Download VTU (Visvesvaraya Technological University) MBA 4th Semester (Fourth Semester) 16MBAMM401-Sales Management SM Module 3 Important Lecture Notes (MBA Study Material Notes)
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
? Motivating sales force- measurement &
linking with rewards
? Lead organizations towards management by
exception-Take care of highly performers and
help poor performers
? Helps in giving directions to the salespeople?s
efforts
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
? Motivating sales force- measurement &
linking with rewards
? Lead organizations towards management by
exception-Take care of highly performers and
help poor performers
? Helps in giving directions to the salespeople?s
efforts
? Planning
? Conferencing with the salesperson
? Arriving at a summarized written quota
statement
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
? Motivating sales force- measurement &
linking with rewards
? Lead organizations towards management by
exception-Take care of highly performers and
help poor performers
? Helps in giving directions to the salespeople?s
efforts
? Planning
? Conferencing with the salesperson
? Arriving at a summarized written quota
statement
1. Sales volume quota
2. Sales budget quota(expense quota,profit
quota)
3. Sales activity quota
4. Combination quota
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
? Motivating sales force- measurement &
linking with rewards
? Lead organizations towards management by
exception-Take care of highly performers and
help poor performers
? Helps in giving directions to the salespeople?s
efforts
? Planning
? Conferencing with the salesperson
? Arriving at a summarized written quota
statement
1. Sales volume quota
2. Sales budget quota(expense quota,profit
quota)
3. Sales activity quota
4. Combination quota
? This quota communicates the organization?s
expectations in terms of what amount of
sales for/in what period.
? Ex:
? General motors uses the number of cars and
commercial.
? If a sales person has to sell 30000 units of a
product from March to August then it is
called sales volume quota.
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
? Motivating sales force- measurement &
linking with rewards
? Lead organizations towards management by
exception-Take care of highly performers and
help poor performers
? Helps in giving directions to the salespeople?s
efforts
? Planning
? Conferencing with the salesperson
? Arriving at a summarized written quota
statement
1. Sales volume quota
2. Sales budget quota(expense quota,profit
quota)
3. Sales activity quota
4. Combination quota
? This quota communicates the organization?s
expectations in terms of what amount of
sales for/in what period.
? Ex:
? General motors uses the number of cars and
commercial.
? If a sales person has to sell 30000 units of a
product from March to August then it is
called sales volume quota.
? These kinds of quotas are set for various
units by the organization in order to control
expenses ( expenses quota), gross margins,
and net profits.
? The overall intention of setting a budget
quota is to the sales people they are more of
responsible centre where the job includes
not only obtaining the desired sales volume
but also making good profits.
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
? Motivating sales force- measurement &
linking with rewards
? Lead organizations towards management by
exception-Take care of highly performers and
help poor performers
? Helps in giving directions to the salespeople?s
efforts
? Planning
? Conferencing with the salesperson
? Arriving at a summarized written quota
statement
1. Sales volume quota
2. Sales budget quota(expense quota,profit
quota)
3. Sales activity quota
4. Combination quota
? This quota communicates the organization?s
expectations in terms of what amount of
sales for/in what period.
? Ex:
? General motors uses the number of cars and
commercial.
? If a sales person has to sell 30000 units of a
product from March to August then it is
called sales volume quota.
? These kinds of quotas are set for various
units by the organization in order to control
expenses ( expenses quota), gross margins,
and net profits.
? The overall intention of setting a budget
quota is to the sales people they are more of
responsible centre where the job includes
not only obtaining the desired sales volume
but also making good profits.
? Here the quota can be fixed on the activity a
sales person has to perform, rather than the
final outcome.
? In addition to sales activity, the sales person
is expected to do some non selling activity
and quota can be set as a mix of these
activities.
? Mostly seen in insurance where they do
prospecting, generate sales lead and develop
new business.
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
? Motivating sales force- measurement &
linking with rewards
? Lead organizations towards management by
exception-Take care of highly performers and
help poor performers
? Helps in giving directions to the salespeople?s
efforts
? Planning
? Conferencing with the salesperson
? Arriving at a summarized written quota
statement
1. Sales volume quota
2. Sales budget quota(expense quota,profit
quota)
3. Sales activity quota
4. Combination quota
? This quota communicates the organization?s
expectations in terms of what amount of
sales for/in what period.
? Ex:
? General motors uses the number of cars and
commercial.
? If a sales person has to sell 30000 units of a
product from March to August then it is
called sales volume quota.
? These kinds of quotas are set for various
units by the organization in order to control
expenses ( expenses quota), gross margins,
and net profits.
? The overall intention of setting a budget
quota is to the sales people they are more of
responsible centre where the job includes
not only obtaining the desired sales volume
but also making good profits.
? Here the quota can be fixed on the activity a
sales person has to perform, rather than the
final outcome.
? In addition to sales activity, the sales person
is expected to do some non selling activity
and quota can be set as a mix of these
activities.
? Mostly seen in insurance where they do
prospecting, generate sales lead and develop
new business.
? Many organization uses the combination of
these quota.
? Ex: achieving 2000 units along with
developing 20 new key accounts, identifying
200 prospects and brining back 50 sales lost
customers.
