Sales quotas are quantitative estimates of sales metrics like units or revenue that are set as goals for a specific future time period, usually to evaluate and motivate sales representatives. They are used to set performance standards, control expenses, identify areas needing extra promotion, and develop compensation plans. Quotas can be set for individual salespeople, dealerships, branches, or divisions. Routing and scheduling involve planning a salesperson's route through their territory and allocating time to maximize productivity and coverage while minimizing costs and wasted time.
2. MEANING
SALES QUOTAS ARE QUANTITATIVE ESTIMATION
OF SALES IN UNITS OR RUPEES, ESTIMATES OF
SELLING EXPENSES, SALES ACTIVITIES, GROSS
MARGIN ETC. FOR A SPECIFIC FUTURE PERIOD OF
TIME.
3. DEFINITION
• ACCORDING TO PHILIP KOTLER,” A SALES QUOTA IS THE
SALES GOAL SET FOR A PRODUCT, GEOOGRAPHICAL
AREA OR SALES REPRESENTATIVE. IT IS PRIMARILY A
MANAGERIAL DEVICE FOR DEFINING AND STIMULATING
SALES EFFORTS.”
4. PURPOSE
• TO SET STANDARDS FOR PERFORMANCE EVALUATION OF SALES
FORCE
• TO CONTROL SELLING EXPENSES
• TO MOTIVATE SALES FORCE
• TO DEVELOP EFFECTIVE COMPENSATION PLAN
• TO IDENTIFY THE MARKET AREAS WHERE EXTRA PROMOTIONAL
EFFORTS ARE REQUIRED
• OTHER OBJECTIVES LIKE:-
ACHIEVE HIGHER SALES, IDENTIFY SALESMEN WHO NEEDS
TRAINING, PERSON CAN BE HELD RESPONSIBLE ETC.
6. SALES TERRITORIES
ACCORDING TO PHILIP KOTLER,” SALES TERRITORY MEANS
GEOGRAPHICAL AREA ASSIGNED TO A SALESMAN FOR SELLING
ACTIVITIES.”
SALES TERRITORIES ARE SMALLER DIVISIONS OF TOTAL MARKET
SIZE OF THE COMPANY AND CAN BE FRAMED ON THE BASIS OF
GEOGRAPHICAL AREA, GROUP OF CUSTOMER, TYPE OF PRODUCT
ETC.
7. ROUTING & SCHEDULING
• ROUTING REFERS TO SALES PERSON’S MOVEMENT PLAN IN
THE SALES TERRITORY. IN ROUTING DECISIONS ARE MADE
REGARDING GEOGRAPHICAL PATTERN FOR COVERAGE OF
PROSPECTIVE CUSTOMERS IN THE SALES TERRITORY
INVOLVING MINIMUM TRAVELLING TIME AND COST.
• ROUTE CHARTS ARE PREPARED FOR SALES CALL SEQUENCE
TO MAXIMISE PRODUCTIVE TIME & MINIMISE WASTE TIME.
8. SCHEDULING
• SCHEDULING MEANS ALLOCATING TIME ON ROUTE CHART. IT
IS DECIDED THAT
• AT WHAT TIME THE SALESPERSON WILL START JOURNEY
• AT WHAT TIME HE WILL CONTACT PROSPECTIVE CUSTOMER
• HOW MUCH TIME HE WILL SPEND IN ATTENDING THE
PROSPECTIVE CUSTOMER
• HOW MUCH TIME HE WILL NEED TO TRAVEL FROM ONE
PROSPECTIVE CUSTOMER TO OTHER ETC.
9. AIM OF ROUTING & SCHEDULING
TO REDUCE TRAVELLING TIME .
TO REDUCE TRAVELLING COST
TO IMPROVE MARKET COVERAGE
TO REDUCE WASTE TIME AND MINIMISE PRODUCTIVE TIME
TO ADJUST CALL FREQUENCY AS PER CUSTOMERS’
REQUIREMENT
TO ENSURE EFFECTIVE CHECK AND CONTROL OVER SALES
FORCE.
