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Welcome to the Rocket Singh Class
Dhruv Sood - 09999966971
dhruvmax@gmail.com
Territory Allocation
and
Sales Quota
Disclaimer
• I am not teaching you any rules or laws. So stay relax.
• If you don’t speak, I don’t speak…..Interactivity i...
BIG BOSS
JUNIOR BOSS
JUNIOR BOSS
SALES MANAGERS
Contact with Territory
Different Designations
Senior Management
Usually re...
GETS
A SALES
TARGET &
TERRITORY
SELL
Rs 100 Cr. in
India
View Point of the Boss…..
• I cant do it all alone .
• Target needs to get achieved with the help of team
• Usually he is ...
KHARBOOJA KATEGA OUR SUB ME BATEGA
TIME FOR
Territory Allocation
and
Sales Quota
What is a Sales Territory
• A sales territory is the customer group or geographical area
• for which an individual salespe...
DIVISION & ALLOCATION OF SALES TERRITORY
Criteria for Dividing Sales Territories
• Sales potential (Rs) = Number of possible accounts x Buying power
(Rs)
• Workloa...
BIG BOSS –
•India
JUNIOR BOSS
JUNIOR BOSS
North West East South
GEOGRAPHICAL
Delhi
Punjab
Haryana
HP
UP
Maharastra
Goa
MP
...
Coverage
• Territory may be small so easy to cover.
• When Territories are large : Complications increase
• Uncertainty of...
Who are the customers: Sales Models
• Direct Sales
• Individuals : You can sell to any one. Geography doesn’t matter.
• Co...
JUNIOR BOSS
JUNIOR BOSS
North West East
South
Corporate / Verticals
Agriculture – North Automobiles – NorthBPO – North Con...
• In-Direct Sales
• Representative from the Company to chase sales from
• Distributors / Dealers / Retailers
Advantages : Sales Territory
• Improves market coverage
• Effective utilization of sales force
• Efficient allocation of w...
Conflicts
• Its my property now: I have developed the territory so its my property
now.
• Division or Re-allocation of the...
Sales Target or Sales Quota
Types of Quota/Targets
• Sales Volume Quota
• Profit Quota
• Expense Quota
• Activity Quota
• Quota Combination
What is Sales Target or Sales Quota
• A sales quota is the sales goal set for
• a product line
• company division
• sales ...
BIG BOSS –
•Rs.100 Crores
•India
JUNIOR BOSS
JUNIOR BOSS
SALES MANAGERS
- Rs.50 lacs each
Rs.25 Crores : North Rs.25 Crore...
Problems in setting sales quota
• Individual difference in every organization
• Perfect quota is a combination of selling ...
Setting Quota for Sales Team
1. Establishing Parameters for developing Sales Quota
• Territory Potential
• Past Sales Expe...
Factors to Consider for Quota for Sales Reps
• Consider his TENURE in the organisation
• Assigned Job
• His Sales Skill & ...
Get a Buy-in from the Sales Team
Discuss the process used to Set the Quota
Jointly Decide on the Quota.
To Motivate Desired Performance
• Incentives – Cash & Kind – Gifts , Foreign Trips etc
• Opportunity to Grow
• Increase in...
How to monitor Continuous Performance
• Quota provides an opportunity to DIRECT & CONTROL sales activity
of the Rep.
• Com...
CGPA – CUMULATIVE GREAT POINT AVERAGE
• Companies are not focusing on ONE THING – example Sales
• Organisation always issu...
Conclusions
• Sales is a different game.
• Very harsh and straight forward.
• Organisation based on result orientation hav...
THANK YOU
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ALLOCATION OF SALES TERRITORIES & SALES QUOTA

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This is presentation recently delivered at MBA Institute. It was interesting to talk about
1. Basis of Allocation of Sales Territories
2. Basis of Allocation of Sales Targets

