Question:
Sales Volume Quotas are derived from the territorial ________.
Sales Volume Quotas are derived from the territorial ________.
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Think of the total demand that a territory can offer to the firm.
Updated On: Oct 19, 2026
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Solution and Explanation
Step 1: Understand a sales volume quota:
A sales volume quota is a target for the amount of sales a salesman or a territory must achieve in a period. It is stated in rupees or in units.
Step 2: Find where the target comes from:
A fair target must match what the territory can really buy. The firm first measures the total demand available in the territory. This measure is the territorial sales potential.
Step 3: Link the two:
Management takes the sales potential of each territory and sets the volume quota from it. A territory with high potential gets a higher quota. A territory with low potential gets a lower quota.
Final Answer:
The blank is filled with sales potential. Sales volume quotas are derived from the territorial sales potential.
A sales volume quota is a target for the amount of sales a salesman or a territory must achieve in a period. It is stated in rupees or in units.
Step 2: Find where the target comes from:
A fair target must match what the territory can really buy. The firm first measures the total demand available in the territory. This measure is the territorial sales potential.
Step 3: Link the two:
Management takes the sales potential of each territory and sets the volume quota from it. A territory with high potential gets a higher quota. A territory with low potential gets a lower quota.
Final Answer:
The blank is filled with sales potential. Sales volume quotas are derived from the territorial sales potential.
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