Chp 15 Time and Territory

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Chp 15 Time and Territory

  1. 1. Time, Territory, and Self- Management: Keys to Success Chapter 15
  2. 2. 15-2 Customers Form Sales Territories  A sales territory comprises a group of customers or a geographical area assigned to a salesperson
  3. 3. 15-3 Exhibit 15.1: Reasons Companies Develop and Use Sales Territories
  4. 4. 15-4 Elements of Time and Territory Management  Salesperson’s sales quota (goals) may involve: Sales volume quotas Profit quotas Expense quotas Activity quotas Customer satisfaction scores
  5. 5. 15-5 Elements of Time and Territory Management, cont…  Account analysis: The undifferentiated selling approach (Exhibit 15-3) The account segmentation approach (Exhibit 15-6) ELMS system 80/20 principle Multiple selling strategies Multivariable account segmentation (Exhibit 15-7)
  6. 6. 15-6 Exhibit 15.3: Undifferentiated Selling Approach Slide 15-11
  7. 7. 15-7 Exhibit 15.4: Account Segmentation Based on Yearly Sales E.L.M.S.
  8. 8. 15-8 Exhibit 15.6: Account Segmentation Approach Slide 15-11
  9. 9. 15-9 Exhibit 15.7: Multivariable Account Segmentation Slide 15-11
  10. 10. 15-10 Elements of Time and Territory Management, cont...  Territory-time allocation Basic factors to consider Number of accounts in the territory Number of sales calls made on customers Time required for each sales call Frequency of customer sales calls Travel time around the territory Nonselling time Return on time invested
  11. 11. 15-11 Elements of Time and Territory Management Cont…  Territory-time allocation Sales response function Invests sales time in direct proportion to the actual or potential sales that the account represents The most productive number of calls is reached at the point at which additional calls do not increase sales The relationship of sales volume to sales calls
  12. 12. 15-12 Exhibit 15.8: Account Time Allocation by Salesperson * every 3 months
  13. 13. 15-13 Return on Time Invested  Break-even analysis Salesperson’s Fixed Costs/Gross Profit % Direct Costs = Salary – (Transportation + Expenses) Gross Profit % = Gross Profit / Sales Gross Profit = Sales – Cost of Goods Sold If salesperson sells X amount of merchandise, it covers the direct costs Sales territory is a cost and revenue generating profit center
  14. 14. 15-14 Return on Time Invested  Break-even analysis Per Hour Cost Per Hour/Gross Profit % Cost Per Hour = Direct costs/Yearly Hours worked Salesperson must sell $$ per hour in goods/services to break even

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