chapter 5. sales presentation and demonstration

Chapter 13
Managing Your
Time and Your
Territory
PowerPoint presentation prepared by
Dr. Rajiv Mehta
Chapter Outline
• Self-management
• Effectiveness and efficiency
• Activities sales of salespeople
• Setting priorities
• Account and territory management
• Working smarter
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Chapter 13 | Slide 2
Learning Objectives
After reading this chapter, you should understand:
• Why salespeople must be concerned
about efficiency as well as effectiveness in
allocating their time.
• How salespeople function as field
marketing managers.
• How to use ROTI (return on time invested)
to manage the territory.
• Methods for using time wisely.
• Efficient routing strategies for sales calls.
• Ways to prioritize accounts.
• How to avoid falling into time traps.
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Chapter 13 | Slide 3
Self-Management
• Self-management is probably more difficult than
management by someone else where feedback from
various sources can keep you on track and motivated
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Chapter 13 | Slide 4
Effectiveness and Efficiency
• Effectiveness is results-oriented and focuses on achieving
goals, while efficiency is cost-oriented and focuses on
making the best possible use of the salesperson's time and
efforts
• Together, the two equal success:
E1 (Effectiveness) + E2 (Efficiency) = S1 (Sales Success)
Chapter Review Question:
Define and distinguish between the terms effectiveness and efficiency.
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Chapter 13 | Slide 5
How Salespeople Spend
Their Time
A recent study of 10,000 sales reps shows that:
1.
33% of their time is spent in faceto-face selling
2.
20% in travel
3.
16% in phone selling
4.
16% in account service and
coordination
5.
10% in administration
6.
5% at internal company meetings
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Chapter Review Question:
CBU032
How do
salespeople actually spend their time?
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Chapter 13 | Slide 6
Figure 13.1 How Salespeople
Spend Their Time
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Chapter 13 | Slide 7
Table 13.1 What is One
Hour of Selling Time Worth?
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Chapter 13 | Slide 8
Effectiveness and Efficiency
Successful salespeople tend to possess the following
characteristics:
1. Possess excellent
•
product knowledge
•
knowledge of competitors
•
face-to-face selling skills
2. Exercise the influence skills needed to work with both internal
staff and customers
•
Recognize that the skills required to service an account are
different from those required to make a sale
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Chapter 13 | Slide 9
Sales Activities
• Basic sales activities include:
• the selling process
• working with orders
• servicing the product
• managing information
• servicing the account
• conferences/meetings
• training/recruiting
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• entertaining customers
• out-of-town traveling
Chapter Review Question:
What are the basic activities of salespeople?
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• working with distributors
Chapter 13 | Slide 10
Table 13.2 Basic Activities
of Sales People
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Chapter 13 | Slide 11
Table 13.2 Basic Activities
of Sales People cont’d
Chapter Review Question:
Identify the major management and marketing activities of salespeople.
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Chapter 13 | Slide 12
What's Your Job Description?
• Each salesperson needs to know exactly what performance
is expected in his or her specific job assignment
• In addition, the
salesperson needs to
know what is expected to
be achieved during a
given time period
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Chapter 13 | Slide 13
Figure 13.2 Position Description
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Chapter 13 | Slide 14
Figure 13.2 Position Description cont’d
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Chapter 13 | Slide 15
Figure 13.2: Position Description cont’d
Chapter Review Question:
Why is a job description important to a salesperson?
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Chapter 13 | Slide 16
Salespeople as Field
Marketing Managers
• For many companies, the modern professional selling job has evolved
into that of field marketing manager for a sales territory.
• Today's salespeople have more responsibilities than ever before.
• They are their own bosses in
their sales territories, working
with groups of people over
whom they have little control
and often impose conflicting
demands and expectations on
them.
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Chapter 13 | Slide 17
Table 13.3 The Salesperson’s
Management and Marketing Activities
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Chapter 13 | Slide 18
Table 13.3 The Salesperson’s
Management and Marketing Activities
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Chapter 13 | Slide 19
Return on Time Invested (ROTI)
• Although ROTI sounds like tedious record keeping, it only
takes a few minutes a day
• ROTI calculations can help salespeople manage their time
more effectively and efficiently
Chapter Review Question:
Describe the concept of return on time invested
(ROTI).
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Chapter 13 | Slide 20
Three Axioms in Personal Selling cont’d
•
In their work, salespeople recognize the truth of the 3 axioms:
1. Parkinson's Law
•
Work tends to expand to fill the time allotted for its completion.
2. Concentration Principle ("80-20" rule)
•
805 of the sales and profits come from 20% of customers.
