© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Chapter 14 Time, Territory, and Self Management: Keys To Success

© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Reasons Companies Develop and Use Sales Territories To obtain thorough coverage of the market. To establish each salesperson's responsibilities. To evaluate performance. To improve customer relations. To reduce sales expense. To allow better matching of salesperson to customer’s needs. To benefit both salespeople and the company. 14-1

© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Elements of Time and Territory Management for the Salesperson 14-2 Salesperson’s territory’s sales quota Account analysis Set account objectives and sales quotas Territory-time allocation Customer sales planning Scheduling and routing Territory and customer evaluation Territory and customer evaluation

© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Undifferentiated Selling Approach 14-3 Single-selling approach Target accounts

© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Account Segmentation Based on Yearly Sales Yearly Sales Customer (actual orNumber of Size potential)AccountsPercent Extra largeover $200, % Large$75, , Medium$25,000-75,0001, Small$1,000-25,0001,

© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Basic Segmentation of Accounts 14-5 Customers Prospect AccountSalesPotentialPotential ClassificationTo DateSalesSales Extra large Large Medium Small

© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Account Segmentation Approach 14-6 Extra Large Large Medium Target AccountsMultiple Selling Strategies

© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Multivariable Account Segmentation 14-7 Product Types of Accounts Retailer Wholesaler Government A B C $1,000 to $25,000 to $75,000 to $200,000 $200,000+ Customer Sales Volume (ELMS)

© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Account Time Allocation by Salesperson 14-8 = CustomerCalls perCalls perNumber ofNumber of SizeMonthYearAccountsCalls per Year Extra large Large Medium Small1* Total1641,344 *every 3 months

© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Daily Customer Plan 14-9 Sales Calls Service HoursCustomersProspectsCustomers 7:00-8:00 A.M. Stop by office: pick up Jones Hardware order 8:00-9:00Travel 9:00-10:00Zip Grocery 10:00-11:00Ling Television Corp. 11:00-12:00Ling Television Corp. 12:00-1:00 P.M. Lunch and delivery to Jones Hardware 1:00-2:00Texas Instruments 2:00-3:00Ace Equipment 3:00-4:00Travel 4:00-5:00Trailor Mfg. 5:00-6:00Plan next day—do paperwork

© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Location of Accounts and Sequence of Calls Texas Instruments 4. Ling Television 5. Jones Hardware 3. Zip Grocery 8. Trailor Mfg. Home 1, Distribution Center 7. Ace Equipment Oklahoma City

© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Weekly Route Report Today’s Date:For week beginning December 16December 26 DateCityLocation December 26 (Monday)DallasHome December 27 (Tuesday)DallasHome December 28 (Wednesday)WacoHoliday Inn/South December 29 (Thursday)Fort WorthHome December 30 (Friday)DallasHome

© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Three Basic Routing Patterns 14-12A First call Work back ccc c Straight-Line Pattern

© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Three Basic Routing Patterns 14-12B c c c c c c cc cc cc c c c c c c cc cc cc Base Cloverleaf Pattern Each leaf out and back the same day

© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Three Basic Routing Patterns 14-12C = Downtown Major-City Pattern

© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Example of Net Sales by Customer and Call Frequency BrownPetersonGilleyBruceHeaton (GP,(Pediatrics,(GP,(GP,(GP, Texas Houston)Galveston)Galveston)Galveston)City) Calls Month21102 Year-to-date84449 Last call4/204/184/183/104/19 Net sales in dollars Current month Year-to-date This year ,0002,000 Last year ,750 Entire last year2,0001, ,0005,000

© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Customer Sales Potential Sales Sales Customer Potential Customer Potential A$4,000I$ 1,000 B3,000J1,000 C6,000K10,000 D2,000L12,000 E2,000M8,000 F8,000N9,000 G4,000O8,000 H6,000P10,

© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill A Partial Map of Your Sales Territory Start KN FE AG RJ O B Your favorite restaurant HM I D P C L

© McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Distribution of Sales CustomerPercentagePercentage of Total Classificationof CustomersSales Volume A1065 B2020 C5010 D103 E102100