Page 112 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management

Notes 9. ……………….quotas are more useful in multi-product companies.
10. Sales quotas must be reviewed from time to time to adapt them to…………………

5.8 Review Questions

1. Explain the different types of sales quotas. Which one according to you is most
advantageous?
2. Distinguish between market build-up approach and workload method of territory design.
3. Compare and contrast the clover leaf route and circular route.
4. According to you, on what basis should the sales quotas be assigned to the sales force?

5. “Quotas can be motivators as well as demotivators”. Discuss.
6. Can you think of reasons why a firm might not want to have sales territories?
7. Suppose you are the sales head of an IT hardware firm. Which type of quota will you use
and how will you assign quotas to your sales team?
8. Determining sales quotas can be a tricky task. Why?
9. Suppose you are the sales manager of an Insurance company. You are given the
responsibility of designing sales territories and aligning sales personnel to the territories.
How will you go about it?
10. Analyse the need for revising and realigning the territories.

11. What do you mean by “we’ve always done it that way” method and why is it not as
effective as it once was?
12. Is it necessary to assign quotas and design sales territories? Give your viewpoint.

Answers: Self Assessment

1. Sales volume 2. Target setting
3. Work load 4. Territory
5. Hub and spoke 6. Activity
7. Scheduling 8. Clover leaf

9. Profit 10. Changing market conditions
5.9 Further Readings

Books Ingram T.N., LaForge, R.W., Avila, R.A., (2006), Sales Management, 6th Edition,
USA; Thomson South-Western
Johnston and Marshall, Sales Force Management, Tata McGraw Hill, 2007

SL Gupta, Sales and Distribution Management, Excel Books, New Delhi

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