MKT2283 Sales Management Week 4 Sales Quota Assignment Instructions F23 Section 320

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Algonquin College *

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2283

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Marketing

Date

Jan 9, 2024

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docx

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MKT2283 / Week 4 In-Class Assignment Establishing Sales Quotas In-Class Application Exercise 1 Explain the relationship between activity and sales volume quotas. Include in your answer how activity ratios help determine the potential sales volume yield that would be including within a sales reps overall set of quotas. Developing Sales Quotas In-Class Application Exercise 2 You are a Sales Manager for Algonquin Solutions, a mid size Business Intelligence software firm. You are responsible for the company’s Eastern Canada region. The company will be launching a large national campaign in 3 months, starting on January 1 st , 2024. This promotion will be a key initiative to ensure the company starts the year on a strong note and de- risks the company meeting its overall financial targets. From a sales perspective, here is what you need to consider as you create a set of SMART quotas to guide and motivate your sales team. You have 6 sales reps in your unit. Previous national promotions from the past 2 years have yielded a 10% jump in the year over year sales figures for the 1 st quarter. The new program is forecasted to yield a similar increase. The 10% jump would raise your team’s quarterly sales revenue objective to $770,000 from last year’s base of $700,000 for the same quarter. The average value of a sale is $65,000. Historically each sales rep needs to generate 6 proposals to book the “average sale”. You also know that on average your sales rep need to generate 30 cold calls to get 5 qualified prospects which will yield the 1 proposals. Note: The national campaign will make it easier for your reps to get the attention of new prospects and help you demonstrate the value of your BI solution. Your job is to create a SMART set of quotas for your sales representatives. Note: ensure you write out your quotas using the sales quota format reviewed in class. (A) Based on the above scenario, identify which type of quotas would be best, and why you chose these types. (B) Write out a quota statement for one sales representative on the team, based on the information provided, that will address the conditions outlined above. Use the SMART quota format covered within the week 4 slide deck.
Note: Submit your completed work for the two quota questions to your Instructor, through the Brightspace Week 4 folder assignment link by the end of the week #4 class.
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