Marketing Management – Essay Example

Problems Associated with Annual Quotas of the Marketing Management Name of the Concerned Professor
October 9, 2010
Problems Associated with Annual Quotas

The varied problems posed by the setting of quotas to the company and sales representatives are:
The accuracy in the setting of a quota by a company depends to a great extent on the quantity and quality of the available information regarding determinants like cost estimates, sales potential, competition and sales forecast. Any flaw or deficiency in the available information could lead to the setting of unrealistic quotas. Consequently, sales representatives may find it unfeasible to achieve such quotas and may get demoralized. In the long run, this may jeopardize the growth of a company.
The setting of annual quotas also requires a thorough experience and astute judgment on the part of the marketing executives (Kotler & Keller, 2008). Besides, marketing executives in a company may tend to differ in their estimates and approaches, while setting quotas. Any deficiency on the part of marketing executives responsible for setting quotas may not only give way to uncertainty in the company, but may also confuse and dishearten the sales representatives.
Sales representatives may sometimes get too focused on the objective of achieving quotas, to the neglect of other duties (Proctor, 2000). This may dilute the overall efficiency of the company.
Inability of a company to come out with flexible quotas, which alter and change with the change in the market conditions, could positively dampen the moral of the sales representatives (Proctor, 2000).
Sometimes quotas may turn out to be so rigid as to complicate coordination between marketing and other activities of a company like production, finance, etc (Proctor, 2000).
Baines, Paul & Chansarkar, Bal. (2002). Introducing Marketing Research. New York:
John Wiley & Sons.
Kotler, Philip & Keller, Kevin. L. (2008). Marketing Management (13th ed.). Upper
Saddle River, NJ: Pearson Prentice Hall.
Proctor, Tony. (2000). Strategic Marketing: An Introduction. London: Routledge.