Sales Quota

SALES QUOTAS
UBS,
Copyright © 2001 by Ludhiana
Harcourt, Inc. All rights reserved.
LEARNING OBJECTIVES
Quotas are fundamental parts of a company, because they provide
the sales force with direction and goals.
What is a Quotas
Why quotas are important.
Principles of Sales Quotas.
The various types of quotas.
The methods for setting quotas.
Selling by objectives sets future targets.
Procedure for setting quotas with salesperson.
A good sales quota is SMART
UBS,
WHAT IS A QUOTA?
A quota refers to an expected performance

objective.
Quotas are sales assignments, or goals and
expectations of the top management expressed in
volume or rupee sales for a specified future
period
UBS,
WHY ARE QUOTAS
IMPORTANT?
• Quotas provide performance targets.
• Quotas provide standards for self-supervisory.

• Quotas provide change of direction & control.
(MBE)
• Quotas are motivational.
UBS,
Principles of Sales Quotas
• No specific method or formula

• Complex procedure should not be followed
• Uniform allotment
• Should be achievable
• Should be flexible
• Procedure should not change very often
UBS,
TYPES OF QUOTAS
• Sales volume quotas.
UBS,
Sales volume quotas includes dollar or
product unit objectives for a specific period
of time.
UBS,
TYPES OF QUOTAS

Monetary sales Volume Quota (Torrent Pharmaceuticals)
Unit sales volume Quota (General Motors)
Point sales volume Quota
UBS,
TYPES OF QUOTAS

• Break down total sales volume.
UBS,
TYPES OF QUOTAS

• Profit quotas.
UBS,
The two types of profit quotas:
• Gross margin quota determined by

subtracting cost of goods sold from sales
volume.
• Net profit quota determined by subtracting
cost of goods sold and salespeople’s direct
selling expense from sales volume.
UBS,
TYPES OF QUOTAS
• Profit quotas.
• Expense quotas.
UBS,
Expense quotas are aimed at controlling costs of
sales units. Often expenses are related to sales
volume or to the compensation plan.
UBS,
TYPES OF QUOTAS
• Profit quotas.
• Expense quotas.
• Activity quotas.
Copyright © 2001 UBS,
by Ludhiana
Activity quotas set objectives for job-related
duties useful toward reaching salespeople’s
performance targets.
UBS,
Customer satisfaction refers to feelings about any
differences between what is expected and actual
experiences with the purchase.
UBS,
TYPES OF QUOTAS
• Breakdown total sales volume.
• Profit quotas.
• Expense quotas.
• Activity quotas.
UBS,
METHODS FOR SETTING SALES
QUOTAS
• Quotas based on forecasts and potentials.
• Quotas based on forecasts only.

• Quotas based on past experience.
• Quotas based on executive judgments.
• Quotas salespeople set.
• Quotas related to compensation.
UBS,
TABLE 7.4 LEVELS OF ORGANIZATIONAL SALES PLANNING
LEVEL PURPOSE: WHAT IS WHO (USUALLY) IS

PLANNED INVOLVED
1. Marketing •Organizational goals Upper management and

(increase in market share or sales and marketing
penetration, increase in executives
customers, increase in sales
dollars and units sold)
2. Regional plan •Priorities (which regions, Regional and district sales
markets, and products to managers (which input
emphasize) from sales reps)
3. District plan •Dollar allotment (for District managers and sales
promotion, advertising, representatives
new employees, sales
incentives, and so on)
4. Territorial plan •Goals for number of new Sales representatives
customers and for increased
business with old
customers in each region
and territory
UBS,
SELLING BY OBJECTIVES SETS
FUTURE TARGETS
Two basic steps to implementing sales strategies:
Step 1: Organize the jobs.

Step 2: Define annual objectives in
important areas.
UBS,
FIGURE 7.2 THE FOUR MAJOR AREAS TO ESTABLISH OBJECTIVES
WITH EACH SALESPERSON
SALES
Step 1: Organizing the Job MANAGEMENT
Salesperson
Territorial Management Account Management Call Management Self-Management

• Limits • Portfolio of • Preparation • Appearance
• Potential Business Accounts • Selling Technique • Manner
• Size • Potentials • Training • Communication
• Customer Base • Coverage • Communication Skills
• Prospects • Records • Buyer Behavior • Abilities
• Leads • Order Size • Impact • Attitudes
• Market Share • Penetration • Handling Resistance • Selling Abilities
• Growth • Reports
• Trade Relations • Customer
• Dealer Relations Satisfaction
Step 2: Defining Annual Objectives
1. Regular
2. Problem Solving
3. Innovative
UBS,
THE PROCEDURES FOR
SETTING QUOTAS WITH
SALESPEOPLE
• Schedule Planning.
• Conferencing with each salesperson.
• Prepare a written summary of goals agreed
upon. (a summarized quota statement)
• Optional group meeting to share objectives.
UBS,
FIGURE 7.3 INDIVIDUAL GOAL SETTING FORM
N am e
F o r Y ear
L is t Y o u r R e s p o n s ib ility A r e a
R e s u lts E x p e c te d
O u tp u t P e s s im is tic R e a li s t i c O p tim is tic R e s u lts
1 . $ V o lu m e / m o n th
2 . $ E x p e n se/ m o n th
3 . G r o ss m a rg in / m o n th
4.
5.
6.
7.
8.
9.
10.
11.
12.
O th er
I n s tr u c tio n : L is t th e r e g u la r, o n g o in g , r e c u r r in g o b je c tiv e s. C o v e r th e te n m a jo r r e s p o n -
s i b i l i t i e s o f y o u r j o b n e x t y e a r t o m a n a g e t e r r i t o r y, a c c o u n t s , c a l l s , a n d y o u r s e l f .
Copyright © 2001 by UBS, Ludhiana
How Does Value Forward Network
(Research Firm) Calculate Sales Quotas?
• Step One:
First, analyze firm's current sales model metrics and corporate revenue
objectives and growth goals.
• Step Two:
Then research and review the current market's size and growth potential
nationally to understand industry's market demand.
• Step Three:
After this process is completed, then investigate and analyze the market
potential of product or service in each salesperson's territory.
• Step Four:
Lastly, integrate the data into an operating model where we then calculate
each salesperson's sales quota as well as a cumulative sales quota for your
whole sales team.
UBS,
A GOOD QUOTA PLAN IS
SMART
Specific
Measurable
Attainable
Realistic
UBS,
THANK YOU
UBS,

Sales Quota

Încărcat de

Informații document

Descriere originală:

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Sales Quota

Încărcat de

Drepturi de autor:

Formate disponibile

SALES QUOTAS

A quota refers to an expected performance

• Quotas provide performance targets.

• Quotas provide standards for self-supervisory.

• No specific method or formula

• Sales volume quotas.

• Sales volume quotas.

• Sales volume quotas.

• Break down total sales volume.

• Sales volume quotas.

• Break down total sales volume.

• Gross margin quota determined by

• Break down total sales volume.

• Break down total sales volume.

• Breakdown total sales volume.

• Quotas based on forecasts only.

LEVEL PURPOSE: WHAT IS WHO (USUALLY) IS

1. Marketing •Organizational goals Upper management and

Two basic steps to implementing sales strategies:

Step 1: Organize the jobs.

Territorial Management Account Management Call Management Self-Management

Step 2: Defining Annual Objectives

O u tp u t P e s s im is tic R e a li s t i c O p tim is tic R e s u lts

S-ar putea să vă placă și