3. Iceberg Principle
•
Analogous to an iceberg, which shows only 10% of its mass
above the water, many sales problems can remain hidden
beneath the surface of overall positive sales totals.
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Chapter 13 | Slide 21
Performance Measures
• Instead of reliance on one performance measure such as
sales volume, a balance of several quantitative and
qualitative standards is better because performance in one
area can conflict with performance in another.
• For example, a salesperson who stresses keeping sales
and service expenses low may find revenues adversely
affected.
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Chapter 13 | Slide 22
Performance Measures cont’d
• Quantitative measures
• Like dollar or unit sales volume or net profit, affect sales or expenses
directly, and can usually be measured objectively.
• Qualitative measures
• Like the salesperson's product knowledge, customer relationships, or
ethical behavior, have a more indirect and longer-run impact on sales
and expenses, and thus must be evaluated on a more subjective
basis. From the standpoint of customers, qualitative measures are
more important than quantitative.
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Chapter 13 | Slide 23
Performance Measures: Quotas cont’d
•
Derived from sales forecasts, sales quotas are
performance objectives and motivation incentives for
salespeople. The four types of quotas for salespeople are:
1. Sales volume
2. Financial
3. Activity
4. Combination
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Chapter 13 | Slide 24
Performance Measures:
Customer Reviews of Performance
• Obtaining feedback from customers is one of the most
effective ways to keep from losing touch with customers
• Salespeople should ask for an annual evaluation of their
performance by customers and participate in this review
process at a special meeting
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Chapter 13 | Slide 25
Table 13.4 Quantitative Measures of
Salesperson Performance
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Chapter 13 | Slide 26
Table 13.4 Quantitative Measures of
Salesperson Performance cont’d
Chapter Review Question:
Name at least five quantitative and five qualitative
measures of salesperson performance.
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Chapter 13 | Slide 27
Account and Territory Management
• A sales territory is a control unit that contains customer
accounts.
• Once the geographical control unit has been established,
the next step is to analyze the customers and prospects in
the territory on the basis of their sales potential.
• Increasing numbers of companies are using computer
programs to assist their salespeople in account analysis,
planning, and control.
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Chapter 13 | Slide 28
Figure 13.3: Ranking Customers According
to the Concentration Principle
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Chapter 13 | Slide 29
Portfolio Analysis Approach
• A portfolio analysis approach provides an alternative to the
analytical rigor of the mathematical models.
• In this approach, the sales call strategy is based on the
account’s attractiveness.
• Account attractiveness depends on two dimensions:
1.
2.
Account
Opportunity
Strength of
Position
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Chapter 13 | Slide 30
Figure 13.4 Account Analysis
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Chapter 13 | Slide 31
Territorial Routing
• Territorial routing is devising a plan or pattern to use when
making sales calls.
• Before developing a routing plan, the salesperson must
determine:
• the number of calls to be made each
day
• the call frequency on each class of
customer
• the distance to each account
• the method of transportation
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Chapter 13 | Slide 32
Routing Patterns cont’d
Types of routing patterns include:
1.
Straight-line route
•
salesperson starts at the
office and makes calls in one
direction until he or she
reaches the end of the
territory
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2.
Circular patterns
•
salesperson starts at the office and moves in a circle of stops
until ending up back at the office
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Chapter 13 | Slide 33
Account and
Territory Management
3.
Cloverleaf route
•
similar to a circular pattern
•
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
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Chapter 13 | Slide 34
Account and
Territory Management cont’d
4.
Hopscotch pattern
•
5.
the salesperson starts at the farthest point from the office and hops
back and forth calling on accounts on either side of a straight line
back to the office
The "outer-ring" approach
•
the salesperson first draws an outer ring around the customers to
be called upon
•
then, those customers inside the ring are connected to the outer
ring route using angles that are as obtuse as possible
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Chapter 13 | Slide 35
Figure 13.5 Hopscotch and Cloverleaf
Routing Patterns
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Chapter 13 | Slide 36
Figure 13.6
“Outer Ring” Routing Patterns
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Chapter 13 | Slide 37
Using Computer Programs
in Routing
• Numerous computer-based interactive
models have been successfully applied
to sales force routing and territory
management.
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Chapter 13 | Slide 38
Working Smarter:
Using the Latest Technology
• Salespeople can work smarter and increase their selling effectiveness
and efficiency by making use of the latest technologies, such as:
• electronic pagers
• cellular car phones
• electronic mail
• facsimile machines
• word processing and
spreadsheet software
• time management software
• laptop computers
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Chapter 13 | Slide 39
Working Smarter:
Excuses About Time
• Often the problem is the individual's attitude toward time and the
tendency to make excuses for using it inefficiently
• Excuses about time include:
• There are too many demands on my time.
