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Sales Territory Design & Management

This document discusses sales territory management. It begins by defining a sales territory and providing examples. It then discusses reasons for establishing sales territories such as controlling selling expenses and assisting in evaluating sales personnel. The document outlines factors that affect territory size and describes procedures for designing territories, including selecting geographical units, determining sales potential, and deciding territories using market built-up, workload, and breakdown approaches. It also discusses assigning sales personnel to territories and managing existing accounts.

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784 views

Sales Territory Design & Management

This document discusses sales territory management. It begins by defining a sales territory and providing examples. It then discusses reasons for establishing sales territories such as controlling selling expenses and assisting in evaluating sales personnel. The document outlines factors that affect territory size and describes procedures for designing territories, including selecting geographical units, determining sales potential, and deciding territories using market built-up, workload, and breakdown approaches. It also discusses assigning sales personnel to territories and managing existing accounts.

Uploaded by

sharmaishan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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SALES MANAGEMENT

Territory Designing & Management


Dhaval Bhuta (5) Ishan Sharma (9) Nikhil Unnikrishnan (55)

CONTENTS
The Sales Territory Concept. Reasons for Establishing Sales Territories. Territory Designing. Territory Management.

Territory is but the body of a nation. The people who inhabit its hills and valleys are its soul, its spirit, its life. - James A. Garfield

WHY TERRITORIAL UNDERSTANDING IS IMPORTANT?


Toyota. Indian Movies: Koi Mil Gaya News: India TV, Star News.

THE SALES TERRITORY CONCEPT


Operationally defined: A Sales Territory is a grouping of customers and prospects assigned to an individual salesperson. May or may not have geographical boundaries.
1. Life insurance selling. 2. Pharma Sales.

Providing proper market coverage.

REASONS FOR ESTABLISHING AND REVISING SALES TERRITORIES

Controlling selling expenses.

Assisting in evaluating sales personal.

Contributing to sales force morale.

Aiding in coordination of personal selling and advertising.

FACTORS AFFECTING SIZE


Numbers of customers and prospects in the area. Call frequency on existing customers. Number of calls the sales person makes in a day.

TERRITORY DESIGNING
PROCEDURES FOR SETTING SALES TERRITORIES

PROCESS

SELECTING GEOGRAPHICAL UNIT


Countries. Zip code areas. Cities. Trading areas. States.

DETERMINING SALES POTENTIAL


Territorial planner needs to measure sales potential. Identification studies of buyers. Exact identification is desirable and feasible. Mass marketers provide sales coverage in every control unit.

DECIDING SALES TERRITORIES


Market Built-up. Workload. Breakdown.

MARKET BUILT-UP APPROACH


Estimation based on potential demand by looking at how market is built up. This means to identify:
Who are present and potential users. How much do they consume. Consumption at what frequency.

WORKLOAD APPROACH
Customers are grouped into class size A, B and C according to sales volume. Optimum calls frequency estimated. Present and potential customers are then located geographically and are arranged volume and value wise. The number of customers in each group is multiplied by the call frequencies to get the total number of planned calls. Territories are formed, workload distributed among salesperson.

BREAKDOWN APPROACH
Estimate company sales potential for total market. Forecast sales for each control unit. Estimate sales volume expected from each salesperson. Make tentative territories. Make final territories.

TERRITORY DESIGNING
ASSIGNING SALES PERSONNEL TERRITORIES

PROCESS
Relative ability of salespeople:
1. 2. 3. 4. 5. Product knowledge. Market knowledge. Past sales performance. Communication. Selling Skills.

PROCESS
Salespersons effectiveness in territory:
Decided by comparing social, cultural, and physical characteristics of the salesperson with those of the territory.

TERRITORY MANAGEMENT
BASIC OPPORTUNITY MANAGEMENT

PARTS

GENERATING NEW ACCOUNTS


Value of a firm is dependent on how well a firm manages its customer base. - Customer Equity (Award winning book)

GENERATING NEW ACCOUNTS


No matter how strong your products are, how great your customer service or how aggressive your sales force, businesses loose customer every year because of:

1. 2. 3. 4.

Companies being bought and sold. Management changes. Industries consolidate. Global economies fluctuate.

GENERATING NEW ACCOUNTS


The key to building sales through prospecting is to spend time with prospects that are likely to become good customers.

STEPS TO GENERATE NEW ACCOUNTS

BUILDING A PROSPECT PROFILE


A profile of what the best prospect looks like. A starting place is review of the target markets for your products. (E.g.: Allnet Communications versus AT & T and Sprint)

BUILDING A PROSPECT LIST


Cold canvassing. Direct mail. Trade shows. Directories. Internet and Webcasting. Referrals.

QUALIFYING PROSPECTS
Needs. Buying authority. Ability to pay.

MANAGING EXISTING ACCOUNTS


When is an account too small
Cost per call. Break even sales volume.

METHODS FOR SETTING ACCOUNT PRIOTITIES


Single factor model. Portfolio model. Decision model. Sales process model.
Unqualified opportunities. Qualified opportunities. Best few opportunities.

SALES V/S PROFITS


Tendency in sales to evaluate opportunities in terms dollar/rupees sales. Customers pay very different price for similar products and services because of:
Negotiating skills. Forward buy:-large amount of buying. Large amount of customers.

TIME MANAGEMENT

COMMON TIME WASTERS


Telephone interruptions. Drop-in visitors. Lack of self-discipline. Crises. Meetings. Unclear communication. Lack of objectives, priorities and deadlines. Indecision and procrastination. Attempting too much at once. Leaving task unfinished.

TIME MANAGEMENT IMPORTANCE


High High Urgency Low Low

CONCLUSION
A manager is one who uses his discretionary capabilities while making use of the resources available to him. While exercising his discretion, he can materially improve or influence results of the project. - Hari Krishna Maram

(Novartis)

THANK YOU

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