Improve Sales Productivity by Establishing Sales Territories A sales territory is usually a specific geographic area that contains present and potential customers and is assigned to a p
Trang 1Joe F Hair
Rolph E Anderson
Rajiv Mehta
Barry J Babin
Trang 2Digital Multimedia PowerPoint Lectures for
Sales Force Management
Prepared by:
Dr Rajiv Mehta Professor of Marketing New Jersey Institute of Technology
Newark, N.J.
Trang 3Chapter 7:
Time and Territory Management
Trang 42 Apply procedures for setting up sales territories.
3 Evaluate when and why to revise sales territories.
4 Apply the concepts of self-management to sales
and sales management.
5 Use the techniques of scheduling and routing for
sales success.
Trang 5What are time and territory management strategies?
Which, when, and how often should accounts be called on?
How do we improve sales productivity?
How do we set-up sales territories?
How should sales territories be revised?
What are the methods for scheduling and routing?
Trang 6Improve Sales Productivity
by Establishing Sales Territories
A sales territory is usually a
specific geographic area that
contains present and potential
customers and is assigned to a
particular salesperson
Time and territory management
strategies help determine:
§ Which accounts are called on,
§ When accounts are called on,
and
§ How often accounts are called
Trang 7Reasons for Sales Territories
Reasons to assign sales territories are:
Reasons for Sales Territories
Trang 8Procedure for Setting Up Sales Territories
The procedure for initially
setting or revising geographic
sales territories is as follows:
1 Select a geographic control unit
2 Conduct an account analysis
3 Develop a salesperson workload
analysis
4 Combine geographic control units
into territories, and
5 Assign salespeople to territories
5.
Assign salespeople
to territories
4.
Combine geographic control units into territories
3.
Develop
a salesperson workload analysis
2
Conduct an account analysis
1
Select a geographic control unit
Procedure For Setting-Up Sales Territories
Trang 9Procedure for Setting Up Sales Territories
5.
Assign salespeople
to territories
4.
Combine geographic control units into territories
3.
Develop
a salesperson workload analysis
2
Conduct an account analysis
1
Select a geographic control unit
Procedure For Setting-Up Sales Territories
• Helps management pinpoint
geographic location of sales potential
• Makes adjusting territories much
easier
• States
• Counties and zip codes
• Cities and metropolitan statistical
areas (MSAs)
• Trading areas: geographic regions
including city and surrounding areas
serving as retail or wholesale center
for the region
1 Selecting a Geographic Control Unit
Trang 10Procedure for Setting Up Sales Territories
5.
Assign salespeople
to territories
4.
Combine geographic control units into territories
3.
Develop
a salesperson workload analysis
2
Conduct an account analysis
1
Select a geographic control unit
Procedure For Setting-Up Sales Territories
2 Conducting an Account Analysis
geographic unit
Trang 11Procedure for Setting Up Sales Territories
5.
Assign salespeople
to territories
4.
Combine geographic control units into territories
3.
Develop
a salesperson workload analysis
2
Conduct an account analysis
1
Select a geographic control unit
Procedure For Setting-Up Sales Territories
3 Developing a Salesperson Workload Analysis
• Sales call frequency
• Sales call length
• Travel time
• Non-selling time
Trang 12Conducting an Account Analysis
Sometimes called the
Sales Account Call
Accounts are very unattractive since
they offer low opportunity and sales
organization has weak position
Quadrant 3 Attractiveness:
Accounts are somewhat attractive since sales organization has strong position, but
future opportunity is limited
Quadrant 2 Attractiveness:
Accounts are potentially attractive based
on high opportunity, but sales
organization has weak position
Quadrant 1 Attractiveness:
Accounts are viewed as very attractive,
offer high opportunity, and sales
organization has strong position.
Trang 13Conducting an Account Analysis
Quadrant 4 Attractiveness:
Accounts are very unattractive since they offer low opportunity and sales organization has weak position
Quadrant 3 Attractiveness:
Accounts are somewhat attractive since sales organization has
strong position, but future opportunity is limited
Quadrant 2 Attractiveness:
Accounts are potentially attractive based on high opportunity, but sales organization has weak position
Quadrant 1 Attractiveness:
Accounts are viewed as very attractive, offer high opportunity,
and sales organization has strong position.
What Sales Call Strategy Would You Suggest For This Segment?
Call Strategy: Frequent sales calls.
What Sales Call Strategy Would You Suggest For This Segment?
Call Strategy: Frequent sales calls to strengthen
position.
What Sales Call Strategy Would You Suggest For This Segment?
Call Strategy: Minimal sales calls and migrate personal sales calls to telephone or Internet.
What Sales Call Strategy Would You Suggest For This Segment?
Call Strategy: Moderate frequency to maintain
current position
Trang 14Procedure for Setting Up Sales Territories
5.
