Territory & Quota Design Flashcards
7 cards from real CSCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Territory & Quota Design flashcards as text
Which method of quota setting bases individual quotas on the historical sales results of each representative adjusted for expected market growth?
Answer: Bottom-up quota setting
Bottom-up quota setting starts with individual rep history and adjusts for anticipated growth, making it rep-specific and data-grounded.
When a company divides its total revenue target among regions and then down to individual reps, this approach is called:
Answer: Top-down quota allocation
Top-down quota allocation begins with the corporate revenue goal and cascades it downward through regions, districts, and individual reps.
A 'balanced territory' in sales compensation design primarily aims to:
Answer: Equalize workload and market opportunity across reps
Balanced territories are designed so that each rep has a comparable workload and revenue opportunity, enabling fair quota attainment comparisons.
Which of the following is the BEST leading indicator of territory potential when designing new sales territories?
Answer: Total addressable market (TAM) within the territory
Total addressable market represents the maximum revenue opportunity available, making it the best forward-looking indicator of territory potential.
What is the primary purpose of applying a 'seasonality adjustment' to sales quotas?
Answer: To align quota timing with natural buying cycles in the market
Seasonality adjustments distribute quota across the year in proportion to when customers naturally buy, making each period's target fair and realistic.
In territory design, 'account potential scoring' is used to:
Answer: Estimate the revenue that could be generated from each account
Account potential scoring assigns a revenue opportunity estimate to each account, enabling equitable distribution of high- and low-potential accounts across territories.
Which territory alignment tool uses geographic data layers, account locations, and sales data to visually optimize territory boundaries?
Answer: Territory mapping software
Territory mapping software combines geographic and sales data to visualize and rebalance territory boundaries for equitable workload and opportunity distribution.