Definition

A quota refers to an expected performance objective.

Quotas are tactical in nature and thus derived from
the sales force’s strategic objectives.
Individual sales target figure assigned to each sales
unit such as sales person, dealer, distributor, region,
or territory as required minimum for a specified
period (month, quarter, year).
 WHY ARE QUOTAS
IMPORTANT?

• Quotas provide performance targets.

• Quotas provide standards.
• Quotas provide control.
• Quotas provide change of direction.
• Quotas are motivational.
A GOOD OBJECTIVE AND
QUOTA PLAN IS SMART

Specific
Measurable
Attainable
Realistic
Time specific
 TYPES OF QUOTAS

• Sales volume quotas.

• Profit quotas.
• Expense quotas.
• Activity quotas.
• Quota combinations.
1.SALES VOLUME QUOTA
Sales Volume Quota includes sales in rupees or product unit
objectives for a specific period of time.
e.g. Bajaj calculates sales as number of vehicles sold.
Sales volume quota communicates management’s expectations as
to “how much for what period”
It can be set in the following areas:
- Geographical areas
- Product lines
- Product range
- Sales territory
- Branch offices
- Sales force (individual)
2. PROFIT QUOTA
• Gross margin quota determined by subtracting cost of
goods sold from sales volume.

• Net profit quota determined by subtracting cost of goods

sold and salespeople’s direct selling expense from sales
volume.
3. EXPENSE QUOTA
Expense quotas are aimed at controlling costs of sales
units. Often expenses are related to sales volume or to
the compensation plan.
4. ACTIVITY QUOTA
The desire to control how sales personnel allocate
their time and efforts among different activities
explains the use of activity quotas.
Activity quotas set objectives for job related
duties useful toward reaching salesperson’s
performance targets.
- Number of sales presentations made
- Number of service calls made
- Number of dealers visited
- Number of new accounts opened
5. QUOTA COMBINATION
Combination of any two or more quota types.
The most commonly combined are sales volume and
activity quotas. These quotas influence selling and
non selling activities.
METHODS FOR SETTING SALES
QUOTAS
• Quotas based on forecasts and potentials.
• Quotas based on forecasts only.
• Quotas based on past experience.
• Quotas based on executive judgments.
• Quotas set by salespeople.
• Quotas related to compensation.
 SELLING BY OBJECTIVES SETS FUTURE TARGETS

Two basic steps to implementing sales

strategies:

Step 1: Organize the jobs.

Step 2: Define annual objectives in
important areas.
FIGURE 7.2 THE FOUR MAJOR AREAS TO ESTABLISH OBJECTIVES
WITH EACH SALESPERSON
SALES
MANAGEMENT
Step 1: Organizing the Job

Salesperson

Territorial Call Self-

management Account Management Management Management
• Limits • Portfolio of • Preparation • Appearance
• Potential Business Accounts • Selling Technique • Manner
• Size • Potentials • Training • Communication
• Customer Base • Coverage • Communication Skills
• Prospects • Records • Buyer Behavior • Abilities
• Leads • Order Size • Impact • Attitudes
• Market Share • Penetration • Handling • Selling Abilities
• Growth • Reports Resistance
• Trade Relations • Customer
• Dealer Relations Satisfaction

Step 2: Defining Annual Objectives

1. Regular
2. Problem Solving
3. Innovative
SELLING BY OBJECTIVES
Selling by objectives (SBO) is the process whereby the
manager and salesperson jointly identify common
goals, define major areas of responsibility, and agree
on the results expected.
SETTING OBJECTIVES AND QUOTAS IS A TWO-WAY PROCESS
BETWEEN MANAGER AND SALESPERSON

M u tu a lly S et
M ea su r e
O b je ct i v e s a n d
P er fo r m a n ce
Q u ota s

E v a lu a te
P er fo r m a n ce

P u b liciz e
P er fo r m a n ce R ew a rd
R esu lts o r P en a lty
Definition
Sales display is the act of putting things for view or on
view. In sales management, sales display means
“arranging systematically saleable goods so as to
attract the attention of the customer”.
Advertising helps in creating awareness, reminding
and informing customers about the product, the
actual product is not displayed in advertising. Sales
displays fulfill that need by appealing to the eyes of
the customer.
Objectives of sales display
It shows the product or service to the potential
customer
It gives an idea about every detail of the product such
as variety, quality, size, colour etc.
It helps the customer to see and examine the goods
before they actually buy them.
Sales display appeals visually to the prospects and
induces them to purchase
Sales display reminds the customer about their needs
and subsequently they are attracted to buy.
Types of Displays
Displays: Types of Displays

A window display appears in store windows that face

the street or the walkways of a mall.
Displays: Types of Displays
An interior display is located inside a store.
They are strategically placed to catch a
customer’s eye and to generate traffic flow
within the store.
Displays: Types of Displays
A point-of-purchase display is designed to provoke
impulse purchases as the customer is waiting to pay
for his or her purchases.
Display Development
The following steps will help you plan a display:
1. Determine the goal of the display.
Ex. – promote new merchandise? Show how to wear
new style?
2. Choose the merchandise.
Should be eye-catching or notable, or subject of current
promotional campaign.
 Display Development
3.Choose a theme.
Artistic: color, Theme: beach, holiday,
back-to-school
4. Select props.
Props are objects used in a display to
support the theme or to physically
support the merchandise.
5. Arrange the merchandise and
props.
Display Development
6. Develop signs.
Signs should give info, like price.
Signs should be brief and easy to read.
7. Design the lighting.
Lighting should provide enough light to see
merchandise and read signs.
Spotlights can be used to focus on specific items.
Display Maintenance
Dirty, messy displays can ruin a store’s image.
To maintain a good image, a display must be kept clean and
orderly.
Some guidelines for good display maintenance are to check
display at least once a day, clean regularly, replaces damaged
goods, replace moved items, and replace lights as necessary.
Display Evaluation
The purpose of displays is to promote store image and sell
products.
Evaluate each display to determine whether it is meeting
these goals.
 Does the display fit our store image?
 Does it grab customers’ attention?
 Is focus on merchandise?
 Are signs clear and easy to read?
 Is there enough light?
 Is the display neat and clean?
Design and Visual Merchandising

Success in visual merchandising involves the use of

design.
Design is the purposeful arrangement of materials so
that a certain effect is produced.
Design and Visual Merchandising
The elements of design include:
1. Color 4. Texture
2. Line 5. Light
3. Shape 6. Motion
The elements of design are building blocks that can
be manipulated to create an effect.