sales quotas and territory
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SALES QUOTAS AND TERRITORYRahul dhar
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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
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TYPES OF QUOTAS
Sales Volume Quotas Profit Quotas Expense Quotas Activity Quotas Quota Combinations
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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)
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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%
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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.
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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
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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.
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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
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QUOTA COMBINATIONS
Commonly used are Sales and activity Quotas
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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
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ACTIVITIES IN TERRITORY MANAGEMENT
Trade relations Potential business Coverage Reports Territory Size Selling Technique Customer Satisfaction Selling Abilities
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WHY ESTABLISH SALES TERRITORIES
Entire Coverage Assign Sales Persons responsibilities Evaluate Performance Improve Customer relation Reduce Sales Expences
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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
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ASSIGNING TO TERRRITORIES
Straight line Pattern Cover Leaf pattern Major City Pattern
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BASE First Call
C
CC
C
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COVER LEAF PATTERN
BASEC
C C
CC
C
C
C
C
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MAJOR CITY PATTERN
1
2 3
54