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SALES QUOTAS AND

TERRITORY
Rahul dhar
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.
Appraisin
EVALUATE g

Control Expences,profitabilit
y

Plan Sales Plans,Forecasts,Budgets


TYPES OF QUOTAS
 Sales Volume Quotas
 Profit Quotas

 Expense Quotas

 Activity Quotas

 Quota Combinations
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)
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%
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.
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
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.
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
QUOTA COMBINATIONS
 Commonly used are Sales and activity
Quotas
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
ACTIVITIES IN TERRITORY
MANAGEMENT
 Trade relations
 Potential business

 Coverage

 Reports

 Territory Size

 Selling Technique

 Customer Satisfaction

 Selling Abilities
WHY ESTABLISH SALES TERRITORIES
 Entire Coverage
 Assign Sales Persons responsibilities

 Evaluate Performance

 Improve Customer relation

 Reduce Sales Expences


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
ASSIGNING TO TERRRITORIES
 Straight line Pattern
 Cover Leaf pattern

 Major City Pattern


BASE First Call

C C

C C
COVER LEAF PATTERN

C C

BASE
C

C
C C

C
MAJOR CITY PATTERN

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