Time, Territory, and SelfManagement: Keys to Success McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc All Chapter 14 Main Topics  The Tree of Business Life: Time  Customers Form Sales Territories  Elements of Time and Territory Management 14-2 Chapter 14 The Tree of Business Life: Time True Et h ic al ce rvi Se T T T T T TT T T T T Builds I  View your territory as a business  Treat customers differently    Relationships T Guided by The Golden Rule: Rule C  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 Customers Form Sales Territories Customers Form Sales Territories Sales Territory Comprises a group of customers or a geographical area assigned to a salesperson + potential customers Customers Form Sales Territories  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 – reach company’s sales objectives 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 Not enough time or knowledge Exhibit 14-2: Elements of Time and Territory Management for the Salesperson Salesperson’s Salesperson’s territory’s territory’s sales sales quota quota Salesperson’s Sales Quota  The salesperson’s manager typically establishes the total sales quota  Proper territory management by the salesperson is an important factor in reaching the sales quota Exhibit 14-2: Elements of Time and Territory Management for the Salesperson, cont… Salesperson’s Salesperson’s territory’s territory’s sales sales quota quota Account Account analysis analysis Exhibit 14-11: Location of Accounts and Sequence of Calls (cont…) = extra large accounts = large accounts = small accounts = best prospects Exhibit 14-10: Daily Customer Plan (cont…) Exhibit 14-11: Location of Accounts and Sequence of Calls (cont…) = extra large accounts = large accounts = medium accounts = small accounts = best prospects Exhibit 14-10: Daily Customer Plan (cont…) Exhibit 14-11: Location of Accounts and Sequence of Calls (cont…) = extra large accounts = large accounts = medium accounts = small accounts = best prospects Exhibit 14-12: A Weekly Route Report Exhibit 14-13: Three Basic Routing Patterns  Straight-Line Pattern First call Work back n d roe ille n on o o t v t w o s to ous gw on nts y ve C l n a H Hu Ba G Ki  Cloverleaf Pattern Each leaf out and back the same day  Major-City Pattern (1 = Downtown) Exhibit 14-2: Elements of Time and Territory Management for the Salesperson, cont… Salesperson’s Salesperson’s territory’s territory’s sales sales quota quota Account Account analysis analysis Set Set account account objectives objectives and and sales sales quotas quotas Territory-time Territory-time allocation allocation Territory Territory and and customer customer evaluation evaluation Scheduling Scheduling and and routing routing Customer Customer sales sales planning planning Using the Telephone for Territorial Coverage  Satisfy part of the service needs of accounts by    telephone Assign smaller accounts that contribute less than percent of business to mostly telephone selling Do prospecting, marketing data gathering, and call scheduling bypersonal telephone Carefully schedule calls to distant accounts Territory and Customer Evaluation  Did the salesperson meet sales quotas?  Sales volume  Profit  Expense  Activity  Customer satisfaction Exhibit 14-15: Net Sales by Customer and Call Frequency: May 1, 2005 Exhibit 14-2: Elements of Time and Territory Management for the Salesperson, cont… Salesperson’s Salesperson’s territory’s territory’s sales sales quota quota Account Account analysis analysis Set Set account account objectives objectives and and sales sales quotas quotas Territory-time Territory-time allocation allocation Territory Territory and and customer customer evaluation evaluation Scheduling Scheduling and and routing routing Customer Customer sales sales planning planning Summary of Major Selling Issues  How salespeople invest their sales time is a critical factor that influences territory sales  Proper time and territory management is an effective method for the salesperson to maximize territorial sales and profits  A sales territory comprises a group of customers or a geographical area assigned to a salesperson Summary of Major Selling Issues, cont…  Companies develop and use sales territories for a number of reasons  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 End of Chapter 14 McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc All Chapter 14 ... customers Exhibit 14- 3: Undifferentiated Selling Approach Slide 15-11 Exhibit 14- 4: Account Segmentation Based on Yearly Sales Exhibit 14- 5: Basic Segmentation of Accounts Exhibit 14- 6: Account Segmentation... Analysis  The undifferentiated selling approach (Exhibit 14- 3)  The account segmentation approach (Exhibit 14- 6)  ELMS system  80/20 principle  Multiple selling strategies  Multivariable... Management 14- 2 Chapter 14 The Tree of Business Life: Time True Et h ic al ce rvi Se T T T T T TT T T T T Builds I  View your territory as a business  Treat customers differently    Relationships