Time, Territory, and Self-Management: Keys to Success 15 Chapter Time, Territory, and Self-Management: Keys to Success McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved.

15 15-3 Chapter

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

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

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

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

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

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

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

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

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)

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

Exhibit 15-4: Account Segmentation Based on Yearly Sales

Exhibit 15-5: Basic Segmentation of Accounts

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

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

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

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

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

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

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

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

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

Exhibit 15-10: Daily Customer Plan

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

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

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

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

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

Exhibit 15-12: A Weekly Route Report

Exhibit 15-13: Three Basic Routing Patterns

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

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

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

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

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

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

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