powerpoint presentation prepared by dr. rajiv mehta chapter 13 chapter 13 managing your time and...

PowerPoint presentation prepared byDr. Rajiv Mehta

Chapter 13Chapter 13

Managing Your Time and Your

Territory

Copyright © Houghton Mifflin Company. All rights reserved. Chapter 13 | Slide 2

Chapter OutlineChapter Outline

• Self-management

• Effectiveness and efficiency

• Activities sales of salespeople

• Setting priorities

• Account and territory management

• Working smarter


Learning ObjectivesLearning Objectives

After reading this chapter, you should understand:

• Why salespeople must be concerned about efficiency as well as effectiveness in allocating their time.

• How salespeople function as field marketing managers.

• How to use ROTI (return on time invested) to manage the territory.

• Methods for using time wisely.• Efficient routing strategies for sales calls.• Ways to prioritize accounts.• How to avoid falling into time traps.

Royalty-Free, Digital Vision/Getty Images


Self-ManagementSelf-Management

• Self-management is probably more difficult than management by someone else where feedback from various sources can keep you on track and motivated



Effectiveness and EfficiencyEffectiveness and Efficiency

• Effectiveness is results-oriented and focuses on achieving goals, while efficiency is cost-oriented and focuses on making the best possible use of the salesperson's time and efforts

• Together, the two equal success:

E1 (Effectiveness) + E2 (Efficiency) = S1 (Sales Success)

Chapter Review Question:Define and distinguish between the terms effectiveness and efficiency.


How Salespeople Spend How Salespeople Spend Their TimeTheir Time

A recent study of 10,000 sales reps shows that:

1. 33% of their time is spent in face-to-face selling

2. 20% in travel

3. 16% in phone selling

4. 16% in account service and coordination

5. 10% in administration

6. 5% at internal company meetings

CBU032Chapter Review Question:

How do salespeople actually spend their time?

© Royalty-Free/CORBIS


Figure 13.1 How Salespeople Figure 13.1 How Salespeople Spend Their TimeSpend Their Time


Table 13.1 What is One Table 13.1 What is One Hour of Selling Time Worth?Hour of Selling Time Worth?


Effectiveness and EfficiencyEffectiveness and Efficiency

Successful salespeople tend to possess the following characteristics:

1. Possess excellent

• product knowledge

• knowledge of competitors

• face-to-face selling skills

2. Exercise the influence skills needed to work with both internal staff and customers

• Recognize that the skills required to service an account are different from those required to make a sale


Sales ActivitiesSales Activities

• Basic sales activities include:

• the selling process

• working with orders

• servicing the product

• managing information

• servicing the account

• conferences/meetings

• training/recruiting

• entertaining customers

• out-of-town traveling

• working with distributorsChapter Review Question:

What are the basic activities of salespeople?



Table 13.2 Basic Activities Table 13.2 Basic Activities of Sales Peopleof Sales People


Chapter Review Question:Identify the major management and marketing activities of salespeople.

Table 13.2 Basic Activities Table 13.2 Basic Activities of Sales People of Sales People cont’dcont’d


What's Your Job Description?What's Your Job Description?

• Each salesperson needs to know exactly what performance is expected in his or her specific job assignment

• In addition, the salesperson needs to know what is expected to be achieved during a given time period



Figure 13.2 Position DescriptionFigure 13.2 Position Description


Figure 13.2 Position Description Figure 13.2 Position Description cont’dcont’d


Figure 13.2: Position Description Figure 13.2: Position Description cont’dcont’d

Chapter Review Question:Why is a job description important to a salesperson?


Salespeople as Field Salespeople as Field Marketing ManagersMarketing Managers

• For many companies, the modern professional selling job has evolved into that of field marketing manager for a sales territory.

• Today's salespeople have more responsibilities than ever before.

• They are their own bosses in their sales territories, working with groups of people over whom they have little control and often impose conflicting demands and expectations on them.



Table 13.3 The Salesperson’s Table 13.3 The Salesperson’s Management and Marketing ActivitiesManagement and Marketing Activities


Return on Time Invested (ROTI)Return on Time Invested (ROTI)

• Although ROTI sounds like tedious record keeping, it only takes a few minutes a day

• ROTI calculations can help salespeople manage their time more effectively and efficiently

Chapter Review Question:Describe the concept of return on time invested

(ROTI).


Three Axioms in Personal Selling Three Axioms in Personal Selling cont’dcont’d

• In their work, salespeople recognize the truth of the 3 axioms:

1. Parkinson's Law

• Work tends to expand to fill the time allotted for its completion.

