15-1. time, territory, and self- management: keys to success chapter 15 copyright © 2006 by the...

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Time, Territory, and Self-Time, Territory, and Self-Management: Keys to SuccessManagement: Keys to Success

Time, Territory, and Self-Time, Territory, and Self-Management: Keys to SuccessManagement: Keys to Success

Chapter

Chapter

15

Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

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Chapter

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Main TopicsMain TopicsMain TopicsMain Topics

The Tree of Business Life: TimeCustomers Form Sales Territories

Elements of Time and Territory Management

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Chapter

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The Tree of Business Life: Time

Guided by The Golden The Golden RuleRule: View your territory as a business Treat customers differently

depending on their needs Value the customer’s time Realize that how you spend your

time determines your life Use your life to serve others and

enjoy a wonderful, fulfilling life Seek, knock, ask, serve, and see

that ethical service build true relationships

IT C

Ethi

cal Service

Builds

T r

u e

Relationships

TT T

T T T TT T T T

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Customers Form Sales Territories

A sales territory comprises a group of customers or a geographical area assigned to a salesperson

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Exhibit 15-1: Reasons Companies Develop and Use Sales Territories

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Why Sales Territories May Not Be Developed

Salespeople may be more motivated if not restricted by a particular territory

The company may be too small to be concerned with segmenting the market into sales areas

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Exhibit 15-2: Elements of Time and Territory Management for the Salesperson

Salesperson’s territory’ssales quota

Salesperson’s territory’ssales quota

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Elements of Time and Territory Management

Salesperson’s sales quota (goals) may involve:Sales volume quotasProfit quotasExpense quotasActivity quotasCustomer satisfaction scores

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Salesperson’s territory’ssales quota

Salesperson’s territory’ssales quota Account analysisAccount analysis

Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont…

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Elements of Time and Territory Management, cont…

Account analysis:The undifferentiated selling approach (Exhibit 15-3)The account segmentation approach (Exhibit 15-6)

ELMS system80/20 principle

Multiple selling strategiesMultivariable account segmentation (Exhibit 15-7)

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Exhibit 15-3: Undifferentiated Selling Approach

Slide 15-11

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Exhibit 15-4: Account Segmentation Based on Yearly Sales

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Exhibit 15-5: Basic Segmentation of Accounts

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Exhibit 15-6: Account Segmentation Approach

Slide 15-11

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Exhibit 15-7: Multivariable Account Segmentation

Slide 15-11

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Salesperson’s territory’ssales quota

Salesperson’s territory’ssales quota Account analysisAccount analysis Set account objectives

and sales quotas

Set account objectivesand sales quotas

Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont…

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Elements of Time and Territory Management, cont…

Set account objectives and sales quotas which may involve:Sales volume quotasProfit quotasExpense quotasActivity quotasCustomer satisfaction scores

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Salesperson’s territory’ssales quota

Salesperson’s territory’ssales quota Account analysisAccount analysis Set account objectives

and sales quotas

Set account objectivesand sales quotas

Territory-time allocationTerritory-time allocation

Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont…

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Elements of Time and Territory Management, cont...

Territory-time allocationBasic factors to consider

Number of accounts in the territoryNumber of sales calls made on customersTime required for each sales callFrequency of customer sales callsTravel time around the territoryNonselling timeReturn on time invested

Sale response function

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Exhibit 15-8: Account Time Allocation by Salesperson

* every 3 months

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Elements of……………….

Territory-time allocationBasic factors to considerSales response function

The salesperson invests sales time in direct proportion to the actual or potential sales that the account represents

The most productive number of calls is reached at the point at which additional calls do not increase sales

The relationship of sales volume to sales calls is the sales response function of the customer to the salesperson’s calls

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Return on Time Invested Time is a scarce resource Break-even analysis The management of time

Plan by the day, week, and monthQualify the prospectUse waiting timeHave a productive lunchtimeRecords and reports

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Exhibit 15-10: Daily Customer Plan

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Salesperson’s territory’ssales quota

Salesperson’s territory’ssales quota Account analysisAccount analysis Set account objectives

and sales quotas

Set account objectivesand sales quotas

Customer sales planningCustomer sales planning

Territory-time allocationTerritory-time allocation

Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont…

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What is Involved in Customer Sales Planning?

You do the following for each sales call:Develop sales call objectivesReview/create customer profileCreate customer benefit planSelect FABsDevelop marketing planDevelop business propositionDevelop suggested orderDevelop your sales presentation

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Salesperson’s territory’ssales quota

Salesperson’s territory’ssales quota Account analysisAccount analysis Set account objectives

and sales quotas

Set account objectivesand sales quotas

Scheduling and routingScheduling and routing Customer sales planningCustomer sales planning

Territory-time allocationTerritory-time allocation

Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont…

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Scheduling and Routing Strict formal route designs enable the

company to: Improve territory coverageMinimize wasted timeEstablish communication between management

and the sales force in terms of location and activities of individual salespeople

Carefully plan your route

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Exhibit 15-11: Location of Accounts and Sequence of Calls

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Exhibit 15-12: A Weekly Route Report

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Exhibit 15-13: Three Basic Routing Patterns

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Salesperson’s territory’ssales quota

Salesperson’s territory’ssales quota Account analysisAccount analysis Set account objectives

and sales quotas

Set account objectivesand sales quotas

Territory and customerevaluation

Territory and customerevaluation Scheduling and routingScheduling and routing Customer sales planningCustomer sales planning

Territory-time allocationTerritory-time allocation

Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont…

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Using the Telephone for Territorial Coverage

Satisfy part of the service needs of accounts by telephone

Assign smaller accounts that contribute less than 5 percent of business to mostly telephone selling

Do prospecting, marketing data gathering, and call scheduling by telephone

Carefully schedule personal calls to distant accounts

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Exhibit 15-15: Net Sales by Customer and Call Frequency: May 1, 2005

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Territory and Customer Evaluation

Did the salesperson meet sales quota(s)?Sales volume quotasProfit quotasExpense quotasActivity quotasCustomer satisfaction scores

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Salesperson’s territory’ssales quota

Salesperson’s territory’ssales quota Account analysisAccount analysis Set account objectives

and sales quotas

Set account objectivesand sales quotas

Territory and customerevaluation

Territory and customerevaluation Scheduling and routingScheduling and routing Customer sales planningCustomer sales planning

Territory-time allocationTerritory-time allocation

Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont…

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Summary of Major Selling Issues

How salespeople invest their sales time is a critical factor that influences territory sales

Proper time and territory management is an effective method for the salesperson to maximize territorial sales and profits

A sales territory comprises a group of customers or a geographical area assigned to a salesperson

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Summary of Major Selling Issues, cont…

Companies develop and use sales territories for a number of reasons

Performance can be monitored when territories are established

There are also disadvantages to developing sales territories

Time and territory management is continuous for a salesperson – it involves seven key elements