Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

14-2 Time, Territory, and Self- Management: Keys to Success Chapter 14

The Golden Rule: Time 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 14-3

Customers Form Sales Territories A sales territory comprises a group of customers or a geographical area assigned to a salesperson 14-4

Exhibit 14.1: Reasons Companies Develop and Use Sales Territories 14-5

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 14-6

Exhibit 14.2: Elements of Time and Territory Management for the Salesperson Salesperson’s territory’s sales quota 14-7

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 14-8

Salesperson’s territory’s sales quota Account analysis Exhibit 14.2: Elements of Time and Territory Management for the Salesperson, cont… 14-9

Elements of Time and Territory Management, cont… Account analysis:  The undifferentiated selling approach (Exhibit 14.3)(Exhibit 14.3)  The account segmentation approach (Exhibit 14.6)(Exhibit 14.6) ELMS system 80/20 principle  Multiple selling strategies  Multivariable account segmentation (Exhibit 14.7)(Exhibit 14.7)14-10

Exhibit 14.3: Undifferentiated Selling Approach Slide

Exhibit 14.4: Account Segmentation Based on Yearly Sales 14-12

Exhibit 14.5: Basic Segmentation of Accounts 14-13

Exhibit 14.6: Account Segmentation Approach Slide

Exhibit 14.7: Multivariable Account Segmentation Slide

Salesperson’s territory’s sales quota Account analysis Set account objectives and sales quotas Exhibit 14.2: Elements of Time and Territory Management for the Salesperson, cont… 14-16

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 14-17

Salesperson’s territory’s sales quota Account analysis Set account objectives and sales quotas Territory-time allocation Exhibit 14.2: Elements of Time and Territory Management for the Salesperson, cont… 14-18

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 14-19

Elements of Time and Territory Management Cont… 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 14-20

Exhibit 14.8: Account Time Allocation by Salesperson * every 3 months 14-21

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 14-22

Salesperson’s territory’s sales quota Account analysis Set account objectives and sales quotas Customer sales planning Territory-time allocation Exhibit 14.2: Elements of Time and Territory Management for the Salesperson, cont… 14-23

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 14-24

Salesperson’s territory’s sales quota Account analysis Set account objectives and sales quotas Scheduling and routing Customer sales planning Territory-time allocation Exhibit 14.2: Elements of Time and Territory Management for the Salesperson, cont… 14-25

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 14-26

Exhibit 14.10: Location of Accounts and Sequence of Calls 14-27

Exhibit 14.11: A Weekly Route Report 14-28

Exhibit 14.12: Three Basic Routing Patterns 14-29

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 14-30

Exhibit 14.13: Net Sales by Customer and Call Frequency: May 1,

Salesperson’s territory’s sales quota Account analysis Set account objectives and sales quotas Territory and customer evaluation Scheduling and routing Customer sales planning Territory-time allocation Exhibit 14.2: Elements of Time and Territory Management for the Salesperson, cont… 14-32

Territory and Customer Evaluation Did the salesperson meet sales quota(s)?  Sales volume quotas  Profit quotas  Expense quotas  Activity quotas  Customer satisfaction scores 14-33