Answer :
A sales manager at a company that manufactures consumer durable goods gives Carol, his new salesman, the assignment of finding ten potential clients and selling five flat-screen televisions each week. Carol's quota is the name of the sales manager's instruction.
- The performance benchmark that sellers must meet in order to qualify for their goal incentive pay is known as a sales quota.
- Goals or targets, often known as quotas, might motivate sellers more when opportunity differs by territory.
Sales quota types-
- Profit Cap. The sales reps are given a profit-based quota that requires them to sell goods or services for a specific price in order to generate a certain quantity of revenue for the business.
- The expense cap.
- Activity Capacity.
- Combination Limit.
- Forecast Capacity.
Why is it important for a sales manager to set quota for salespeople?
- Sales representatives are encouraged by quotas to create plans that will allow them to reach the desired performance level.
- If these quotas are met, it can result in satisfaction and increased motivation or frustration and decreased motivation.
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