Quotas are an important part of a sales plan because:
A)they reflect changes in the market
B)they determine the minimum amount that a salesperson should be selling
C)they report how much a salesperson sells each month
D)they allow salespeople to choose their own compensation levels
E)they create a high-pressure environment that encourages innovation

Question

Quizplus · Accepted Answer

Quotas determine the minimum amount that a salesperson should be selling, which provides a benchmark for performance evaluation and goal setting. Quotas should be set realistically based on historical data, market trends, and salesperson capabilities. They should also be reviewed and adjusted periodically to reflect changes in the market or business environment. While quotas may create pressure to achieve targets, they should not be so high as to discourage salespeople or encourage unethical behavior.

Quotas Are an Important Part of a Sales Plan Because