TERRITORY CONTROL

SETTING GOALS Specific and measurable reachable with stretch time - based

GOALS performance eg. sales revenue, no.of m/cs activity eg. no.of calls made per day conversion eg. sales effected/call

ALLOCATING RESOURCES marketing literature,brochures,catalogues discretionary rebates/budgets time

80/20 RULE 80 % sales comes from 20% customers 80 % problems comes from 20% of ypur customers 80 % of overdue outstandings comes from 20% of your customers 80 % of your time is taken by 20% of your customers

Territory time allocation No. of accounts in the territory No. of sales calls made on customers Time required for each sales calls Frequency of customer sales calls Travel time around territory Non-selling time Return on time invested

Managing territory Map the course – where to go, outlets, customers to visit, visit objective Plan the route – to cover the points you want to visit with the least amount of time, energy and money Set time targets – amount of time spent per customer/outlet/call

Managing time Knowing how the time is spent. Keep a time log and analyse the time log later. Where can you save time?

Itinerary Planning List of potential outlets/customers Classify outlets/customers Determine call frequencies by volume/profit Estimate the time to be allotted on each call

Calculation of selling time Total available time Less travel time between visits Less meal breaks Less time for non-selling activities (prospecting, planning, telephoning, reporting)

Check itinerary plan each day Minimum travel time between calls Customer availability – best time to see that customer Inform customers in advance of your visit Try to develop a ‘contact person’ at key accounts to look after your interests

A B C Classification A 70 - 80 % B 10 - 25% C 5 - 10% This is classifying your customers on the basis of a) revenues b) profits

DETERMINING CALL FREQUENCIES cost/call cost/customer

SALES PRODUCTIVITY INDICES Cost / m/c sold sales / call sales / customer

OUTSTANDINGS MANAGEMENT Total outstandings overdue outstandings Every lac of outstandings uncollected incurs a loss of Rs50/- per day for the company

SCHEDULING AND ROUTING Straight line pattern clover leaf pattern major city pattern

RETURN ON TIME INVESTED(ROTI) Fixed costs Salary Rs.10000 p.m. Variable costs Tpt + Expenses Rs. 10000 p.m. Total Expenses Rs. 20000 p.m. Annual Expenses Rs.2,40,000 Price of an item Rs.20000 Margin@30% Rs.6000

Breakeven = 2,40.000/6000 = 40 m/cs It is only after you sell the 41st m/c that you are earning for the company Therefore ROTI = Profit generated /time spent on a customer