SlideShare a Scribd company logo
1 of 26
W HAT IS A  S ALES  T ERRITORY? A sales territory is composed of a group of customers or a geographic area assigned to a salesperson.
W HO   IS  R ESPONSIBLE FOR  T ERRITORIAL  D EVELOPMENT? Development of sales territories is usually the responsibility of the sales manager overseeing the larger sales units within the organization.
W HY  E STABLISH  S ALES  T ERRITORIES? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Why sales territories may not be developed: ,[object Object],[object Object],[object Object],[object Object]
F ACTORS TO  C ONSIDER WHEN  D ESIGNING  S ALES  T ERRITORIES Sales force objectives may be based on factors such as contribution to profits, return on assets, sales/cost ratios, market share, or customer satisfaction.
FIGURE 6.1 FACTORS TO CONSIDER WHEN DESIGNING TERRITORIES
S ELECT  B ASIC  C ONTROL  U NITS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A NALYZE  S ALESPEOPLE’S  W ORKLOADS   Workload is the quantity of work expected from sales personnel. Three of the main influences on workload involve the nature of the job, intensity of market coverage, and type of products sold.
Intensity of Market Coverage ,[object Object],[object Object],[object Object],[object Object]
D ETERMINE  B ASIC  T ERRITORIES The breakdown approach uses factors such as sales, population, or number of customers.  Forecasted Sales Average Sales per Salesperson Sales Force Size =
TABLE 6.1 SIX STEPS TO CONSIDER WHEN DETERMINING A FIRM’S BASIC TERRITORIES 1. Forecast sales and determine sales  potentials. 4. Tentatively establish territories. 2. Determine the sales volume needed for each territory. 5. Determine the number of accounts for each territory. 3. Determine the number of territories. 6. Finalize the territories, and draw the boundary lines.
Equalized Workload ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A SSIGN TO  T ERRITORIES Some salespeople can handle large territories and the travel associated with them; some can’t. Some territories require experienced salespeople; some are best for new people. Some people want to live in metropolitan areas; others prefer territories with smaller cities.
C USTOMER  C ONTACT  P LAN The customer contact plan involves scheduling sales calls and routing a salesperson’s movement around the territory.
Scheduling refers to establishing a fixed time when the salesperson will be at a customer’s place of business. In theory, strict formal route designs enable the salesperson to: ,[object Object],[object Object],[object Object]
THREE BASIC ROUTING PATTERNS
Using the Telephone for Territorial Coverage ,[object Object],[object Object],[object Object],[object Object]
Using the Telephone for Territorial Coverage continued ,[object Object],[object Object],[object Object],[object Object]
Using the Telephone for Territorial Coverage continued ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],Most people can benefit from adopting the following practices:
E VALUATION AND  R EVISION OF  S ALES  T ERRITORIES Territorial control is the establishment of standards of performance for the individual territory in the form of qualitative and quantitative quotas or goals.
T HE  S ALES  T ERRITORY IS A  B USINESS T HE  R IGHT  S ALESPERSON  P AYS  O FF
O PEN  S ALES  T ERRITORIES ,[object Object],[object Object],[object Object]
Sales leakage refers to the lost sales due to both the vacancy and the time required for the new salesperson to produce at average.
T HE  B OTTOM  L INE According to salespeople, managing time and territory is the most important factor to be considered when carrying out their selling duties. Developing sales territories has advantages as well as certain disadvantages. Sales force objectives are usually converted into individual sales territorial goals. The three main influences affecting the sales personnel’s workload are nature of the job, intensity of market coverage, and products sold.
Before designing sales territories, managers must consider six factors. The customer contact plan includes scheduling sales calls and routing salesperson’s movement around the territory. Territorial control allows actual performance to be compared with standards of performance for evaluation purposes. T HE  B OTTOM  L INE continued

More Related Content

What's hot

Sales budgeting
Sales budgetingSales budgeting
Sales budgetingGurjit
 
Motivation and Compensation of Sales People
Motivation and Compensation of Sales PeopleMotivation and Compensation of Sales People
Motivation and Compensation of Sales PeopleKaushik Maitra
 