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
? Motivating sales force- measurement &
linking with rewards
? Lead organizations towards management by
exception-Take care of highly performers and
help poor performers
? Helps in giving directions to the salespeople?s
efforts
? Planning
? Conferencing with the salesperson
? Arriving at a summarized written quota
statement
1. Sales volume quota
2. Sales budget quota(expense quota,profit
quota)
3. Sales activity quota
4. Combination quota
? This quota communicates the organization?s
expectations in terms of what amount of
sales for/in what period.
? Ex:
? General motors uses the number of cars and
commercial.
? If a sales person has to sell 30000 units of a
product from March to August then it is
called sales volume quota.
? These kinds of quotas are set for various
units by the organization in order to control
expenses ( expenses quota), gross margins,
and net profits.
? The overall intention of setting a budget
quota is to the sales people they are more of
responsible centre where the job includes
not only obtaining the desired sales volume
but also making good profits.
? Here the quota can be fixed on the activity a
sales person has to perform, rather than the
final outcome.
? In addition to sales activity, the sales person
is expected to do some non selling activity
and quota can be set as a mix of these
activities.
? Mostly seen in insurance where they do
prospecting, generate sales lead and develop
new business.
? Many organization uses the combination of
these quota.
? Ex: achieving 2000 units along with
developing 20 new key accounts, identifying
200 prospects and brining back 50 sales lost
customers.
1) Quotas based on sales potentials
2) Quotas based on forecast
3) Based on past sales & experience
4) Based on executive judgment
5) Based on salespeople judgment
6) Quotas based on compensation
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
? Motivating sales force- measurement &
linking with rewards
? Lead organizations towards management by
exception-Take care of highly performers and
help poor performers
? Helps in giving directions to the salespeople?s
efforts
? Planning
? Conferencing with the salesperson
? Arriving at a summarized written quota
statement
1. Sales volume quota
2. Sales budget quota(expense quota,profit
quota)
3. Sales activity quota
4. Combination quota
? This quota communicates the organization?s
expectations in terms of what amount of
sales for/in what period.
? Ex:
? General motors uses the number of cars and
commercial.
? If a sales person has to sell 30000 units of a
product from March to August then it is
called sales volume quota.
? These kinds of quotas are set for various
units by the organization in order to control
expenses ( expenses quota), gross margins,
and net profits.
? The overall intention of setting a budget
quota is to the sales people they are more of
responsible centre where the job includes
not only obtaining the desired sales volume
but also making good profits.
? Here the quota can be fixed on the activity a
sales person has to perform, rather than the
final outcome.
? In addition to sales activity, the sales person
is expected to do some non selling activity
and quota can be set as a mix of these
activities.
? Mostly seen in insurance where they do
prospecting, generate sales lead and develop
new business.
? Many organization uses the combination of
these quota.
? Ex: achieving 2000 units along with
developing 20 new key accounts, identifying
200 prospects and brining back 50 sales lost
customers.
1) Quotas based on sales potentials
2) Quotas based on forecast
3) Based on past sales & experience
4) Based on executive judgment
5) Based on salespeople judgment
6) Quotas based on compensation
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
? Motivating sales force- measurement &
linking with rewards
? Lead organizations towards management by
exception-Take care of highly performers and
help poor performers
? Helps in giving directions to the salespeople?s
efforts
? Planning
? Conferencing with the salesperson
? Arriving at a summarized written quota
statement
1. Sales volume quota
2. Sales budget quota(expense quota,profit
quota)
3. Sales activity quota
4. Combination quota
? This quota communicates the organization?s
expectations in terms of what amount of
sales for/in what period.
? Ex:
? General motors uses the number of cars and
commercial.
? If a sales person has to sell 30000 units of a
product from March to August then it is
called sales volume quota.
? These kinds of quotas are set for various
units by the organization in order to control
expenses ( expenses quota), gross margins,
and net profits.
? The overall intention of setting a budget
quota is to the sales people they are more of
responsible centre where the job includes
not only obtaining the desired sales volume
but also making good profits.
? Here the quota can be fixed on the activity a
sales person has to perform, rather than the
final outcome.
? In addition to sales activity, the sales person
is expected to do some non selling activity
and quota can be set as a mix of these
activities.
? Mostly seen in insurance where they do
prospecting, generate sales lead and develop
new business.
? Many organization uses the combination of
these quota.
? Ex: achieving 2000 units along with
developing 20 new key accounts, identifying
200 prospects and brining back 50 sales lost
customers.
1) Quotas based on sales potentials
2) Quotas based on forecast
3) Based on past sales & experience
4) Based on executive judgment
5) Based on salespeople judgment
6) Quotas based on compensation
? Word of mouth
? Internal sources of recruitment
? Employee agencies
? Sales representatives of competitors
? Representatives Non competing companies
? Internal transfer
? Campus recruitment
? Placement firms
? Advertisements
? Interns
? Employee referral
? Walk ins
? Web sources
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
? Motivating sales force- measurement &
linking with rewards
? Lead organizations towards management by
exception-Take care of highly performers and
help poor performers
? Helps in giving directions to the salespeople?s
efforts
? Planning
? Conferencing with the salesperson
? Arriving at a summarized written quota
statement
1. Sales volume quota
2. Sales budget quota(expense quota,profit
quota)
3. Sales activity quota
4. Combination quota
? This quota communicates the organization?s
expectations in terms of what amount of
sales for/in what period.
