SALES QUOTAS www Assignment Point com SALES QUOTAS
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SALES QUOTAS www. Assignment. Point. com
SALES QUOTAS The sales incentives or motivational targets or quantitative goals are called quotas. Quotas are used as standards to specify a desired level of performance for a specified marketing unit. All quotas are guided by a certain time element. www. Assignment. Point. com
THE PURPOSE OF QUOTAS n n n n Providing goals and incentives Evaluating performance Controlling the salesperson’s activities Uncovering strengths and weaknesses in the selling structure Improving the compensation plan effectiveness (commission and bonus) Controlling the selling expenses Enhancing sales contests www. Assignment. Point. com
TYPES OF QUOTAS Sales volume quotas These quotas use n Dollar sales n Unit sales n Sales of new product n Sales of neglected products or product sizes www. Assignment. Point. com
TYPES OF QUOTAS Sales volume quotas n Dollar sales volume o o o Is easily understood by the salesperson Is recognized as a measure for all products Is easier to manage for selling many products Allows for a more direct analysis of the ratio of selling costs Can be calculated and adjusted quickly and easily year to year www. Assignment. Point. com
TYPES OF QUOTAS Sales volume quotas n Unit sales volumeo o o Is useful for selling only a few products May be set in terms of the number of product sold Is attractive when prices fluctuate rapidly www. Assignment. Point. com
TYPES OF QUOTAS Sales volume quotas n Point sales volumeo o o Combines dollar or unit sales or both into points and use this measure as the basis of a sales volume quota Is helpful when companies are having problems trying to implement either a dollar or a unit volume quota Helps companies balance the need to emphasize a particular sales volume and the need to promote sales of specific products www. Assignment. Point. com
TYPES OF QUOTAS Financial quotas n Gross-margin or net-profit quotaso o Are used to emphasize to the salesperson that the company would prefer making a large profit to selling a large volume Can be set by placing a quota on net-profits, thus encouraging the sale of the high-margin products and de-emphasizing the low-margin products www. Assignment. Point. com
TYPES OF QUOTAS Financial quotas n Expense quotaso Are designed to make salespeople aware of the costs involved in their selling efforts (escalating the costs of travel, food and lodging) www. Assignment. Point. com
TYPES OF QUOTAS Activity quotas o Are designed to control the many different activities the salesperson is responsible for o Serve as guideline for younger, inexperienced sales rep, who may tend to place emphasis on the wring activities www. Assignment. Point. com
TYPES OF QUOTAS Activity quotas 1. To determine what the salesperson’s most important activities are 2. To conduct research on how long it takes to perform these duties 3. To set a target level of performance www. Assignment. Point. com