Chapter
15 16
Time, Territory, People and
Self-Management: Keys to
Success
Dudut Urip Prasetyo
dprasetyo@pmbs.ac.id
15-2
Chapter
15
The Tree of Business Life: Time
T
T T
T T TT
T T T T
Builds
Guided by The Golden
Rule:
 View your territory as a business
 Treat customers differently



Relationships

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
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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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Exhibit 15.2: Elements of Time and Territory
Management for the Salesperson
Salesperson’s territory’s
sales quota
15-6
Elements of Time and Territory
Management
 Salesperson’s sales quota (goals) may
involve:
 Sales volume quotas
 Profit quotas
 Expense quotas
 Activity quotas
 Customer satisfaction scores
15-7
Exhibit 15.2: Elements of Time and Territory
Management for the Salesperson, cont…
Salesperson’s territory’s
sales quota
Account analysis
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Exhibit 15.4: Account Segmentation
Based on Yearly Sales
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Exhibit 15.2: Elements of Time and Territory
Management for the Salesperson, cont…
Salesperson’s territory’s
sales quota
Account analysis
Set account objectives
and sales quotas
15-10
Elements of Time and Territory
Management, cont…
 Set account objectives and sales quotas which
may involve:
 Sales volume quotas
 Profit quotas
 Expense quotas
 Activity quotas
 Customer satisfaction scores
15-11
Exhibit 15.2: Elements of Time and Territory
Management for the Salesperson, cont…
Salesperson’s territory’s
sales quota
Account analysis
Set account objectives
and sales quotas
Territory-time allocation
15-12
Elements of Time and Territory
Management, cont...
 Territory-time allocation
 Basic factors to consider
 Number of accounts in the territory
 Number of sales calls made on customers
 Time required for each sales call
 Frequency of customer sales calls
 Travel time around the territory
 Nonselling time
 Return on time invested
 Sale response function
15-13
Elements of Time and Territory
Management Cont…
 Territory-time allocation
 Basic factors to consider
 Sales 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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Exhibit 15.8: Account Time
Allocation by Salesperson
* every 3 months
15-15
Return on Time Invested
 Time is a scarce resource
 Break-even analysis
 The management of time
 Plan by the day, week, and month
 Qualify the prospect
 Use waiting time
 Have a productive lunchtime
 Records and reports
15-16
Exhibit 15.2: Elements of Time and Territory
Management for the Salesperson, cont…
Salesperson’s territory’s
sales quota
Account analysis
Set account objectives
and sales quotas
Territory-time allocation
Customer sales planning
15-17
What is Involved in Customer Sales
Planning?
 You do the following for each sales call:
 Develop sales call objectives
 Review/create customer profile
 Create customer benefit plan
 Select FABs
 Develop marketing plan
 Develop business proposition
 Develop suggested order
 Develop your sales presentation
15-18
Exhibit 15.2: Elements of Time and Territory
Management for the Salesperson, cont…
Salesperson’s territory’s
sales quota
Account analysis
Set account objectives
and sales quotas
Territory-time allocation
Scheduling and routing
Customer sales planning
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9 Steps of The Call
1. Preparation
2. Approach
3. Check Stock
4. Presentation
5. Closed
6. Merchandising
7. Consumer Contact
8. Administration
9. Evaluation
15-20
Scheduling and Routing
 Strict formal route designs enable the
company to:
 Improve territory coverage
 Minimize wasted time
 Establish communication between management
and the sales force in terms of location and
activities of individual salespeople
 Carefully plan your route
15-21
Exhibit 15.10: Location of Accounts
and Sequence of Calls
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Exhibit 15.11: A Weekly Route Report
15-23
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
15-24
Exhibit 15.13: Net Sales by Customer
and Call Frequency: May 1, 2005
15-25
Exhibit 15.2: Elements of Time and Territory
Management for the Salesperson, cont…
Salesperson’s territory’s
sales quota
Account analysis
Set account objectives
and sales quotas
Territory-time allocation
Territory and customer
evaluation
Scheduling and routing
Customer sales planning
15-26
Territory and Customer Evaluation
 Did the salesperson meet sales quota(s)?
 Sales volume quotas
 Profit quotas
 Expense quotas
 Activity quotas
 Customer satisfaction scores
15-27
Personal Characteristics Needed for
Managing Today’s Salespeople
Joy in
work
Care for
people
Self-control
in emotions
Harmony in
relationships
Sales Leader
Fairness in
relationships
Patience
with people
Kindness
to people
Faithfulness
to word
Morality in
decisions
15-28
Sales Management Functions
 Planning
 Staffing
 Training
 Directing
 Evaluating
15-29
Exhibit 16.3: The Basic Sales
Management Functions
15-30
Exhibit 16.5: Operating Costs for
the Sales Force
15-31
Exhibit 16.8: Selected Characteristics of Successful
Salespeople―Which are Most Important?
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Exhibit 16.10: Major Steps in Sales
Personnel Selection Process
Not all companies
take every step
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Training the Sales Force
 Sales training
 Purposes of training
 Training methods:
 Discussion
 Role playing
 On-the-job training
 Where does training take place?
 Centralized training programs
 Decentralized training
15-34