Definition

Sales Quota is the sales goal set for a product line, company division or sales representative. It helps the managers to define and stimulate sales effort.Sales quota is the minimum sales goal for a set time span.

Generally sales quotas are set slightly higher than the estimated sales so as to stretch the sales force effort.

Sales quotas are developed through the study of annual territory marketing plan. In this the plan for developing new accounts and expanding existing accounts is given by the representatives.

Individual sales target figure assigned to each sales unit such a sales person, dealer, distributor, region, or territory, as a required minimum for a specified period (month, quarter, year). Sales quotas may be expressed either in dollar figures (monetary terms) or in number of goods or services sold (volume terms).

Types of Sales Quota

Sales quotas are quantitative goals set by managers to measure and compare the performance of individual salespeople and to help