2. Concentration Principle ("80-20" rule)

• 805 of the sales and profits come from 20% of customers.

3. Iceberg Principle

• Analogous to an iceberg, which shows only 10% of its mass above the water, many sales problems can remain hidden beneath the surface of overall positive sales totals.


Performance MeasuresPerformance Measures

• Instead of reliance on one performance measure such as sales volume, a balance of several quantitative and qualitative standards is better because performance in one area can conflict with performance in another.

• For example, a salesperson who stresses keeping sales and service expenses low may find revenues adversely affected.


Performance Measures Performance Measures cont’dcont’d

• Quantitative measures• Like dollar or unit sales volume or net profit, affect sales or expenses

directly, and can usually be measured objectively.

• Qualitative measures• Like the salesperson's product knowledge, customer relationships,

or ethical behavior, have a more indirect and longer-run impact on sales and expenses, and thus must be evaluated on a more subjective basis. From the standpoint of customers, qualitative measures are more important than quantitative.


Performance Measures: Quotas Performance Measures: Quotas cont’dcont’d

• Derived from sales forecasts, sales quotas are performance objectives and motivation incentives for salespeople. The four types of quotas for salespeople are:

1. Sales volume

2. Financial

3. Activity

4. Combination


Performance Measures: Performance Measures: Customer Reviews of PerformanceCustomer Reviews of Performance

• Obtaining feedback from customers is one of the most effective ways to keep from losing touch with customers

• Salespeople should ask for an annual evaluation of their performance by customers and participate in this review process at a special meeting


Table 13.4 Quantitative Measures of Table 13.4 Quantitative Measures of Salesperson PerformanceSalesperson Performance


Chapter Review Question:Name at least five quantitative and five qualitative

measures of salesperson performance.

Table 13.4 Quantitative Measures of Table 13.4 Quantitative Measures of Salesperson Performance Salesperson Performance cont’dcont’d


Account and Territory ManagementAccount and Territory Management

• A sales territory is a control unit that contains customer accounts.

• Once the geographical control unit has been established, the next step is to analyze the customers and prospects in the territory on the basis of their sales potential.

• Increasing numbers of companies are using computer programs to assist their salespeople in account analysis, planning, and control.


Figure 13.3: Ranking Customers According Figure 13.3: Ranking Customers According to the Concentration Principleto the Concentration Principle


Portfolio Analysis ApproachPortfolio Analysis Approach

• A portfolio analysis approach provides an alternative to the analytical rigor of the mathematical models.

• In this approach, the sales call strategy is based on the account’s attractiveness.

• Account attractiveness depends on two dimensions:

1.

Account Opportunity

1.

Account Opportunity

2.

Strength of Position

2.

Strength of Position


Figure 13.4 Account AnalysisFigure 13.4 Account Analysis


Territorial RoutingTerritorial Routing

• Territorial routing is devising a plan or pattern to use when making sales calls.

• Before developing a routing plan, the salesperson must determine:

• the number of calls to be made each day

• the call frequency on each class of customer

• the distance to each account

• the method of transportation© Royalty-Free/CORBIS


Routing Patterns Routing Patterns cont’dcont’d

Types of routing patterns include:

1. Straight-line route

• salesperson starts at the office and makes calls in one direction until he or she reaches the end of the territory

2. Circular patterns

• salesperson starts at the office and moves in a circle of stops until ending up back at the office



Account and Account and Territory ManagementTerritory Management

3. Cloverleaf route

• similar to a circular pattern

• rather than covering an entire territory, the route circles only part of a territory

• the next trip is an adjacent circle, and the pattern continues until the entire territory is covered


Account and Account and Territory Management Territory Management cont’dcont’d

4. Hopscotch pattern

• the salesperson starts at the farthest point from the office and hops back and forth calling on accounts on either side of a straight line back to the office

5. The "outer-ring" approach • the salesperson first draws an outer ring around the customers to

be called upon

• then, those customers inside the ring are connected to the outer ring route using angles that are as obtuse as possible


Figure 13.5 Hopscotch and Cloverleaf Figure 13.5 Hopscotch and Cloverleaf Routing PatternsRouting Patterns


Figure 13.6 Figure 13.6 “Outer Ring” Routing Patterns“Outer Ring” Routing Patterns


Using Computer Programs Using Computer Programs in Routingin Routing

• Numerous computer-based interactive models have been successfully applied to sales force routing and territory management.



