1 / 20

Territory Management

Territory Management. TERRITORY. A territory geographically defined area assigned to a sales person present customers potential customers. SALES FORCE PRODUCTIVITY. A crisis-- In the last ten years, selling costs have risen almost twice as fast as average sales volume per salesperson.

percym
Download Presentation

Territory Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Territory Management

  2. TERRITORY • A territory • geographically defined area • assigned to a sales person • present customers • potential customers

  3. SALES FORCE PRODUCTIVITY • A crisis-- • In the last ten years, selling costs have risen almost twice as fast as average sales volume per salesperson

  4. HOW SALESPEOPLE SPEND THEIR TIME • Face-to-Face Selling = 30% • Telephone Selling = 21% • Waiting / Travelling = 20% • Administrative Duties = 17% • Service Activities = 12%

  5. SALES FORCE PRODUCTIVITY • How can we improve productivity? • Focus on high volume accounts • Focus on selling time

  6. MINIMUM ACCOUNT SIZE • Don’t pursue accounts that are unprofitable!!

  7. COST PER CALL • Cost per call is a function of • number of calls per day • number of days available to make calls • direct selling expenses • Direct Selling Expenses # Calls per day X # Days to Sell

  8. COST PER CALL • Example (see Table 5.1; page 230) • Total Direct Expenses = $90,250 • 205 days to sell; average 3 calls per day • Cost per call = $90,250 / 205 x 3 = $146.75

  9. BREAK EVEN SALES VOLUME • The sales volume necessary to cover direct selling expenses • Breakeven Volume is a function of: • Cost per call • Number of calls to close • Sales costs as a percentage of sales

  10. BREAK EVEN SALES VOLUME Cost Per call X # of Calls to Close Sales costs as a % of Sales

  11. BREAK EVEN SALES VOLUME See Table 5-2; page 231 Electronics Industry --Cost per call = $133.30 --Number of calls to close = 3.9 --Sales Costs as a % of sales = 12.0 Breakeven volume = $133.30 x 3.9 / .12 = $4,332.25

  12. TERRITORY IMPLICATIONS • Perform a customer by customer analysis! • Assess selling strategy

  13. ALLOCATION OF SELLING EFFORT • Consider the time we spend with customers! • Single Factor Models • Portfolio Models • Decision Models

  14. SINGLE FACTOR MODELS • Easy to develop and use • Classify accounts into categories based on one factor, such as market potential • Assign all accounts in the same category the same number of sales calls • Decisions are made on the basis of one factor. Differences among accounts are not taken into consideration

  15. THIS IS ONLY A PARTIAL VIEW OF THE DOCUMENT.

More Related