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Sales Force Quotas and Expenses
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Characteristic:
Comes in big number in the market
Has medium to lower skill compared to its peers Performs in a general performance
Has limitation on finding a way to reach given
targets or quotas
Has a medium to high loyalty toward its company
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Characteristics:
Comes as scarcity in the market
Has medium toh
igh
er skill in th
e market Performs in a very brilliant way
Has almost no-limits on reaching given targets or
quotas
Most has low loyalty toward its companies
Commonly called as first class rep
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112178 MOHD IQBAL SHAFIQ B MOHAMMAD ISA
112421 MOHD NOR AFFENDI B ROSDI
112484 SHAHRUL AZMI B AHMAD
114310 AHMAD RAZMIR NAIM B KAMIS
115362 EKO ADITYA WIRATMA
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A sales quota is a performance goal assignedto a marketing unitfor a period of time can be a salesperson, a branch office, a dealer, or a distributor.
Widely used to evaluate sales force
performance just like giving a benchmark for sales force performance
Have a big impact on sales force moral
do not set it too high or too low
Group 8Group 8
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To indicate the strength of spots in selling structure
To furnish goals for sales force
To control salespeoples activities
To evaluate productivity of salespeople
To improve effectiveness of compensation plans
To control selling expense
To evaluate sales contest results
Group 8Group 8
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Sales volume quotas easier for manager to measure a sales representative performance
Profit quotas give more value to reps effort
Expense quotas quota based on reps sales expense
Activities quotas can be a good way to stimulate a balanced sales job
Combination of previous 4 the best way in motivating reps because ofhaving the strength points of
previous 4
Group 8Group 8
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Based on sales potential
Adjustments to potential-based quotas human factors
psychological factors
compensation
Based on factors other than potential past sales
executive judgment compensation design
sales people own setting
Group 8Group 8
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Sales department should establish a good
quota plan by overcoming the administrative weaknesses of
inaccurate of quota
high pressure selling caused by quota way-of-thinking
Sales quotas must gain sales force acceptance always inform reps about their progress
give incentive for good performers on the field
Group 8Group 8
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A salesperson needs money in the process of closing
sales with customers
Typical reimbursement for a salesperson, including:
Expense connected with work, like communication, office
supplies, and transportation. Personal expenditures, like accommodation, meals, and
entertainments.
Group 8Group 8
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No gain or loss for the reps so reps can concentrate more on reaching the given quota points
Give reps the treatment like home to make reps comfortable in working
Encourage reps to increase performance do not give allowance based on percentage of sales
Simple to make it simple for the administrative party
Clear to prevent misunderstanding between management and reps
Give control of expense and elimination of padding limit the expense but not in stingyway
Group 8Group 8
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Salespeople pays own expense
Unlimited payment plans
Limited payment plans
Each expense item
Flat sum for a period of time Combination Plans
Group 8Group 8
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Ownership or Leasing Autos
Size of sales force
Availability of storage facilities
Unusual design required
Operating cost
Administrative problems
Reimbursement Plans for Employee-Owned Cars
Fixed-A
llowance Plans, like mileage and time Flexible-Allowance Plans, like graduated-mileage and combination of
allowance per period with mileage
Group 8Group 8
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Training and Enforcement teachhow to spend money and reward any good or bad conduct
Credit Cards provide convenience for reps when traveling
Expense Bank Account give company a quite nice control of its reps spending behavior
Change in Nature of Entertainment adapt expense with reps current environment
Internet Selling and Telemarketing reduce sales cost with these cheaper communication media
Careful Travel Planning reduce travel cost by advanced travel planning
Group 8Group 8
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A company needs sales quotas and expenses planning
as one of the means
to control its sales force
toward achieving the goal
while monitoring its spending.
Group 8Group 8