2. Sales Quota
A sales quota is a quantitative
goal assigned to a sales unit
relating to a particular period of
time.
A sales unit may be a territory,
a branch office, a region ,a
distributor or a person.
sales quota provides a source
of motivation, a basis for
3. Purpose of sales Quota
setting
I. Providing goals and incentives to
achieve a certain performance
level
II. Controlling sales person’s
activities
III.Evaluating performance
4. Types of sales Quotas
1. Sales Volume Quotas
2. Financial Quotas
3. Activities Quotas
4. Combination of these quotas
Sales Volume Quotas: can be
measured by-
volume of sales made by
individuals
5. Methods of setting sales
volume quota
1)Past sales : last year sales
100 % increase in
market share expected 10%
then for this year sales quota will
be 110%
2)Total mar ket estimate: market
size estimate, projection made by
field staff at each territory
3)Ter ritorial sales potential:
6. Continue….types of sales
quotas
Financial Quotas: determined to
attain desired net profits by
controlling increased sales
expenses.
• Net profit Quotas
• Expenses Quotas
Activity Quotas: refers to the
numbers of selling activities that a
salesman is expected to performed
7. Administration of Quota
System
The skill in administering the quota
system is very important to realize
the full benefit for control purpose
and also to secure cooperation among
staff .
Accurate,fair and attainable quotas
Securing and maintaining sales
personnel's acceptance
Participation of sales personnel
