sales management-final ppt

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LLIM Batch: 2009-2012

Group-2Prof: Anand

Sales Management

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Territory Management

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Main TopicsMain Topics

The Tree of Business Life: Time Customers Form Sales Territories Elements of Time and Territory Management Use Waiting Time

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The Tree of Business Life:The Tree of Business Life:TimeTime

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 TerritoriesCustomers Form Sales Territories

A sales territory comprises a group of customers or a geographical area assigned to a salesperson

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Reasons Companies Develop and Reasons Companies Develop and Use Sales TerritoriesUse Sales Territories

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Why Sales Territories May Not Be Why Sales Territories May Not Be DevelopedDeveloped

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

Management may not want to take the time, or may not have the know-how for territory development

Personal friendships may be the basis for attracting customers

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Elements of Time and Territory Management Elements of Time and Territory Management for the Salespersonfor the Salesperson

Salesperson’s territory’ssales quotaSalesperson’s territory’ssales quota

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Elements of Time and Territory Elements of Time and Territory ManagementManagement

A salesperson’s manager typically establishes the total sales quota that each salesperson is expected to reach

Once this quota is set, it is the salesperson’s responsibility to develop territorial sales plans for reaching the quota.

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Salesperson’s territory’ssales quotaSalesperson’s territory’ssales quota Account analysisAccount analysis

Elements of Time and Territory Management Elements of Time and Territory Management for the Salesperson, cont…for the Salesperson, cont…

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Elements of Time and Territory Elements of Time and Territory Management, cont…Management, cont…

Account analysis: The undifferentiated selling approach The account segmentation approach

ELMS system80/20 principle

Multiple selling strategies Multivariable account segmentation

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Undifferentiated Undifferentiated Selling ApproachSelling Approach

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Account Segmentation Based on Account Segmentation Based on Yearly SalesYearly Sales

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Basic Segmentation of AccountsBasic Segmentation of Accounts

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Account Account Segmentation ApproachSegmentation Approach

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Salesperson’s territory’ssales quotaSalesperson’s territory’ssales quota Account analysisAccount analysis Set account objectives

and sales quotasSet account objectivesand sales quotas

Elements of Time and Territory Management Elements of Time and Territory Management for the Salesperson, cont…for the Salesperson, cont…

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Elements of Time and Territory Elements of Time and Territory Management, cont…Management, cont…

Develop account objectives and sales quotas for individual products and for current and potential accounts.

Objectives might include increasing product distribution to prospects in the territory or increasing the product assortment current customers purchase.

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Salesperson’s territory’ssales quotaSalesperson’s territory’ssales quota Account analysisAccount analysis Set account objectives

and sales quotasSet account objectivesand sales quotas

Territory-time allocationTerritory-time allocation

Elements of Time and Territory Management Elements of Time and Territory Management for the Salesperson, cont…for the Salesperson, cont…

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Elements of Time and Territory Elements of Time and Territory Management, cont...Management, cont...

Territory-time allocation Basic 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

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Elements of Time and Territory Elements of Time and Territory Management, cont…Management, cont…

Territory-time allocation Sales 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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Account Time Allocation by Account Time Allocation by SalespersonSalesperson

* every 3 months

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Return on Time InvestedReturn on Time Invested

Time is a scarce resource Break-even analysis The management of time

Plan by the day, week, and month Qualify the prospect Use waiting time Have a productive lunchtime Records and reports

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Daily Customer PlanDaily Customer Plan

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Salesperson’s territory’ssales quotaSalesperson’s territory’ssales quota Account analysisAccount analysis Set account objectives

and sales quotasSet account objectivesand sales quotas

Customer sales planningCustomer sales planning

Territory-time allocationTerritory-time allocation

Elements of Time and Territory Management Elements of Time and Territory Management for the Salesperson, cont…for the Salesperson, cont…

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What is Involved in Customer Sales What is Involved in Customer Sales Planning?Planning?

You do the following for each sales call: Develop sales call objectives Review/create customer profile Create customer benefit plan Select FABs Develop marketing plan Develop business proposition Develop suggested order Develop your sales presentation

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Salesperson’s territory’ssales quotaSalesperson’s territory’ssales quota Account analysisAccount analysis Set account objectives

and sales quotasSet account objectivesand sales quotas

Scheduling and routingScheduling and routing Customer sales planningCustomer sales planning

Territory-time allocationTerritory-time allocation

Elements of Time and Territory Management Elements of Time and Territory Management for the Salesperson, cont…for the Salesperson, cont…

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Scheduling and RoutingScheduling and Routing

Strict formal route designs enable the company to: Improve territory coverage Minimize wasted time Establish communication between management and the

sales force in terms of location and activities of individual salespeople

Carefully plan your route

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Location of Accounts and Sequence Location of Accounts and Sequence of Callsof Calls

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A Weekly Route ReportA Weekly Route Report

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Three Basic Routing PatternsThree Basic Routing Patterns

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Using the Telephone for Territorial Using the Telephone for Territorial CoverageCoverage

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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Net Sales by Customer and Call Net Sales by Customer and Call Frequency: Mar, 2011Frequency: Mar, 2011

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Salesperson’s territory’ssales quotaSalesperson’s territory’ssales quota Account analysisAccount analysis Set account objectives

and sales quotasSet account objectivesand sales quotas

Territory and customerevaluationTerritory and customerevaluation Scheduling and routingScheduling and routing Customer sales planningCustomer sales planning

Territory-time allocationTerritory-time allocation

Elements of Time and Territory Elements of Time and Territory Management for the Salesperson, cont…Management for the Salesperson, cont…

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Territory and Customer EvaluationTerritory and Customer Evaluation

Territorial evaluation is the establishment of performance standards for the individual territory in the form of qualitative and quantitative quotas or goals

Actual performance is compared to these goals for evaluation purposes

This allows the salesperson to see how well territory plans were executed in meeting performance quotas.

If quotas were not met, new plans must be developed.

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Summary of Major Selling IssuesSummary 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

Companies develop and use sales territories for a number of reasons

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Summary of Major Selling Issues, Summary of Major Selling Issues, cont…cont…

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

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Thank You....