Presentation on

sales quota
In this we will discuss:
 Meaning
 Definition
 Purpose of sales quotas
 Importance of sales quotas
 Types of sales quotas
 Characteristics of good sales quota
Introduction
 Quantitative sales goals
 Goals setting motivates sales people to put in

extra efforts
 Sales quotas &relation with success of an

organisation
Meaning
Sales quotas are sales assignments or goals ,
which are to be achieved in a specific period
of time where a territorial assignments gives
direction to the planning and the control of
sale operation.

Sales quotas are developed through the study

of annual territory marketing plan.
Definition

‘A sales quota is a sales performance goal. It is

assigned to a marketing unit, a sales person ,
branch or middleman. "
Stanton and Buskirk
 Control
Improve
Improve selling
compensatio
compensatio expenses
n
n plan
plan
effectiveness
effectiveness Evaluate
Evaluate
sales
sales
contest
contest
results
results
Evaluate
Evaluate
sales
sales force
force
productivity
productivity

Sales
quotas are
used to

Control
Control
sales
sales force
force
activities
activities

Furnish
Furnish
sales
sales force
force
goal/incenti Indicate
Indicate
goal/incenti strong/weak
ves strong/weak
ves spots
spots in
in selling
selling
structure
structure
Purpose of sales quotas
 To achieve organisational objectives
 Provide a direction to sales activities
 Acts as standards to evaluate sale personnel
Importance of sales quotas
 Provide performance targets
 Provide standards
 Provide control
 Provide change to direction
 Tool for motivating sales people
Types of sales quotas
Types

Sales volume Sales financial Sales activity Combination

quotas quotas quotas quotas
1. Sales volume quotas:
 Monetary sales volume quotas
 Unit sales volume quotas
 Point sales volume quotas
2.Sales financial quotas:
 Expense quotas
 Gross margin or net profit quotas

3.Sales activity quotas

 Customer relations
 Providing after sales services
 Helping retailer in display activities etc....
4. Combination quotas
 Control performance of both selling and non

selling
Characteristics of sales quotas
 Fair (i.e. Maintaining uniformity)
 Challenging
 Flexible
 Easily understandable
 Help managerial coordination
 a nku
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