? Ex:
? General motors uses the number of cars and
commercial.
? If a sales person has to sell 30000 units of a
product from March to August then it is
called sales volume quota.
? These kinds of quotas are set for various
units by the organization in order to control
expenses ( expenses quota), gross margins,
and net profits.
? The overall intention of setting a budget
quota is to the sales people they are more of
responsible centre where the job includes
not only obtaining the desired sales volume
but also making good profits.
? Here the quota can be fixed on the activity a
sales person has to perform, rather than the
final outcome.
? In addition to sales activity, the sales person
is expected to do some non selling activity
and quota can be set as a mix of these
activities.
? Mostly seen in insurance where they do
prospecting, generate sales lead and develop
new business.
? Many organization uses the combination of
these quota.
? Ex: achieving 2000 units along with
developing 20 new key accounts, identifying
200 prospects and brining back 50 sales lost
customers.
1) Quotas based on sales potentials
2) Quotas based on forecast
3) Based on past sales & experience
4) Based on executive judgment
5) Based on salespeople judgment
6) Quotas based on compensation
? Word of mouth
? Internal sources of recruitment
? Employee agencies
? Sales representatives of competitors
? Representatives Non competing companies
? Internal transfer
? Campus recruitment
? Placement firms
? Advertisements
? Interns
? Employee referral
? Walk ins
? Web sources
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
? Motivating sales force- measurement &
linking with rewards
? Lead organizations towards management by
exception-Take care of highly performers and
help poor performers
? Helps in giving directions to the salespeople?s
efforts
? Planning
? Conferencing with the salesperson
? Arriving at a summarized written quota
statement
1. Sales volume quota
2. Sales budget quota(expense quota,profit
quota)
3. Sales activity quota
4. Combination quota
? This quota communicates the organization?s
expectations in terms of what amount of
sales for/in what period.
? Ex:
? General motors uses the number of cars and
commercial.
? If a sales person has to sell 30000 units of a
product from March to August then it is
called sales volume quota.
? These kinds of quotas are set for various
units by the organization in order to control
expenses ( expenses quota), gross margins,
and net profits.
? The overall intention of setting a budget
quota is to the sales people they are more of
responsible centre where the job includes
not only obtaining the desired sales volume
but also making good profits.
? Here the quota can be fixed on the activity a
sales person has to perform, rather than the
final outcome.
? In addition to sales activity, the sales person
is expected to do some non selling activity
and quota can be set as a mix of these
activities.
? Mostly seen in insurance where they do
prospecting, generate sales lead and develop
new business.
? Many organization uses the combination of
these quota.
? Ex: achieving 2000 units along with
developing 20 new key accounts, identifying
200 prospects and brining back 50 sales lost
customers.
1) Quotas based on sales potentials
2) Quotas based on forecast
3) Based on past sales & experience
4) Based on executive judgment
5) Based on salespeople judgment
6) Quotas based on compensation
? Word of mouth
? Internal sources of recruitment
? Employee agencies
? Sales representatives of competitors
? Representatives Non competing companies
? Internal transfer
? Campus recruitment
? Placement firms
? Advertisements
? Interns
? Employee referral
? Walk ins
? Web sources
1. Reception of applicant
2. Application blank
3. Selection test
4. Interview
5. Aptitude and skill
6. Personality
7. Intelligence
8. Psycological test
9. Inspection of past career
10. Primary selection
11. Final selection
12. Medical check up
13. Determination of term of service
14. Placement( appointment)
15. Initial orientation
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
? Motivating sales force- measurement &
linking with rewards
? Lead organizations towards management by
exception-Take care of highly performers and
help poor performers
? Helps in giving directions to the salespeople?s
efforts
? Planning
? Conferencing with the salesperson
? Arriving at a summarized written quota
statement
1. Sales volume quota
2. Sales budget quota(expense quota,profit
quota)
3. Sales activity quota
4. Combination quota
? This quota communicates the organization?s
expectations in terms of what amount of
sales for/in what period.
? Ex:
? General motors uses the number of cars and
commercial.
? If a sales person has to sell 30000 units of a
product from March to August then it is
called sales volume quota.
? These kinds of quotas are set for various
units by the organization in order to control
expenses ( expenses quota), gross margins,
and net profits.
? The overall intention of setting a budget
quota is to the sales people they are more of
responsible centre where the job includes
not only obtaining the desired sales volume
but also making good profits.
? Here the quota can be fixed on the activity a
sales person has to perform, rather than the
final outcome.
? In addition to sales activity, the sales person
is expected to do some non selling activity
and quota can be set as a mix of these
activities.
? Mostly seen in insurance where they do
prospecting, generate sales lead and develop
new business.
? Many organization uses the combination of
these quota.
