Sales territories

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Sales territories

  1. 1. Territories andTime Management 1
  2. 2. Time Management:Refer exhibit 12.2 & 12.3Benefits:a) Better market coverage: amount of time and money spent must be proportionate to size of accountb) Reduce selling costs: customer and crucial decision maker has to be identified so that wastage of time and money in pursuing wrong people can be avoided.c) Improved customer service: taking appointments sales force automation helps in time managementd) Can be a performance evaluator 2
  3. 3. Sales TerritoriesBenefits:a) When a salesperson is responsible for a particular territory, accountability.b) Size must be optimal; large: coverage; small: too many callsc) Reducing sales costs in transportation / food / lodging.d) Strong Customer Relationships – can give more time.e) Enhance sales force motivation; ASM takes pride in his territory; well designed ST improves morale, ensures reasonable workload, encourages equitable rewards 3
  4. 4. How to set up Territories?1. Determine potential in sales & prospects2. Selecting geographical control unit – small size makes management easier – adjusting territories becomes easier.3. Sales person workload analysis; no. of effects, cold calls, prospects, time allotted4. Divide into territories of equal potential – computerization helps5. Service requirement of existing and potential customers 4
  5. 5. How to set up Territories?6. Assigning the right personnel, salespeople with high initiative, experience can be given to high potential territories. While assigning sales people to territories a mgr. has to consider Qualities – industry knowledge Qualifications Characteristics – persuasive abilities, verbal communication ExperienceMatch salesperson to territory. 5
  6. 6. How to define Sales Territory?1. Know you Market:  Having defined market, list all potential prospects; maintain master list2. Score potential opportunities: A, B, C…3. Draw borders:  List of potential customers can be uploaded to mapping programs for geographical territories  If different products cater to different industries; then map by industry.  You can also map by size & buying power4. Involve Sales Team5. Minimize future changes 6
  7. 7. Company needs to avoid Sales Territory WarsSingle most important factor of a SP’s success istenure in territory; so avoid changing / redefiningterritories / sales rep.s – demotivates customer / SP.both.Small territory – less travel – more selling – moremanagerial positions – career opportunitiesHowever, division of existing territories – moraleissues – less earning for salesperson if he loses keya/c. 7
  8. 8. When are Sales Territories Revised? When initially they have not been designed carefully. Overestimation / underestimation of work load or sales potential Changing market conditions Faulty Management Growth of business Increased sale force Competition Changed Management Philosophies 8

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