chap15Time-Territory-andSelf-Management：KeystoSuccess.ppt

Time,Territory,and Self-Time,Territory,and Self-Management:Keys to SuccessManagement:Keys to SuccessChapterChapter15ChapterChapter15Main TopicsMain TopicsThe Tree of Business Life:TimeCustomers Form Sales TerritoriesElements of Time and Territory ManagementChapterChapter15The Tree of Business Life:TimeGuided by The Golden The Golden RuleRule:View your territory as a businessTreat customers differently depending on their needsValue the customers timeRealize that how you spend your time determines your lifeUse your life to serve others and enjoy a wonderful,fulfilling lifeSeek,knock,ask,serve,and see that ethical service build true relationshipsITCEthicalServiceBuilds T r u eRelationshipsTT TT T T TT TT TCustomers Form Sales TerritoriesA sales territory comprises a group of customers or a geographical area assigned to a salespersonExhibit 15-1:Reasons Companies Develop and Use Sales TerritoriesWhy Sales Territories May Not Be DevelopedSalespeople may be more motivated if not restricted by a particular territoryThe company may be too small to be concerned with segmenting the market into sales areasExhibit 15-2:Elements of Time and Territory Management for the SalespersonSalespersons territoryssales quotaSalespersons Sales QuotaThe salespersons manager typically establishes the total sales quotaProper territory management by the salesperson is an important of reaching the sales quotaSalespersons territoryssales quotaAccount analysisExhibit 15-2:Elements of Time and Territory Management for the Salesperson,contAccount AnalysisThe undifferentiated selling approach(Exhibit 15-3)The account segmentation approach(Exhibit 15-6)ELMS system80/20 principleMultiple selling strategiesMultivariable account segmentation(Exhibit 15-7)Exhibit 15-3:Undifferentiated Selling ApproachSlide 1511Exhibit 15-4:Account Segmentation Based on Yearly SalesExhibit 15-5:Basic Segmentation of AccountsExhibit 15-6:Account Segmentation ApproachSlide 15-11Exhibit 15-7:Multivariable Account SegmentationSlide 15-11Salespersons territoryssales quotaAccount analysisSet account objectivesand sales quotasExhibit 15-2:Elements of Time and Territory Management for the Salesperson,contDevelop Account Objectives and Sales QuotasSales volume quotasProfit quotasExpense quotasActivity quotasCustomer satisfaction scoresSalespersons territoryssales quotaAccount analysisSet account objectivesand sales quotasTerritory-time allocationExhibit 15-2:Elements of Time and Territory Management for the Salesperson,contTerritory-Time AllocationBasic factors to consider1.Number of accounts in the territory2.Number of sales calls made on customers3.Time required for each sales call4.Frequency of customer sales calls5.Travel time around the territory6.Nonselling time7.Return on time investedTerritory-time allocation,cont.Sales response functionThe salesperson invests sales time in direct proportion to the actual or potential sales that the account representsThe most productive number of calls is reached at the point at which additional calls do not increase salesThe relationship of sales volume to sales calls is the sales response function of the customer to the salespersons callsExhibit 15-8:Account Time Allocation by Salesperson*every 3 months Return on Time InvestedTime is a scarce resourceBreak-even analysisThe management of timePlan by the day,week,and monthQualify the prospectUse waiting timeHave a productive lunchtimeRecords and reportsExhibit 15-10:Daily Customer PlanExhibit 15-11:Location of Accounts and Sequence of CallsExhibit 15-10:Daily Customer Plan(cont)Exhibit 15-11:Location of Accounts and Sequence of Calls(cont)Exhibit 15-10:Daily Customer Plan(cont)Exhibit 15-11:Location of Accounts and Sequence of Calls(cont)=small accountsExhibit 15-10:Daily Customer Plan(cont)Exhibit 15-11:Location of Accounts and Sequence of Calls(cont)=small accounts=extra large accountsExhibit 15-10:Daily Customer Plan(cont)Exhibit 15-11:Location of Accounts and Sequence of Calls(cont)=extra large accounts=small accounts=large accountsExhibit 15-10:Daily Customer Plan(cont)Exhibit 15-11:Location of Accounts and Sequence of Calls(cont)=extra large accounts=small accounts=best prospects=large accountsExhibit 15-10:Daily Customer Plan(cont)Exhibit 15-11:Location of Accounts and Sequence of Calls(cont)=extra large accounts=medium accounts=small accounts=best prospects=large accountsExhibit 15-10:Daily Customer Plan(cont)Exhibit 15-11:Location of Accounts and Sequence of Calls(cont)=extra large accounts=large accounts=medium accounts=small accounts=best prospectsSalespersons territoryssales quotaAccount analysisSet account objectivesand sales quotasCustomer sales planningTerritory-time allocationExhibit 15-2:Elements of Time and Territory Management for the Salesperson,contCustomer Sales PlanningA sales-call objectiveA customer profileA customer benefit programSelling strategies must be developed for individual customers and affect:FABsMarketing plansBusiness propositionsSuggested ordersSales presentationsSalespersons territoryssales quotaAccount analysisSet account objectivesand sales quotasScheduling and routingCustomer sales planningTerritory-time allocationExhibit 15-2:Elements of Time and Territory Management for the Salesperson,contScheduling and RoutingSome organizations determine strict formal route designs for their sales people to:Improve territory coverageMinimize wasted timeEstablish communication between management and the sales force in terms of location and activities of individual salespeopleCareful planning of routeA route can be planned using a road map and map pins that indicate account size by pin colorExhibit 15-12:A Weekly Route ReportExhibit 15-13:Three Basic Routing PatternsCloverleaf PatternStraight-Line PatternMajor-City PatternFirst callWork backEach leaf out and back the same dayHuntsvilleConroeKingwoodHoustonBaytownGalveston(1=Downtown)Salespersons territoryssales quotaAccount analysisSet account objectivesand sales quotasTerritory and customerevaluationScheduling and routingCustomer sales planningTerritory-time allocationExhibit 15-2:Elements of Time and Territory Management for the Salesperson,contUsing the Telephone for Territorial CoverageSatisfy part of the service needs of accounts by telephoneAssign smaller accounts that contribute less than 5 percent of business to mostly telephone sellingDo prospecting,marketing data gathering,and call scheduling by telephoneCarefully schedule personal calls to distant accountsTerritory and Customer EvaluationDid the salesperson meet sales quotas?Sales volumeProfitExpenseActivityCustomer satisfactionExhibit 15-15:Net Sales by Customer and Call Frequency:May 1,2005Salespersons territoryssales quotaAccount analysisSet account objectivesand sales quotasTerritory and customerevaluationScheduling and routingCustomer sales planningTerritory-time allocationExhibit 15-2:Elements of Time and Territory Management for the Salesperson,cont Summary of Major Selling IssuesHow salespeople invest their sales time is a critical factor that influences territory salesProper time and territory management is an effective method for the salesperson to maximize territorial sales and profitsA sales territory comprises a group of customers or a geographical area assigned to a salespersonSummary of Major Selling Issues,contCompanies develop and use sales territories for a number of reasonsPerformance can be monitored when territories are establishedThere are also disadvantages to developing sales territoriesTime and territory management is continuous for a salesperson it involves seven key elements