15-1
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
15-2
Chapter
15
Time,Territory, and SelfManagement: Keys to
Success
McGraw-Hill/Irwin
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
15-3
Chapter
15
Customers Form Sales Territories
Elements of Time and Territory Management
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
15-4
Customers Form Sales Territories
Sales territory
Why establish sales territories?
To obtain thorough coverage of the market
To establish each salesperson’s responsibilities
To evaluate performance
To improve customer relations
To reduce sales expense
To allow better matching of salesperson to
customer’s needs
To benefit both salespeople and the company
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Customers Form Sales Territories
cont…
15-5
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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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Elements of Time and Territory
Management
15-6
Salesperson’s sales quota
Account analysis
The undifferentiated selling approach
The account segmentation approach
ELMS system
80/20 principle
Multiple selling strategies
Multivariable account segmentation
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Elements of Time and Territory
Management cont…
15-7
Develop account objectives and sales quotas
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
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Elements of Time and Territory
Management cont…
15-8
Travel time around the territory
Nonselling time
Return on time invested
Sales response function
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
15-9
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
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
15-10
Return on Time Invested cont…
Customer sales planning
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
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
15-11
Return on Time Invested cont…
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
Territory and customer evaluation
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
15-12
Summary of Major Selling Issues
How salespeople invest their sales time is a
critical factor influencing territory sales
Proper time and territory management is an
effective method for the salesperson for
maximizing territorial sales and profits
A sales territory comprises a group of customers
or a geographical area assigned to a salesperson
Companies develop and use sales territories for a
number of reasons
McGraw-Hill/Irwin
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Summary of Major Selling Issues
cont…
15-13
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
McGraw-Hill/Irwin
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.