Page 100 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management

Notes
Example: The following example of M/s South India Ltd. shows sales volume quotas for
Bangalore territory.
Sales Volume Quota of M/s South India Ltd. for Bangalore
Sales force Sales Quota Actual Sales Difference Performance
(in ) (in ) Index
P Kumar 43,10,000 43,34,000 24000 100.6%
2,16,02,000 2,10,14,000 -58800

Sales Quota and Actual Performance for Month, Year:
Another Example of Sales Volume Quota.’
Salesperson Current Month Year to Date
Quota Sales Per cent Rank Quota Sales Per cent Rank
Ajit Kumar
Basant Kumar
Chetan Kumar
Utkarsh
F Singh
G P Singh
H R Sharma
I L Gupta
J K Jain
K L Gupta
L L Singh
Mona Sharma
N L Verma
Oh P Aggarwal
P R Singh
R L Gupta
Seema Gupta
Tara Chand

Profit Quotas

Profit quotas are particularly useful in multi-product companies where different products
contribute to varying levels of profits. It creates opportunities for the salesperson to make
optimum use of time.
The following example shows a situation in which a salesperson optimally balances his time
between high and low profit yielding products.
Product Sales price Profit margin Volume Net profit
per unit per unit (%) per month per month
( ) ( )
(Mr. Raj Kumar) (Mr. Raj Kumar)
Product A 400 280 (70%) 60,000 168,00,000
Product B 200 80 (40%) 25,000 2,00,000
Product C 100 20 (20%) 10,000 2,00,000

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