Time, Territory, and Self-Management: Keys to Success

1. Time, Territory, and Self-Management: Keys to Success Chapter 15

2. 15 Chapter 15-2

3. Main Topics • The Tree of Business Life: Time • Customers Form Sales Territories • Elements of Time and Territory Management

4. The Tree of Business Life: Time Guided by The Golden Rule: • View your territory as a business • Treat customers differently depending on their needs • Value the customer’s time • Realize that how you spend your time determines your life • Use your life to serve others and enjoy a wonderful, fulfilling life • Seek, knock, ask, serve, and see that ethical service build true relationships T T T Service Ethical T T T T T T T T Builds T r u e Relationships T C I

5. Customers Form Sales Territories • A sales territory comprises a group of customers or a geographical area assigned to a salesperson

6. Exhibit 15-1: Reasons Companies Develop and Use Sales Territories

7. Why Sales Territories May Not Be Developed • Salespeople may be more motivated if not restricted by a particular territory • The company may be too small to be concerned with segmenting the market into sales areas

8. Exhibit 15-2: Elements of Time and Territory Management for the Salesperson Salesperson’s territory’ssales quota

9. 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

10. Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont… Salesperson’s territory’ssales quota Account analysis

11. 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)

12. Exhibit 15-3: Undifferentiated Selling Approach Slide 15-11

13. Exhibit 15-4: Account Segmentation Based on Yearly Sales

14. Exhibit 15-5: Basic Segmentation of Accounts

15. Exhibit 15-6: Account Segmentation Approach Slide 15-11

16. Exhibit 15-7: Multivariable Account Segmentation Slide 15-11

17. Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont… Salesperson’s territory’ssales quota Account analysis Set account objectivesand sales quotas

18. Elements of Time and Territory Management, cont… • Set account objectives and sales quotas which may involve: • Sales volume quotas • Profit quotas • Expense quotas • Activity quotas • Customer satisfaction scores

19. Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont… Salesperson’s territory’ssales quota Account analysis Set account objectivesand sales quotas Territory-time allocation

20. 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 • Sale response function

21. Exhibit 15-8: Account Time Allocation by Salesperson * every 3 months

22. Elements of Time and Territory Management Cont… • Territory-time allocation • Basic factors to consider • Sales response function • The salesperson 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 is the sales response function of the customer to the salesperson’s calls

23. Time is a scarce resource Break-even analysis The management of time Plan by the day, week, and month Qualify the prospect Use waiting time Have a productive lunchtime Records and reports Return on Time Invested

24. Exhibit 15-10: Daily Customer Plan

25. Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont… Salesperson’s territory’ssales quota Account analysis Set account objectivesand sales quotas Territory-time allocation Customer sales planning

26. What is Involved in Customer Sales Planning? • You do the following for each sales call: • Develop sales call objectives • Review/create customer profile • Create customer benefit plan • Select FABs • Develop marketing plan • Develop business proposition • Develop suggested order • Develop your sales presentation

27. Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont… Salesperson’s territory’ssales quota Account analysis Set account objectivesand sales quotas Territory-time allocation Scheduling and routing Customer sales planning

28. Strict formal route designs enable the company to: Improve territory coverage Minimize wasted time Establish communication between management and the sales force in terms of location and activities of individual salespeople Carefully plan your route Scheduling and Routing

29. Exhibit 15-11: Location of Accounts and Sequence of Calls

30. Exhibit 15-12: A Weekly Route Report

31. Exhibit 15-13: Three Basic Routing Patterns

32. Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont… Salesperson’s territory’ssales quota Account analysis Set account objectivesand sales quotas Territory-time allocation Territory and customerevaluation Scheduling and routing Customer sales planning

33. Using the Telephone for Territorial Coverage • Satisfy part of the service needs of accounts by telephone • Assign smaller accounts that contribute less than 5 percent of business to mostly telephone selling • Do prospecting, marketing data gathering, and call scheduling by telephone • Carefully schedule personal calls to distant accounts

34. Exhibit 15-15: Net Sales by Customer and Call Frequency: May 1, 2005

35. Territory and Customer Evaluation • Did the salesperson meet sales quota(s)? • Sales volume quotas • Profit quotas • Expense quotas • Activity quotas • Customer satisfaction scores

36. Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont… Salesperson’s territory’ssales quota Account analysis Set account objectivesand sales quotas Territory-time allocation Territory and customerevaluation Scheduling and routing Customer sales planning

37. Summary of Major Selling Issues • How salespeople invest their sales time is a critical factor that influences territory sales • Proper time and territory management is an effective method for the salesperson to maximize territorial sales and profits • A sales territory comprises a group of customers or a geographical area assigned to a salesperson

38. Summary of Major Selling Issues, cont… • Companies develop and use sales territories for a number of reasons • Performance can be monitored when territories are established • There are also disadvantages to developing sales territories • Time and territory management is continuous for a salesperson – it involves seven key elements