? Ex: achieving 2000 units along with
developing 20 new key accounts, identifying
200 prospects and brining back 50 sales lost
customers.
1) Quotas based on sales potentials
2) Quotas based on forecast
3) Based on past sales & experience
4) Based on executive judgment
5) Based on salespeople judgment
6) Quotas based on compensation
? Word of mouth
? Internal sources of recruitment
? Employee agencies
? Sales representatives of competitors
? Representatives Non competing companies
? Internal transfer
? Campus recruitment
? Placement firms
? Advertisements
? Interns
? Employee referral
? Walk ins
? Web sources
1. Reception of applicant
2. Application blank
3. Selection test
4. Interview
5. Aptitude and skill
6. Personality
7. Intelligence
8. Psycological test
9. Inspection of past career
10. Primary selection
11. Final selection
12. Medical check up
13. Determination of term of service
14. Placement( appointment)
15. Initial orientation
? Sales training is a process of providing the
sales force with specific skills for performing
their job.
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
? Motivating sales force- measurement &
linking with rewards
? Lead organizations towards management by
exception-Take care of highly performers and
help poor performers
? Helps in giving directions to the salespeople?s
efforts
? Planning
? Conferencing with the salesperson
? Arriving at a summarized written quota
statement
1. Sales volume quota
2. Sales budget quota(expense quota,profit
quota)
3. Sales activity quota
4. Combination quota
? This quota communicates the organization?s
expectations in terms of what amount of
sales for/in what period.
? Ex:
? General motors uses the number of cars and
commercial.
? If a sales person has to sell 30000 units of a
product from March to August then it is
called sales volume quota.
? These kinds of quotas are set for various
units by the organization in order to control
expenses ( expenses quota), gross margins,
and net profits.
? The overall intention of setting a budget
quota is to the sales people they are more of
responsible centre where the job includes
not only obtaining the desired sales volume
but also making good profits.
? Here the quota can be fixed on the activity a
sales person has to perform, rather than the
final outcome.
? In addition to sales activity, the sales person
is expected to do some non selling activity
and quota can be set as a mix of these
activities.
? Mostly seen in insurance where they do
prospecting, generate sales lead and develop
new business.
? Many organization uses the combination of
these quota.
? Ex: achieving 2000 units along with
developing 20 new key accounts, identifying
200 prospects and brining back 50 sales lost
customers.
1) Quotas based on sales potentials
2) Quotas based on forecast
3) Based on past sales & experience
4) Based on executive judgment
5) Based on salespeople judgment
6) Quotas based on compensation
? Word of mouth
? Internal sources of recruitment
? Employee agencies
? Sales representatives of competitors
? Representatives Non competing companies
? Internal transfer
? Campus recruitment
? Placement firms
? Advertisements
? Interns
? Employee referral
? Walk ins
? Web sources
1. Reception of applicant
2. Application blank
3. Selection test
4. Interview
5. Aptitude and skill
6. Personality
7. Intelligence
8. Psycological test
9. Inspection of past career
10. Primary selection
11. Final selection
12. Medical check up
13. Determination of term of service
14. Placement( appointment)
15. Initial orientation
? Sales training is a process of providing the
sales force with specific skills for performing
their job.
Training need assessment
Design and conduct of a training programme
Evaluation of a training programme
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
? Motivating sales force- measurement &
linking with rewards
? Lead organizations towards management by
exception-Take care of highly performers and
help poor performers
? Helps in giving directions to the salespeople?s
efforts
? Planning
? Conferencing with the salesperson
? Arriving at a summarized written quota
statement
1. Sales volume quota
2. Sales budget quota(expense quota,profit
quota)
3. Sales activity quota
4. Combination quota
? This quota communicates the organization?s
expectations in terms of what amount of
sales for/in what period.
? Ex:
? General motors uses the number of cars and
commercial.
? If a sales person has to sell 30000 units of a
product from March to August then it is
called sales volume quota.
? These kinds of quotas are set for various
units by the organization in order to control
expenses ( expenses quota), gross margins,
and net profits.
? The overall intention of setting a budget
quota is to the sales people they are more of
responsible centre where the job includes
not only obtaining the desired sales volume
but also making good profits.
? Here the quota can be fixed on the activity a
sales person has to perform, rather than the
final outcome.
? In addition to sales activity, the sales person
is expected to do some non selling activity
and quota can be set as a mix of these
activities.
? Mostly seen in insurance where they do
prospecting, generate sales lead and develop
new business.
? Many organization uses the combination of
these quota.
? Ex: achieving 2000 units along with
developing 20 new key accounts, identifying
200 prospects and brining back 50 sales lost
customers.
1) Quotas based on sales potentials
2) Quotas based on forecast
3) Based on past sales & experience
4) Based on executive judgment
5) Based on salespeople judgment
6) Quotas based on compensation
? Word of mouth
? Internal sources of recruitment
? Employee agencies
? Sales representatives of competitors
? Representatives Non competing companies
? Internal transfer
? Campus recruitment
? Placement firms
? Advertisements
? Interns
? Employee referral
? Walk ins
? Web sources
1. Reception of applicant
2. Application blank
3. Selection test
4. Interview
5. Aptitude and skill
6. Personality
7. Intelligence
8. Psycological test
9. Inspection of past career
10. Primary selection
11. Final selection
12. Medical check up
13. Determination of term of service
14. Placement( appointment)
15. Initial orientation
? Sales training is a process of providing the
sales force with specific skills for performing
their job.
