"Sales quota management plays a vital role in achieving the sales target. It is important effectively manage sales quota for optimal benefits. Managing sales quotas are often time consuming and might lead to errors" Read more about sales quota management by Incentives Solutions: http://www.incentives-solutions.com/products/quota-management-module/

1. What is sales quota
management?
http://www.incentivessolutions.com/products/quota-managementmodule/

2. 
Sales quota management plays a vital role in
achieving the sales target. It is important effectively
manage sales quota for optimal benefits. Managing
sales quotas are often time consuming and might
lead to errors. Automating the process of sales
quota management provides an ideal solution. It
saves time, maintains standards and eliminates
errors. Sales capacity can be easily balanced by
switching on to automated process.

3. 
Assigning individual sales target to a sales unit is
known as sales quota management. The sales unit
can be a sales person, distributer, dealer or
territory. Sales quota is expressed in terms of
goods, services or dollars. Sales quota is set by the
market unit to achieve to achieve sales target for a
specific period. Sales quota can be further broken
down monthly or quarterly.

4. OBJECTIVES OF SALES
QUOTA

5. It is used as a tool for measuring sales
performance
 Sales target is set and performance level is
compared against target to analyze salesperson’s
performance
 Enables to control performance
 Motivating tool for the sales persons
 Enables identification of strengths and weakness
 Increasing the standard of performance


6. 

Sales can be controlled by setting sales quota for
sales volume, performance and special activities.
Any excess expenditure is controlled by the
quotas. Sales performance is improved and
provides greater control over reporting. Sales
persons are motivated when the quotas are linked
with incentives. This motivates the sales persons
strive for achieving higher sales level
Sales performance can be analyzed and poor
performance can be improved with trainings in the
required field. This helps to increase productivity
and performance. Sales strategy is aligned to
achieve the objectives.

7. VARIOUS TYPES OF
SALES QUOTA

8. Sales volume:

Products are easier to manage through
sales volume. Unit sales volume is
measured in petrol/milk/machinery. Point
sales volume is used when company is
interested to make profit with target.

9. Gross –margin/profit:

This is defined as cost of goods sold from
sales volume.

10. Expense quota:

Firms control any excess expenses

11. Activity quota:

Activity is defined, time required for
achieving activity is calculated, analyzing
important activity and prioritizing activity

12. Combination quota:

This includes a combination of selling
and non-selling activity.

13. Sales quota is set depending
upon various factors






Territory potential
Part sales expenses
Total marketing estimates
Executives judgment
Sales peoples estimates
Compensation plan

14. Sales quota management is used to
increase sales level in a specified
period of time. It provides a wide
coverage of market enables effective
customer service, evaluates sales
force, improves productivity of selling
and marketing and enables
development of an effective sales
team.