• I can do it better myself.
• If only I had more time each day.
• I don't have time to plan.
• I can't find time to work on big projects.
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• I can't prevent unexpected problems that disrupt my plans.
• If only I could work faster.
• It's better to do small tasks first.
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Chapter 13 | Slide 40
Table 13.5 Excuses for Poor Time
Management
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Chapter 13 | Slide 41
Table 13.5 Excuses for Poor Time
Management cont’d
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Chapter 13 | Slide 42
Table 13.5 Excuses for Poor Time
Management cont’d
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Chapter 13 | Slide 43
Working Smarter: Paperwork
• One of the most dreaded and time-consuming tasks of
salespeople is handling their paperwork.
• Like other sales-related activities, paperwork ought to be
scheduled on the salesperson’s daily or weekly planning
calendar.
• Some companies put the 200 to 700 pages of memos,
newsletters, brochures, reports, announcements, and other
sales-related materials sent to salespeople each week onto
audiotapes.
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Chapter 13 | Slide 44
Working Smarter:
Customer Service
• Customer service is a regular part of the salesperson’s daily
job and should be scheduled like any other activity.
• The suggestions on the following slides may assist you in
focusing your customer service activities:
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Chapter 13 | Slide 45
Working Smarter:
Customer Service cont’d
– Segment your customers according to costs and the
potential profits that could accrue from providing them with
superior service.
• Remember that all customer contacts, whether through
telephone operators, receptionists, secretaries, delivery and
repair personnel, or customer service people, shape the
perceptions of your company’s service.
• Try to encourage all these people with customer contact to
treat prospects and customers well.
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Chapter 13 | Slide 46
Working Smarter:
Customer Service cont’d
• Continually stress the importance of customer service to
people in your company, and reinforce this attitude by your
own actions.
• Design and use measures of service effectiveness such as
the percentage of on-time deliveries, the length of time it
takes to repair a product, and the level of customer
satisfaction.
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Chapter 13 | Slide 47
Working Smarter:
Time Traps
•
Many salespeople hurt their efficiency by falling into daily time traps,
which include:
•
Calling on unqualified or unprofitable
prospects
•
Insufficiently planning each day's
activities
•
Making poor territorial routing and
travel plans
•
Making too many cold calls
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Chapter 13 | Slide 48
Working Smarter:
Time Traps cont’d
•
Making poor use of waiting time
between appointments
•
Spending too much time entertaining
prospects and customers
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•
Not using modern telecommunications equipment like a car
phone, beeper, facsimile machine, and laptop computer
•
Doing tasks that could be delegated to a staff person or to
automated equipment
•
Failing to prioritize work
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Chapter 13 | Slide 49
Working Smarter:
Time Traps cont’d
•
Procrastinating on major projects or contacting high-potential
prospects, resulting in redundant preparation and paperwork
•
Inefficiently handling paperwork and keeping disorganized records
•
Failing to break up huge,
long-range goals into small,
currently manageable tasks
•
Ending workdays early,
especially on Friday
afternoons
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Chapter 13 | Slide 50
Working Smarter:
Time Traps cont’d
•
Failing to insulate oneself
from interruptions on sales
calls or while doing
paperwork
•
Conducting unnecessary
meetings, visits, and phone
calls
•
Doing personal business
during working hours
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Chapter Review Question:
What are the classic time traps into which salespeople can fall?
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Chapter 13 | Slide 51
Working Smarter: A Plan for Each Day
• Every salesperson can
benefit from preparing a
daily "To Do" list of
projects and tasks that are
prioritized into A, B, and C
categories of importance
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• Use the Swiss cheese approach to punch little holes in top priority
projects that can't be finished all at once
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Chapter 13 | Slide 52
Working Smarter:
Steps to Manage Time More Efficiently
•
Time management steps include:
•
Each weekday afternoon, write down the
schedule for the next day
•
On Friday afternoon, plan the schedule for
the following week
•
Concentrate on high priorities
•
Spend time as if it were money
•
Stop procrastinating
•
Schedule some personal time every day
Chapter Review Question:
What are some steps that salespeople can
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take to manage their time better?
Chapter 13 | Slide 53
Figure 13.7:
Daily Schedule Sheet
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Chapter 13 | Slide 54
Key Terms
• Effectiveness
• Results-oriented focus on achieving selling goals.
• Efficiency
• Cost-oriented focus on making the best possible use of the
salesperson’s time and efforts.
