Sales Quotas And Territory

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. 

EVALUATE Control

Plan

Appraisin g Expences,profitabilit y 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.

B. C. D.

Quota Actual Sales Index 5696000 5792000 5584000 4842000 6012000 6046000

Differencce 96000 -742000 34000

Performace 101.7% 86.7% 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 A lac B C 

SP 400

Margin Volume Net profit 280(70%) 60000 168

200 80(40%) 100 20(20%)

25000 10000

2 lac 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  No  No  No  No

of of of of of

sales presentation made service calls made dealers visited calls made for recovery 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 

First Call

BASE

C

C

C

C

COVER LEAF PATTERN C

C

BASE C C

C C

C C

C

MAJOR CITY PATTERN

2

3 1

4

5