1. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 15-1

2. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 15-2 Chapter 15 Time,Territory, and Self- Management: Keys to Success

3. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 15-3 Chapter 15 Customers Form Sales Territories Elements of Time and Territory Management

4. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 15-4 Customers Form Sales Territories Sales territory Why establish sales territories? To obtain thorough coverage of the market To establish each salesperson’s responsibilities To evaluate performance To improve customer relations To reduce sales expense To allow better matching of salesperson to customer’s needs To benefit both salespeople and the company

5. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 15-5 Customers Form Sales Territories cont… 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

6. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 15-6 Elements of Time and Territory Management Salesperson’s sales quota Account analysis The undifferentiated selling approach The account segmentation approach ELMS system 80/20 principle Multiple selling strategies Multivariable account segmentation

7. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 15-7 Elements of Time and Territory Management cont… Develop account objectives and sales quotas 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

8. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 15-8 Elements of Time and Territory Management cont… Travel time around the territory Nonselling time Return on time invested Sales response function

9. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 15-9 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

10. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 15-10 Return on Time Invested cont… 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

11. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 15-11 Return on Time Invested cont… 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 Territory and customer evaluation

12. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 15-12 Summary of Major Selling Issues How salespeople invest their sales time is a critical factor influencing territory sales Proper time and territory management is an effective method for the salesperson for maximizing territorial sales and profits A sales territory comprises a group of customers or a geographical area assigned to a salesperson Companies develop and use sales territories for a number of reasons

13. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 15-13 Summary of Major Selling Issues cont… 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