Working Smarter: Working Smarter: Using the Latest TechnologyUsing the Latest Technology

• Salespeople can work smarter and increase their selling effectiveness and efficiency by making use of the latest technologies, such as:

• electronic pagers

• cellular car phones

• electronic mail

• facsimile machines

• word processing and spreadsheet software

• time management software

• laptop computers


Working Smarter: Working Smarter: Excuses About TimeExcuses About Time

• Often the problem is the individual's attitude toward time and the tendency to make excuses for using it inefficiently

• Excuses about time include:

• There are too many demands on my time.

• I can do it better myself.

• If only I had more time each day.

• I don't have time to plan.

• I can't find time to work on big projects.

• I can't prevent unexpected problems that disrupt my plans.

• If only I could work faster.

• It's better to do small tasks first.



Table 13.5 Excuses for Poor Time Table 13.5 Excuses for Poor Time ManagementManagement


Table 13.5 Excuses for Poor Time Table 13.5 Excuses for Poor Time Management Management cont’dcont’d


Working Smarter: Paperwork Working Smarter: Paperwork

• One of the most dreaded and time-consuming tasks of salespeople is handling their paperwork.

• Like other sales-related activities, paperwork ought to be scheduled on the salesperson’s daily or weekly planning calendar.

• Some companies put the 200 to 700 pages of memos, newsletters, brochures, reports, announcements, and other sales-related materials sent to salespeople each week onto audiotapes.


Working Smarter: Working Smarter: Customer Service Customer Service

• Customer service is a regular part of the salesperson’s daily job and should be scheduled like any other activity.

• The suggestions on the following slides may assist you in focusing your customer service activities:



Working Smarter: Working Smarter: Customer Service Customer Service cont’dcont’d

– Segment your customers according to costs and the potential profits that could accrue from providing them with superior service.

• Remember that all customer contacts, whether through telephone operators, receptionists, secretaries, delivery and repair personnel, or customer service people, shape the perceptions of your company’s service.

• Try to encourage all these people with customer contact to treat prospects and customers well.


Working Smarter: Working Smarter: Customer Service Customer Service cont’dcont’d

• Continually stress the importance of customer service to people in your company, and reinforce this attitude by your own actions.

• Design and use measures of service effectiveness such as the percentage of on-time deliveries, the length of time it takes to repair a product, and the level of customer satisfaction.


Working Smarter: Working Smarter: Time TrapsTime Traps

• Many salespeople hurt their efficiency by falling into daily time traps, which include:

• Calling on unqualified or unprofitable prospects

• Insufficiently planning each day's activities

• Making poor territorial routing and travel plans

• Making too many cold calls



Working Smarter: Working Smarter: Time Traps Time Traps cont’dcont’d

• Not using modern telecommunications equipment like a car phone, beeper, facsimile machine, and laptop computer

• Doing tasks that could be delegated to a staff person or to automated equipment

• Failing to prioritize work

• Making poor use of waiting time between appointments

• Spending too much time entertaining prospects and customers




• Procrastinating on major projects or contacting high-potential prospects, resulting in redundant preparation and paperwork

• Inefficiently handling paperwork and keeping disorganized records

• Failing to break up huge, long-range goals into small, currently manageable tasks

• Ending workdays early, especially on Friday afternoons




• Failing to insulate oneself from interruptions on sales calls or while doing paperwork

• Conducting unnecessary meetings, visits, and phone calls

• Doing personal business during working hours

Chapter Review Question:What are the classic time traps into which salespeople can fall?



Working Smarter: A Plan for Each DayWorking Smarter: A Plan for Each Day

• Use the Swiss cheese approach to punch little holes in top priority projects that can't be finished all at once

• Every salesperson can benefit from preparing a daily "To Do" list of projects and tasks that are prioritized into A, B, and C categories of importance



Working Smarter: Working Smarter: Steps to Manage Time More Efficiently Steps to Manage Time More Efficiently • Time management steps include:

• Each weekday afternoon, write down the schedule for the next day

• On Friday afternoon, plan the schedule for the following week

• Concentrate on high priorities

• Spend time as if it were money

• Stop procrastinating

• Schedule some personal time every day

Chapter Review Question:

What are some steps that salespeople can

take to manage their time better? Royalty-Free, Digital Vision/Getty Images


Figure 13.7:Figure 13.7:Daily Schedule SheetDaily Schedule Sheet


Key TermsKey Terms

• Effectiveness

• Results-oriented focus on achieving selling goals.

• Efficiency

• Cost-oriented focus on making the best possible use of the salesperson’s time and efforts.

• Return On Time Invested (ROTI)

• The designated return achieved, calculated by dividing the result achieved by the amount of time spent to accomplish that result.

