What are Sales quotas?

Quotas are quantitative objectives assigned to sales organisational until they specify desired performance level for sales volume such as:

Expenses, gross margins, net profits & return on investment, selling & non-selling related activities, or some combination of these items.

Some companies set sales quota for organisational units such as individual, district & sales personnel.

Quotas are devices for directing & controlling sales operations. Their effectiveness depends upon the kind, amount & accuracy of marketing information used setting them & upon management skills in administering the quota system.

Objectives in using quotas

1. To provide quantitative performance standard;
2. To obtain tighter sales and expense control;
3. To motivate desired performance
4. To use in connection with sales contest