Training need assessment
Design and conduct of a training programme
Evaluation of a training programme
Training need assessment
? Organizational level analysis
? Task level analysis
? Individual level analysis
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
? Motivating sales force- measurement &
linking with rewards
? Lead organizations towards management by
exception-Take care of highly performers and
help poor performers
? Helps in giving directions to the salespeople?s
efforts
? Planning
? Conferencing with the salesperson
? Arriving at a summarized written quota
statement
1. Sales volume quota
2. Sales budget quota(expense quota,profit
quota)
3. Sales activity quota
4. Combination quota
? This quota communicates the organization?s
expectations in terms of what amount of
sales for/in what period.
? Ex:
? General motors uses the number of cars and
commercial.
? If a sales person has to sell 30000 units of a
product from March to August then it is
called sales volume quota.
? These kinds of quotas are set for various
units by the organization in order to control
expenses ( expenses quota), gross margins,
and net profits.
? The overall intention of setting a budget
quota is to the sales people they are more of
responsible centre where the job includes
not only obtaining the desired sales volume
but also making good profits.
? Here the quota can be fixed on the activity a
sales person has to perform, rather than the
final outcome.
? In addition to sales activity, the sales person
is expected to do some non selling activity
and quota can be set as a mix of these
activities.
? Mostly seen in insurance where they do
prospecting, generate sales lead and develop
new business.
? Many organization uses the combination of
these quota.
? Ex: achieving 2000 units along with
developing 20 new key accounts, identifying
200 prospects and brining back 50 sales lost
customers.
1) Quotas based on sales potentials
2) Quotas based on forecast
3) Based on past sales & experience
4) Based on executive judgment
5) Based on salespeople judgment
6) Quotas based on compensation
? Word of mouth
? Internal sources of recruitment
? Employee agencies
? Sales representatives of competitors
? Representatives Non competing companies
? Internal transfer
? Campus recruitment
? Placement firms
? Advertisements
? Interns
? Employee referral
? Walk ins
? Web sources
1. Reception of applicant
2. Application blank
3. Selection test
4. Interview
5. Aptitude and skill
6. Personality
7. Intelligence
8. Psycological test
9. Inspection of past career
10. Primary selection
11. Final selection
12. Medical check up
13. Determination of term of service
14. Placement( appointment)
15. Initial orientation
? Sales training is a process of providing the
sales force with specific skills for performing
their job.
Training need assessment
Design and conduct of a training programme
Evaluation of a training programme
Training need assessment
? Organizational level analysis
? Task level analysis
? Individual level analysis
? Location- On the job / off the job
? Job Instruction Training(JIT)- Step by step
training
? Presentation option
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
? Motivating sales force- measurement &
linking with rewards
? Lead organizations towards management by
exception-Take care of highly performers and
help poor performers
? Helps in giving directions to the salespeople?s
efforts
? Planning
? Conferencing with the salesperson
? Arriving at a summarized written quota
statement
1. Sales volume quota
2. Sales budget quota(expense quota,profit
quota)
3. Sales activity quota
4. Combination quota
? This quota communicates the organization?s
expectations in terms of what amount of
sales for/in what period.
? Ex:
? General motors uses the number of cars and
commercial.
? If a sales person has to sell 30000 units of a
product from March to August then it is
called sales volume quota.
? These kinds of quotas are set for various
units by the organization in order to control
expenses ( expenses quota), gross margins,
and net profits.
? The overall intention of setting a budget
quota is to the sales people they are more of
responsible centre where the job includes
not only obtaining the desired sales volume
but also making good profits.
? Here the quota can be fixed on the activity a
sales person has to perform, rather than the
final outcome.
? In addition to sales activity, the sales person
is expected to do some non selling activity
and quota can be set as a mix of these
activities.
? Mostly seen in insurance where they do
prospecting, generate sales lead and develop
new business.
? Many organization uses the combination of
these quota.
? Ex: achieving 2000 units along with
developing 20 new key accounts, identifying
200 prospects and brining back 50 sales lost
customers.
1) Quotas based on sales potentials
2) Quotas based on forecast
3) Based on past sales & experience
4) Based on executive judgment
5) Based on salespeople judgment
6) Quotas based on compensation
? Word of mouth
? Internal sources of recruitment
? Employee agencies
? Sales representatives of competitors
? Representatives Non competing companies
? Internal transfer
? Campus recruitment
? Placement firms
? Advertisements
? Interns
? Employee referral
? Walk ins
? Web sources
1. Reception of applicant
2. Application blank
3. Selection test
4. Interview
5. Aptitude and skill
6. Personality
7. Intelligence
8. Psycological test
9. Inspection of past career
10. Primary selection
11. Final selection
12. Medical check up
13. Determination of term of service
14. Placement( appointment)
15. Initial orientation
? Sales training is a process of providing the
sales force with specific skills for performing
their job.