Sales Force Management Presentation 1
Sales Force Management Presentation 1Sales Force Management Presentation 1
Sales Force Management Presentation 1Syed Ahmed Hussain
 
Channel Management Decisions
Channel Management DecisionsChannel Management Decisions
Channel Management DecisionsSameer Mathur
 
Evaluation and Control of Sales Performance
Evaluation and Control of Sales PerformanceEvaluation and Control of Sales Performance
Evaluation and Control of Sales PerformanceDr. Parveen Kaur Nagpal
 
5.1 sales control & cost analysis notes
5.1 sales control & cost analysis notes5.1 sales control & cost analysis notes
5.1 sales control & cost analysis notesShruti Jhunjhunwala
 
Introduction to sales management
Introduction to sales management Introduction to sales management
Introduction to sales management Citibank N.A.
 
Ch4: Management of Sales Territories and Quotas
Ch4: Management of Sales  Territories and QuotasCh4: Management of Sales  Territories and Quotas
Ch4: Management of Sales Territories and Quotasitsvineeth209
 
Sales contests and sales meetings
Sales contests and sales meetingsSales contests and sales meetings
Sales contests and sales meetingsAi-Ai Guerrero
 
Ppt on personal selling and its process
Ppt on personal selling and its processPpt on personal selling and its process
Ppt on personal selling and its processPurvi Sharma
 
Introduction to Marketing Analytics
Introduction to Marketing AnalyticsIntroduction to Marketing Analytics
Introduction to Marketing AnalyticsAshish Awasthi
 
Objectives and Nature of Sales Management
Objectives and Nature of Sales ManagementObjectives and Nature of Sales Management
Objectives and Nature of Sales ManagementAmitabh Mishra
 

What's hot (20)

Nature of sales management
Nature of sales managementNature of sales management
Nature of sales management
 
Sales budgeting
Sales budgetingSales budgeting
Sales budgeting
 
Sales quota
Sales quotaSales quota
Sales quota
 
Motivation and Compensation of Sales People
Motivation and Compensation of Sales PeopleMotivation and Compensation of Sales People
Motivation and Compensation of Sales People
 
Market vs sales_potential-1
Market vs sales_potential-1Market vs sales_potential-1
Market vs sales_potential-1
 
Sales quotas
Sales quotasSales quotas
Sales quotas
 
Sales Force Management Presentation 1
Sales Force Management Presentation 1Sales Force Management Presentation 1
Sales Force Management Presentation 1
 
Channel Management Decisions
Channel Management DecisionsChannel Management Decisions
Channel Management Decisions
 
Evaluation and Control of Sales Performance
Evaluation and Control of Sales PerformanceEvaluation and Control of Sales Performance
Evaluation and Control of Sales Performance
 
5.1 sales control & cost analysis notes
5.1 sales control & cost analysis notes5.1 sales control & cost analysis notes
5.1 sales control & cost analysis notes
 
Sales meeting AND SALES CONTEST
Sales meeting AND SALES CONTESTSales meeting AND SALES CONTEST
Sales meeting AND SALES CONTEST
 
Introduction to sales management
Introduction to sales management Introduction to sales management
Introduction to sales management
 
Direct marketing
Direct  marketingDirect  marketing
Direct marketing
 
Market Control ppt
Market Control pptMarket Control ppt
Market Control ppt
 
Ch4: Management of Sales Territories and Quotas
Ch4: Management of Sales  Territories and QuotasCh4: Management of Sales  Territories and Quotas
Ch4: Management of Sales Territories and Quotas
 
Sales contests and sales meetings
Sales contests and sales meetingsSales contests and sales meetings
Sales contests and sales meetings
 
Ppt on personal selling and its process
Ppt on personal selling and its processPpt on personal selling and its process
Ppt on personal selling and its process
 
Introduction to Marketing Analytics
Introduction to Marketing AnalyticsIntroduction to Marketing Analytics
Introduction to Marketing Analytics
 
Objectives and Nature of Sales Management
Objectives and Nature of Sales ManagementObjectives and Nature of Sales Management
Objectives and Nature of Sales Management
 
