What Is the Meaning of a Sales Objective?

Sales objectives are important to virtually every company.

Sales objectives are an essential part of a strategic plan to generate sales revenue. Typically, management sets revenue goals; the sales management team then creates sales objectives to achieve the desired revenue.

Significance

Sales objectives serve as the foundation for an overall sales plan. Without clearly understood sales objectives, individual sales representatives may not be able to reach their goals, causing the company to fall short of its revenue projections.

Features

Sales objectives can contain quotas, the number of sales calls expected during a specific period, territory assignments and other key metrics.

Time Frame

Managers will often establish sales objectives during the sales planning process, which begins several months before the fiscal or calendar year.

References

• "Entrepreneur": Sales Quotas--Critical Interpretations and Implications