if you were asked what you believe in the relationship between the sales quota y
ID: 3144407 • Letter: I
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if you were asked what you believe in the relationship between the sales quota your manager gives you in the sale objectives expected of the entire sales force what would you say if you were asked what you believe in the relationship between the sales quota your manager gives you in the sale objectives expected of the entire sales force what would you say if you were asked what you believe in the relationship between the sales quota your manager gives you in the sale objectives expected of the entire sales force what would you sayExplanation / Answer
Sales Quota (SQ)
SQ are goals set by a comp. for its marketing unit for a certain period of time. Marketing unit may be regions, territory, branch, salesperson, a distribution or a dealer.
SQ can be set on sales unit, expenses, profit margin, activity, customer satisfaction combination. Annual sales quota for each mktg unit can be -broken down to quarterly/monthly.
Objectives of Quota are like:
1.Making available performance standard:
It act as a tool to measure performance of sales person, act as a goal/target setter.
Performance Std. set against which actual performance is compared to evaluate salespersons performance.
2. Controlling performance
BY selling quotas for special activities, sales volume &selling expenses.
The SM (sales manager)controls the performance.Fore.g:-10 calls per day/5 calls of business customer’s indirectly monitors/controls the activities of sales person by setting quotas.
Can keep an eye on wasteful expenditure on customer (travelling, lodging, entertainment & meals) company reimburses sales expenses only up to 0.5% of sales limit expenses? Control over reporting &can influence sales performance.
3.Motivating people
Sales quotas are set by motivating sales people by money. performance is recognized by awards/rewards like trips abroad. This financial compensation/ rewards are called incentives. The incentives are linked with quotas which are made achievable for sales person. So that he puts in extra effort to achieve his quota.
4.Identifying strength &weakness: Actual performance compound respective quotas of difference territories & salespersons, The SM can identify successful &unsuccessful performance. Analysis of causes of poor performance may reveal training program needs improvement, better product quality required to meet customer needs & positioning strategy.
Part of a company's marketing plan, in which common goals are identified by the marketing team, including profit margins, revenue targets, advertising, distribution partners and targeted demographics. These plans are outlined and discussed in sales meetings to insure a shared understanding between members of the marketing and sales teams.
So, sales objectives and quotas are interrelated and depend on each other.
Sell to Whom?
Before setting objectives, your sales team has to know who their target customers are. Segmenting your markets and determining your target market are prerequisites for setting sales objectives. If you target a new market in another country, your objectives might be to establish a local presence and complete test marketing. If you are expanding your presence in your current market, an objective to double your customer base might be appropriate. Your sales objectives depend on your sales targets and their needs.
How?
You must decide how you are going to sell your products. Selling involves the sales channel and the value proposition you are promoting. Typical sales channels are direct sales, retail, distributor, wholesale, online or mail order. Your strategic objectives depend on whether you are going to contact customers directly and explain why your products satisfy their needs, or whether you will promote your products but leave the direct customer contact to agents or retail outlets.
How Much?
When you have identified your strategy, your market and your sales channel, you can decide how much product you want to sell and at what price. You then determine your strategic objectives to achieve your sales goals. For example, if you want to expand in your current market, your strategy might be to sell to new customers through direct sales with a target of 100 products sold per week. If a typical new customer buys one product, your strategic sales objectives might be to call 200 new customers per week and to open accounts for 50 percent of them. Achieving your strategic sales objectives lets you reach your sales goals.
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