8/8/2019 Dsf Update

1/18

Sales Force Quotas and Expenses

8/8/2019 Dsf Update

2/18

Characteristic:

Comes in big number in the market

Has medium to lower skill compared to its peers Performs in a general performance

Has limitation on finding a way to reach given

targets or quotas

Has a medium to high loyalty toward its company

8/8/2019 Dsf Update

3/18

8/8/2019 Dsf Update

4/18

8/8/2019 Dsf Update

5/18

Characteristics:

Comes as scarcity in the market

Has medium toh

igh

er skill in th

e market Performs in a very brilliant way

Has almost no-limits on reaching given targets or

quotas

Most has low loyalty toward its companies

Commonly called as first class rep

8/8/2019 Dsf Update

6/18

8/8/2019 Dsf Update

7/18

112178 MOHD IQBAL SHAFIQ B MOHAMMAD ISA

112421 MOHD NOR AFFENDI B ROSDI

112484 SHAHRUL AZMI B AHMAD

114310 AHMAD RAZMIR NAIM B KAMIS

115362 EKO ADITYA WIRATMA

8/8/2019 Dsf Update

8/18

A sales quota is a performance goal assignedto a marketing unitfor a period of time can be a salesperson, a branch office, a dealer, or a distributor.

Widely used to evaluate sales force

performance just like giving a benchmark for sales force performance

Have a big impact on sales force moral

do not set it too high or too low

Group 8Group 8

8/8/2019 Dsf Update

9/18

To indicate the strength of spots in selling structure

To furnish goals for sales force

To control salespeoples activities

To evaluate productivity of salespeople

To improve effectiveness of compensation plans

To control selling expense

To evaluate sales contest results

Group 8Group 8

8/8/2019 Dsf Update

10/18

Sales volume quotas easier for manager to measure a sales representative performance

Profit quotas give more value to reps effort

Expense quotas quota based on reps sales expense

Activities quotas can be a good way to stimulate a balanced sales job

Combination of previous 4 the best way in motivating reps because ofhaving the strength points of

previous 4

Group 8Group 8

8/8/2019 Dsf Update

11/18

Based on sales potential

Adjustments to potential-based quotas human factors

psychological factors

compensation

Based on factors other than potential past sales

executive judgment compensation design

sales people own setting

Group 8Group 8

8/8/2019 Dsf Update

12/18

Sales department should establish a good

quota plan by overcoming the administrative weaknesses of

inaccurate of quota

high pressure selling caused by quota way-of-thinking

Sales quotas must gain sales force acceptance always inform reps about their progress

give incentive for good performers on the field

Group 8Group 8

8/8/2019 Dsf Update

13/18

A salesperson needs money in the process of closing

sales with customers

Typical reimbursement for a salesperson, including:

Expense connected with work, like communication, office

supplies, and transportation. Personal expenditures, like accommodation, meals, and

entertainments.

Group 8Group 8

8/8/2019 Dsf Update

14/18

No gain or loss for the reps so reps can concentrate more on reaching the given quota points

Give reps the treatment like home to make reps comfortable in working

Encourage reps to increase performance do not give allowance based on percentage of sales

Simple to make it simple for the administrative party

Clear to prevent misunderstanding between management and reps

Give control of expense and elimination of padding limit the expense but not in stingyway

Group 8Group 8

8/8/2019 Dsf Update

15/18

Salespeople pays own expense

Unlimited payment plans

Limited payment plans

Each expense item

Flat sum for a period of time Combination Plans

Group 8Group 8

8/8/2019 Dsf Update

16/18

Ownership or Leasing Autos

Size of sales force

Availability of storage facilities

Unusual design required

Operating cost

Administrative problems

Reimbursement Plans for Employee-Owned Cars

Fixed-A

llowance Plans, like mileage and time Flexible-Allowance Plans, like graduated-mileage and combination of

allowance per period with mileage

Group 8Group 8

8/8/2019 Dsf Update

17/18

Training and Enforcement teachhow to spend money and reward any good or bad conduct

Credit Cards provide convenience for reps when traveling

Expense Bank Account give company a quite nice control of its reps spending behavior

Change in Nature of Entertainment adapt expense with reps current environment

Internet Selling and Telemarketing reduce sales cost with these cheaper communication media

Careful Travel Planning reduce travel cost by advanced travel planning

Group 8Group 8

8/8/2019 Dsf Update

18/18

A company needs sales quotas and expenses planning

as one of the means

to control its sales force

toward achieving the goal

while monitoring its spending.

Group 8Group 8