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TERRITORY CONTROL
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SETTING GOALS Specific and measurable reachable with stretch
time - based
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GOALS performance eg. sales revenue, no.of m/cs
activity eg. no.of calls made per day conversion eg. sales effected/call
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ALLOCATING RESOURCES marketing literature,brochures,catalogues
discretionary rebates/budgets time
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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
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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
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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
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Managing time Knowing how the time is spent. Keep a time log and analyse the time log later. Where can you save time?
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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
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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)
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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
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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
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DETERMINING CALL FREQUENCIES
cost/call cost/customer
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SALES PRODUCTIVITY INDICES
Cost / m/c sold sales / call sales / customer
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OUTSTANDINGS MANAGEMENT
Total outstandings overdue outstandings Every lac of outstandings uncollected incurs a loss of Rs50/- per day for the company
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SCHEDULING AND ROUTING
Straight line pattern clover leaf pattern major city pattern
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RETURN ON TIME INVESTED(ROTI)
Fixed costs Salary Rs p.m. Variable costs Tpt + Expenses Rs p.m. Total Expenses Rs p.m. Annual Expenses Rs.2,40,000 Price of an item Rs.20000 Rs.6000
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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
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