Diese Präsentation wurde erfolgreich gemeldet.
Die SlideShare-Präsentation wird heruntergeladen. ×
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Wird geladen in …3
×

Hier ansehen

1 von 20 Anzeige

Weitere Verwandte Inhalte

Diashows für Sie (20)

Ähnlich wie Sales quotas (20)

Anzeige

Weitere von Tribhuvan University (20)

Aktuellste (20)

Anzeige

Sales quotas

  1. 1. Sales Quota and Quota Setting Procedure Gopal Thapa
  2. 2. Sales Quotas • A sales quota refers to an expected routine assignment to sales units, such as territory, districts and branches, etc. • Sales quotas are also assigned to individual salespeople over a particular time period and are used to plan, control and evaluate the selling activities of a company. • Sales quotas serve several purposes.
  3. 3. Objectives of Setting Sales Quotas • Quotas provide performance targets • Quotas provide standard • Quotas provide control • Quotas are motivational
  4. 4. Types of Sales Quotas • Sales Volume Quotas  Product line  Product range  Sales division  Sales Territories  Sales districts  Branch offices  Sales force (individual • Profit Quotas • Expense Quota • Activity Quotas
  5. 5. Types of activity quotas • Number of sales presentations made • Number of service calls made • Number of dealers visited • Number of calls made for recovery • Number of new accounts opened
  6. 6. Quota Setting Procedure • Set the parameters for developing quotas (a) Past trends: the quantity of specific product lines that were sold in various sales territories over time (b) Previous year’s revenue: the total revenue generated from sales of all products from various sales territories (c) Industry standards: performance of the competitors in the industry (d) Territory analysis: the quantity that a salesperson thinks can be sold in his or her territory based on the existing pipeline and recent successes
  7. 7. Quota Setting Procedure • Add the percentage of growth expected: • Allot individual quotas to each sales personnel:  Experience of the salesmen:  Assigned job  Sales skills:  Market potential:  Competition
  8. 8. Quota Setting Procedure • Make sure that the sales quotas are well understood by your sales team • Adapt quotas to market realities
  9. 9. Sales Territory Management • A sales territory comprises of a group of customers or a geographical area assigned to a sales unit. • The territory may or may not have geographic boundaries. • A sales territory represents a group of customer accounts, an industry, a market or a specific geographical area. • Territory management includes the market potential, number of customer accounts, the firms experience and market share in the territory, the capability of the salesperson assigned and the frequency of sales calls made.
  10. 10. Activities of Territory Management
  11. 11. Reasons for Setting Sales Territories • To obtain entire coverage of the market • To establish a salesperson’s responsibility • To evaluate performance • To improve customer relations • To reduce sales expenses • To allow better matching of salesperson to customer • To benefit salespeople and the company
  12. 12. Procedure for Setting up Sales Territories • Selecting a basic geographical control unit • Determining sales potentials in control unit • Combining control units into tentative territories • Adjusting for coverage difficulty and reallocating tentative territories.
  13. 13. Approaches used for designing sales territories • Market Build-up Approach • The Workload Approach
  14. 14. Market Build-up Approach • In this approach, an estimation of the present and potential products/services demand is made by looking at how the market is built up, who are its present/potential users, how much do they consume and at what frequency. • In this approach, information from trade directories, state publications, etc. is consolidated and then aggregated to understand the market potential for the product.
  15. 15. The Workload Approach • Designed by WJ Talley on the basis of the workload performed by salespersons  Customers are grouped into class size according to the sales volume.  Optimum call frequencies for each class of customers are estimated.  Present and potential customers are then located geographically and arranged volume wise and value-wise.  The number of present and potential customers in each volume/value group is then multiplied by the desired call frequency to get the total number of planned calls required for each geographical control unit
  16. 16. Revising Sales Territories • Situation I Where sales potential of territories are equal but the salesman differ in their abilities. • Situation II Where management designs sales territories in such a way that sales potential of territories varies directly with the ability of the sales person.
  17. 17. Reasons for Revising Sales Territories • Customer Related Reasons • Salesperson Related Reasons • Management Misjudgement
  18. 18. Alignment of Sales Personnel to Territories and Routing Straight Line Pattern Clover Leaf Pattern Hub and Spoke Circular
  19. 19. Scheduling of Sales Personnel • Scheduling refers to establishing a fixed time when the salesperson will be at a customer’s place of business.  It is planning a salesperson’s specific time of visits to customers Proper routing and scheduling enables the salesperson to:  Improve territorial coverage.  Minimize wasted time.  Establish communication between management and the sales force in terms of the location and activities of individual salespeople
  20. 20. Thank you ???????

×