Sales Management
Sales ManagementSales Management
Sales Management
 

Viewers also liked

Sales territories and quotas
Sales territories and quotasSales territories and quotas
Sales territories and quotasyogesh kumar
 
Territory Management
Territory ManagementTerritory Management
Territory ManagementMike Kunkle
 
10. sales training territory management
10. sales training   territory management10. sales training   territory management
10. sales training territory managementEarl Stevens
 
Management of Sales Territories and Quotas
Management of Sales Territories and QuotasManagement of Sales Territories and Quotas
Management of Sales Territories and QuotasSameer Chandrakar
 

Viewers also liked (7)

Sales territories and quotas
Sales territories and quotasSales territories and quotas
Sales territories and quotas
 
Sales territory
Sales territorySales territory
Sales territory
 
Sales territory
Sales territorySales territory
Sales territory
 
Territory Management
Territory ManagementTerritory Management
Territory Management
 
10. sales training territory management
10. sales training   territory management10. sales training   territory management
10. sales training territory management
 
Sales quota
Sales quotaSales quota
Sales quota
 
Management of Sales Territories and Quotas
Management of Sales Territories and QuotasManagement of Sales Territories and Quotas
Management of Sales Territories and Quotas
 

Similar to Design and size of sales territories

Sales Territory 1233404426764002 1
Sales Territory 1233404426764002 1Sales Territory 1233404426764002 1
Sales Territory 1233404426764002 1satybodh tadsare
 
TIME AND SALES TERRITORY
TIME AND SALES TERRITORYTIME AND SALES TERRITORY
TIME AND SALES TERRITORYS. M. Tipu
 
Reach Operational Excellence with Territory Management
Reach Operational Excellence with Territory ManagementReach Operational Excellence with Territory Management
Reach Operational Excellence with Territory ManagementKevin Baldacci
 
Ch4 management of sales territories and quotas
Ch4 management of sales territories and quotasCh4 management of sales territories and quotas
Ch4 management of sales territories and quotaspinkeshparvani
 
Ch4 090721090522-phpapp01
Ch4 090721090522-phpapp01Ch4 090721090522-phpapp01
Ch4 090721090522-phpapp01akansha808
 
Sales Planning 101
Sales Planning 101Sales Planning 101
Sales Planning 101Matt Haller
 
Introduction If one examines the relative costs associated with .docx
Introduction If one examines the relative costs associated with .docxIntroduction If one examines the relative costs associated with .docx
Introduction If one examines the relative costs associated with .docxnormanibarber20063
 
Master Territory Management- Map Your Sales Territories Like a Billion Dollar...
Master Territory Management- Map Your Sales Territories Like a Billion Dollar...Master Territory Management- Map Your Sales Territories Like a Billion Dollar...
Master Territory Management- Map Your Sales Territories Like a Billion Dollar...Kevin Baldacci
 
Controlling the sales force
Controlling the sales forceControlling the sales force
Controlling the sales forceGurjit
 
Chapter 4 Management of Sales Territories and Quotas
Chapter 4 Management of Sales Territories and QuotasChapter 4 Management of Sales Territories and Quotas
Chapter 4 Management of Sales Territories and QuotasNishant Agrawal
 
Sales budget, quotas and sales territories
Sales budget, quotas and sales territoriesSales budget, quotas and sales territories
Sales budget, quotas and sales territoriesIndransh Gupta
 
Knowledge about the market ppt
Knowledge about the market pptKnowledge about the market ppt
Knowledge about the market pptSruthy Ajith
 

Similar to Design and size of sales territories (20)

Sales Territory 1233404426764002 1
Sales Territory 1233404426764002 1Sales Territory 1233404426764002 1
Sales Territory 1233404426764002 1
 
Chapter 06
Chapter 06Chapter 06
Chapter 06
 
TIME AND SALES TERRITORY
TIME AND SALES TERRITORYTIME AND SALES TERRITORY
TIME AND SALES TERRITORY
 
jjkkhj makt .pptx
jjkkhj makt .pptxjjkkhj makt .pptx
jjkkhj makt .pptx
 
Reach Operational Excellence with Territory Management
Reach Operational Excellence with Territory ManagementReach Operational Excellence with Territory Management
Reach Operational Excellence with Territory Management
 
