Time, Territory, People and Self-Management: Keys to Success Chapter Dudut Urip Prasetyo

Chapter

15-3 The Tree of Business Life: Time The Golden Rule 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 I T C Ethical Service Builds T r u e Relationships T TT TTTT TTTT

15-4 Customers Form Sales Territories  A sales territory comprises a group of customers or a geographical area assigned to a salesperson

15-5 Exhibit 15.1: Reasons Companies Develop and Use Sales Territories

15-6 Exhibit 15.2: Elements of Time and Territory Management for the Salesperson Salesperson’s territory’s sales quota

15-7 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

15-8 Salesperson’s territory’s sales quota Account analysis Exhibit 15.2: Elements of Time and Territory Management for the Salesperson, cont…

15-9 Exhibit 15.4: Account Segmentation Based on Yearly Sales

15-10 Salesperson’s territory’s sales quota Account analysis Set account objectives and sales quotas Exhibit 15.2: Elements of Time and Territory Management for the Salesperson, cont…

15-11 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

15-12 Salesperson’s territory’s sales quota Account analysis Set account objectives and sales quotas Territory-time allocation Exhibit 15.2: Elements of Time and Territory Management for the Salesperson, cont…

15-13 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

15-14 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

15-15 Exhibit 15.8: Account Time Allocation by Salesperson * every 3 months

15-16 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

15-17 Salesperson’s territory’s sales quota Account analysis Set account objectives and sales quotas Customer sales planning Territory-time allocation Exhibit 15.2: Elements of Time and Territory Management for the Salesperson, cont…

15-18 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

15-19 Salesperson’s territory’s sales quota Account analysis Set account objectives and sales quotas Scheduling and routing Customer sales planning Territory-time allocation Exhibit 15.2: Elements of Time and Territory Management for the Salesperson, cont…

Steps of The Call 1. Preparation 2. Approach 3. Check Stock 4. Presentation 5. Closed 6. Merchandising 7. Consumer Contact 8. Administration 9. Evaluation

15-21 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

15-22 Exhibit 15.10: Location of Accounts and Sequence of Calls

15-23 Exhibit 15.11: A Weekly Route Report

15-24 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

15-25 Exhibit 15.13: Net Sales by Customer and Call Frequency: May 1, 2005

15-26 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 15.2: Elements of Time and Territory Management for the Salesperson, cont…

15-27 Territory and Customer Evaluation  Did the salesperson meet sales quota(s)?  Sales volume quotas  Profit quotas  Expense quotas  Activity quotas  Customer satisfaction scores

15-28 Personal Characteristics Needed for Managing Today’s Salespeople Joy in work Harmony in relationships Patience with people Kindness to people Morality in decisions Faithfulness to word Fairness in relationships Care for people Self-control in emotions Sales Leader

15-29 Sales Management Functions  Planning  Staffing  Training  Directing  Evaluating

15-30 Exhibit 16.3: The Basic Sales Management Functions

15-31 Exhibit 16.5: Operating Costs for the Sales Force

15-32 Exhibit 16.8: Selected Characteristics of Successful Salespeople―Which are Most Important?

15-33 Exhibit 16.10: Major Steps in Sales Personnel Selection Process Not all companies take every step

15-34 Training the Sales Force  Sales training  Purposes of training  Training methods:  Discussion  Role playing  On-the-job training  Where does training take place?  Centralized training programs  Decentralized training