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  1. 1. Sales Quota Setting Prepared by:- Hardik Chavda
  2. 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. 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. 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. 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. 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. 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
  8. 8. Thank You

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