Ch4 management of sales territories and quotas
Ch4 management of sales territories and quotasCh4 management of sales territories and quotas
Ch4 management of sales territories and quotas
 
Ch4 090721090522-phpapp01
Ch4 090721090522-phpapp01Ch4 090721090522-phpapp01
Ch4 090721090522-phpapp01
 
Sales territory
Sales territorySales territory
Sales territory
 
Sales Planning 101
Sales Planning 101Sales Planning 101
Sales Planning 101
 
Introduction If one examines the relative costs associated with .docx
Introduction If one examines the relative costs associated with .docxIntroduction If one examines the relative costs associated with .docx
Introduction If one examines the relative costs associated with .docx
 
Master Territory Management- Map Your Sales Territories Like a Billion Dollar...
Master Territory Management- Map Your Sales Territories Like a Billion Dollar...Master Territory Management- Map Your Sales Territories Like a Billion Dollar...
Master Territory Management- Map Your Sales Territories Like a Billion Dollar...
 
Controlling the sales force
Controlling the sales forceControlling the sales force
Controlling the sales force
 
Salesand distribution
Salesand distributionSalesand distribution
Salesand distribution
 
Sales territories
Sales territoriesSales territories
Sales territories
 
State Head SOP
State Head SOPState Head SOP
State Head SOP
 
Chapter 4 Management of Sales Territories and Quotas
Chapter 4 Management of Sales Territories and QuotasChapter 4 Management of Sales Territories and Quotas
Chapter 4 Management of Sales Territories and Quotas
 
Sales budget, quotas and sales territories
Sales budget, quotas and sales territoriesSales budget, quotas and sales territories
Sales budget, quotas and sales territories
 
Ch4 management of territories
Ch4 management of territoriesCh4 management of territories
Ch4 management of territories
 
Chapter 07
Chapter 07Chapter 07
Chapter 07
 
Knowledge about the market ppt
Knowledge about the market pptKnowledge about the market ppt
Knowledge about the market ppt
 

More from Shimranz Skillls (20)

Tms profile
Tms profileTms profile
Tms profile
 
Perjeta
PerjetaPerjeta
Perjeta
 
The breast
The breastThe breast
The breast
 
Gazyva
GazyvaGazyva
Gazyva
 
Listening OR HEARNG
Listening OR HEARNGListening OR HEARNG
Listening OR HEARNG
 
Why we no longer need hr departments
Why we no longer need hr departmentsWhy we no longer need hr departments
Why we no longer need hr departments
 
Designing and managing services
Designing and managing servicesDesigning and managing services
Designing and managing services
 
Attributtes of power point presentation
Attributtes of power point presentationAttributtes of power point presentation
Attributtes of power point presentation
 
Developing pricing strategies
Developing pricing strategiesDeveloping pricing strategies
Developing pricing strategies
 
The 8 attribute of great start up internship
The 8 attribute of great start up internshipThe 8 attribute of great start up internship
The 8 attribute of great start up internship
 
Disciplined team
Disciplined teamDisciplined team
Disciplined team
 
Wining
WiningWining
Wining
 
Know your-colleague
Know your-colleagueKnow your-colleague
Know your-colleague
 
Laws of-motivation
Laws of-motivationLaws of-motivation
Laws of-motivation
 
Selling skills
Selling skillsSelling skills
Selling skills
 
Sales person
Sales personSales person
Sales person
 
Epilepsy
EpilepsyEpilepsy
Epilepsy
 
Euglucon
EugluconEuglucon
Euglucon
 
Aab guidelines overview_06a
Aab guidelines overview_06aAab guidelines overview_06a
Aab guidelines overview_06a
 
Ulcer
UlcerUlcer
Ulcer
 

Recently uploaded

Inside the Black Box of Venture Capital (VC)
Inside the Black Box of Venture Capital (VC)Inside the Black Box of Venture Capital (VC)
Inside the Black Box of Venture Capital (VC)Alejandro Cremades
 
