The document discusses sales quotas, including their purposes of providing goals and standards for measuring performance. It provides examples of quotas set for individual salespeople and compares their actual sales to their quotas. The document also discusses factors to consider for setting good quotas, such as ensuring they are fair, challenging, and help achieve management goals. Methods for setting quotas include using sales forecasts, past performance, and executive judgment. Proper administration of quotas includes motivating salespeople and keeping them updated on their quotas.
The Presentation delivered at MBA Institutes deals with
1. Basis of Sales Territories Allocation
2. Basis of Sales Quota/ Target Allocation
Rich insights with interesting presentation made so that no participant can sleep
The Presentation delivered at MBA Institutes deals with
1. Basis of Sales Territories Allocation
2. Basis of Sales Quota/ Target Allocation
Rich insights with interesting presentation made so that no participant can sleep
Getting the funds you need to run and grow a channel organization can be a struggle. Often channel teams are the key path to much or all of a company’s revenue, yet are often woefully underfunded. You may be a superstar at partner marketing or sales strategy, but why do you often hear ‘no’ when trying to fund what you know you need to be successful?
The good news is you don’t need to be a financial or legal expert to run and grow a program. But you do need to understand what to pay attention to, and how to measure it, and how to talk about it with the rest of the company.
Marketing Operations: MObilizing Marketing For A Web 2.0 WorldClearAction
A sneak preview of my latest thinking, in which I parallel Web 2.0 and Marketing Operations. I have not presented this work live as of 5/11/09.
See https://ClearAction.com
Introduction and Overview (Strategic Business Management)Textboo.docxmariuse18nolet
Introduction and Overview (Strategic Business Management)
Textbook: book - Strategy Crafting and Executing Strategy: Competitive Advantage
.
1. Good strategy and good strategy execution together provide
A. a surefire guarantee for avoiding periods of weak financial performance.
B. the two best signs that a company is a true industry leader.
C. the most trustworthy signs of good management.
D. signs of a company having a superior business model.
2. Which one of the following questions is not something that company managers should consider when choosing to pursue one strategic course or directional path versus another?
A. Is the company stretching its resources too thinly by trying to compete in too many markets or segments, some of which are unprofitable?
B. Do we have a better business model than key rivals?
C. Are changing market and competitive conditions acting to enhance or weaken the company's business outlook?
D. Will our present business generate sufficient growth and profitability in the years ahead to please shareholders?
3. Business strategy, as distinct from corporate strategy, is chiefly concerned with
A. deciding what new businesses to enter, which existing businesses to get out of, and which existing business to remain in.
B. forging actions and approaches to compete successfully in a particular line of business.
C. coordinating the competitive approaches of a company's different business units.
D. making sure the strategic intent of a particular business is in step with the company's overall strategic intent and strategy.
4. Which of the following is not one of the basic reasons that a company's strategy evolves over time?
A. An ongoing need to abandon those strategy features that are no longer working well
B. The need to make regular adjustments in the company's strategic vision so employees don't become bored executing the same strategy month after month
C. The proactive efforts of company managers to fine-tune and improve one or more pieces of the strategy
D. The need to keep strategy in step with changing market conditions and changing customer needs and expectations
5. Which of the following is an integral part of the managerial process of crafting and executing strategy?
A. Setting objectives and using them as yardsticks for measuring the company's performance and progress
B. Deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage
C. Communicating the company's mission and purpose to all employees
D. Developing a proven business model
6. Which one of the following questions can be used to test the merits of one strategy over another and distinguish a winning strategy from a mediocre or losing strategy?
A. Does the company have low prices in comparison to rivals?
B. How well does the strategy fit the company's situation?
C. How good is the company's business model?
D. Is the company putting too little emphasis on behaving in an ethical and socially responsible manner.
The KPI - Cash Flow Modeling and Projections (Series: MBA Boot Camp 2020) Financial Poise
You can chase a lot of financial measures of your business, but nothing stacks up to cash flow. Like a boat captain on a rough sea, being able to see what is coming at you financially is absolutely invaluable. Cash flow models are the absolute go-to tool for reviewing companies in distress, yet they are also invaluable to venture capitalist who must manage long range investments as well as fast growth. This webinar discusses the basic components of a cash flow model, why it is weekly and not monthly and why 13 weeks is the usual length. This webinar also discusses what type of data is best for making an efficient and practical cash flow model, as well as best practices for reporting and pitfalls associated with modeling and balance roll forwards.
