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Sales QuotaA sales quota is a quantitative goal assigned to a sales unit relating to a particular period of time. A sales unit may be a territory, a branch office, a region ,a distributor or a person. sales quota provides a source of motivation, a basis for
Purpose of sales QuotasettingI. Providing goals and incentives to achieve a certain performance levelII. Controlling sales person’s activitiesIII.Evaluating performance
Types of sales Quotas1. Sales Volume Quotas2. Financial Quotas3. Activities Quotas4. Combination of these quotasSales Volume Quotas: can be measured by- volume of sales made by individuals
Methods of setting salesvolume quota1)Past sales : last year sales 100 % increase in market share expected 10% then for this year sales quota will be 110%2)Total mar ket estimate: market size estimate, projection made by field staff at each territory3)Ter ritorial sales potential:
Continue….types of salesquotasFinancial Quotas: determined to attain desired net profits by controlling increased sales expenses.• Net profit Quotas• Expenses QuotasActivity Quotas: refers to the numbers of selling activities that a salesman is expected to performed
Administration of QuotaSystemThe skill in administering the quota system is very important to realize the full benefit for control purpose and also to secure cooperation among staff . Accurate,fair and attainable quotas Securing and maintaining sales personnels acceptance Participation of sales personnel