QUOTAS BASED ON SALES VOLUME.
Final Essay. Profesor: Mariana Rodríguez
Berenice Pérez Barroso |
In sales management we found the topic of quotas that for sales; quotas is a performancegoal assigned to a marketing unit for a specific period of time, Sales quotas are the most popular because sales managers and sales representatives have been educated with the idea of maximizing salesvolume. The volume based fees are relatively easy to calculate and understand. Definitely have a disadvantage in this way may be undue emphasis on the production of sales at the expense of a morebalanced performance. A share of sales does not take into account the profit of items sold, if the product line a firm shows a substantial diversity of earnings, such failure may result in an overemphasison low margin items and fast movements at the expense of those with a higher premium and a higher overall utility. The purposes of sales quotas are: evaluate sales contest results, indicate strong/weakspots in selling structure, furnish sales force goals, incentives, control selling expenses, Improve compensation plan effectiveness, evaluate sales force productivity, and control sales forceactivities, that is why today the company makes use of a strategic plan for the implementation of quota.
Now talk about money as the key motivator; variable pay system; human performance is still the mostvariable factor in the efficient functioning of a company with its customers and this is particularly true in business-to-business relationships. Most commentators agree that performance relies on asalesperson's knowledge, skills and motivation, but there is no consensus about the role of money as a motivator. Custom and practice in companies seems to be based on the assumption that money is thekey motivator for salespeople, and is in itself a measure of performance and a way of exercising power. Sixty seven per cent of UK companies use a combination of salary and commission because they...
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