• Parkinson’s Law

• Work expands to fill the time allotted to it.


Key Terms Key Terms cont’dcont’d

• Concentration Principle

• Most sales, costs, and profits come from a relatively small proportion of customers and products; also known as the 80-20 rule.

• Iceberg Principle

• Analogous to an iceberg, most sales problems are hidden beneath the surface of overall positive sales totals.

• Sales Territory

• A control unit that contains customer accounts.

• Territorial Routing

• Devising a travel plan or pattern to use when making sales calls.


Topics for Thought Topics for Thought and Class Discussionand Class Discussion

1. Why are salespeople described as operating like field marketing managers? Do you believe that this is an accurate representation of the typical field salesperson? Explain.

2. Do you think that most job descriptions for salespeople accurately reflect their current duties and responsibilities? Why?

3. Pick a routine task in your life and map out a plan for improving your efficiency and effectiveness in accomplishing it.

4. How do time traps disrupt your time management? How can you avoid these traps?


Topics for Thought Topics for Thought and Class Discussion and Class Discussion cont’dcont’d

5. What techniques do you use to plan, organize, and set priorities in your daily activities? Do you use the “Swiss cheese” approach for large or complex projects? Give an example of how you might do this.

6. Do you allow other people to frequently preempt your priorities in use of your time by substituting something that is of high priority to them? Give an example. How might you deal with future situations where someone wants you to accept his or her priority for time use instead of yours?


Internet ExercisesInternet Exercises

1. Use an Internet search engine to find three firms that specialize in sales territory management training. What are the length and cost of each program? Where would it be held? Who’s doing the training? What topics will the sales territory management training cover that will be new?

2. Using Google or any other search engine, find two examples of sales territory management training being demonstrated using Flash or streaming video.

3. Use the Internet to find articles on salespeople whose effectiveness has been increased by their improved skills in time and sales territory management.

4. Search the Internet to find additional tips for managing your time. What time management suggestions did you find advocated?


Internet Exercises Internet Exercises cont’dcont’d

5. Use the Internet to find examples of quantitative and qualitative metrics that are used to evaluate the performance of salespeople (in addition to those identified in Table 13.4). What inferences can you make about how your performance might be assessed if you were to embark on a career in sales? What activities might you emphasize to ensure a high performance rating and, in the process, a successful career?

6. Using an Internet search engine, find software that can be used to chart efficient territorial routing patterns. What are some of the different types of territorial routing patterns that can be developed?


Projects for Personal GrowthProjects for Personal Growth

1. Contact three salespeople and ask them how they plan, organize, and prioritize their daily activities. Mention that you are a student working on a class project. Evaluate their approaches in terms of ROTI.

2. Classify four of your student friends on the basis of your perceptions of their effectiveness and efficiency. Then ask these student friends these two questions: (a) “What techniques do you use to plan, organize, and set priorities in your daily activities?” and (b) “What time traps are most responsible for wasting your time each day?” Compare your friends’ answers with your prior classification of them. Any surprises?


Projects for Personal Growth Projects for Personal Growth cont’dcont’d

3. For the coming week, write down how you spend each hour of the seven days. At the end of the week, compute approximately how much of your time you used productively and how much you wasted. Draw up a plan for better managing your time, and use it throughout a second week. At the end of this second week, evaluate whether or not you obtained more productive time. If so, what made the difference?

4. Go to the library or use electronic sources and find three current articles on managing a sales territory. Summarize them and report what you learned to your classmates.


Case 13.1:Case 13.1:Time Is No ObjectTime Is No Object

1. How would you evaluate Steve Burbank as a manager of his time and territory?

2. What would you recommend to help Steve improve his effectiveness and efficiency?

3. How might Pearson’s training program have better prepared Steve for managing his territory?


Case 13.2:Case 13.2:Working Smarter ... Or Just Harder?Working Smarter ... Or Just Harder?

1. Do you think that Jim is working smarter or just harder? What do you think about Jim’s sales call allocation and routing plan for his accounts? Can you suggest any improvements?

2. How well do you think Jim invests his time? What might he do differently?

3. What advice would you give Jim about achieving his annual sales quota?

4. What would you suggest to Jim to help him deal with the stress in his life?

Case 13.2 is found online at http://college.hmco.com/pic/andersonps2e.

http://college.hmco.com/pic/andersonps2e





powerpoint presentation prepared by dr. rajiv mehta chapter 13 chapter 13 managing your time and...

Documents

time slide

territory slide

smarter slide

sale slide

royaltyfreecorbis slide

efficiency effectiveness

salespersons time

time worth