1

Territories and Time Management

2

Time Management:

Refer exhibit 12.2 & 12.3

Benefits:

a) Better market coverage: amount of time and money spent must be proportionate to size of account

b) Reduce selling costs: customer and crucial decision maker has to be identified so that wastage of time and money in pursuing wrong people can be avoided.

c) Improved customer service: taking appointments sales force automation helps in time management

d) Can be a performance evaluator

3

Sales Territories

Benefits:

a) When a salesperson is responsible for a particular territory, accountability.

b) Size must be optimal; large: coverage; small: too many calls

c) Reducing sales costs in transportation / food / lodging.

d) Strong Customer Relationships – can give more time.

e) Enhance sales force motivation; ASM takes pride in his territory; well designed ST improves morale, ensures reasonable workload, encourages equitable rewards

4

How to set up Territories?

1. Determine potential in sales & prospects

2. Selecting geographical control unit – small size makes management easier – adjusting territories becomes easier.

3. Sales person workload analysis; no. of effects, cold calls, prospects, time allotted

4. Divide into territories of equal potential – computerization helps

5. Service requirement of existing and potential customers

5

How to set up Territories?

6. Assigning the right personnel, salespeople with high initiative, experience can be given to high potential territories.

While assigning sales people to territories a mgr. has to consider

Qualities – industry knowledge Qualifications Characteristics – persuasive abilities, verbal

communication Experience

Match salesperson to territory.

6

How to define Sales Territory?

1. Know you Market: Having defined market, list all potential

prospects; maintain master list

2. Score potential opportunities: A, B, C…

3. Draw borders: List of potential customers can be uploaded

to mapping programs for geographical territories

If different products cater to different industries; then map by industry.

You can also map by size & buying power

4. Involve Sales Team

5. Minimize future changes

7

Company needs to avoid Sales Territory Wars

Single most important factor of a SP’s success is tenure in territory; so avoid changing / redefining territories / sales rep.s – demotivates customer / SP. both.

Small territory – less travel – more selling – more managerial positions – career opportunities

However, division of existing territories – morale issues – less earning for salesperson if he loses key a/c.

8

When are Sales Territories Revised?

When initially they have not been designed carefully.

Overestimation / underestimation of work load or sales potential

Changing market conditions Faulty Management Growth of business Increased sale force Competition Changed Management Philosophies