4. W HAT IS A Q UOTA? A quota refers to an expected performance objective. Quotas are tactical in nature and thus derived from the sales force’s strategic objectives.
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7. Sales volume quotas includes dollar or product unit objectives for a specific period of time.
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13. Expense quotas are aimed at controlling costs of sales units. Often expenses are related to sales volume or to the compensation plan.
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15. Activity quotas set objectives for job-related duties useful toward reaching salespeople’s performance targets.
16. Customer satisfaction refers to feelings about any differences between what is expected and actual experiences with the purchase.
34. S ELLING-BY- O BJECTIVES M ANAGEMENT Selling by objectives (SBO) is the process elaborated on earlier whereby the manager and salesperson jointly identify common goals, define major areas of responsibility, and agree on the results expected.
35. FIGURE 7.4 SETTING OBJECTIVES AND QUOTAS IS A TWO-WAY PROCESS BETWEEN MANAGER AND SALESPERSON
36. T HE S ALES T ERRITORY IS W HERE Q UOTAS ARE M ADE The sales territory is “where the action is!”
37. T HE B OTTOM L INE Quotas are important to a company because they establish the “end state” sought, and they change according to external and internal forces. Many different types of quotas exist. Methods for setting quotas may vary. Setting a sales quota can be an involved process. Selling by objectives (SBO) is a common concept and is widely used by sales organizations.
