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QUOTAS
LEARNING OBJECTIVES
Objectives and quotas are fundamental parts of a company, because
they provide the sales force with direction and goals. Selling by
objectives (SBO) is a system that unites the sales force. This
chapter should help you understand:
The relationship between sales objectives and quotas.
Why quotas are important.
The various types of quotas.
The methods for setting quotas.
Criteria needed for a good quota plan.
Major areas for establishing objectives.
How organizations set objectives.
The selling
by objectives
process.
Copyright
2001 by Harcourt,
Inc. All rights reserved.
WHAT IS A QUOTA?
A quota refers to an expected performance objective.
Quotas are tactical in nature and thus derived from
the sales forces strategic objectives.
TYPES OF QUOTAS
Sales volume quotas.
TYPES OF QUOTAS
1 Sales volume quotas.
2 Break down total sales volume.
Product lines.
Individual established and new products.
Geographic areas based on how the sales
organization is designed, which would
include:
Sales division.
Sales regions.
Sales districts.
Individual sales territories.
Copyright 2001 by Harcourt, Inc. All rights reserved.
TYPES OF QUOTAS
1 Sales volume quotas.
2 Break down total sales volume.
3 Profit quotas.
TYPES OF QUOTAS
1 Sales volume quotas.
2 Break down total sales volume.
3 Profit quotas.
4 Expense quotas.
TYPES OF QUOTAS
1 Sales volume quotas.
2 Break down total sales volume.
3 Profit quotas.
4 Expense quotas.
5 Activity quotas.
TYPES OF QUOTAS
1 Sales volume quotas.
2 Breakdown total sales volume.
3 Profit quotas.
4 Expense quotas.
5 Activity quotas.
6 Quota combinations.
Copyright 2001 by Harcourt, Inc. All rights reserved.
Step 2:
continued
BASIC LEVELS OF
INDIVIDUAL OBJECTIVES
1. Regular, ongoing, and recurring objectives.
2. Problem-solving objectives.
3. Innovative or creative objectives.
The highest level of excellence is reserved for
people who are attaining all three.
Copyright 2001 by Harcourt, Inc. All rights reserved.
Test 2:
Test 3:
SELLING-BY-OBJECTIVES
MANAGEMENT
Selling by objectives (SBO) is the process
elaborated on earlier whereby the manager and
salesperson jointly identify common goals, define
major areas of responsibility, and agree on the
results expected.
M ea s u r e
P er fo r m a n ce
E va lu a te
P er fo r m a n ce
P u b l i ci z e
P er f o r m a n ce
R es u l t s
R ew a r d
o r P en a l t y