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SALES QUOTA

Presented by

Gaurav Dikshit(10022 ) Y2

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Introduction:-

A Sales Quota is the sales goal set fora product line, company division, orsales representative. It is primarily amanagerial device for defining and

stimulating sales effort.

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Characteristics:-

These are set for specific time period

can be of various types

They serve as the standards

They can be set for different products,

salesman, different territories It is a motivational tool

It requires study of market tools

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Importance:-

Motivate sales people

Quota helps management by exception

It gives direction to sales peoplesefforts and resources for specificneeds

It serves as a control

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Principles of Quota Setting:-

SMART

Quota should be specific,measurable, attainable, realistic

and time specific.

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SELLING BY OBJECTIVES Organization of Sales Job Territory Mangement

Account Management

Call Management

Self Management

Defining annual objectives

Regular / Recurring objectives problem solving objectives

Creative objectivess

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Procedure for setting Quota:-

Schedule Planning: orientation briefings,

filling up of individual sales goal setting forms

Conferencing with each sales person:basically to help out the sales person to plan,predict and course-correct properly

Composite quota statement: usually a

written guide for performance, goals andresponsibilities

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Types of Sales Quota:-

Different organizations use different

types of sales quotas depending on:

- design of the organization

- level of competition in the industry- nature of business

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types:

Sales volume Quotas:

Can be set in the following areas

Product Line Product Range Sales Divisions

Sales Territories

Sales Districts

Branch Offices

Sales Forces (individuals)

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Sales Budget Quotas:

Set by the organization by various units tocontrol expenses, gross margins and netprofits Main aim is to make clear to sales people that

they are a responsibility centre Expense quota is to limit expenses in linewith sales volume and control the cost of

acquiring customers Profit quota enables sales people to generateprofitable sales.

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Sales Activity Quota:

Salesman are involved in sales and non-sales

Sales activities could include lead

generation, prospecting, imparting

information, developing new business, etc.

The quota is fixed on the activities a

salesman has to perform

Most widely used in insurance sales and

pharmaceuticals sales

It helps sales people focus equally on the

non-sales activities.

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Combination Quota:

Many organizations use a combination of the

sales volume quota and the activity quota

Combination quota is used to control thesales force on both sales and non-sales

activities

Too many factors can be a demotivatingfactor for sales people hence sales managers

must constantly brief them and exercise

effective control over them

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Methods of Setting Quota:-

Based on Sales Potential

Based on Forecast

Based on Past Sales

Based on Executive Judgement

Based on Sales Persons JudgementBased on Compensation

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Problems in Setting Sales

Quota:- Quota setting is a complex phenomena which

many a times the salesperson does notunderstand

Quota setting has no relevance in sellersmarket, where the demand for products is higherthan the supply

Quotas are not accurate and based on estimateswhich are based on certain assumptions

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ThankYou