1. Stephen B. Castleberry | John F. Tanner Jr. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. CHAPTER 15 MANAGING YOUR TIME AND TERRITORY

2. LEARNING OBJECTIVES Why is time so valuable for salespeople? What can be done to create more selling time? What should be considered when devising a territory strategy? How does territory strategy relate to account strategy and building partnerships? 15-2

3. LEARNING OBJECTIVES How should the daily activities and sales calls be analyzed? How can performance be improved by self-evaluation? 15-3

4. VALUE OF TIME Efficient management of time is important for salespeople to succeed Difference between stellar and average performance is based on how well the resources are allocated 15-4

5. EXHIBIT 15.1 - THE SELF-MANAGEMENT PROCESS 15-5

6. EXHIBIT 15.2 - THE RELATIONSHIP OF GOALS 15-6

7. NATURE OF GOALS Goals should be: Specific and measurable Achievable Realistic Time based Problem - Setting goals and then forgetting them Solution - Writing down the goals and posting it 15-7

8. TYPES OF SALES GOALS Related to outcomes Should be set first Personal development goals - Important to long-term professional growth Performance goals Behavioral objectives Reflect the efforts of the salesperson Intermediate goals Activity goals Express relative accomplishments Benchmarking: Comparing one’s performance with the best in the organization Conversion goals 15-8

9. SETTING SALES GOALS Performance and conversion goals are the basis for activity goals Determined by the desired level of performance at a certain rate of conversion Better strategy - Higher conversion rate and better allocation of time 15-9

10. ALLOCATING RESOURCES Physical resources Cost to company Investment to salesperson Time - Key resource to be managed Resources to be allocated Markets should be examined to: Find the customers or companies that are most likely to buy Allocate selling resources to maximize the opportunities they offer Where to allocate 15-10

11. ACCOUNT CLASSIFICATION AND RESOURCE ALLOCATION Salesperson should: Concentrate more on the most profitable customers Concentrate less on customers with little opportunity for profitable sales Managing customers - Allocation of resources at the salesperson's disposal in the most productive manner 15-11

12. ABC ANALYSIS Ranks accounts by sales potential Accounts with the greatest sales potential are prioritized Effective for industries requiring regular contact with the same accounts 15-12

13. GRID ANALYSIS Sales call allocation grid Classifies accounts on the basis of the company’s competitive position with an account along with the account’s sales potential Purpose To determine which accounts should receive more resources 15-13

14. GRID ANALYSIS Effective tool for analyzing current customers Customer share or account share: Average percentage of business received from a company’s accounts in a particular category Share of wallet Similar to customer share but for an individual customer 15-14

15. EXHIBIT 15.5 - SALES CALL ALLOCATION GRID 15-15

16. INVESTING IN ACCOUNTS Predictive modeling - Determines which accounts are likely to be more productive Helps determine where to invest resources Sales people must determine: Which customers require sales effort What activities should occur 15-16

17. INVESTING IN ACCOUNTS Pipeline analysis: Process for identifying and managing sales opportunities Opportunity management Assisted by customer relationship management (CRM) software Determines conversion ratios Ensures that enough opportunities to reach sales goals is created Requires identifying which stage an account is in 15-17

18. IMPLEMENTING THE TIME MANAGEMENT STRATEGY Starting earlyManaging responsivenessScheduling in advanceUsing downtime wisely 15-18

19. IMPLEMENTING THE TIME MANAGEMENT STRATEGY Daily activity planning Good understanding of work habits is a prerequisite for effective time planning Guidelines Time for prospecting and customer care should be included in daily activities Designed to maximize prime selling time Prime selling time: Time of day at which a salesperson is most likely to see a buyer 15-19

20. PLANNING PROCESS Helps to plan daily activities Tickler file: File or calendar used to remember when to call specific accounts Use of computer for planning Schedules can be revised if more time for one account leads to better sales results Planning for the unexpected First visit of the day - Prime prospect Next visit - Next best potential customer Need for flexibility 15-20

21. EXHIBIT 15.6 - ACTIVITIES PLANNING PROCESS 15-21

22. ROUTING Planning sales calls in a specific order to minimize travel time Types of sales call patterns Routine call patterns: Seeing the same customers regularly Variable call patterns: Calling on accounts in an irregular order 15-22

23. EXHIBIT 15.7 - TYPES OF ROUTING PLANS 15-23

24. ZONING Dividing the territory into zone based on ease of travel and concentration of customers Each zone is allocated a day Works best for: Compact territories Situations in which salespeople do not call regularly on the same accounts Combined with routing within a zone using a circular approach 15-24

25. EXHIBIT 15.8 - ZONING A SALES TERRITORY 15-25 Source: Waco Tribune Herald.

26. USING E-MAIL AND TELEPHONE More customer care calls can be made Sales calls in person is a viable choice for current customers Reorders and cross-selling Can be used profitably for prospecting 15-26

27. PAPERWORK AND REPORTS Provides information that helps: A salesperson determine what should be improved Management decide what types of marketing plans work and should be used again Assign nonselling time to finish reports using: Voice recognition systems Fax machines Customer relationship management packages 15-27

28. EVALUATING PERFORMANCE Postcall analysis - Writing down incidents that occurred after every call Information can be used when preparing for the next call In a printed form or into a territory management program Activity analysis - Activity goals are set when planning time Activities are reviewed in relation to the goals set 15-28

29. EVALUATING PERFORMANCE Performance analysis - Performance is evaluated relative to performance goals that were set earlier Productivity analysis - Strategies that work should be identified Conversion ratio Calculated by account type Pinpoint effective strategies and areas that need improvement 15-29

30. EXHIBIT 15.9 - SALES EVALUATION MEASURES 15-30