TriStar Gold Corporate Presentation May 2024
TriStar Gold Corporate Presentation May 2024TriStar Gold Corporate Presentation May 2024
TriStar Gold Corporate Presentation May 2024Adnet Communications
 
Series A Fundraising Guide (Investing Individuals Improving Our World) by Accion
Series A Fundraising Guide (Investing Individuals Improving Our World) by AccionSeries A Fundraising Guide (Investing Individuals Improving Our World) by Accion
Series A Fundraising Guide (Investing Individuals Improving Our World) by AccionAlejandro Cremades
 
Revolutionizing Industries: The Power of Carbon Components
Revolutionizing Industries: The Power of Carbon ComponentsRevolutionizing Industries: The Power of Carbon Components
Revolutionizing Industries: The Power of Carbon ComponentsConnova AG
 
Raising Seed Capital by Steve Schlafman at RRE Ventures
Raising Seed Capital by Steve Schlafman at RRE VenturesRaising Seed Capital by Steve Schlafman at RRE Ventures
Raising Seed Capital by Steve Schlafman at RRE VenturesAlejandro Cremades
 
Special Purpose Vehicle (Purpose, Formation & examples)
Special Purpose Vehicle (Purpose, Formation & examples)Special Purpose Vehicle (Purpose, Formation & examples)
Special Purpose Vehicle (Purpose, Formation & examples)linciy03
 
How to refresh to be fit for the future world
How to refresh to be fit for the future worldHow to refresh to be fit for the future world
How to refresh to be fit for the future worldChris Skinner
 
PitchBook’s Guide to VC Funding for Startups
PitchBook’s Guide to VC Funding for StartupsPitchBook’s Guide to VC Funding for Startups
PitchBook’s Guide to VC Funding for StartupsAlejandro Cremades
 
Copyright: What Creators and Users of Art Need to Know
Copyright: What Creators and Users of Art Need to KnowCopyright: What Creators and Users of Art Need to Know
Copyright: What Creators and Users of Art Need to KnowMiriam Robeson
 
Equinox Gold Corporate Deck May 24th 2024
Equinox Gold Corporate Deck May 24th 2024Equinox Gold Corporate Deck May 24th 2024
Equinox Gold Corporate Deck May 24th 2024Equinox Gold Corp.
 
zidauu _business communication.pptx /pdf
zidauu _business  communication.pptx /pdfzidauu _business  communication.pptx /pdf
zidauu _business communication.pptx /pdfzukhrafshabbir
 
FEXLE- Salesforce Field Service Lightning
FEXLE- Salesforce Field Service LightningFEXLE- Salesforce Field Service Lightning
FEXLE- Salesforce Field Service LightningFEXLE
 
HAL Financial Performance Analysis and Future Prospects
HAL Financial Performance Analysis and Future ProspectsHAL Financial Performance Analysis and Future Prospects
HAL Financial Performance Analysis and Future ProspectsRajesh Gupta
 
Event Report - IBM Think 2024 - It is all about AI and hybrid
Event Report - IBM Think 2024 - It is all about AI and hybridEvent Report - IBM Think 2024 - It is all about AI and hybrid
Event Report - IBM Think 2024 - It is all about AI and hybridHolger Mueller
 
LinkedIn Masterclass Techweek 2024 v4.1.pptx
LinkedIn Masterclass Techweek 2024 v4.1.pptxLinkedIn Masterclass Techweek 2024 v4.1.pptx
LinkedIn Masterclass Techweek 2024 v4.1.pptxSymbio Agency Ltd
 
Salesforce Loyalty Management A Comprehensive.pdf
Salesforce Loyalty Management A Comprehensive.pdfSalesforce Loyalty Management A Comprehensive.pdf
Salesforce Loyalty Management A Comprehensive.pdfqrsolutionsindia
 
Constitution of Company Article of Association
Constitution of Company Article of AssociationConstitution of Company Article of Association
Constitution of Company Article of Associationseri bangash
 
Stages of Startup Funding - An Explainer
Stages of Startup Funding - An ExplainerStages of Startup Funding - An Explainer
Stages of Startup Funding - An ExplainerAlejandro Cremades
 
