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Sales Quotas and Territory

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SALES QUOTAS AND TERRITORY Rahul dhar
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Page 1: Sales Quotas and Territory

SALES QUOTAS AND TERRITORYRahul dhar

Page 2: Sales Quotas and Territory

SALES QUOTAS

A Sales Quota refers to an expected routine assignment to sales units, such as territory, districts or branches etc.

Sales Quotas can be set for individuals Used to Plan, Control and evaluate the selling

activities of a company.

EVALUATE

Control

Appraising

Expences,profitability

Plan Sales Plans,Forecasts,Budgets

Page 3: Sales Quotas and Territory

TYPES OF QUOTAS

Sales Volume Quotas Profit Quotas Expense Quotas Activity Quotas Quota Combinations

Page 4: Sales Quotas and Territory

SALES VOLUME QUOTAS Sales Volume Quotas include Sales in Rupees

or Product Unit objectives for a Specific period of time,

Eg Bajaj calculates sales as number of vehicles sold.

It can be set in following areas Product Line Product range Sales Divisions Sales Territories Sales Districts Branch Offices Sales Force (individuals)

Page 5: Sales Quotas and Territory

EXAMPLE

A. Quota Actual Sales Differencce Performace Index

B. 5696000 5792000 96000 101.7%

C. 5584000 4842000 -742000 86.7%

D. 6012000 6046000 34000 100.6%

Page 6: Sales Quotas and Territory

PROFIT QUOTAS

Used in Multi product Companies Where different products contribute to varying levels of profits .

Concentrate on the high profit products by the sales person.

Page 7: Sales Quotas and Territory

EXAMPLE

Product SP Margin Volume Net profit A 400 280(70%) 60000 168

lac B 200 80(40%) 25000 2 lac C 100 20(20%) 10000 2lac

Page 8: Sales Quotas and Territory

EXPENSE QUOTA

Expense Quotas are related to Selling costs . Set Quotas for expenses linked to different

levels of sales attained by their sales force % of sales volume in a territory and sales

person many spend only this amount as an expenditure.

Page 9: Sales Quotas and Territory

ACTIVITY QUOTAS

Set objectives for job related duties useful for attaining salesperson performance targets

Help in attaining long term objectives as goodwill

Eg No of sales presentation made No of service calls made No of dealers visited No of calls made for recovery No of new accounts opened

Page 10: Sales Quotas and Territory

QUOTA COMBINATIONS

Commonly used are Sales and activity Quotas

Page 11: Sales Quotas and Territory

TERRITORY MANAGEMENT

A Sales Territory Comprises a group of customers or a Geographical area assigned to a sales unit.

It many or may not have a geographical boundary.

It includes Market potential No of customer Accounts Firms Experience Market Share Capability of sales person and frequency of calls

made

Page 12: Sales Quotas and Territory

ACTIVITIES IN TERRITORY MANAGEMENT

Trade relations Potential business Coverage Reports Territory Size Selling Technique Customer Satisfaction Selling Abilities

Page 13: Sales Quotas and Territory

WHY ESTABLISH SALES TERRITORIES

Entire Coverage Assign Sales Persons responsibilities Evaluate Performance Improve Customer relation Reduce Sales Expences

Page 14: Sales Quotas and Territory

DESIGNING TERITORIES

Select a basic geographical Unit

Determining the Sales potential in control units

Combining the Control units into tentative territories

Adjusting for coverage Difficulty and relocating tentative territories

Page 15: Sales Quotas and Territory

ASSIGNING TO TERRRITORIES

Straight line Pattern Cover Leaf pattern Major City Pattern

Page 16: Sales Quotas and Territory

BASE First Call

C

CC

C

Page 17: Sales Quotas and Territory

COVER LEAF PATTERN

BASEC

C C

CC

C

C

C

C

Page 18: Sales Quotas and Territory

MAJOR CITY PATTERN

1

2 3

54


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