1. Module 2 –Directing Sales force
Time and Territory management –Objectives and criteria for Territory formation ,Sales territories Design,Time Management, Routing and Scheduling

2. Sales Territory
Sales Territory consists of existing and potential customers assigned to a salesperson.
May not be have geographic boundaries

3. Reasons for setting ST Increase market/customer –coverage
Control selling expenses
Better evaluation of salesforce
Improve CR
Increase salesforce effectiveness
Improve co-ordination
Benefit salespeople & company

4. Reasons for not Setting ST
Small company with few sales person –local market
Personal contacts/relationship-life insurance, network marketing
Salespeople are demotivated due to restrictions of sales territories
Management of company not aware of benefits of ST

5. Procedure for Designing Sales Territories
Find location &
Potential of customers
Select a control unit
Decide basic terrirories
Control Units-Geographic location-states,metros,cities,districts, towns industrial estates
Use Build –up
Method
Use Breakdown
Method

6. Select a Control Unit States Metros Cities/Towns/ Districts
Find Location and Potential of Customers
How will u find- telephone directories & market research studies-ABC Analysis-A customers-sales and profit potential add upto 70% of total, B -20%,C-10%

7. Decide Basic Territories
Build –up method
Decide call frequencies
Calculate the total number of calls in each control unit
Estimate Workload capacity of a salesperson
Make tentative territories
Develop final territories

8. Breakdown method
Estimate the company sales potential for total market
Forecast sales potential of each control unit
Estimate the sales volume expected from each salesperson
Make tentative sales territories
Develop final territories

9. Assigning Salespeople to Territories
Relative Ability of Salespeople
Salesperson’s Effectiveness in a Territory
Use of IT Territory Management
Ability of salesperson- Product Knowledge, Market knowledge,Past sales performance,Communication skills, selling skills

10. Territorial Coverage Routing –efficient routes for salespeople
Scheduling the salespeople’s time
Time Management tools

11. Procedure for Routing plan
Straight line route pattern-salesperson starts from office /home as base makes sales calls in one direction
Hoscotch- salesperson starts fartherest point from home or office base and makes sales calls on customers on the way back to home/office
Circular –starts from base and moves in a circle.sales calls ends at the office/home
Clover leaf- first route covers a part of the territory, next trip covers adjoining circle

12. Importance and Application -Routing
The nature of product
The type of job of sales people-FMCG
Sales job with creative selling needs a flexible route plan

13. Scheduling
Planning a sales person’s specific time of visits to customers.
Best Salesmen are the ones who manage their time effectively

14. Allocation of Time Salespeople’s task Time spent(%)
Administrative task 15
Service calls 13
Face-to –face sales 32
Waiting/traveling 21
Telephone selling 19
Total
100

15. Customer calls
Companies state norms of visits to existing customers and prospects
Study shows salespeople spend too much time selling to small /less profitable customers
Companies specify norms

16. Time Management Tools
High –tech equipment- laptop, teleconferencing, videotaping cellular phones pagers ,cassette recorders
Inside sales people
Sales assistants to provide clerical support
Technical support people for technical information
Telemarketers to find new prospects

17. Exercise
Assume you are appointed as head of marketing – S Aluminum Company, which is a new company manufacturing and marketing aluminium products such as door,window and partition aluminim frames,heat sinks, control panels.Customers include household and business organisation . Factory is located in Hosur-tamil Nadu -38 kms from Bangalore. You have discussed with your CEO to initially focus sales and distribution efforts in southern region – 4 states .Design a sales territory to cover the 4 states . Describe how you would go about the task.
What are the major criteria considered in assigning salespersons to different territories?
One of the salesperson in the territory of AP is having a problem as to how to cover the entire state with varying market potential of different metros, cities and districts . How to prepare his route plan ans schedule of visits –major tasks like presales service,face –to face selling ,sending weekly reports including market information ,collection of payments from dealers as mwell as business customers and telephone selling . What guidelines would you give to help your salesperson
Divide the class into 6 groups

18. Case Study
Krishna Kumar,the marketing manager of MM Marketing Company was thinking how to go about designing sales territories assigning salespeople to the territories and setting sales qoutas, particularly as the product was new. The new product, called Swishflow fan was a unique kind of a table fan with attractive air- conditioner like looks.Considering the initial production capacity of 1,00000 numbers in the first year, Krishna Kumar decided to market the product in and around Mumbai, where the marketing and sales office was located . The target consumers were household as well as commercial organisations ,who could use this product as table-fan and wall –mouted fan.
Krishna Kumar thought that the territory design should include geographical areas with market potential for achieving the sales budget numbers in the first year and a growth of 25% per year for subsequent four years.He calculated a salesforce size of 7 numbers and decided to launch the product in major metros and cities in Maharastra and Gujarat. KK wasof the view that sales Quotas should consider sales volume, sales expense and sales calla per day in order to have a proper control on sales people . He wondered how to design sales territories what criteria should he consider while assigning salespersons to territories and how to design quotas considering the factors mentioning above
Question: If you were Krishna Kumar ,what will you do and why?