4 - sales territory

39
Sales Territory Sales Territory Territory Territory Development & Time Management Development & Time Management

Upload: daariyak

Post on 29-Oct-2014

156 views

Category:

Documents


4 download

TRANSCRIPT

Page 1: 4 - Sales Territory

Sales Territory Sales Territory Territory Development & Time Territory Development & Time

ManagementManagement

Page 2: 4 - Sales Territory

• Understand the nature & scope of territory management

• Identify the reasons for establishing and revising territories

• Describe the objective, criteria & basis for territory formation

• Outline a model of territory management

• List and discuss routing pattern and scheduling issues

• Explain the concept of time management and how it relates to sales territories

Learning Goals

Page 3: 4 - Sales Territory

Many options available with sales managers

• Geography• Market Potential • Servicing Required• Workload

Salespeople can cover their territories using one Salespeople can cover their territories using one of several patternsof several patterns

Assigning Territories

Page 4: 4 - Sales Territory

Sales Representative Sales Representative – – Territory In charge Territory In charge

- The scope of activities broadensThe scope of activities broadens

- Stops behaving like postman- Stops behaving like postman

- Takes responsibility for making things happen- Takes responsibility for making things happen

- Sales territories are microcosms of a firm’s total market- Sales territories are microcosms of a firm’s total market

The Nature of Territory Management

Page 5: 4 - Sales Territory

A sales territory –is a configuration of current and potential accounts, for which responsibility has been assigned to a particular sales representative.

Salespeople responsible for individual accounts (account management) as well as group of accounts (territory management)

Although geographic consideration play a role in setting boundaries, Although geographic consideration play a role in setting boundaries, sales territories are primarily based on customer grouping sales territories are primarily based on customer grouping

Define - Territory Management

Page 6: 4 - Sales Territory

Sales Territory Sales Territory

- Configuration of current & potential accountsConfiguration of current & potential accounts

- Geographic consideration play role for setting boundary- Geographic consideration play role for setting boundary

- Sales territories are primarily based on customer grouping- Sales territories are primarily based on customer grouping

- Strict geographic boundaries for cigarette and - Strict geographic boundaries for cigarette and

grocery and other FMCG products grocery and other FMCG products

(intensity of coverage, restocking frequency are overriding determinants)

High Tech ProductsHigh Tech Products

- - Highly trained and specialized sales engineer canHighly trained and specialized sales engineer can

freely roam the country, or even globefreely roam the country, or even globe

Defining Territory Management

Page 7: 4 - Sales Territory

1-7

Geographic boundaries are created mainly for

convenience but exempt selected accounts

Major Accounts or Key Accounts

- Customers whose significance to the company’s Customers whose significance to the company’s

business requires special attention, time and business requires special attention, time and

experienceexperience

SSalespersonalesperson – high profile, more experiencedhigh profile, more experienced

Senior Sales Representative, Key Account ManagerSenior Sales Representative, Key Account Manager

Defining Territory Management

Page 8: 4 - Sales Territory

Direct Accounts - Large AccountsNational Accounts - Need special arrangements Need special arrangements

• Central buying office of national or multinational firms, exporters, Govt institutions, private organizations

• Serviced by home office personnel or executives• Supply/delivery

• Pricing

• Credit

• Product design

Defining Territory Management

Page 9: 4 - Sales Territory

Territory Management Territory Management

- Can be defined as planning, implementation Can be defined as planning, implementation and control ofand control of

salespersons' activities with the goal realizing the sales and salespersons' activities with the goal realizing the sales and

profit potential of their assigned territoriesprofit potential of their assigned territories.

Defining Territory Management

Page 10: 4 - Sales Territory

• Salespersons bear the ultimate burden of managing parts of the customer base

• Managing their territories, salespeople manage themselves and their time, not the activities of other people

• No subordinates

Territory management involves

• Best use of the time

• Supportive cooperative relationship with superiors, home office

• Territory manager MUST practice continuous professional development

Scope of Territory Management

Page 11: 4 - Sales Territory

• Break down customer base of a firm• Can be well serviced by individual salespersons• One of the most important responsibilities of sales management

Poor Territory Design Poor Territory Design (severe repercussions)• Inadequate market coverage• Unequal work load• Lack of control over the sales force• Depressed moral

