Question:   Mike attended a business conference in Cape Town, where he heard the term "sales quotas" for the first time. He was told that sales quotas play a very important role in a sales department in that they provide salespeople with a means to measure their progress in achieving their goals. Mike is unsure whether using sales quotas would be good for his business. In convincing him that sales quotas would be good for his business, explain and PRACTICALLY APPLY the eight (8) different objectives that the businessperson or salesperson could achieve when using sales quotas.

 

1. To set standards for performance evaluation of the sales force 

2. To control selling expenses

3. To motivate the sales force 

4. To develop effective remuneration plans 

5. To establish which market areas need extra promotional effort  

6. To identify sales training needs  

7. To assign selling activities

8. To assist in the correct distribution of products 

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Mike had been working in the steel industry as an engineer for over 22 years. Owing to the COVID-19 pandemic, the financial performance of the company where he worked was negatively affected and the company was forced to retrench some of the employees. Mike was retrenched by his company in July 2021. He used his retrenchment package to buy into the Rainbow chicken franchise in order to supply the products to retailers the fastmoving consumer goods (FMCG) industry. Follow this link for more details about the company: https://rainbowchickens.co.za/about-us/ Mike had been working in the steel industry as an engineer for over 22 years. Owing to the COVID-19 pandemic, the financial performance of the company where he worked was negatively affected and the company was forced to retrench some of the employees. Mike was retrenched by his company in July 2021. He used his retrenchment package to buy into the Rainbow chicken franchise in order to supply the products to retailers the fastmoving consumer goods (FMCG) industry. Follow this link for more details about the company: https://rainbowchickens.co.za/about-us/

Answer rating: 100% (QA)

Certainly sales quotas can be a valuable tool for improving sales performance and achieving various objectives in a business Lets explain and practically apply the eight different objectives of using ... View the full answer