• 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
• We are not making fun of any one …….will give respect to each
individual and its roll.
• Questions are welcome at any stage.
Contact with Territory
Usually reporting to Top Management.
Designations : VP and Above
Reporting to Senior Management
Designated : AVP etc
Rs 100 Cr. in
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
• Compensation of Sales Forces
• Incentive Schemes – Launching
• Reviews of Middle Managers
• Motivation – Positive & Negative .
KHARBOOJA KATEGA OUR SUB ME BATEGA
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
• Territories can be defined on the basis of geography, sales potential,
history, or a combination of factors.
Criteria for Dividing Sales Territories
• Sales potential (Rs) = Number of possible accounts x Buying power
• 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."
BIG BOSS –
North West East South
• 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.
Who are the customers: Sales Models
• Direct Sales
• Individuals : You can sell to any one. Geography doesn’t matter.
• Corporate/ Industry Verticals
North West East
Corporate / Verticals
Agriculture – North Automobiles – NorthBPO – North Consumer Durables
SALES TERRITORIES WILL BE VERY DIFFERENT
• 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 work
• Accountability & Evaluate the performance
• Control over direct & indirect costs
• Optimum utilization of sales time
• Its my property now: I have developed the territory so its my property
• Division or Re-allocation of the territory.
• More difficult if linked to compensation or incentives.
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)
BIG BOSS –
- Rs.50 lacs each
Rs.25 Crores : North Rs.25 Crores : West Rs.25 Crores : East Rs.25 Crores : South
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
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 .
Factors to Consider for Quota for Sales Reps
• Consider his TENURE in the organisation
• Assigned Job
• His Sales Skill & Compensation
• Market Potential
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 Compensation
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
• Regular updates on Quota in One to One meeting – PRP . Helps on
analysis strengths and weakness. And Course correction at regular
• Regular Appraisals
• Sales person needs regular encouragement , Advise and occasional
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
• All of them are accumulated to give CGPA.
• Appraisals are done on that basis.
• Sales is a different game.
• Very harsh and straight forward.
• Organisation based on result orientation have tools to evaluate each
• 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