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ALLOCATION OF SALES TERRITORIES & SALES QUOTA

  1. 1. Welcome to the Rocket Singh Class Dhruv Sood - 09999966971 dhruvmax@gmail.com
  2. 2. Territory Allocation and Sales Quota
  3. 3. Disclaimer • I am not teaching you any rules or laws. So stay relax. • If you don’t speak, I don’t speak…..Interactivity is important . • Information shared here needs to be used as per Managerial Judgments. • We are not making fun of any one …….will give respect to each individual and its roll. • Questions are welcome at any stage.
  4. 4. BIG BOSS JUNIOR BOSS JUNIOR BOSS SALES MANAGERS Contact with Territory Different Designations Senior Management Usually reporting to Top Management. Designations : VP and Above Reporting to Senior Management Designated : AVP etc
  5. 5. GETS A SALES TARGET & TERRITORY SELL Rs 100 Cr. in India
  6. 6. View Point of the Boss….. • I cant do it all alone . • Target needs to get achieved with the help of team • Usually he is a General Manager. • Division of Territories • Budgets • Compensation of Sales Forces • Incentive Schemes – Launching • Reviews of Middle Managers • Motivation – Positive & Negative .
  7. 7. KHARBOOJA KATEGA OUR SUB ME BATEGA TIME FOR Territory Allocation and Sales Quota
  8. 8. What is a Sales Territory • A sales territory is the customer group or geographical area • for which an individual salesperson or a sales team holds responsibility. • Territories can be defined on the basis of geography, sales potential, history, or a combination of factors.
  9. 9. DIVISION & ALLOCATION OF SALES TERRITORY
  10. 10. Criteria for Dividing Sales Territories • Sales potential (Rs) = Number of possible accounts x Buying power (Rs) • Workload (#) = [Current accounts (#) * Average time to service an active account (#)] + [Prospects (#) * Time spent trying to convert a prospect into an active account (#)] • Coverage :This is size or travel time. The amount of time needed to reach customers and potential customers."
  11. 11. BIG BOSS – •India JUNIOR BOSS JUNIOR BOSS North West East South GEOGRAPHICAL Delhi Punjab Haryana HP UP Maharastra Goa MP Rajisthan Bengal Bihar Chattisgarh Calcutta Kerela Tamil Naidu Karntaka
  12. 12. Coverage • Territory may be small so easy to cover. • When Territories are large : Complications increase • Uncertainty of travel • Cost of Travel : Train Vs Air Tickets , Hotel Categories. • Solution : Advance Planning , Rotating 45 day plans : Beat Plan • Imbalances : Sales force want to travel to easy places. They over look the potential customers. • Some Territories are difficult to travel : Travelling within Delhi & Travelling in Say Mountains : HP.
  13. 13. Who are the customers: Sales Models • Direct Sales • Individuals : You can sell to any one. Geography doesn’t matter. • Corporate/ Industry Verticals
  14. 14. JUNIOR BOSS JUNIOR BOSS North West East South Corporate / Verticals Agriculture – North Automobiles – NorthBPO – North Consumer Durables – North SALES TERRITORIES WILL BE VERY DIFFERENT
  15. 15. • In-Direct Sales • Representative from the Company to chase sales from • Distributors / Dealers / Retailers
  16. 16. Advantages : Sales Territory • Improves market coverage • Effective utilization of sales force • Efficient allocation of work • Accountability & Evaluate the performance • Control over direct & indirect costs • Optimum utilization of sales time
  17. 17. Conflicts • Its my property now: I have developed the territory so its my property now. • Division or Re-allocation of the territory. • More difficult if linked to compensation or incentives.
  18. 18. Sales Target or Sales Quota
  19. 19. Types of Quota/Targets • Sales Volume Quota • Profit Quota • Expense Quota • Activity Quota • Quota Combination
  20. 20. What is Sales Target or Sales Quota • A sales quota is the sales goal set for • a product line • company division • sales representative. • It is primarily a managerial device for defining and stimulating the sales effort.”. … (By Kotler)
  21. 21. BIG BOSS – •Rs.100 Crores •India JUNIOR BOSS JUNIOR BOSS SALES MANAGERS - Rs.50 lacs each Rs.25 Crores : North Rs.25 Crores : West Rs.25 Crores : East Rs.25 Crores : South Simplest form of Quota Allocation
  22. 22. Problems in setting sales quota • Individual difference in every organization • Perfect quota is a combination of selling and non- selling activities • Improper attention to the non-selling activities (e.g. searching for prospects, handling customer objections, and creating market for probable entry of new products)
  23. 23. Setting Quota for Sales Team 1. Establishing Parameters for developing Sales Quota • Territory Potential • Past Sales Experience • Total Market Estimate • Executive Judgment • Compensations Plan 2. Add to this Growth Expectation and Predict Sales • Expectation should be realistic & challening .
  24. 24. Factors to Consider for Quota for Sales Reps • Consider his TENURE in the organisation • Assigned Job • His Sales Skill & Compensation • Market Potential • Competition
  25. 25. Get a Buy-in from the Sales Team Discuss the process used to Set the Quota Jointly Decide on the Quota.
  26. 26. To Motivate Desired Performance • Incentives – Cash & Kind – Gifts , Foreign Trips etc • Opportunity to Grow • Increase in Compensation
  27. 27. How to monitor Continuous Performance • Quota provides an opportunity to DIRECT & CONTROL sales activity of the Rep. • Communicate Quota formally . Make sure its well understood by the Rep. • Regular updates on Quota in One to One meeting – PRP . Helps on analysis strengths and weakness. And Course correction at regular intervals • Regular Appraisals • Sales person needs regular encouragement , Advise and occasional warning
  28. 28. CGPA – CUMULATIVE GREAT POINT AVERAGE • Companies are not focusing on ONE THING – example Sales • Organisation always issue – Key Result Area. • Weights are attached to KEY RESULT AREA on the relative importance of KRA. • All of them are accumulated to give CGPA. • Appraisals are done on that basis.
  29. 29. Conclusions • Sales is a different game. • Very harsh and straight forward. • Organisation based on result orientation have tools to evaluate each individual. • Tangibility of Sales • Rules of Sales may change with Fast Progress of Internet. • May be we will have to Unlearn what we have learnt till now. • Be open for Change …….Always
  30. 30. THANK YOU

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