7 Steps to Maximize the Value of Your BusinessCBIZ, Inc.
This presentation discusses the Seven Steps to Increase the Value of your Company
• How is Value Influenced - Pricing
• How is Value Influenced – Transaction Type
• Strategic Sale vs. Leveraged Recapitalization
• How is Valued Influence – Tax Considerations
For more information, please visit http://www.cbiz.com
2. Sales Quotas
a) Provide goals: sense of directions, salespeople
have to focus on work in keeping with co.
objectives, present challenges to work harder and
perform better
2
3. Sales Quotas
a) Provide goals: sense of directions, salespeople have to focus
on work in keeping with co. objectives, present challenges
to work harder and perform better
b) Standard for measuring performance:
• Sales representative
• Dealer/Distribution
• Branch / Region
• Territory
3
4. Can compare performance throughout
organization irrespective of territories/product
Sales Person Quota (in Actual Sales Difference (in Performance
lakh rupees) (in lakh lakh rupees) Index (in %)
rupees)
A 20 20.5 +0.5 102.5
B 15 15.1 +0.1 100.66
C 18 17.8 -0.2 98.88
D 22 22.1 +0.1 100.45
4
5. Sales Quotas
c) Controlling expenses/salespersons’ activities;
failure to achieve quota enables sales manager to
spot deviation in performance
5
6. Sales Quotas
c) Controlling expenses/salespersons’ activities;
failure to achieve quota enables sales manager to
spot deviation in performance
d) Strengths & weaknesses in structure; Change of
direction
6
7. Sales Quotas
c) Controlling expenses/salespersons’ activities; failure to
achieve quota enables sales manager to spot deviation in
performance
d) Strengths & weaknesses in structure; Change of direction
e) Basis for compensation plan: tool for motivating sales force;
achievement of quota increases self confidence
Different view also prevails that salesperson need
compensation as well as acknowledgement; cos. compensate
on customer satisfaction; also in traditional quotas bonus
ranges between 90 – 110%, in new compensation plan bonus
ranges between 25-300%, new system allows rejection of
non-profitable/non-strategic customers
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8. i. Sales Volume Quotas: Most simple, set for
product/territory/line/channel or distribution;
may be re Sales/unit sales; annual quota can be
broken down into half yearly / quarterly /
monthly quotas
Managers can evaluate / compare performances
8
9. ii. Gross margin / Net Profit Quotas: Fixed on gross
margin / net profit aimed at; cuts expenses (Sales /
Expenses);
Gives an accurate picture of profits generated
Commission paid is more accurate when calculated
on gross margin
Help managers do profitability analysis for
organizational effectiveness
But sales people can concentrate on selling only
profitable products
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10. iii. Budget / Activity Quotas: Emphasis on non
selling activities; Have to know that apart from
selling there are other considerations – should be
clubbed with sales volume quotas – prospects
called – displays – service – demos – dealer
training …; After sales calls, customer relations,
promotion management
10
11. IV. Expense quotas: For making people cost conscious
– expense tied to sales volume.
11
15. What is a good Quota?
Fair;
Challenging and Rewarding: Sufficiently
15
16. What is a good Quota?
Fair;
Challenging and Rewarding: Sufficiently high &
linked to bonus / commission
Understandable
16
17. What is a good Quota?
Fair;
Challenging and Rewarding: Sufficiently high &
linked to bonus / commission
Understandable
Flexibility
17
18. What is a good Quota?
Fair;
Challenging and Rewarding: Sufficiently high &
linked to bonus / commission
Understandable
Flexibility
Must help achieve management goals
18
21. Quota Setting Process
Based on
A. Sales forecasts and market potential
B. Sales forecast alone (used when company does not
have data / software / personnel to calculate market
potential
21
22. Quota Setting Process
Based on
A. Sales forecasts and market potential
B. Sales forecast alone (used when company does not
have data / software / personnel to calculate market
potential
C. Past experience; arbitrary increase over past years
sales / averaging sales over past years; used when
company does not have sales forecast / market
potential data
22
23. Quota Setting Process
Based on
A. Sales forecasts and market potential
B. Sales forecast alone (used when company does not have data
/ software / personnel to calculate market potential
C. Past experience; arbitrary increase over past years sales /
averaging sales over past years; used when company does
not have sales forecast / market potential data
D. Executive judgment; common in small orgn’s
23
24. Quota Setting Process
Based on
A. Sales forecasts and market potential
B. Sales forecast alone (used when company does not have data
/ software / personnel to calculate market potential
C. Past experience; arbitrary increase over past years sales /
averaging sales over past years; used when company does
not have sales forecast / market potential data
D. Executive judgment; common in small orgn’s
E. Sales people compensation
24
25. Quota Setting Process
Based on
A. Sales forecasts and market potential
B. Sales forecast alone (used when company does not
have data / software / personnel to calculate market
potential
C. Past experience; arbitrary increase over past years
sales / averaging sales over past years; used when
company does not have sales forecast / market
potential data
D. Executive judgment; common in small orgn’s
E. Sales people compensation
F. Set by sales people themselves
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26. Quota Administration
Motivating Quota
Setting understandable quotas
Involvement of sales person
Keeping them updated
Common problems
Deciding priority of accounts
Allocation between present & prospect
customers
Proper balance between selling & non
selling activity
For overly demanding a/c s.
26