V A sales quotas is a standard for measuring the

achievements of a sales of a sales organization. It

can be defined as the estimated volume of sales
set up as an objective to be attained over a given
period. The sales quotas may be fixed for weekly
,monthly, fortnightly, half -yearly, yearly or any
other period found suitable for the company.
V According to American marketing association,:= ´
sales quotas is a sales goal assigned to a
marketing unit to be used for managing the sales
effortµ
j. Past sales records
2. Buying power of customers
3. Company·s policies
4. Total production for the year
5. Extent of competition
6. Opinions of experts
7. Consumer standards
j. Top management downward = Under this
method, the management and the executives
estimate the total states for the coming year
based on their experience and judgment and
divide this total sales according to district
,branch and individual sales man.
2. Past performance method = in this method,
sales estimates are made keeping in view the
past sales records taken as the basis as the total
sales estimate for the future is made by
increasing the sales by certain percentage.
3. Territorial estimate upward :- in this
method, the salesmen asked to make
estimation of sales of their territories for
the coming year. The district and the
divisional managers make further
adjustment of the sales estimates with
the corporation of the sales people.
4.Combination of top management
downward and territorial estimate
upward :- under this method . The above
two methods of estimating sales quotas
are combined and used. at the
headquarter, the management by virtue
of their past experience and judgment.
j. Quotas provide performance targets
2. Quotas provide standards
3. Quotas provide control
4. Quotas provide change of direction
5. Quotas are motivational.
j
ales volume
2 Budget
3 Activity
4 combination
V The sales volume quota is the oldest
and most common type. It is an important
standard for appraising the
performances of individual sales
personnel, other unit of the sales
organization, and distributive outlets.
The sales volume are mainly three types.
j. Rupees sales volume quotas
2. Unit sales volume quotas
3. Point sales volume quotas
V Budget quotas are set for various unit in
the sales organization to control expenses,
gross margin, or net profit the intention in
setting budget quotas is to make it clear to
sales personnel that their jobs consist of
something more than obtaining sales
volume. Budget quotas make personnel
more conscious that the company is in
business to make a profit.
j. Expanses quotas
2. net profit quotas
V the desire to control how sales
personnel allocate their time and efforts
among different activities explains the
use of activity quotas activity quotas are
set for total sales calls on particular
classes of customer, calls on prospects,
number of new accounts , missionary
calls, product demonstrations, and
making of collections
V combination quotas control performance
of both selling and non-selling activities.
these quotas overcome the difficulty of
using different measurement units to
appraise different aspects of performance.
Because performance against combination
quotas are computed as percentage s, these
quotas are computed as percentages, these
quotas are known as point systems, the
points being percentage point.
j Evaluation of sales performance
2 ocate weak and underdeveloped areas
3 Control device
4 Conduct of sales contest
5 Effective compensation plan
6 Controlling selling costs
7
ource of motivation
8 aximization of sales and profit
j Based on Arbitrary estimates
2 anger of ineffectiveness
3 Problem of quotas fixing
4 Apply of discard
5
hort supply
6 Too low quotas
7 astage of time, energy and money
V A sales territory is composed of a
group of customers or a geographic area
assigned to a salesperson. The territory
may or may not have geographic
boundaries.

V According to maynard and davis, ´ sales

territory is a basic unit of sales planning
and sales control.µ
j. To obtain thorough coverage of the market
2. To establish a salesperson·s responsibility
3. To evaluate performance
4. To improve customer relations
5. To reduce sales expenses
6. To allow better matching of salesperson to
customer
7. To benefit salespeople and the company
j ature of product
2 emand for product
3 Transport facilities
4 Competition and frequency of contact
5 Population
6 Advertising and sales promotion
activities
7 Ability and experience of salesman
THA YOU