Training need assessment
Design and conduct of a training programme
Evaluation of a training programme
Training need assessment
? Organizational level analysis
? Task level analysis
? Individual level analysis
? Location- On the job / off the job
? Job Instruction Training(JIT)- Step by step
training
? Presentation option
? Measured monetary or non monetary terms
? Calculate the ROI
? Collection of ratings from trainees and
trainers
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
? Motivating sales force- measurement &
linking with rewards
? Lead organizations towards management by
exception-Take care of highly performers and
help poor performers
? Helps in giving directions to the salespeople?s
efforts
? Planning
? Conferencing with the salesperson
? Arriving at a summarized written quota
statement
1. Sales volume quota
2. Sales budget quota(expense quota,profit
quota)
3. Sales activity quota
4. Combination quota
? This quota communicates the organization?s
expectations in terms of what amount of
sales for/in what period.
? Ex:
? General motors uses the number of cars and
commercial.
? If a sales person has to sell 30000 units of a
product from March to August then it is
called sales volume quota.
? These kinds of quotas are set for various
units by the organization in order to control
expenses ( expenses quota), gross margins,
and net profits.
? The overall intention of setting a budget
quota is to the sales people they are more of
responsible centre where the job includes
not only obtaining the desired sales volume
but also making good profits.
? Here the quota can be fixed on the activity a
sales person has to perform, rather than the
final outcome.
? In addition to sales activity, the sales person
is expected to do some non selling activity
and quota can be set as a mix of these
activities.
? Mostly seen in insurance where they do
prospecting, generate sales lead and develop
new business.
? Many organization uses the combination of
these quota.
? Ex: achieving 2000 units along with
developing 20 new key accounts, identifying
200 prospects and brining back 50 sales lost
customers.
1) Quotas based on sales potentials
2) Quotas based on forecast
3) Based on past sales & experience
4) Based on executive judgment
5) Based on salespeople judgment
6) Quotas based on compensation
? Word of mouth
? Internal sources of recruitment
? Employee agencies
? Sales representatives of competitors
? Representatives Non competing companies
? Internal transfer
? Campus recruitment
? Placement firms
? Advertisements
? Interns
? Employee referral
? Walk ins
? Web sources
1. Reception of applicant
2. Application blank
3. Selection test
4. Interview
5. Aptitude and skill
6. Personality
7. Intelligence
8. Psycological test
9. Inspection of past career
10. Primary selection
11. Final selection
12. Medical check up
13. Determination of term of service
14. Placement( appointment)
15. Initial orientation
? Sales training is a process of providing the
sales force with specific skills for performing
their job.
Training need assessment
Design and conduct of a training programme
Evaluation of a training programme
Training need assessment
? Organizational level analysis
? Task level analysis
? Individual level analysis
? Location- On the job / off the job
? Job Instruction Training(JIT)- Step by step
training
? Presentation option
? Measured monetary or non monetary terms
? Calculate the ROI
? Collection of ratings from trainees and
trainers
? Sales skill and retraining
? Cross- functional training
? Team training
? Creativity training
? Literacy training
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
? Motivating sales force- measurement &
linking with rewards
? Lead organizations towards management by
exception-Take care of highly performers and
help poor performers
? Helps in giving directions to the salespeople?s
efforts
? Planning
? Conferencing with the salesperson
? Arriving at a summarized written quota
statement
1. Sales volume quota
2. Sales budget quota(expense quota,profit
quota)
3. Sales activity quota
4. Combination quota
? This quota communicates the organization?s
expectations in terms of what amount of
sales for/in what period.
? Ex:
? General motors uses the number of cars and
commercial.
? If a sales person has to sell 30000 units of a
product from March to August then it is
called sales volume quota.
? These kinds of quotas are set for various
units by the organization in order to control
expenses ( expenses quota), gross margins,
and net profits.
? The overall intention of setting a budget
quota is to the sales people they are more of
responsible centre where the job includes
not only obtaining the desired sales volume
but also making good profits.
? Here the quota can be fixed on the activity a
sales person has to perform, rather than the
final outcome.
? In addition to sales activity, the sales person
is expected to do some non selling activity
and quota can be set as a mix of these
activities.
? Mostly seen in insurance where they do
prospecting, generate sales lead and develop
new business.
? Many organization uses the combination of
these quota.
? Ex: achieving 2000 units along with
developing 20 new key accounts, identifying
200 prospects and brining back 50 sales lost
customers.
1) Quotas based on sales potentials
2) Quotas based on forecast
3) Based on past sales & experience
4) Based on executive judgment
5) Based on salespeople judgment
6) Quotas based on compensation
? Word of mouth
? Internal sources of recruitment
? Employee agencies
? Sales representatives of competitors
? Representatives Non competing companies
? Internal transfer
? Campus recruitment
? Placement firms
? Advertisements
? Interns
? Employee referral
? Walk ins
? Web sources
1. Reception of applicant
2. Application blank
3. Selection test
4. Interview
5. Aptitude and skill
6. Personality
7. Intelligence
8. Psycological test
9. Inspection of past career
10. Primary selection
11. Final selection
12. Medical check up
13. Determination of term of service
14. Placement( appointment)
15. Initial orientation
? Sales training is a process of providing the
sales force with specific skills for performing
their job.
