Sales quota: Known as sales target, sales quota is an expression of sales value and sales volume expected from a salesperson to be achieved in full from their defined territory over a given period of time i.e., weekly, monthly, quarterly or yearly. In simple sense, a sales quota is a goal; it is a target a sales staff is expected to meet. Each sales person must understand the importance of their target and how it fits in as part of the pre-set goals stated in business plan of an enterprise. They are a way of life for the sales force. All activities of the sales force revolve around fulfillment of sales quotas. As already mentioned, sales quotas are the targets assigned to sales personnel, they also signify the performance expected from them by an organisation. Sales quotas help directing, evaluating and controlling the sales force. They forman indispensable tool for sales managers to carry out sales management activities. Sales quotas are prepared on the basis of sales forecasts and budgets. They provide targets for sales personnel to achieve, act as standards to measure sales force performance and help motivate the salesforce. Compensation plans are invariably linked to quotas. The commission and bonuses given to sales persons are also based on their meeting the quotas set for them.

Sales Force: Sales Force is the term used for the division of a business that is responsible for selling products or services. Sales force means persons responsible for selling products or services via direct contact with the customers.

Today, most industrial companies rely heavily on a professional sales force to locate prospects, develop them into customers and grow the business.

Some companies hire ’manufacturers’ representatives’ and ’agents’ to carry out the direct selling task. In addition, many consumer companies use a direct-selling force such as insurance agents, stock brokers and distributors. Sales force members may be paid a fixed salary regardless of sales volume or may receive a small base salary plus commissions calculated as a percentage of revenue sold. Non-commissioned sales forces are appropriate when selling requires the involvement of a team of individuals or when there is an extremely long sales cycle. For example, some complex industrial services may require several years of effort before the prospect is sold. Salespeople may be full-time employees of the seller or may be independent, nonexclusive agents.