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Chapter 14

Chapter 14. Time, Territory, and Self Management: Keys To Success. 14-1. 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.

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Chapter 14

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

  2. 14-1 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.

  3. Salesperson’s territory’s sales quota Account analysis Set accountobjectives andsales quotas Territory-timeallocation Territory and customer evaluation Scheduling androuting Customer salesplanning 14-2 Elements of Time and Territory Management for the Salesperson

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

  5. 14-4 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

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

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

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

  9. 14-8 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 =

  10. 14-9 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

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

  12. 14-11 Weekly Route Report Today’s Date:For week beginning December 16 December 26 DateCity 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

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

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

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

  16. 14-13 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

  17. 14-14 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

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

  19. 14-16 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

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