Sales Quotas

1. SALES QUOTES
“A sales quota is a quantitative goal assigned to a
sales unit vela ting to a particular time period”

2. PURPOSES OF SALES QUOTAS
a) Providing goal and incentives
b) Controlling sales persons activities
c) Evaluating performance
d) Controlling the selling expenses
e) Making effective compensation plan.

3. HOW QUOTAS ARE SET?
1) Sales volume quota
2) Financial quota
3) Activities quota
4) Combination of the quotas

4. METHODS FOR SETTING
VOLUMES QUOTAS
(a) Past sales
(b) Market estimates

5. METHODS FOR SETTING
FINANCIAL QUOTAS
a) Net Profit Quota
b) Expense Quota

6. ATTRIBUTES OF A GOOD SALES
QUOTA PLAN
a) Realistic attainability
b) Objective accuracy
c) Ease of understanding and administering
d) Flexibility
e) Fairness

7. PARITY IN SALES POTENTIAL
H B
G C
A
D
F
E