Financial Quota

Marketing dictionary

Financial Quota

A quota that focuses on financial criteria such as gross margin or contribution to overhead. Financial quotas are used to make salespeople conscious of the cost and profit implications of what they sell. Financial quotas are often stated in terms of direct selling expenses, gross margin, or net profit. They are most applicable when the firm's market penetration approaches saturation levels. In such instances, increasing sales or market share is difficult, so an emphasis on selling efficiency and cost control becomes a logical mechanism for increasing profits.

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