15-1. time, territory, and self- management: keys to success chapter 15 copyright © 2006 by the...
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15-1
Time, Territory, and Self-Time, Territory, and Self-Management: Keys to SuccessManagement: Keys to Success
Time, Territory, and Self-Time, Territory, and Self-Management: Keys to SuccessManagement: Keys to Success
Chapter
Chapter
15
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
Chapter
Chapter
1515-3
Main TopicsMain TopicsMain TopicsMain Topics
The Tree of Business Life: TimeCustomers Form Sales Territories
Elements of Time and Territory Management
Chapter
Chapter
1515-4
15-5
The Tree of Business Life: Time
Guided by The Golden The Golden RuleRule: View your territory as a business Treat customers differently
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
IT C
Ethi
cal Service
Builds
T r
u e
Relationships
TT T
T T T TT T T T
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Customers Form Sales Territories
A sales territory comprises a group of customers or a geographical area assigned to a salesperson
15-7
Exhibit 15-1: Reasons Companies Develop and Use Sales Territories
15-8
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
15-9
Exhibit 15-2: Elements of Time and Territory Management for the Salesperson
Salesperson’s territory’ssales quota
Salesperson’s territory’ssales quota
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Elements of Time and Territory Management
Salesperson’s sales quota (goals) may involve:Sales volume quotasProfit quotasExpense quotasActivity quotasCustomer satisfaction scores
15-11
Salesperson’s territory’ssales quota
Salesperson’s territory’ssales quota Account analysisAccount analysis
Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont…
15-12
Elements of Time and Territory Management, cont…
Account analysis:The undifferentiated selling approach (Exhibit 15-3)The account segmentation approach (Exhibit 15-6)
ELMS system80/20 principle
Multiple selling strategiesMultivariable account segmentation (Exhibit 15-7)
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Exhibit 15-3: Undifferentiated Selling Approach
Slide 15-11
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Exhibit 15-4: Account Segmentation Based on Yearly Sales
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Exhibit 15-5: Basic Segmentation of Accounts
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Exhibit 15-6: Account Segmentation Approach
Slide 15-11
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Exhibit 15-7: Multivariable Account Segmentation
Slide 15-11
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Salesperson’s territory’ssales quota
Salesperson’s territory’ssales quota Account analysisAccount analysis Set account objectives
and sales quotas
Set account objectivesand sales quotas
Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont…
15-19
Elements of Time and Territory Management, cont…
Set account objectives and sales quotas which may involve:Sales volume quotasProfit quotasExpense quotasActivity quotasCustomer satisfaction scores
15-20
Salesperson’s territory’ssales quota
Salesperson’s territory’ssales quota Account analysisAccount analysis Set account objectives
and sales quotas
Set account objectivesand sales quotas
Territory-time allocationTerritory-time allocation
Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont…
15-21
Elements of Time and Territory Management, cont...
Territory-time allocationBasic factors to consider
Number of accounts in the territoryNumber of sales calls made on customersTime required for each sales callFrequency of customer sales callsTravel time around the territoryNonselling timeReturn on time invested
Sale response function
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Exhibit 15-8: Account Time Allocation by Salesperson
* every 3 months
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Elements of……………….
Territory-time allocationBasic factors to considerSales 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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Return on Time Invested Time is a scarce resource Break-even analysis The management of time
Plan by the day, week, and monthQualify the prospectUse waiting timeHave a productive lunchtimeRecords and reports
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Exhibit 15-10: Daily Customer Plan
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Salesperson’s territory’ssales quota
Salesperson’s territory’ssales quota Account analysisAccount analysis Set account objectives
and sales quotas
Set account objectivesand sales quotas
Customer sales planningCustomer sales planning
Territory-time allocationTerritory-time allocation
Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont…
15-27
What is Involved in Customer Sales Planning?
You do the following for each sales call:Develop sales call objectivesReview/create customer profileCreate customer benefit planSelect FABsDevelop marketing planDevelop business propositionDevelop suggested orderDevelop your sales presentation
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Salesperson’s territory’ssales quota
Salesperson’s territory’ssales quota Account analysisAccount analysis Set account objectives
and sales quotas
Set account objectivesand sales quotas
Scheduling and routingScheduling and routing Customer sales planningCustomer sales planning
Territory-time allocationTerritory-time allocation
Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont…
15-29
Scheduling and Routing Strict formal route designs enable the
company to: Improve territory coverageMinimize wasted timeEstablish communication between management
and the sales force in terms of location and activities of individual salespeople
Carefully plan your route
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Exhibit 15-11: Location of Accounts and Sequence of Calls
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Exhibit 15-12: A Weekly Route Report
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Exhibit 15-13: Three Basic Routing Patterns
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Salesperson’s territory’ssales quota
Salesperson’s territory’ssales quota Account analysisAccount analysis Set account objectives
and sales quotas
Set account objectivesand sales quotas
Territory and customerevaluation
Territory and customerevaluation Scheduling and routingScheduling and routing Customer sales planningCustomer sales planning
Territory-time allocationTerritory-time allocation
Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont…
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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
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Exhibit 15-15: Net Sales by Customer and Call Frequency: May 1, 2005
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Territory and Customer Evaluation
Did the salesperson meet sales quota(s)?Sales volume quotasProfit quotasExpense quotasActivity quotasCustomer satisfaction scores
15-37
Salesperson’s territory’ssales quota
Salesperson’s territory’ssales quota Account analysisAccount analysis Set account objectives
and sales quotas
Set account objectivesand sales quotas
Territory and customerevaluation
Territory and customerevaluation Scheduling and routingScheduling and routing Customer sales planningCustomer sales planning
Territory-time allocationTerritory-time allocation
Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont…
15-38
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
15-39
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