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7/29/2019 adbms sales management cont.ppt
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LOGO
www.wondershare.com
e
Sales managementcontinued
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Sales Territories
Territory may represent
Geographical area
Group of customers
A market
An industry
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Goals of territory management
To cover the market properly
To deploy sales people effectively
To service the customer effectively
To evaluate the salesrepresentative
To control sales expenses
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Territory Management
Generating
New Accounts
Managing
Existing
Accounts
Personal
Time
Management
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Designing sales territories
A company has to establisha geographical control unit.It could be a country,zone or
regionAfter establishing a control
unit sales potential of each
unit is established
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These control units arethen classified intoterritories
Then number ofterritories are consideredassuming an averagesales force
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Approaches to terriitorymanagement
Market build up approach
In this approach the present usersand potential users of a productare analysed Their consumption
potential are also analysed. Then itis decided how much market sharethe company desires to have, This
gives us the total sales potentialThis sales potential is then brokendown territory wise
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Work load approach
Customers are grouped into
categories
Optimum call frequency foreach category is estimated
Present and potentialcustomers are located andarranged category wise
Geographical control unit isthen established
Each SR is given adequate worl
load
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Territory Shapes
Shapes affect both in coverage and in the selling
expenses
The Wedge
Starts fro a thickly populated urban centre
The Circle
scattered customers
The Clover LeafRandom
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Designing sales territories
A company has to establisha geographical control unit.It could be a country,zone or
regionAfter establishing a control
unit sales potential of each
unit is established
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Territory Adjustment
Estimation of travel timeDecide call frequency
Computing number of calls possiblein a given period
Estimating the number and type ofcustomers
Correction with desired callfrequency
Estimating time duration of each cal
Correction on basis of feedback
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Adjustment of territory bysalesmen
Territories are builtaround sales men
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WHAT IS A QUOTA?
A quota refers to an expectedperformance objective.Quotas are tactical in nature andthus derived from the sales
forces strategic objectives.
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WHY ARE QUOTAS
IMPORTANT?
Quotas provide performancetargets.
Quotas provide standards. Quotas provide control. Quotas provide change ofdirection. Quotas are motivational.
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TYPES OF
QUOTAS
Sales volume quotas. Breakdown total sales volume.
Profit quotas. Expense quotas. Activity quotas.
Quota combinations.
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Sales volume quotas
includes MONETORY orproduct unit objectives for
a specific period of time.
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Gross marginquota determined by
subtracting cost of goods sold
from sales volume.
Net profitquota determined by
subtracting cost of goods sold and
salespeoples direct selling
expense from sales volume.
The two types of profit quotas:
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Expense quotas are aimed
at controlling costs of sales
units. Often expenses are
related to sales volume or tothe compensation plan.
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Activity quotas set
objectives for job-related
duties useful toward
reaching salespeoplesperformance targets.
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METHODS FOR SETTING
SALES QUOTAS Quotas based on forecasts andpotentials.
Quotas based on forecasts only.
Quotas based on past experience.
Quotas based on executive judgments.
Quotas salespeople set.
Quotas related to compensation.
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AGOOD OBJECTIVE AND
QUOTA PLAN IS SMART
SpecificMeasurableAttainableRealisticTime specific
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Sales and Marketing Information
System
An organised way ofcontinually gathering and
analysing information fromevery source relevant to theorganisation
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A MIS incorporates & combine
the main aspects of marketingresearch into a centralisedmanagement function which
will maintain a tight control onresearch procedures & ensurean accurate data bank of
information about customers,products etc.
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A MIS which can link externaldata with internal sources, suchas sales record, customer
records & competitorinformation will provide a strongbasis for informed marketing
decisions
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MIS
MIS - mainly concernedwith how to manageinformation
Ongoing information egsales record
Monitored information -about the economy
Requested information -
Surveys