Most companies set annual quotas. Quotas can be on dollar sales, unit volume, margin, selling effort, or activity and product type. Compensation is often tied to the degree of quota attainment
What problems does the setting of quotas present to both the company and to the sales representative?
If the company underestimates and the sales reps easily achieve their quotas, the company has overpaid its reps. If the company overestimates sales potential, the salespeople will find it very hard to reach their quotas and be frustrated or quit. Another downside is that quotas can drive reps to get as much business as possible—often resulting in their ignoring the service side of the business.
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The acid-test ratio differs from the current ratio in that it
a. represents the amount of cash on hand instead of the amount of working capital. b. excludes inventories and accounts receivable from the numerator of the fraction because of obsolescence and possible nonpayment. c. is a stricter test of a company's ability to pay its current debts as they are due. d. signals the need to liquidate marketable securities when it drops below 5 to 1.
________ are general business sources of external secondary data that provide brief descriptions of companies, organizations, or individuals
A) Guides B) Indexes and bibliographies C) Directories D) Nongovernmental statistical data E) Standard Industrial Classification (SIC) codes
Employers like to see an objective statement on your resume because they care what you want as much as they care what you are going to do for them
Indicate whether the statement is true or false
The plan to manage the supply of purchased items is referred to as a _______.
a. purchasing plan b. sourcing strategy c. sourcing plan d. purchasing strategy