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Case Study ON MM Marketing Company-Territory and Quotas For A New Product

Krishna Kumar is the marketing manager of MM Marketing Company which is launching a new table fan product called Swishflow. As the marketing manager, he needs to design sales territories and assign salespeople in major cities in Maharashtra and Gujarat. He also needs to set sales quotas based on sales volume, selling expenses, and sales calls per day to monitor the salespeople. If I were Krishna Kumar, I would use the build-up and breakdown approaches to design fair sales territories that equalize workload. I would assign salespeople based on their abilities and effectiveness in each territory. Finally, I would set quotas on sales volume, expenses, and calls to control performance and motivate salespeople through compensation plans.

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Abhinav Mukherjee
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2K views11 pages

Case Study ON MM Marketing Company-Territory and Quotas For A New Product

Krishna Kumar is the marketing manager of MM Marketing Company which is launching a new table fan product called Swishflow. As the marketing manager, he needs to design sales territories and assign salespeople in major cities in Maharashtra and Gujarat. He also needs to set sales quotas based on sales volume, selling expenses, and sales calls per day to monitor the salespeople. If I were Krishna Kumar, I would use the build-up and breakdown approaches to design fair sales territories that equalize workload. I would assign salespeople based on their abilities and effectiveness in each territory. Finally, I would set quotas on sales volume, expenses, and calls to control performance and motivate salespeople through compensation plans.

Uploaded by

Abhinav Mukherjee
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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CASE STUDY

ON
MM MARKETING COMPANY-TERRITORY
AND QUOTAS FOR A NEW PRODUCT

Prepared By:
Krishna kumar
(Marketing Manager)
CONTEN
T
• Brief introduction of the case.

• To understand the concept of sales territories.

• To learn designing sales territories and assigning salespeople.

• To understand objectives and types of sales quotas.

• To learn the methods of setting sales quotas.

• Sales Volume ,selling Expense, Sales Call.

Question:-If you were Krishna kumar,what will you do and why?


MM MARKETING COMPANY-TERRITORY AND
QUOTAS FOR A NEW PRODUCT
MM Marketing Company is a marketing company going to launch a new
product, called swishflow fan which is a unique kind of table fan with
attractive air conditioner like looks.
I as a marketing manager planning to design sales territories , assigning
salespeople and setting sales quotas in the major metros and cities in
Maharashtra and Gujarat ,as because the marketing and sales office is
located in Mumbai.
The target consumer were household as well as commercial organisations ,
who could use this product as table fan and wall-mounted fan.
Keeping in the view of sales quotas it should be based on sales volume,
selling expense, and sales call per day in order to have proper control on
salespeople.
SALES TERRITORIES / MARKET

• A sales territory consists of existing and potential customers,

assigned to a salesperson.

• Most companies allot salespeople to geographic territories, consisting

of current & prospective customers.

• Territories may or may not have geographic boundary.

• Basic Concept of Sale Market is made up of present and potential

customers rather than geographic area.


PROCEDURE FOR DESIGNING SALES
TERRITORIES
Build Up
Approach

Find Location
Select a Decide basic
And Potential
Control unit territories
Of Customer

Breakdown
Approach
Decide Basic Territories

Procedure In Build-up Method

1.Decide Customer Call Frequencies

2.Calculate Total Customer Calls In Each Control Unit

3.Estimate Workload Capacity Of A Salesperson

4.Make Tentative Territories

5.Develop Final Territories

Objective Is To Equalize The Workload Of Salespeople


Procedure In Breakdown Method
1. Estimate Company Sales Potential For Total Market

2. Forecast Sales Potential For Each Control Unit

3. Estimate Sales Volume Expected From Each Salesperson

4. Make Tentative Territories

5. Develop Final Territories

Objective Is To Equal Sales Potential Of Territories


Assigning Salespeople To Territories
I Consider Two Criteria:

(A) Relative Ability Of Salespeople

• Based On Key Evaluation Factors:

(1) Product Knowledge, (2) Market Knowledge, (3) Past Sales


Performance, (4) Communication, (5) Selling Skills

(B) Salesperson’s Effectiveness In A Territory

• Decided By Comparing Social, Cultural, And Physical Characteristics


Of The Salesperson With Those Of The Territory

• Objective Is To Match Salesperson To The Territory


SALES QUOTAS
• What Are Sales Quotas?
• Sales Quotas Are Sales Goals Or Targets Set By A Company For Its
Marketing / Sales Units For A Time Period
• Marketing / Sales Units Are Regions, Branches, Territories,
Salespeople, And Intermediaries
• Here the Company Sales Budget Is Broken Down To Sales Quotas
For Maharashtra and Gujarat Market under the Mumbai Units
• Objectives Of Sales Quotas
• To Control Performance
• To Motivate People By Linking Quotas To Compensation Plans
• To Identify Strengths And Weaknesses Of The Company
TYPES OF
QUOTAS
• (1) Sales Volume,

• (2) Selling Expense,

• (3) Sales Call,

• Sales Volume Quotas


• For Effective Control, Sales Volume Quota Should Be Set For The
Smallest Marketing Units, Such As Salesperson, Districts /
Branches, Product Items / Brands
• Sales Volume Quotas Can Be Stated In

(A) Rupees / Dollars, (B) Units, Or (C) Points.


END OF SESSION

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