PPT On Sales Quota Setting
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2. Sales Quota A sales quota is a quantitative goal assigned to a sales unit relating to a particular period of time. A sales unit may be a territory, a branch office, a region ,a distributor or a person. sales quota provides a source of motivation, a basis for incentives, compensation and increasing standards of performance of sales person and uncover the strength and weaknesses in the selling structure of the firm
3. Purpose of sales Quota setting Providing goals and incentives to achieve a certain performance level Controlling sales person’s activities Evaluating performance Controlling selling expenses Make effective compensation plan
4. Types of sales Quotas Sales Volume Quotas Financial Quotas Activities Quotas Combination of these quotas Sales Volume Quotas: can be measured by- volume of sales made by individuals Volume of sales made in geographical area Volume of sales made in a product line Volume of sales made in a distribution outlet Also set to balance the sales of slow moving products and fast moving products, may be set in terms of unit sales, rupee sales, may be combination or point wise
5. Methods of setting sales volume quota Past sales: last year sales 100 % increase in market share expected 10% then for this year sales quota will be 110% Total market estimate: market size estimate, projection made by field staff at each territory Territorial sales potential: represents the maximum sales opportunities open to the same selling unit. Compensation plan: companies sometimes base sales volume quotas solely upon the projected amounts of compensation that management believes sales personnel should receive.
6. Continue….types of sales quotas Financial Quotas: determined to attain desired net profits by controlling increased sales expenses. Net profit Quotas Expenses Quotas Activity Quotas: refers to the numbers of selling activities that a salesman is expected to performed in his area over a period of time. Combination Quotas: quotas can be set in combination of two or three types i.e. rupee sales volume, net profit quota or unit sales volume quota. it controls performance of both selling and non selling activities, this method is common in large number of consumer and industrial product companies.
7. Administration of Quota System The skill in administering the quota system is very important to realize the full benefit for control purpose and also to secure cooperation among staff . Accurate,fair and attainable quotas Securing and maintaining sales personnel's acceptance Participation of sales personnel Keeping sales personnel informed
8. Thank You.
Presentation Transcript:
1. Sales Quota Setting2. Sales Quota A sales quota is a quantitative goal assigned to a sales unit relating to a particular period of time. A sales unit may be a territory, a branch office, a region ,a distributor or a person. sales quota provides a source of motivation, a basis for incentives, compensation and increasing standards of performance of sales person and uncover the strength and weaknesses in the selling structure of the firm
3. Purpose of sales Quota setting Providing goals and incentives to achieve a certain performance level Controlling sales person’s activities Evaluating performance Controlling selling expenses Make effective compensation plan
4. Types of sales Quotas Sales Volume Quotas Financial Quotas Activities Quotas Combination of these quotas Sales Volume Quotas: can be measured by- volume of sales made by individuals Volume of sales made in geographical area Volume of sales made in a product line Volume of sales made in a distribution outlet Also set to balance the sales of slow moving products and fast moving products, may be set in terms of unit sales, rupee sales, may be combination or point wise
5. Methods of setting sales volume quota Past sales: last year sales 100 % increase in market share expected 10% then for this year sales quota will be 110% Total market estimate: market size estimate, projection made by field staff at each territory Territorial sales potential: represents the maximum sales opportunities open to the same selling unit. Compensation plan: companies sometimes base sales volume quotas solely upon the projected amounts of compensation that management believes sales personnel should receive.
6. Continue….types of sales quotas Financial Quotas: determined to attain desired net profits by controlling increased sales expenses. Net profit Quotas Expenses Quotas Activity Quotas: refers to the numbers of selling activities that a salesman is expected to performed in his area over a period of time. Combination Quotas: quotas can be set in combination of two or three types i.e. rupee sales volume, net profit quota or unit sales volume quota. it controls performance of both selling and non selling activities, this method is common in large number of consumer and industrial product companies.
7. Administration of Quota System The skill in administering the quota system is very important to realize the full benefit for control purpose and also to secure cooperation among staff . Accurate,fair and attainable quotas Securing and maintaining sales personnel's acceptance Participation of sales personnel Keeping sales personnel informed
8. Thank You.