Training need assessment
Design and conduct of a training programme
Evaluation of a training programme
Training need assessment
? Organizational level analysis
? Task level analysis
? Individual level analysis
? Location- On the job / off the job
? Job Instruction Training(JIT)- Step by step
training
? Presentation option
? Measured monetary or non monetary terms
? Calculate the ROI
? Collection of ratings from trainees and
trainers
? Sales skill and retraining
? Cross- functional training
? Team training
? Creativity training
? Literacy training
1. Didactic method( one on one)
2. Participative
3. Visual support
4. Conferences
5. Seminars
6. Discussions
7. Team training
8. Case study
9. Role plays
10. Simulation
11. Brainstorming
12. Fishbowl
13. Group exercises
14. Workshops
15. Sensitive training
16. Field trip
17. In-tray exercises
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
? Motivating sales force- measurement &
linking with rewards
? Lead organizations towards management by
exception-Take care of highly performers and
help poor performers
? Helps in giving directions to the salespeople?s
efforts
? Planning
? Conferencing with the salesperson
? Arriving at a summarized written quota
statement
1. Sales volume quota
2. Sales budget quota(expense quota,profit
quota)
3. Sales activity quota
4. Combination quota
? This quota communicates the organization?s
expectations in terms of what amount of
sales for/in what period.
? Ex:
? General motors uses the number of cars and
commercial.
? If a sales person has to sell 30000 units of a
product from March to August then it is
called sales volume quota.
? These kinds of quotas are set for various
units by the organization in order to control
expenses ( expenses quota), gross margins,
and net profits.
? The overall intention of setting a budget
quota is to the sales people they are more of
responsible centre where the job includes
not only obtaining the desired sales volume
but also making good profits.
? Here the quota can be fixed on the activity a
sales person has to perform, rather than the
final outcome.
? In addition to sales activity, the sales person
is expected to do some non selling activity
and quota can be set as a mix of these
activities.
? Mostly seen in insurance where they do
prospecting, generate sales lead and develop
new business.
? Many organization uses the combination of
these quota.
? Ex: achieving 2000 units along with
developing 20 new key accounts, identifying
200 prospects and brining back 50 sales lost
customers.
1) Quotas based on sales potentials
2) Quotas based on forecast
3) Based on past sales & experience
4) Based on executive judgment
5) Based on salespeople judgment
6) Quotas based on compensation
? Word of mouth
? Internal sources of recruitment
? Employee agencies
? Sales representatives of competitors
? Representatives Non competing companies
? Internal transfer
? Campus recruitment
? Placement firms
? Advertisements
? Interns
? Employee referral
? Walk ins
? Web sources
1. Reception of applicant
2. Application blank
3. Selection test
4. Interview
5. Aptitude and skill
6. Personality
7. Intelligence
8. Psycological test
9. Inspection of past career
10. Primary selection
11. Final selection
12. Medical check up
13. Determination of term of service
14. Placement( appointment)
15. Initial orientation
? Sales training is a process of providing the
sales force with specific skills for performing
their job.
Training need assessment
Design and conduct of a training programme
Evaluation of a training programme
Training need assessment
? Organizational level analysis
? Task level analysis
? Individual level analysis
? Location- On the job / off the job
? Job Instruction Training(JIT)- Step by step
training
? Presentation option
? Measured monetary or non monetary terms
? Calculate the ROI
? Collection of ratings from trainees and
trainers
? Sales skill and retraining
? Cross- functional training
? Team training
? Creativity training
? Literacy training
1. Didactic method( one on one)
2. Participative
3. Visual support
4. Conferences
5. Seminars
6. Discussions
7. Team training
8. Case study
9. Role plays
10. Simulation
11. Brainstorming
12. Fishbowl
13. Group exercises
14. Workshops
15. Sensitive training
16. Field trip
17. In-tray exercises
? Aim- training objective
? Content
? Method
? Execution- arrangements made for execution
? Evaluation
FirstRanker.com - FirstRanker's Choice
?Management of Sales Territory &
Sales Quota
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
? Sales territory, meaning, size, designing.
? Sales quota, procedure for sales quota. Types
of sales quota, Methods of setting quota.
? Recruitment and selection of sales force,
Training of sales force.
Definition:
Sales territory defined as a group of present and
potential customers assigned to an individual
salesperson, a group of salesperson, a branch, a
dealer, a distributer, or a marketing organization
at a given period of time.
? Territories are defined on the basis of
geographical boundaries in many organization
? It helps in matching the selling efforts with the
sales opportunities in the market.
? It?s a responsibility.
B R Cranfield
? a sales territory is a geographical area are
containing the present and potential
customers who can be effectively and
economically served by a single salesperson,
branch, dealer, or distributer?
? It ensures better market coverage.
? Effective utilization of the sales force.
? Effective distribution of the workload.
? Convenient way to evaluate the performance of sales
force.
? Control over direct &indirect cost.
? Optimum utilization of time by sales force.
