adbms sales management cont.ppt

7/29/2019 adbms sales management cont.ppt

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LOGO

www.wondershare.com

e

Sales managementcontinued


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Sales Territories

Territory may represent

Geographical area

Group of customers

A market

An industry


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Goals of territory management

To cover the market properly

To deploy sales people effectively

To service the customer effectively

To evaluate the salesrepresentative

To control sales expenses


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Territory Management

Generating

New Accounts

Managing

Existing

Accounts

Personal

Time

Management


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Designing sales territories

A company has to establisha geographical control unit.It could be a country,zone or

regionAfter establishing a control

unit sales potential of each

unit is established


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These control units arethen classified intoterritories

Then number ofterritories are consideredassuming an averagesales force


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Approaches to terriitorymanagement

Market build up approach

In this approach the present usersand potential users of a productare analysed Their consumption

potential are also analysed. Then itis decided how much market sharethe company desires to have, This

gives us the total sales potentialThis sales potential is then brokendown territory wise


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Work load approach

Customers are grouped into

categories

Optimum call frequency foreach category is estimated

Present and potentialcustomers are located andarranged category wise

Geographical control unit isthen established

Each SR is given adequate worl

load


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Territory Shapes

Shapes affect both in coverage and in the selling

expenses

The Wedge

Starts fro a thickly populated urban centre

The Circle

scattered customers

The Clover LeafRandom


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Designing sales territories

A company has to establisha geographical control unit.It could be a country,zone or

regionAfter establishing a control

unit sales potential of each

unit is established


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Territory Adjustment

Estimation of travel timeDecide call frequency

Computing number of calls possiblein a given period

Estimating the number and type ofcustomers

Correction with desired callfrequency

Estimating time duration of each cal

Correction on basis of feedback


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Adjustment of territory bysalesmen

Territories are builtaround sales men


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WHAT IS A QUOTA?

A quota refers to an expectedperformance objective.Quotas are tactical in nature andthus derived from the sales

forces strategic objectives.


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WHY ARE QUOTAS

IMPORTANT?

Quotas provide performancetargets.

Quotas provide standards. Quotas provide control. Quotas provide change ofdirection. Quotas are motivational.


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TYPES OF

QUOTAS

Sales volume quotas. Breakdown total sales volume.

Profit quotas. Expense quotas. Activity quotas.

Quota combinations.


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Sales volume quotas

includes MONETORY orproduct unit objectives for

a specific period of time.


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Gross marginquota determined by

subtracting cost of goods sold

from sales volume.

Net profitquota determined by

subtracting cost of goods sold and

salespeoples direct selling

expense from sales volume.

The two types of profit quotas:


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Expense quotas are aimed

at controlling costs of sales

units. Often expenses are

related to sales volume or tothe compensation plan.


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Activity quotas set

objectives for job-related

duties useful toward

reaching salespeoplesperformance targets.


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METHODS FOR SETTING

SALES QUOTAS Quotas based on forecasts andpotentials.

Quotas based on forecasts only.

Quotas based on past experience.

Quotas based on executive judgments.

Quotas salespeople set.

Quotas related to compensation.


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AGOOD OBJECTIVE AND

QUOTA PLAN IS SMART

SpecificMeasurableAttainableRealisticTime specific


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Sales and Marketing Information

System

An organised way ofcontinually gathering and

analysing information fromevery source relevant to theorganisation


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A MIS incorporates & combine

the main aspects of marketingresearch into a centralisedmanagement function which

will maintain a tight control onresearch procedures & ensurean accurate data bank of

information about customers,products etc.


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A MIS which can link externaldata with internal sources, suchas sales record, customer

records & competitorinformation will provide a strongbasis for informed marketing

decisions


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MIS

MIS - mainly concernedwith how to manageinformation

Ongoing information egsales record

Monitored information -about the economy

Requested information -

Surveys

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