Sales Territory Design

Sales territories represent basic accountability unit at lowest level

Page 12: 4 - Sales Territory

1-12

• To maximize sales & profit

• To ensure/obtain thorough market coverage

• To improve customer relations

• To establish each salesperson’s responsibility

• To evaluate performance of each individual

• To enhance control

• To benefit both, salesperson and the company

Reasons For Establishing Territory

Page 13: 4 - Sales Territory

Reasons For Establishing Territory

Customer Related

• Intensive market coverage

• Provide excellent customer service

Salesperson Related

• Foster enthusiasm

• Facilitate performance evaluation

Managerial

• Enhance control

• Coordinate promotion

Produce higher sales

Greater satisfaction

Lead to less turnover

Rewards/incentive

Reduce expenses

Give more

Page 14: 4 - Sales Territory

1-141-14

Sales Rep – As Territory Manager

• Plans activity

-- Establishes objectives

- Estimates the resources needed

- Designs strategies (efficient utilization of resources to ach objective)

• Implements

- Puts the plan into action

• Control

- Feed back mechanism

Defining Territory Management

Page 15: 4 - Sales Territory

• Problems• Inadequate coverage

• Inadequate size

• Revision

• Shifting accounts

• Direct accounts

• Inadequate support

• Territory jumping

• Overlapping territories

• Selling cost variation

• High turnover

Dealing Territory Management Problems

• Remedies• Split territories

• Enlarge territories

• Prepare salespeople

• Revise territories

• Clarity at hiring

• Assist salespeople

• Eliminate practice

• Minimize crossovers

• Review cost figures

• Rectify the cause

Page 16: 4 - Sales Territory

Model – Territory management

1-16

Analysis

Objectives

Strategies

Tactics

Accounts loadAcct Potential

Service Require

Sales shareProfit targetsNew business

targets

Call frequenciesProduct offering

Pricing

Territory coverageRouting

Scheduling

Control

QuotasReporting

proceduresReview revision

Calling prospectsServicing account

ReportingService RequireImplementation

Page 17: 4 - Sales Territory

• Geography

- Most frequently used

- Simple – Tend to adopt existing geographical boundaries

country, cities

• Potential

- Sales potential for entire company

- Appropriate potential for average sales person

- Average potential divided into total sales potential

Basis - Territory

Page 18: 4 - Sales Territory

• Servicing Required

- Based on A,B,C,D category

- Key accounts

• Workload

- Urban area – Many territories

- Rural area – May be one territory

Basis - Territory

Page 19: 4 - Sales Territory

Workload - Basis

Page 20: 4 - Sales Territory

• Buildup Method

- To create units that offer sufficient sales challenges

- Actual & potential customers identified

- Individual volumes assessed, call frequencies determined

- Account mixes – to satisfy adequate sales challenges &

adequate customer coverage

• Breakdown Method

- Determining the number of territories by dividing projected

average sales per salesperson into overall sales forecast

• Incremental method

- Establishing additional territories

Methods of Designing Territories

Page 21: 4 - Sales Territory

Routing

Straight-line methodStraight-line method

- Salesperson begins with a call at the outer perimeter of his territory and then works back to the home base.

Cloverleaf patternCloverleaf pattern

- Routing method made up of four or more adjoining circular sequences

Hopscotch patternHopscotch pattern

- Hub and spoke like routing pattern in which salesperson starts a calling sequence at outer end of a spoke and work back to the hub

Page 22: 4 - Sales Territory

Three Basic Routing Patterns

Cloverleaf Pattern

Straight-Line Pattern

Hopscotch Pattern

First callWork back

Each leaf out and back the same day

Huntsville

Conroe

Kingwood

Houston

Baytown

Galvesto

n

(1 = Downtown)

Page 23: 4 - Sales Territory

Daily Customer Plan Scheduling & Routing

Page 24: 4 - Sales Territory

Time Management

Structuring a salesperson’s time resources to maximize productive time and minimize wasted time

- For sales managers, managing their time as well as salespeople is crucial

- Apart from talent, time is most valuable resource of sales professionals

- To yield maximum benefit to the salesperson and the company, it has to be used wisely

- Individual achievement levels depend on how well territory manager utilizes time

- Well-managed sales organization not only assign territories to sales representative but direct, guide and supervise them in time management

Page 25: 4 - Sales Territory

How Sales Rep Spends Time

Page 26: 4 - Sales Territory

How Sales Manager Spends Time

Page 27: 4 - Sales Territory

Time Management Skills

Planning- Establish priorities for sales management activities

- Anticipate major task ahead

- Spend more time on fire prevention than fire fighting

- Establish deadlines for tasks and adhere to them

- Flexible plans & schedules

- Develop contingency plan

Page 28: 4 - Sales Territory

Time Management Skills

Discipline

- Self discipline, good working habits

- Do not procrastinate, do it today. Tomorrow….