? Enhances employee?s morale and helps managers to
better control and monitor sales and evaluate
programmes.
? Better penetration.
? Better service to the customer.
? Better understanding of the customers need and latent
demand.
? Helps to evaluate the performance of sales force.
Factors influence the size
? Nature & demand of the product
? Mode of distribution(logistics)
? Selling process
? Transport & communication facility
? Density of population
? Government restrictions
? Market potential
? Growth rate
? Competition
? Ability of sales person
? Sales policy
? Economic condition
? Population
Select the basic
geographic control units
Decide on the criteria for
allocation
Decide on the starting
point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria &
conduct workload
analysis
Assign sales force to new
territories
Factors influencing
the modifications
?Mergers
?Market
consolidation
?Split in division
?Sales force
turnover
?Customer
relocation
?Product life cycle
change
?Product line
change
Modify territorial
boundaries to
balance workload
and potential
? According to Philip Kotler ? A sales quota is
the sales goal set for a product line, company
division, or sales representative. It is
primarily a managerial device for defining
and stimulating sales force?
? It is an expected performance objective.
? They are sales assignments or goals, which
are to be achieved in a specific period of
time.
? Motivating sales force- measurement &
linking with rewards
? Lead organizations towards management by
exception-Take care of highly performers and
help poor performers
? Helps in giving directions to the salespeople?s
efforts
? Planning
? Conferencing with the salesperson
? Arriving at a summarized written quota
statement
1. Sales volume quota
2. Sales budget quota(expense quota,profit
quota)
3. Sales activity quota
4. Combination quota
? This quota communicates the organization?s
expectations in terms of what amount of
sales for/in what period.
? Ex:
? General motors uses the number of cars and
commercial.
? If a sales person has to sell 30000 units of a
product from March to August then it is
called sales volume quota.
? These kinds of quotas are set for various
units by the organization in order to control
expenses ( expenses quota), gross margins,
and net profits.
? The overall intention of setting a budget
quota is to the sales people they are more of
responsible centre where the job includes
not only obtaining the desired sales volume
but also making good profits.
? Here the quota can be fixed on the activity a
sales person has to perform, rather than the
final outcome.
? In addition to sales activity, the sales person
is expected to do some non selling activity
and quota can be set as a mix of these
activities.
? Mostly seen in insurance where they do
prospecting, generate sales lead and develop
new business.
? Many organization uses the combination of
these quota.
? Ex: achieving 2000 units along with
developing 20 new key accounts, identifying
200 prospects and brining back 50 sales lost
customers.
1) Quotas based on sales potentials
2) Quotas based on forecast
3) Based on past sales & experience
4) Based on executive judgment
5) Based on salespeople judgment
6) Quotas based on compensation
? Word of mouth
? Internal sources of recruitment
? Employee agencies
? Sales representatives of competitors
? Representatives Non competing companies
? Internal transfer
? Campus recruitment
? Placement firms
? Advertisements
? Interns
? Employee referral
? Walk ins
? Web sources
1. Reception of applicant
2. Application blank
3. Selection test
4. Interview
5. Aptitude and skill
6. Personality
7. Intelligence
8. Psycological test
9. Inspection of past career
10. Primary selection
11. Final selection
12. Medical check up
13. Determination of term of service
14. Placement( appointment)
15. Initial orientation
? Sales training is a process of providing the
sales force with specific skills for performing
their job.
Training need assessment
Design and conduct of a training programme
Evaluation of a training programme
Training need assessment
? Organizational level analysis
? Task level analysis
? Individual level analysis
? Location- On the job / off the job
? Job Instruction Training(JIT)- Step by step
training
? Presentation option
? Measured monetary or non monetary terms
? Calculate the ROI
? Collection of ratings from trainees and
trainers
? Sales skill and retraining
? Cross- functional training
? Team training
? Creativity training
? Literacy training
1. Didactic method( one on one)
2. Participative
3. Visual support
4. Conferences
5. Seminars
6. Discussions
7. Team training
8. Case study
9. Role plays
10. Simulation
11. Brainstorming
12. Fishbowl
13. Group exercises
14. Workshops
15. Sensitive training
16. Field trip
17. In-tray exercises
? Aim- training objective
? Content
? Method
? Execution- arrangements made for execution
? Evaluation
1. What is sales territory? Explain its advantages and disadvantages? (Jan-2010)
2. Explain the steps involved in designing a sales territory? (July-2012)
3. Write a note on sales quotas (Jan 2013)
4. Explain the different types of sales quotas? (July 2012)
5. Explain briefly Methods of setting Sales Quota? (Jan-2013)
6. Explain briefly The Recruitment process (July-2012)
7. Explain the different steps involved in selection of sales forces? (Jan-2013)
8. Explain briefly the need for training the sales force (Jan-2012, 2013,2010)
9. Explain briefly the stages in training process? (Jan 2014, Jul 2012)
10. Explain briefly the Types of Training (Jan -2013,Jul 2013)
11. List and explain the different training methods? (Jan 2013)
DATE OF SUBMISSION : 29
th
April, 2017
FirstRanker.com - FirstRanker's Choice
This post was last modified on 18 February 2020