Chapter 14 Time, Territory, and Self Management: Keys To Success

Reasons Companies Develop and Use Sales Territories To obtain thorough coverage of the market. To establish each salesperson's responsibilities. To evaluate performance. To improve customer relations. To reduce sales expense. To allow better matching of salesperson to customer’s needs. To benefit both salespeople and the company. 14-1

To obtain thorough coverage of the market.

To establish each salesperson's responsibilities.

To evaluate performance.

To improve customer relations.

To reduce sales expense.

To allow better matching of salesperson to customer’s needs.

To benefit both salespeople and the company.

Elements of Time and Territory Management for the Salesperson 14-2 Salesperson’s territory’s sales quota Account analysis Set account objectives and sales quotas Territory-time allocation Customer sales planning Scheduling and routing Territory and customer evaluation

Undifferentiated Selling Approach 14-3 Single-selling approach Target accounts

Account Segmentation Based on Yearly Sales Yearly Sales Customer (actual or Number of Size potential) Accounts Percent Extra large over $200,000 100 3.3% Large $75,000-200,000 500 16.6 Medium $25,000-75,000 1,000 33.3 Small $1,000-25,000 1,400 46.6 14-4

Yearly Sales

Customer (actual or Number of

Size potential) Accounts Percent

Extra large over $200,000 100 3.3%

Large $75,000-200,000 500 16.6

Medium $25,000-75,000 1,000 33.3

Small $1,000-25,000 1,400 46.6

Basic Segmentation of Accounts 14-5 Customers Prospect Account Sales Potential Potential Classification To Date Sales Sales Extra large Large Medium Small

Account Segmentation Approach 14-6 Extra Large Large Medium Medium 1 2 Target Accounts Multiple Selling Strategies

Multivariable Account Segmentation 14-7 Product Types of Accounts Retailer Wholesaler Government A B C $1,000 to $25,000 $25,000 to $75,000 $75,000 to $200,000 $200,000+ Customer Sales Volume (ELMS)

Account Time Allocation by Salesperson Customer Calls per Calls per Number of Number of Size Month Year Accounts Calls per Year Extra large 1 12 2 24 Large 1 12 28 336 Medium 1 12 56 672 Small 1* 4 78 312 Total 164 1,344 *every 3 months 14-8 =

Customer Calls per Calls per Number of Number of

Size Month Year Accounts Calls per Year

Extra large 1 12 2 24

Large 1 12 28 336

Medium 1 12 56 672

Small 1* 4 78 312

Total 164 1,344

*every 3 months

Daily Customer Plan Sales Calls Service Hours Customers Prospects Customers 7:00-8:00 A.M. Stop by office: pick up Jones Hardware order 8:00-9:00 Travel 9:00-10:00 Zip Grocery 10:00-11:00 Ling Television Corp. 11:00-12:00 Ling Television Corp. 12:00-1:00 P.M. Lunch and delivery to Jones Hardware 1:00-2:00 Texas Instruments 2:00-3:00 Ace Equipment 3:00-4:00 Travel 4:00-5:00 Trailor Mfg. 5:00-6:00 Plan next day—do paperwork 14-9

Sales Calls

Service

Hours Customers Prospects Customers

7:00-8:00 A.M. Stop by office: pick up

Jones Hardware order

8:00-9:00 Travel

9:00-10:00 Zip Grocery

10:00-11:00 Ling Television Corp.

11:00-12:00 Ling Television Corp.

12:00-1:00 P.M. Lunch and delivery to

Jones Hardware

1:00-2:00 Texas Instruments

2:00-3:00 Ace Equipment

3:00-4:00 Travel

4:00-5:00 Trailor Mfg.

5:00-6:00 Plan next day—do paperwork

Location of Accounts and Sequence of Calls 14-10 66 270 40 40 35 35 62 62 62 6. Texas Instruments 4. Ling Television 5. Jones Hardware 3. Zip Grocery 8. Trailor Mfg. Home 1, 9. 2. Distribution Center 7. Ace Equipment Oklahoma City

Weekly Route Report Today’s Date: For week beginning December 16 December 26 Date City Location December 26 (Monday) Dallas Home December 27 (Tuesday) Dallas Home December 28 (Wednesday) Waco Holiday Inn/South December 29 (Thursday) Fort Worth Home December 30 (Friday) Dallas Home 14-11

Today’s Date: For week beginning

December 16 December 26

Date City Location

December 26 (Monday) Dallas Home

December 27 (Tuesday) Dallas Home

December 28 (Wednesday) Waco Holiday Inn/South

December 29 (Thursday) Fort Worth Home

December 30 (Friday) Dallas Home

Three Basic Routing Patterns 14-12A First call Work back c c c c Straight-Line Pattern

Three Basic Routing Patterns 14-12B c c c c c c c c c c c c c c c c c c c c c c c c Base Cloverleaf Pattern Each leaf out and back the same day

Three Basic Routing Patterns 14-12C 1 5 4 3 2 1 = Downtown Major-City Pattern

Example of Net Sales by Customer and Call Frequency Brown Peterson Gilley Bruce Heaton (GP, (Pediatrics, (GP, (GP, (GP, Texas Houston) Galveston) Galveston) Galveston) City) Calls Month 2 1 1 0 2 Year-to-date 8 4 4 4 9 Last call 4/20 4/18 4/18 3/10 4/19 Net sales in dollars Current month 60 0 21 0 500 Year-to-date This year 350 200 75 1,000 2,000 Last year 300 275 125 750 1,750 Entire last year 2,000 1,000 300 1,000 5,000 14-13

Brown Peterson Gilley Bruce Heaton

(GP, (Pediatrics, (GP, (GP, (GP, Texas

Houston) Galveston) Galveston) Galveston) City)

Calls

Month 2 1 1 0 2

Year-to-date 8 4 4 4 9

Last call 4/20 4/18 4/18 3/10 4/19

Net sales in dollars

Current month 60 0 21 0 500

Year-to-date

This year 350 200 75 1,000 2,000

Last year 300 275 125 750 1,750

Entire last year 2,000 1,000 300 1,000 5,000

Customer Sales Potential Sales Sales Customer Potential Customer Potential A $4,000 I $ 1,000 B 3,000 J 1,000 C 6,000 K 10,000 D 2,000 L 12,000 E 2,000 M 8,000 F 8,000 N 9,000 G 4,000 O 8,000 H 6,000 P 10,000 14-14

Sales Sales Customer Potential Customer Potential

A $4,000 I $ 1,000

B 3,000 J 1,000

C 6,000 K 10,000

D 2,000 L 12,000

E 2,000 M 8,000

F 8,000 N 9,000

G 4,000 O 8,000

H 6,000 P 10,000

A Partial Map of Your Sales Territory 14-15 Start K N F E A G R J O B Your favorite restaurant H M I D P C L

Distribution of Sales Customer Percentage Percentage of Total Classification of Customers Sales Volume A 10 65 B 20 20 C 50 10 D 10 3 E 10 2 100 100 14-16

Customer Percentage Percentage of Total

Classification of Customers Sales Volume

A 10 65

B 20 20

C 50 10

D 10 3

E 10 2

100 100