Page 104 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management

Notes
Branch Manager: Oh, you are referring to Mr. Arora’s performance this year.
Mr. Kapur: Sir, don’t tell me that his performance was better than mine. Anyway, I don’t
care since I have decided to quit the company. I am sure if you were in my position you
would not have accepted a pay packet of 950 — against Arora’s pay packet of
1,000/-.
Branch Manager: I fully appreciate your viewpoint but I am helpless. You know the
fixation of quotas is done at the head office and I have no say whatsoever.
Mr. Kapur: Sir, I am sure you will agree that the present system of quotas fixation is
absurd. Just look at me. When I joined the company I was given a target of 10,00,000 but
today I am supposed to achieve a target of 60,00,0000 from the same territory despite the
growing competition in the industry.
Branch Manager: You are right, but .....
Mr. Kapur: (interrupting him) Sir, let’s cut it short. All I wanted to say was that it would no
longer be possible for me to continue in this company: In fact I have already got two offers
(taking out some papers from his pocket).
Branch Manager: Hang on. How about seeing the Zonal Manager, who is coming to Delhi
tomorrow? I shall definitely put a word for you.
Mr. Kapur: I won’t mind, but I must repeat that I am determined to quit unless I get more
than Arora and I am assured that the system of quota fixation would be changed to avoid
such situations in the future.
Questions

1. Critically evaluate the present system of quota fixation. Suggest a suitable method.
2. As the Zonal Manager, how would you handle the situation?

5.2 Sales Territory Management

A sales territory comprises of a group of customers or a geographical area assigned to a sales
unit. The territory may or may not have geographic boundaries. A sales territory represents a
group of customer accounts, an industry, a market or a specific geographical area. Territory
management includes the market potential, number of customer accounts, the firms experience
and market share in the territory, the capability of the salesperson assigned and the frequency of
sales calls made.
The following diagram outlines the activities of territory management:

Figure 5.3: Activities of Territory Management

Activities of Territory Management

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