- Be alert to unnecessary interruptions (casual visitors, unimportant phone calls)

- Be specific & brief while speaking or writing

- Avoid request for special favor

Page 29: 4 - Sales Territory

Time Management Skills

Organization

- Based on task, prepare daily & weekly work schedule

- Consolidated activities, one long field visit

- Delegate tasks

- Concentrate on major task, not many at a time

- Identify the key problems, don’t waste time on less important matters

Page 30: 4 - Sales Territory

• Seven basic factors to consider:

1. Number of accounts in the territory2. Number of sales calls made on customers3. Time required for each sales call4. Frequency of customer sales calls5. Travel time around the territory6. Non-selling time7. Return on time invested

Territory-Time Allocation

Page 31: 4 - Sales Territory

• Sales Representatives

several territories combined into

• Supervisors – Field Managers

several supervisors into

• Area/District Sales Managers

several area/district into

• Regional Sales Managers

2 – 4 regions into

• National Sales Manager/Director

Design - Territory

Page 32: 4 - Sales Territory

S.No Sales Reps A B C D Total Avg Sales

1 Saleem Akhtar 121 168 218 210 717 790,000.00

2 Aslam Ali 118 170 198 250 736 750,000.00

3 Syed Tariq Haider 130 170 150 170 620 995,000.00

4 Haider Zaidi 111 125 225 250 711 685,000.00

5 Jamal Mehmood 90 130 270 225 715 555,000.00

6 Rashid Ahmed 55 110 275 255 695 425,000.00

Total Territory 625 873 1336 1360 4194 4,200,000.00

Supervisor/ F. Manager’s Territory

Page 33: 4 - Sales Territory

S.No Supervisors Cont % A B C D Total Sales

1 Amjad Husain 26% 625 873 1336 1360 4194 4,200,000.00

2 Rahat Ali 24% 610 875 1350 1310 4145 4,000,000.00

3 Wahid Jalil 28% 655 810 1295 1325 4085 4,500,000.00

4 Zeeshan Qamar 22.% 585 775 1310 1295 4265 3,500,000.00

Total Territory 2475 3333 5291 5290 16689 16,2 million

Area Sales Manager’s Territory

Page 34: 4 - Sales Territory

S.No ASMs Cont % A B C D Total Sales

1 Sabir Ali 29% 2475 3333 5291 5290 16689 16.2 milion

2 Saqib Ali 26.% 2350 3125 4975 4950 15400 14.8 million

3 Wajid Jamil 24% 2230 2810 4725 4715 14480 13.5 million

4 Nasir Karim 21% 1985 2775 4825 4895 14480 11.5 million

Regional Total 9040 12043 19816 19850 61049 56,0 million

15% 20% 32% 33%

Regional Sales Manager’s Territory

Page 35: 4 - Sales Territory

RSMs Contribution A B C D Total Sales

South

46% 9040 12043 19816 19850 60749 56.0 million

North

54% 9888 12790 19990 20800 63468 64.8 million

National Total 18928 24833 39806 40650 124217 120,8 milli

15% 20% 32% 33%

Sales Manager’s Territory

Page 36: 4 - Sales Territory

Sales Productivity

ChallengesChallenges

• Selling cost has gone up faster than sales volumes

• Sales productivity has suffered a lot individually, collectively

• Pressure of competition, purchases, distribution is increasing

• Sales force is selling less, senior executives are looking to the sales organizations to improve their performance

• Major reason of decline in sales force productivity is that sometimes they spend too much time on non selling activities

- Administrative tasks

- Internal Meetings

- Travel

Page 37: 4 - Sales Territory

Sales Productivity

ChallengesChallenges

• Sales automation has played important role to address the productivity issue

- Improved selling efficiency & productivity

- Reduced administrative tasks

- Improved customer services

- More accessible information

- Better internal communication

Prospect management , Activity reporting system, Daily time Prospect management , Activity reporting system, Daily time management system, A reference account management management system, A reference account management system system

Page 38: 4 - Sales Territory

Travel Plan ?

• Base Town is Karachi – AKUH,LNH, Midcity + GPs

Business Contribution is 50%

• Up country towns are - Hyderabad- Tando Adam- Tando Jam - Mirpur Khas - Badin- Kotri

Business contribution is 50%

Page 39: 4 - Sales Territory

THANKSTHANKS