• Return On Time Invested (ROTI)
• The designated return achieved, calculated by dividing the result
achieved by the amount of time spent to accomplish that result.
• Parkinson’s Law
• Work expands to fill the time allotted to it.
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Chapter 13 | Slide 55
Key Terms cont’d
• Concentration Principle
• Most sales, costs, and profits come from a relatively small
proportion of customers and products; also known as the 80-20 rule.
• Iceberg Principle
• Analogous to an iceberg, most sales problems are hidden beneath
the surface of overall positive sales totals.
• Sales Territory
• A control unit that contains customer accounts.
• Territorial Routing
• Devising a travel plan or pattern to use when making sales calls.
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Chapter 13 | Slide 56
Topics for Thought
and Class Discussion
1. Why are salespeople described as operating like field
marketing managers? Do you believe that this is an
accurate representation of the typical field salesperson?
Explain.
2. Do you think that most job descriptions for salespeople
accurately reflect their current duties and responsibilities?
Why?
3. Pick a routine task in your life and map out a plan for
improving your efficiency and effectiveness in
accomplishing it.
4. How do time traps disrupt your time management? How
can you avoid these traps?
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Chapter 13 | Slide 57
Topics for Thought
and Class Discussion cont’d
5. What techniques do you use to plan, organize, and set
priorities in your daily activities? Do you use the “Swiss
cheese” approach for large or complex projects? Give an
example of how you might do this.
6. Do you allow other people to frequently preempt your
priorities in use of your time by substituting something that
is of high priority to them? Give an example. How might
you deal with future situations where someone wants you
to accept his or her priority for time use instead of yours?
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Chapter 13 | Slide 58
Internet Exercises
1. Use an Internet search engine to find three firms that specialize in sales
territory management training. What are the length and cost of each
program? Where would it be held? Who’s doing the training? What
topics will the sales territory management training cover that will be
new?
2. Using Google or any other search engine, find two examples of sales
territory management training being demonstrated using Flash or
streaming video.
3. Use the Internet to find articles on salespeople whose effectiveness has
been increased by their improved skills in time and sales territory
management.
4. Search the Internet to find additional tips for managing your time. What
time management suggestions did you find advocated?
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Chapter 13 | Slide 59
Internet Exercises cont’d
5. Use the Internet to find examples of quantitative and qualitative metrics
that are used to evaluate the performance of salespeople (in addition to
those identified in Table 13.4). What inferences can you make about
how your performance might be assessed if you were to embark on a
career in sales? What activities might you emphasize to ensure a high
performance rating and, in the process, a successful career?
6. Using an Internet search engine, find software that can be used to chart
efficient territorial routing patterns. What are some of the different types
of territorial routing patterns that can be developed?
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Chapter 13 | Slide 60
Projects for Personal Growth
1.
Contact three salespeople and ask them how they plan, organize, and
prioritize their daily activities. Mention that you are a student working
on a class project. Evaluate their approaches in terms of ROTI.
2.
Classify four of your student friends on the basis of your perceptions of
their effectiveness and efficiency. Then ask these student friends these
two questions: (a) “What techniques do you use to plan, organize, and
set priorities in your daily activities?” and (b) “What time traps are most
responsible for wasting your time each day?” Compare your friends’
answers with your prior classification of them. Any surprises?
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Chapter 13 | Slide 61
Projects for Personal Growth cont’d
3.
For the coming week, write down how you spend each hour of the
seven days. At the end of the week, compute approximately how much
of your time you used productively and how much you wasted. Draw
up a plan for better managing your time, and use it throughout a
second week. At the end of this second week, evaluate whether or not
you obtained more productive time. If so, what made the difference?
4.
Go to the library or use electronic sources and find three current
articles on managing a sales territory. Summarize them and report
what you learned to your classmates.
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Chapter 13 | Slide 62
Case 13.1:
Time Is No Object
1.
How would you evaluate Steve Burbank as a manager of his time and
territory?
2.
What would you recommend to help Steve improve his effectiveness
and efficiency?
3.
How might Pearson’s training program have better prepared Steve for
managing his territory?
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Chapter 13 | Slide 63
Case 13.2:
Working Smarter ... Or Just Harder?
1.
2.
Do you think that Jim is working smarter or just harder? What do you
think about Jim’s sales call allocation and routing plan for his
accounts? Can you suggest any improvements?
How well do you think Jim invests his time? What might he do
differently?
3.
What advice would you give Jim about achieving his annual sales
quota?
4.
What would you suggest to Jim to help him deal with the stress in his
life?
Case 13.2 is found online at http://college.hmco.com/pic/andersonps2e.
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Chapter 13 | Slide 64