© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Chapter 14 Time, Territory, and Self...
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© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Chapter 14 Time, Territory, and Self Management: Keys To Success
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© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Elements of Time and Territory Management for the Salesperson 14-2 Salesperson’s territory’s sales quota Account analysis Set account objectives and sales quotas Territory-time allocation Customer sales planning Scheduling and routing Territory and customer evaluation Territory and customer evaluation
Transcript of © McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Chapter 14 Time, Territory, and Self...
© McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Chapter 14
Time, Territory, and Self Management: Keys To Success
© McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Reasons Companies Develop and Use Sales Territories
To obtain thorough coverage of the market.To establish each salesperson's responsibilities.To evaluate performance.To improve customer relations.To reduce sales expense.To allow better matching of salesperson to customer’s needs.To benefit both salespeople and the company.
14-1
© McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Elements of Time and Territory Management for the Salesperson
14-2
Salesperson’s territory’s sales quota
Account analysisSet accountobjectives andsales quotas
Territory-timeallocation
Customer salesplanning
Scheduling androuting
Territory and customerevaluation
© McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Undifferentiated Selling Approach14-3
Single-sellingapproach Target accounts
© McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Account Segmentation Based on Yearly Sales
Yearly SalesCustomer (actual or Number ofSize potential) Accounts Percent
Extra large over $200,000 100 3.3%Large $75,000-200,000 500 16.6 Medium $25,000-75,000 1,000 33.3Small $1,000-25,000 1,400 46.6
14-4
© McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Basic Segmentation of Accounts14-5
CustomersProspect
Account Sales Potential PotentialClassification To Date Sales Sales
Extra largeLargeMediumSmall
© McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Account Segmentation Approach14-6
Extra Large
Large
Medium
Medium
1
2
Target AccountsMultiple Selling Strategies
© McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Multivariable Account Segmentation14-7
Product
Types ofAccounts
Retailer
Wholesaler
Government
AB
C
$1,000 to $25,000
$25,000 to $75,000
$75,000 to $200,000
$200,000+
Customer Sales Volume (ELMS)
© McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Account Time Allocation by Salesperson
14-8
=Customer Calls per Calls per Number of Number ofSize Month Year AccountsCalls per Year
Extra large 1 12 2 24
Large 1 12 28 336
Medium 1 12 56 672
Small 1* 4 78 312
Total 164 1,344
*every 3 months
© McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Daily Customer Plan14-9
Sales CallsService
HoursCustomers Prospects Customers
7:00-8:00 A.M. Stop by office: pick up Jones Hardware order
8:00-9:00 Travel 9:00-10:00 Zip Grocery10:00-11:00 Ling Television Corp.11:00-12:00 Ling Television Corp.12:00-1:00 P.M. Lunch and delivery to
Jones Hardware 1:00-2:00 Texas Instruments 2:00-3:00 Ace Equipment 3:00-4:00 Travel 4:00-5:00 Trailor Mfg. 5:00-6:00 Plan next day—do paperwork
© McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Location of Accounts and Sequence of Calls
14-10
66270
40
40
35
35
62
62
62
6.Texas Instruments
4. Ling Television
5.Jones Hardware
3. ZipGrocery
8.Trailor Mfg.
Home1, 9.
2.Distribution Center
7.Ace Equipment
Oklahoma City
© McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Weekly Route Report14-11
Today’s Date: For week beginningDecember 16 December 26Date City Location
December 26 (Monday) Dallas Home
December 27 (Tuesday) Dallas Home
December 28 (Wednesday) Waco Holiday Inn/South
December 29 (Thursday) Fort Worth Home
December 30 (Friday) Dallas Home
© McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Three Basic Routing Patterns14-12A
First call
Work backc c c
c
Straight-Line Pattern
© McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Three Basic Routing Patterns14-12B
c
c c
c c
ccc
c c
cc
c
cc
cc
cc c
cc
c c
Base
Cloverleaf Pattern
Each leaf out andback the same day
© McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Three Basic Routing Patterns14-12C
1
54
32
1 = Downtown
Major-City Pattern
© McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Example of Net Sales by Customer and Call Frequency
14-13
Brown Peterson Gilley Bruce Heaton(GP, (Pediatrics, (GP, (GP, (GP, TexasHouston) Galveston) Galveston) Galveston) City)
CallsMonth 2 1 1 0 2Year-to-date 8 4 4 4 9Last call 4/20 4/18 4/18 3/10 4/19
Net sales in dollarsCurrent month 60 0 21 0 500Year-to-date This year 350 200 75 1,000 2,000 Last year 300 275 125 750 1,750
Entire last year 2,000 1,000 300 1,000 5,000
© McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Customer Sales Potential
Sales Sales Customer Potential Customer Potential
A $4,000 I $ 1,000B 3,000 J 1,000C 6,000 K 10,000D 2,000 L 12,000E 2,000 M 8,000F 8,000 N 9,000G 4,000 O 8,000H 6,000 P 10,000
14-14
© McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
A Partial Map of Your Sales Territory14-15
Start
K N
FE
AG
R JOB
Yourfavoriterestaurant
H M
ID P
C
L
© McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Distribution of Sales14-16
Customer Percentage Percentage of TotalClassification of Customers Sales Volume
A 10 65B 20 20C 50 10D 10 3E 10 2
100 100
