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261Personified Promotion- PROFIT OR BUDGET QUOTAS: Budget quotas are set for various units in the sales
organisation to control expenses, gross margin or net profit. The intention in setting budget
quotas is to make them clear to sales personnel that their jobs consist of something more than
obtaining sales volume. Budget quotas make personnel more conscious that the company
is in business to make profit. - EXPENSES QUOTAS: Expenses quotas emphasise keeping expenses in alignment with
sales volume thereby controlling gross margin and net profit contributions. Gross margin
or net profit quotas emphasise margin and profit contribution thereby indirectly controlling
sales expenses. - ACTIVITY QUOTAS: This is designed to control how sales personnel allocate their time
and efforts among different activities. Activity quotas are set for total sales calls, calls on
particular classes of customers, calls on prospects, number of new accounts, missionary
calls, product demonstrations, placement or erection of displays and making of collections. - COMBINATION SYSTEM QUOTAS: Combination quotas control performance of both
selling and non-selling activities.
The quotas overcome the difficulty of using different measurement units to appraise
different aspects of performance. Performances against combination quotas are calculated
as percentages. These quotas are known as point systems, the points being percentage points.
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