RECAP OF 1 MARCH, 2012 SESSION


No. of sales people is determined by:-


1. territories
2. product mix demands
3. levels and types of prosperity
4. nature of the customer segments

Calculation of no. of sales people:-


Methods
1. Affordability Method (based on sales budget)
2. Incremental method
3. Workload method

No. of sales people= 
(No. of existing customers) x (No. of potential customers) x (Ideal frequency of calls) x (Length of a call) 
                                        Ideal selling time available for a salesperson


Factors effecting no. of sales persons:-


1. Geographical
2. Environmental
3. Legal
4. Political
5. Social
6. Attrition rate.

Sales territories are divided according to the shapes of states like circle, wedge and clover leaf.
State territories shapes are decided according to purchasing power, availability of resources, etc.

Sales Quota:-


Expected performance objectives
"A 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 the sales effort".......KOTLER


Types of Sales Quota


1. Sales Volume Quota,
2. Sales Budget Quota,
3. Sales Combination Quota.

Reasons which effect the selection of sales quota:-


1. Demographics
2. Segmentation
3. Purchasing Power Parity (PPP)
4. Awareness
5. Consumer Profiling

Methods of setting sales quota:-


Quotas are based on
1. sales forecasts and potentials
2. past sales and experience
3. executive judgement
4. compensation (incentive plans)
5. Delphi technique (taking experts opinion)




Mimansa
RMM-37