1. Write the different types of sales quota & explain how they are different.

What types of quota do you recommend for the following types of sales job &
also give reason?

A. Selling FMCG product

B. Selling heavy machinery

Sales quota: Sales Quota is the estimated or predetermined volume or value of

sales expected to be achieved by the sales force over given period of time or
specific future period.

Different types of sales Quota are

• Sales Volume Quota: This always includes sales in monetary terms or

units sold for a specific period of time
• Profit quotas: This type of quotas is very useful for FMCG companies
as various products add to varying levels of profits. The advantage of
this type of sales quota is that the sales person can use his time
optimally
• Expense Quotas: These are linked to selling costs with a realistic time
frame. Few companies set quotas for expenses to different sales levels
achieved by the sales person. The sales team may be given an expense
budget which is a percentage of a particular region’s sales volume.
• Activity Quotas: Under such quotas the sales team is required to
execute other activities that will have a long-term bearing on the
company’s goodwill.

Types of quota do you recommended for the following types of sales job

A. Selling FMCG product

Profit Quota: Due to the variety of products that could be produced in the
FMCG company, which adds to various levels of profits for different
products, its prudent to use profit quota for the sales person to decide on the
optimal profit margin, on which products to promote/produce.

B. Selling heavy machinery

Sales Volume Quota: Heavy Machinery is a long-time investment for any

company which wouldn’t be used for repetitive or frequent buying. Sales of
 heavy machinery could be counted on the number of units sold in a specific
time span.

2. Write short notes: (3*2=6 Marks)

a. Mean absolute percentage error

b. Sales territory design

a. Mean absolute percentage error (MAPE): It also known as mean absolute percentage
deviation (MAPD), is a measure of prediction accuracy of a forecasting method
in statistics, for example in trend estimation, also used as a loss function for
regression problems in machine learning. It usually expresses the accuracy as a
ratio defined by the formula:

b. Sales territory design

A sales territory is defined as a group of present and potential customers assigned

to an individual salesperson, a group of salespersons, a branch, a dealer, a
distributor, or a marketing organization at a given period of time.
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