1. SALES, QOUTAS &
EXPENSES
BPMM 3023| Sales Management
Muhammad Khairul Azril bin Yahya 227662
Nur Fatihah binti Hasbullah 227061
Siti Arbakyah binti Shamsher Ahmad 225985
Nur Qurratul Farahin binti Khidzir 227063
Adibah binti Haji Mokhtar 225973
2. Sales Forces Quotas & Expenses
1
• Sales Quota
• Performance goal assigned to a marketing unit for a specific time
• Marketing units: Salesperson, a branch office, a district or region and dealer
• The goals may be stated in dollars, product units or selling activities
• Sales volume quota related to sales potential.
• Sales quota help in planning and evaluating sales activities
3. Purposes of Sales Quotas
2
• Indicate strong or weak spots in selling structure
• Furnish sales forces goals and incentives
• Control sales force activities
• Evaluate sales force productivity
• Improve compensation plan effectiveness
• Control selling expenses
• Evaluate sales contest results
4. Types of Quotas
3
• Sales volume
• Activities
• Gross Margin or net profit
• Expenses
• Some combination of the four
ActivitiesExpenses
Quota Bases
Gross margin or
net profit
Sales
volume
Combination
5. Combination Quotas
4• Company that are not satisfied with any single
type of quota may combine
• Establish Quotas based:
• Activity
• A customer satisfaction score
• Gross margin on product sold.
6. Bases for Setting a Sales Volume
Quota
5 Two general approaches may be used to set volume
quotas :
• Quotas are set on the basis of considerations
other than sales potential
• Quotas are set in conjunction with territorial sales
potentials
7. Quotas Based on Sales Potential
6Quota setting is to relate quotas directly to the
territorial sales potential.
• The share of the estimated total industry sales that the
company expects to realize in a given territory.
• The companywide sales forecast for many firms is often built
by piecing together estimates calculated for each territory.
9. Quotas Based on Factors other than
Potential
8 A company that does not wish to set its sales quotas in
relation to territorial potentials has these alternatives :
• Quotas may be set strictly on the basis of past sales.
• Quotas may be determined by executive judgment alone.
• Quotas may be related to the compensation plan.
• The salespeople may set their own quotas.
10. Administration of Sales Quotas
9 • Sales department is responsible for establishing the sales
quota, no approval of a higher executive is needed.
• The chief sales executive may be responsible for setting the
total company quota.
• Territorial sales potentials may be given to the district
managers, and they set the salespeople’s quotas.
11. Good Quota Plan
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Realistic attainability
Objective accuracy
Ease of understanding and administering
Flexibility
Fairness
12. Typical Administrative Weaknesses
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• Gaining Sales Force Acceptance of a Quota Plan
• Overstress a given selling or nonselling activity.
• Lead to high-pressure selling.
• Difficult or even impossible to set them accurately.
13. Sales Force Expenses & Strategic
Planning12
Expense account policy is
one element in a firm’s
strategic marketing plan.
Firms use expense account
policy as a strategic tool for
recruiting sales people
14. • Income tax laws significantly affect the travel,
entertainment, and gift expenses of salespeople.
Internal Revenue Service Regulations
13
15. • Salesperson allowable items to reimburse
• For business expenses incurred in connection with work and
• For personal expenditures that would not have been necessary otherwise.
Legitimate Travel & Business Expenses
14 • Management should specify in writing the expenses for
which the company will pay not only the broad
expense categories, such as transportation or lodging,
but also the details within each category.
16. Characteristic of a Sound Expense
Plan15
• No Net Gain or Loss For The Reps
• Equitable Treatment of the Reps
• No Curtailment of Beneficial Activities
• Simple and Economical to Administer
• Avoid Disputes
• Clarity
• Company Control of Expenses and Elimination of
Padding
17. Methods of Controlling Expenses
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Salespeople Pay Own Expenses
Unlimited – Payment Plans
Combination Plans
Limited Payment Plan
20. AVAILABILITY OF
CENTRALIZED
MAINTENANCE AND
STORAGE FACILITIES
SIZE OF SALES
FORCE
UNUSUAL DESIGN
REQUIRED
CONTROL OF CAR’S
OPERATING
CONDITION
PERSONAL
PREFERENCES
ANNUAL MILEAGE
OPERATING COST INVESTMENTS
ADMINISTRATIVE
PROBLEMS
23. OTHERS METHODS OF EXPENSES CONTROL
TRAINING AND
ENFORCEMENT
CREDIT CARD
THE EXPENSES
BANK ACCOUNT
CHANGE IN
NATURE OF
ENTERTAINMENT
INTERNET
SELLING AND
TELEMARKETING
CAREFUL TRAVEL
PLANNING
