module - 3 mgmt of sales territory & sales quota

8/4/2019 Module - 3 Mgmt of Sales Territory & Sales Quota

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Module - 3

Management of Sales

Territory & Sales Quota


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Content

1.Sales Territory

Meaning

Size

Designing

2.Sales Quota

Meaning

Procedure for sales Quota

Types of sales Quota

Methods of setting sales quota


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3. Recruitment and selection of sales force

4. Training of sales quota


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Meaning of sales territory

Sales - is the act of meeting prospective buyers

and providing them with a product or service in

turn of money or other required compensation.

- Sales is an act of completion of a commercial

activity. The "deal is closed", means the customer

has consented to the proposed product or service

by making full or partial payment (as in case ofinstallments) to the seller.


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Meaning of territory

Alargeextentortractofland;aregion;

adistrict.a country

aregionmarkedoffforadministrativeorother

purposes
http://ardictionary.com/A/1http://ardictionary.com/Large/1018http://ardictionary.com/Extent/7004http://ardictionary.com/Or/1924http://ardictionary.com/Tract/5647http://ardictionary.com/Of/869http://ardictionary.com/Land/686http://ardictionary.com/A/1http://ardictionary.com/Region/3053http://ardictionary.com/A/1http://ardictionary.com/A/1http://ardictionary.com/District/7627http://ardictionary.com/A/1http://ardictionary.com/A/1http://ardictionary.com/Region/3053http://ardictionary.com/Marked/1692http://ardictionary.com/Off/881http://ardictionary.com/For/4655http://ardictionary.com/Administrative/2285http://ardictionary.com/Or/1924http://ardictionary.com/Other/2800http://ardictionary.com/Other/2800http://ardictionary.com/Or/1924http://ardictionary.com/Administrative/2285http://ardictionary.com/For/4655http://ardictionary.com/Off/881http://ardictionary.com/Marked/1692http://ardictionary.com/Region/3053http://ardictionary.com/A/1http://ardictionary.com/A/1http://ardictionary.com/District/7627http://ardictionary.com/A/1http://ardictionary.com/A/1http://ardictionary.com/Region/3053http://ardictionary.com/A/1http://ardictionary.com/Land/686http://ardictionary.com/Of/869http://ardictionary.com/Tract/5647http://ardictionary.com/Or/1924http://ardictionary.com/Extent/7004http://ardictionary.com/Large/1018http://ardictionary.com/A/1


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Meaning of sales territory

Sales territory is defined as a group of present

& potential customers assigned to an

individual sales person, a group of sales

person, a branch, a dealer, a distributor, or a

marketing organization at a given period of

time.


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Advantages of Sales territory/ Why

sales territory is requiredDesigning of sales territory provides various advantages to afirm like

1. It ensures better market coverage

2. Effective utilization of the sales force

3. Efficient distribution of workload among salespeople4. Convenient way to evaluate the performance of

salespeople

5. Control over the direct and indirect costs of the salesfunction

6. Optimum utilization of sales time by salespeople

7. Enhances employees morale and helps managers tobetter control & monitor sales & evaluate programmes.


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Disadvantages of Sales territory

Many organization do not plan territories & organizesales on the basis of geographic divisions.

It includes newly established enterprises, organizationswhere sales are achieved more through personalrelationship rather than a professional approach.

Organizations selling highly sophisticated & technicallycomplex products

Firm using telemarketing & internet marketing as toolsto reaching customers

Firms who sells product like insurance, fixed depositsand other investment products


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Size of sales territories

Factors influencing the size of a sales territory.1. The nature & demand of the product.

2. Mode of physical distribution.

3. The selling process.

4. Transport & communication facilities in the

overall market & territory.

5. Government regulations

6. Density of population & population spread

within the territory

7. Market otential & rowth rates.


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Continue..

8. The level of competition.

9. firms sales policy.

10. Ability of sales person.11. Overall economic conditions prevailing in the

country


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For example

1. If a product is a consumer durable with a

longer shelf life - Co. will prefer larger

territory. For perishable Co. will prefer

smaller.

2. Depends on nature of product like

Consumer product

Industrial product

Durable or,

Non durable product


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3. when there is huge demand- Co. go for

smaller territories .

4. If Co. is going through intermediaries like

wholesalers retailers customers

they prefer to have a larger territory.

5. In industrial buying size of territory is kept

small because of bulk order booking.

6. Territories in rural markets in India are smaller

in comparison to the urban markets as

trans ortation & communication is a roblem


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7. Government restrictions & regulations of

taxes & the movement of the goods also

influence the decisions of a firm in regard to

the size of the territory.

8. In a market with a high density of population

& market potential , companies decide in

favour of smaller territories.

9. If a company has experienced, well trained &

competent salespeople - will go for larger

territory & viceversa.


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continue10. If a firm with a limited number of products

wants to earn higher profits, the size of the

territory will be larger.

11. Overall condition of economy also affects

the size of the territory. For example , a smallsize territory is suitable for a firm during

recession when prices have stabilized &

customers are not willing to spendspontaneously.

During boom condition, however, firms can

increase the size of the territory.


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module - 3 mgmt of sales territory & sales quota

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