Time, Territory, And Self Management

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Time, Territory, And Self Management

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Time, Territory, And Self Management

  1. 1. Chapter 14 Time, Territory, and Self Management: Keys To Success
  2. 2. Reasons Companies Develop and Use Sales Territories <ul><li>To obtain thorough coverage of the market. </li></ul><ul><li>To establish each salesperson's responsibilities. </li></ul><ul><li>To evaluate performance. </li></ul><ul><li>To improve customer relations. </li></ul><ul><li>To reduce sales expense. </li></ul><ul><li>To allow better matching of salesperson to customer’s needs. </li></ul><ul><li>To benefit both salespeople and the company. </li></ul>14-1
  3. 3. 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
  4. 4. Undifferentiated Selling Approach 14-3 Single-selling approach Target accounts
  5. 5. Account Segmentation Based on Yearly Sales <ul><li> Yearly Sales </li></ul><ul><li>Customer (actual or Number of </li></ul><ul><li>Size potential) Accounts Percent </li></ul><ul><li>Extra large over $200,000 100 3.3% </li></ul><ul><li>Large $75,000-200,000 500 16.6 </li></ul><ul><li>Medium $25,000-75,000 1,000 33.3 </li></ul><ul><li>Small $1,000-25,000 1,400 46.6 </li></ul>14-4
  6. 6. Basic Segmentation of Accounts 14-5 Customers Prospect Account Sales Potential Potential Classification To Date Sales Sales Extra large Large Medium Small
  7. 7. Account Segmentation Approach 14-6 Extra Large Large Medium Medium 1 2 Target Accounts Multiple Selling Strategies
  8. 8. 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)
  9. 9. Account Time Allocation by Salesperson <ul><li>Customer Calls per Calls per Number of Number of </li></ul><ul><li>Size Month Year Accounts Calls per Year </li></ul><ul><li>Extra large 1 12 2 24 </li></ul><ul><li>Large 1 12 28 336 </li></ul><ul><li>Medium 1 12 56 672 </li></ul><ul><li>Small 1* 4 78 312 </li></ul><ul><li>Total 164 1,344 </li></ul><ul><li>*every 3 months </li></ul>14-8 =
  10. 10. Daily Customer Plan <ul><li> Sales Calls </li></ul><ul><li>Service </li></ul><ul><li>Hours Customers Prospects Customers </li></ul><ul><li> 7:00-8:00 A.M. Stop by office: pick up </li></ul><ul><li>Jones Hardware order </li></ul><ul><li>8:00-9:00 Travel </li></ul><ul><li>9:00-10:00 Zip Grocery </li></ul><ul><li>10:00-11:00 Ling Television Corp. </li></ul><ul><li>11:00-12:00 Ling Television Corp. </li></ul><ul><li>12:00-1:00 P.M. Lunch and delivery to </li></ul><ul><li>Jones Hardware </li></ul><ul><li>1:00-2:00 Texas Instruments </li></ul><ul><li>2:00-3:00 Ace Equipment </li></ul><ul><li>3:00-4:00 Travel </li></ul><ul><li>4:00-5:00 Trailor Mfg. </li></ul><ul><li>5:00-6:00 Plan next day—do paperwork </li></ul>14-9
  11. 11. 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
  12. 12. Weekly Route Report <ul><li>Today’s Date: For week beginning </li></ul><ul><li>December 16 December 26 </li></ul><ul><li>Date City Location </li></ul><ul><li>December 26 (Monday) Dallas Home </li></ul><ul><li>December 27 (Tuesday) Dallas Home </li></ul><ul><li>December 28 (Wednesday) Waco Holiday Inn/South </li></ul><ul><li>December 29 (Thursday) Fort Worth Home </li></ul><ul><li>December 30 (Friday) Dallas Home </li></ul>14-11
  13. 13. Three Basic Routing Patterns 14-12A First call Work back c c c c Straight-Line Pattern
  14. 14. 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
  15. 15. Three Basic Routing Patterns 14-12C 1 5 4 3 2 1 = Downtown Major-City Pattern
  16. 16. Example of Net Sales by Customer and Call Frequency <ul><li>Brown Peterson Gilley Bruce Heaton </li></ul><ul><li>(GP, (Pediatrics, (GP, (GP, (GP, Texas </li></ul><ul><li>Houston) Galveston) Galveston) Galveston) City) </li></ul><ul><li>Calls </li></ul><ul><li>Month 2 1 1 0 2 </li></ul><ul><li>Year-to-date 8 4 4 4 9 </li></ul><ul><li>Last call 4/20 4/18 4/18 3/10 4/19 </li></ul><ul><li>Net sales in dollars </li></ul><ul><li>Current month 60 0 21 0 500 </li></ul><ul><li>Year-to-date </li></ul><ul><li> This year 350 200 75 1,000 2,000 </li></ul><ul><li> Last year 300 275 125 750 1,750 </li></ul><ul><li>Entire last year 2,000 1,000 300 1,000 5,000 </li></ul>14-13
  17. 17. Customer Sales Potential <ul><li>Sales Sales Customer Potential Customer Potential </li></ul><ul><li>A $4,000 I $ 1,000 </li></ul><ul><li>B 3,000 J 1,000 </li></ul><ul><li>C 6,000 K 10,000 </li></ul><ul><li>D 2,000 L 12,000 </li></ul><ul><li>E 2,000 M 8,000 </li></ul><ul><li>F 8,000 N 9,000 </li></ul><ul><li>G 4,000 O 8,000 </li></ul><ul><li>H 6,000 P 10,000 </li></ul>14-14
  18. 18. 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
  19. 19. Distribution of Sales <ul><li>Customer Percentage Percentage of Total </li></ul><ul><li>Classification of Customers Sales Volume </li></ul><ul><li>A 10 65 </li></ul><ul><li>B 20 20 </li></ul><ul><li>C 50 10 </li></ul><ul><li>D 10 3 </li></ul><ul><li>E 10 2 </li></ul><ul><li>100 100 </li></ul>14-16

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