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CHAPTER 10

CHAPTER 10. TIME AND TERRITORY MANAGEMENT. ESTABLISHING SALES TERRITORY. A sales territory is usually thought of as a geographic area that contains customer accounts (present and potential).

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CHAPTER 10

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  1. CHAPTER 10 TIME AND TERRITORY MANAGEMENT

  2. ESTABLISHING SALES TERRITORY A sales territory is usually thought of as a geographic area that contains customer accounts (present and potential). The major emphasis should be on the customers and prospects because a market is made up of people and customers, not geographic areas.

  3. ESTABLISHING SALES TERRITORY Reasons for establishing sales territories • To facilitate the planning and controlling of the selling function • To enhance market coverage • To keep selling costs at a minimum • To strengthen customer relations • To build a more effective SF • To evaluate the SF better • To coordinate selling with other marketing functions

  4. ESTABLISHING SALES TERRITORY Reasons for not establishing sales territories • Small companies with only a few people selling in a local market. • The available sales coverage is far below the sales potential of the market • Companies introducing new product or with products that everyone needs • Sales are made primarily on the basis of social contacts or personal friendships.

  5. SETTING UP SALES TERRITORY 1. Selecting a geographic control unit States, counties, zip code areas, cities, metropolitan areas, trading areas

  6. SETTING UP SALES TERRITORY 2. Making an account analysis • To identify accounts by name. • To estimate the total sales potential for all accounts in each geographic control unit. • To classify each accounts according to its annual buying potential.

  7. SETTING UP SALES TERRITORY 3. Developing a salesperson workload analysis A salesperson workload analysis is an estimate of the time and effort required to cover each geographic control unit. • Numbers of account to be called on • The length of each call • The travel time required • The nonselling time

  8. SETTING UP SALES TERRITORY 4. Combine geographic control units into sales territories To group adjacent control units into territories of roughly equal sales potential

  9. SETTING UP SALES TERRITORY 5. Assigning sales personnel to territories • Relative ability (product and industry knowledge, persuasiveness and verbal ability) • Potential sales effectiveness within the territory (salesperson’s physical, social and cultural characteristics)

  10. TIME MANAGEMENT Scheduling the salesperson Time allocation problems – • Deciding which accounts to call on • Dividing time between selling and paperwork • Allocating time between present customers, prospective customers and service calls • Allocating time to be spent with the overly demanding customer or prospect

  11. TIME MANAGEMENT Scheduling the salesperson To maximize the productive time – • Avoid time traps • Allocate time in five areas (waiting and traveling, face-to-face selling, service calls, administrative tasks and telephone selling) • Set weekly and daily goals • Manage time during sales calls • Evaluate

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