (in lakh lakh rupees) Index (in %) rupees) A 20 20.5 +0.5 102.5 B 15 15.1 +0.1 100.66 C 18 17.8 -0.2 98.88 D 22 22.1 +0.1 100.45 4
  5. 5. Sales Quotasc) Controlling expenses/salespersons’ activities; failure to achieve quota enables sales manager to spot deviation in performance 5
  6. 6. Sales Quotasc) Controlling expenses/salespersons’ activities; failure to achieve quota enables sales manager to spot deviation in performanced) Strengths & weaknesses in structure; Change of direction 6
  7. 7. Sales Quotasc) Controlling expenses/salespersons’ activities; failure to achieve quota enables sales manager to spot deviation in performanced) Strengths & weaknesses in structure; Change of directione) Basis for compensation plan: tool for motivating sales force; achievement of quota increases self confidence Different view also prevails that salesperson need compensation as well as acknowledgement; cos. compensate on customer satisfaction; also in traditional quotas bonus ranges between 90 – 110%, in new compensation plan bonus ranges between 25-300%, new system allows rejection of non-profitable/non-strategic customers 7
  8. 8. i. Sales Volume Quotas: Most simple, set for product/territory/line/channel or distribution; may be re Sales/unit sales; annual quota can be broken down into half yearly / quarterly / monthly quotas Managers can evaluate / compare performances 8
  9. 9. ii. Gross margin / Net Profit Quotas: Fixed on gross margin / net profit aimed at; cuts expenses (Sales / Expenses); Gives an accurate picture of profits generated Commission paid is more accurate when calculated on gross margin Help managers do profitability analysis for organizational effectiveness But sales people can concentrate on selling only profitable products 9
  10. 10. iii. Budget / Activity Quotas: Emphasis on non selling activities; Have to know that apart from selling there are other considerations – should be clubbed with sales volume quotas – prospects called – displays – service – demos – dealer training …; After sales calls, customer relations, promotion management 10
  11. 11. IV. Expense quotas: For making people cost conscious – expense tied to sales volume. 11
  12. 12. Combination Quotas: Apportionment of weightage between various activities … 12
  13. 13. What is a good Quota? 13
  14. 14. What is a good Quota? Fair; 14
  15. 15. What is a good Quota? Fair; Challenging and Rewarding: Sufficiently 15
  16. 16. What is a good Quota? Fair; Challenging and Rewarding: Sufficiently high & linked to bonus / commission Understandable 16
  17. 17. What is a good Quota? Fair; Challenging and Rewarding: Sufficiently high & linked to bonus / commission Understandable Flexibility 17
  18. 18. What is a good Quota? Fair; Challenging and Rewarding: Sufficiently high & linked to bonus / commission Understandable Flexibility Must help achieve management goals 18
  19. 19. Quota Setting Process Based on 19
  20. 20. Quota Setting ProcessBased onA. Sales forecasts and market potential 20
  21. 21. Quota Setting ProcessBased onA. Sales forecasts and market potentialB. Sales forecast alone (used when company does not have data / software / personnel to calculate market potential 21
  22. 22. Quota Setting ProcessBased onA. Sales forecasts and market potentialB. Sales forecast alone (used when company does not have data / software / personnel to calculate market potentialC. Past experience; arbitrary increase over past years sales / averaging sales over past years; used when company does not have sales forecast / market potential data 22
  23. 23. Quota Setting ProcessBased onA. Sales forecasts and market potentialB. Sales forecast alone (used when company does not have data / software / personnel to calculate market potentialC. Past experience; arbitrary increase over past years sales / averaging sales over past years; used when company does not have sales forecast / market potential dataD. Executive judgment; common in small orgn’s 23
  24. 24. Quota Setting ProcessBased onA. Sales forecasts and market potentialB. Sales forecast alone (used when company does not have data / software / personnel to calculate market potentialC. Past experience; arbitrary increase over past years sales / averaging sales over past years; used when company does not have sales forecast / market potential dataD. Executive judgment; common in small orgn’sE. Sales people compensation 24
  25. 25. Quota Setting ProcessBased onA. Sales forecasts and market potentialB. Sales forecast alone (used when company does not have data / software / personnel to calculate market potentialC. Past experience; arbitrary increase over past years sales / averaging sales over past years; used when company does not have sales forecast / market potential dataD. Executive judgment; common in small orgn’sE. Sales people compensationF. Set by sales people themselves 25
  26. 26. Quota Administration Motivating Quota Setting understandable quotas Involvement of sales person Keeping them updated Common problems  Deciding priority of accounts  Allocation between present & prospect customers  Proper balance between selling & non selling activity  For overly demanding a/c s. 26
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×