Assign salespeople
to territories
4.
Combine geographic control units into territories
3.
Develop
a salesperson workload analysis
2
Conduct an account analysis
1
Select a geographic control unit
Procedure For Setting-Up Sales Territories
4 Combining Geographic Control Units into Sales Territories.
§ After setting up sales
territories either by state,
county, MSA, identify and
prioritize territories that
have a higher sales potential
than others.
Trang 15Procedure for Setting Up Sales Territories
5.
Assign salespeople
to territories
4.
Combine geographic control units into territories
3.
Develop
a salesperson workload analysis
2
Conduct an account analysis
1
Select a geographic control unit
Procedure For Setting-Up Sales Territories
5 Assigning Salespeople to Territories
§ Before assigning them to
territories, sales managers
should rate and rank sales
personnel according to:
1 Relative ability
2 Product and industry knowledge
3 Energy level
4 Persuasiveness
Trang 16Revising Sales Territories:
Signs Indicating The Need For Revisions
Some signs that are indicative of
territorial modifications include:
1 A company grows and gains in
experience in important territories.
2 The firm needs a larger sales force
3 If territorial sales potential is inaccurate.
4 Morale problems emerge due to wide
territory potential variations.
Trang 17Revising Sales Territories:
Impact of Territory Revision on Salespeople
Before making revisions, sales
managers should consult their
salespeople for suggestions that
might avoid or reduce problems
Trang 18Self Management:
How Salespeople Spend Their Time
Effective and efficient use of
time is critical to successful
4.
Team support
3.
Developing Customer
2
Communication
1
Sales Generation
How Salespeople Spend Their Time
Trang 19Self Management:
Achieving Effectiveness and Efficiency
Some ways to help salespeople
manage time, thus increasing their
productivity are:
Effectiveness is results oriented and
focuses on achieving sales goals
Efficiency is cost oriented and focuses
on making the best possible use of the
salesperson’s time and efforts
Together, the two equal selling success:
S1 (Selling Success) = E1 (Effectiveness) + E2 (Efficiency)
Trang 20Self Management:
Measuring Return on Time Invested
Second, salespeople should know that ROTI, or return on time invested,
is a financial concept that helps them spend their time more profitably with prospects and customers
ROTI = Designated return/Hours spent
Trang 21Self Management:
Setting Priorities
Third, sales professionals set priorities in
their work, based on two principles:
a Parkinson’s Law indicates that work tends to
expand to fill the time allotted for its
completion, so stick to deadlines and complete
assigned tasks within the time you are
allocated
b Concentration Principle, which is often called
the “80-20 rule,” states that most of a
salesperson’s sales, costs, and profits come
from a relatively small proportion of customers
and products.
Trang 23Time Management and Routing:
Managing Salesperson Time
Two ways to keep productivity high and
sales costs low:
• Some ways to allocate time are:
a Deciding which accounts to call on
b Dividing time between selling and
paperwork
c Allocating time between present customers,
prospective customers, and service calls
Trang 24Routing and Routing Patterns
2 Routing
Territorial routing refers to devising a
travel plan or pattern to use when
making sales calls to efficiently cover a
territory
Trang 25Routing and Routing Patterns
The major types of
routing patterns include:
4.
Hopscotch Pattern
3.
Cloverleaf Route
2
Circular Patterns
1
Straight-line Route
Territorial Routing Patterns
Trang 26Routing and Routing Patterns
§ In this routing method, a salesperson
starts at the office and makes calls in
one direction until reaching the end
of the territory.
§ In this routing method, a salesperson
starts at the office and moves in a
circle of stops until ending up back
at the office.
Trang 27Routing and Routing Patterns
§ This routing method is similar to
the circular pattern
§ However, as shown in the
diagram, rather than covering an entire territory, the route circles only part of a territory
§ The next trip is an adjacent circle
and the pattern continues until the entire territory is covered
Trang 28Routing and Routing Patterns
§ This routing technique calls for
the salesperson to start at the farthest point from the office and hop back and forth calling
on accounts on either side of a straight line back to the office
Trang 29Routing and Routing Patterns
5 The "Outer-ring" Approach
In this routing method, the salesperson first draws an outer ring
around the customers to be called upon
Those customers inside the ring are connected to the outer ring route using angles that are as obtuse as possible
Trang 30This Electronic Presentation To Be Used With:
Hair, Joe, Rolph Anderson, Rajiv Mehta, & Barry Babin (2020), “Sales
Force Management,” 2nd Ed Hoboken: John Wiley & Sons
(ISBN-13: 9781119702832)
Text/images may not be modified or reproduced in any way without
prior written permission of the publisher www.wiley.com/go/permissions
Trang 31Copyright © 2020 John Wiley & Sons, Inc.
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