2. Time, Territory, and Self-Management: Keys to Success15
Chapter
Time, Territory, and Self-Management: Keys to Success
McGraw-Hill/Irwin
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved.

3. 15
15-3
Chapter

4. 15 Main Topics Chapter The Tree of Business Life: Time
15-4
Chapter
Main Topics
The Tree of Business Life: Time
Customers Form Sales Territories
Elements of Time and Territory Management

5. The Tree of Business Life: Time
Guided by The Golden Rule:
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 T T
Ethical
Service T T T T T T T T
Builds
T r u e
Relationships T C I

6. Customers Form Sales Territories
A sales territory comprises a group of customers or a geographical area assigned to a salesperson

7. Exhibit 15-1: Reasons Companies Develop and Use Sales Territories

8. Why Sales Territories May Not Be Developed
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

9. Exhibit 15-2: Elements of Time and Territory Management for the Salesperson
Salesperson’s territory’s sales quota

10. Elements of Time and Territory Management
Salesperson’s sales quota (goals) may involve:
Sales volume quotas
Profit quotas
Expense quotas
Activity quotas
Customer satisfaction scores

11. Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont…
Salesperson’s territory’s sales quota
Account analysis

12. Elements of Time and Territory Management, cont…
Account analysis:
The undifferentiated selling approach (Exhibit 15-3)
The account segmentation approach (Exhibit 15-6)
ELMS system
80/20 principle
Multiple selling strategies
Multivariable account segmentation (Exhibit 15-7)

13. Exhibit 15-3: Undifferentiated Selling Approach
Slide 15-11

14. Exhibit 15-4: Account Segmentation Based on Yearly Sales

15. Exhibit 15-5: Basic Segmentation of Accounts

16. Exhibit 15-6: Account Segmentation Approach
Slide 15-11

17. Exhibit 15-7: Multivariable Account Segmentation
Slide 15-11

18. Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont…
Salesperson’s territory’s sales quota
Account analysis
Set account objectives and sales quotas

19. Elements of Time and Territory Management, cont…
Set account objectives and sales quotas which may involve:
Sales volume quotas
Profit quotas
Expense quotas
Activity quotas
Customer satisfaction scores

20. Territory-time allocation
Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont…
Salesperson’s territory’s sales quota
Account analysis
Set account objectives and sales quotas
Territory-time allocation

21. Elements of Time and Territory Management, cont...
Territory-time allocation
Basic factors to consider
Number of accounts in the territory
Number of sales calls made on customers
Time required for each sales call
Frequency of customer sales calls
Travel time around the territory
Nonselling time
Return on time invested
Sale response function

22. Exhibit 15-8: Account Time Allocation by Salesperson
* every 3 months

23. Elements of………………. Territory-time allocation Basic factors to consider
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

24. Return 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

25. Exhibit 15-10: Daily Customer Plan

26. Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont…
Salesperson’s territory’s sales quota
Account analysis
Set account objectives and sales quotas
Territory-time allocation
Customer sales planning

27. What is Involved in Customer Sales 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

28. Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont…
Salesperson’s territory’s sales quota
Account analysis
Set account objectives and sales quotas
Territory-time allocation
Scheduling and routing
Customer sales planning

29. Scheduling 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

30. Exhibit 15-11: Location of Accounts and Sequence of Calls

31. Exhibit 15-12: A Weekly Route Report

32. Exhibit 15-13: Three Basic Routing Patterns

33. Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont…
Salesperson’s territory’s sales quota
Account analysis
Set account objectives and sales quotas
Territory-time allocation
Territory and customer evaluation
Scheduling and routing
Customer sales planning

34. Using the Telephone for Territorial Coverage
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

35. Exhibit 15-15: Net Sales by Customer and Call Frequency: May 1, 2005

36. Territory and Customer Evaluation
Did the salesperson meet sales quota(s)?
Sales volume quotas
Profit quotas
Expense quotas
Activity quotas
Customer satisfaction scores

37. Exhibit 15-2: Elements of Time and Territory Management for the Salesperson, cont…
Salesperson’s territory’s sales quota
Account analysis
Set account objectives and sales quotas
Territory-time allocation
Territory and customer evaluation
Scheduling and routing
Customer sales planning

38. Summary 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

39. Summary of Major Selling Issues, cont…
Companies develop and use sales territories for a number of reasons
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