12 Conversion Rate Optimization Strategies for Ecommerce Websites.pdf
12 Conversion Rate Optimization Strategies for Ecommerce Websites.pdf12 Conversion Rate Optimization Strategies for Ecommerce Websites.pdf
12 Conversion Rate Optimization Strategies for Ecommerce Websites.pdfSOFTTECHHUB
 
Engagement Rings vs Promise Rings | Detailed Guide
Engagement Rings vs Promise Rings | Detailed GuideEngagement Rings vs Promise Rings | Detailed Guide
Engagement Rings vs Promise Rings | Detailed GuideCharleston Alexander
 

Recently uploaded (20)

Inside the Black Box of Venture Capital (VC)
Inside the Black Box of Venture Capital (VC)Inside the Black Box of Venture Capital (VC)
Inside the Black Box of Venture Capital (VC)
 
TriStar Gold Corporate Presentation May 2024
TriStar Gold Corporate Presentation May 2024TriStar Gold Corporate Presentation May 2024
TriStar Gold Corporate Presentation May 2024
 
Series A Fundraising Guide (Investing Individuals Improving Our World) by Accion
Series A Fundraising Guide (Investing Individuals Improving Our World) by AccionSeries A Fundraising Guide (Investing Individuals Improving Our World) by Accion
Series A Fundraising Guide (Investing Individuals Improving Our World) by Accion
 
Revolutionizing Industries: The Power of Carbon Components
Revolutionizing Industries: The Power of Carbon ComponentsRevolutionizing Industries: The Power of Carbon Components
Revolutionizing Industries: The Power of Carbon Components
 
Raising Seed Capital by Steve Schlafman at RRE Ventures
Raising Seed Capital by Steve Schlafman at RRE VenturesRaising Seed Capital by Steve Schlafman at RRE Ventures
Raising Seed Capital by Steve Schlafman at RRE Ventures
 
Special Purpose Vehicle (Purpose, Formation & examples)
Special Purpose Vehicle (Purpose, Formation & examples)Special Purpose Vehicle (Purpose, Formation & examples)
Special Purpose Vehicle (Purpose, Formation & examples)
 
How to refresh to be fit for the future world
How to refresh to be fit for the future worldHow to refresh to be fit for the future world
How to refresh to be fit for the future world
 
PitchBook’s Guide to VC Funding for Startups
PitchBook’s Guide to VC Funding for StartupsPitchBook’s Guide to VC Funding for Startups
PitchBook’s Guide to VC Funding for Startups
 
Copyright: What Creators and Users of Art Need to Know
Copyright: What Creators and Users of Art Need to KnowCopyright: What Creators and Users of Art Need to Know
Copyright: What Creators and Users of Art Need to Know
 
Equinox Gold Corporate Deck May 24th 2024
Equinox Gold Corporate Deck May 24th 2024Equinox Gold Corporate Deck May 24th 2024
Equinox Gold Corporate Deck May 24th 2024
 
zidauu _business communication.pptx /pdf
zidauu _business  communication.pptx /pdfzidauu _business  communication.pptx /pdf
zidauu _business communication.pptx /pdf
 
FEXLE- Salesforce Field Service Lightning
FEXLE- Salesforce Field Service LightningFEXLE- Salesforce Field Service Lightning
FEXLE- Salesforce Field Service Lightning
 
HAL Financial Performance Analysis and Future Prospects
HAL Financial Performance Analysis and Future ProspectsHAL Financial Performance Analysis and Future Prospects
HAL Financial Performance Analysis and Future Prospects
 
Event Report - IBM Think 2024 - It is all about AI and hybrid
Event Report - IBM Think 2024 - It is all about AI and hybridEvent Report - IBM Think 2024 - It is all about AI and hybrid
Event Report - IBM Think 2024 - It is all about AI and hybrid
 
LinkedIn Masterclass Techweek 2024 v4.1.pptx
LinkedIn Masterclass Techweek 2024 v4.1.pptxLinkedIn Masterclass Techweek 2024 v4.1.pptx
LinkedIn Masterclass Techweek 2024 v4.1.pptx
 
Salesforce Loyalty Management A Comprehensive.pdf
Salesforce Loyalty Management A Comprehensive.pdfSalesforce Loyalty Management A Comprehensive.pdf
Salesforce Loyalty Management A Comprehensive.pdf
 
Constitution of Company Article of Association
Constitution of Company Article of AssociationConstitution of Company Article of Association
Constitution of Company Article of Association
 
Stages of Startup Funding - An Explainer
Stages of Startup Funding - An ExplainerStages of Startup Funding - An Explainer
Stages of Startup Funding - An Explainer
 
12 Conversion Rate Optimization Strategies for Ecommerce Websites.pdf
12 Conversion Rate Optimization Strategies for Ecommerce Websites.pdf12 Conversion Rate Optimization Strategies for Ecommerce Websites.pdf
12 Conversion Rate Optimization Strategies for Ecommerce Websites.pdf
 
Engagement Rings vs Promise Rings | Detailed Guide
Engagement Rings vs Promise Rings | Detailed GuideEngagement Rings vs Promise Rings | Detailed Guide
Engagement Rings vs Promise Rings | Detailed Guide
 

Design and size of sales territories

  • 1. W HAT IS A S ALES T ERRITORY? A sales territory is composed of a group of customers or a geographic area assigned to a salesperson.
  • 2. W HO IS R ESPONSIBLE FOR T ERRITORIAL D EVELOPMENT? Development of sales territories is usually the responsibility of the sales manager overseeing the larger sales units within the organization.
  • 3.
  • 4.
  • 5. F ACTORS TO C ONSIDER WHEN D ESIGNING S ALES T ERRITORIES Sales force objectives may be based on factors such as contribution to profits, return on assets, sales/cost ratios, market share, or customer satisfaction.
  • 6. FIGURE 6.1 FACTORS TO CONSIDER WHEN DESIGNING TERRITORIES
  • 7.
  • 8. A NALYZE S ALESPEOPLE’S W ORKLOADS Workload is the quantity of work expected from sales personnel. Three of the main influences on workload involve the nature of the job, intensity of market coverage, and type of products sold.
  • 9.
  • 10. D ETERMINE B ASIC T ERRITORIES The breakdown approach uses factors such as sales, population, or number of customers. Forecasted Sales Average Sales per Salesperson Sales Force Size =
  • 11. TABLE 6.1 SIX STEPS TO CONSIDER WHEN DETERMINING A FIRM’S BASIC TERRITORIES 1. Forecast sales and determine sales potentials. 4. Tentatively establish territories. 2. Determine the sales volume needed for each territory. 5. Determine the number of accounts for each territory. 3. Determine the number of territories. 6. Finalize the territories, and draw the boundary lines.
  • 12.
  • 13. A SSIGN TO T ERRITORIES Some salespeople can handle large territories and the travel associated with them; some can’t. Some territories require experienced salespeople; some are best for new people. Some people want to live in metropolitan areas; others prefer territories with smaller cities.
  • 14. C USTOMER C ONTACT P LAN The customer contact plan involves scheduling sales calls and routing a salesperson’s movement around the territory.
  • 15.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21. E VALUATION AND R EVISION OF S ALES T ERRITORIES Territorial control is the establishment of standards of performance for the individual territory in the form of qualitative and quantitative quotas or goals.
  • 22. T HE S ALES T ERRITORY IS A B USINESS T HE R IGHT S ALESPERSON P AYS O FF
  • 23.
  • 24. Sales leakage refers to the lost sales due to both the vacancy and the time required for the new salesperson to produce at average.
  • 25. T HE B OTTOM L INE According to salespeople, managing time and territory is the most important factor to be considered when carrying out their selling duties. Developing sales territories has advantages as well as certain disadvantages. Sales force objectives are usually converted into individual sales territorial goals. The three main influences affecting the sales personnel’s workload are nature of the job, intensity of market coverage, and products sold.
  • 26. Before designing sales territories, managers must consider six factors. The customer contact plan includes scheduling sales calls and routing salesperson’s movement around the territory. Territorial control allows actual performance to be compared with standards of performance for evaluation purposes. T HE B OTTOM L INE continued