Chp 15 Time and Territory
description
Transcript of Chp 15 Time and Territory
Time, Territory, and Self-Management: Keys to
Success
Chapter15
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Customers Form Sales Territories
A sales territory comprises a group of customers or a geographical area
assigned to a salesperson
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Exhibit 15.1: Reasons Companies Develop and Use
Sales Territories
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Elements of Time and Territory Management
Salesperson’s sales quota (goals) may involve:Sales volume quotasProfit quotasExpense quotasActivity quotasCustomer satisfaction scores
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Elements of Time and Territory Management, cont…
Account analysis:The undifferentiated selling approach (Exhibit
15-3)The account segmentation approach (Exhibit
15-6)ELMS system80/20 principle
Multiple selling strategiesMultivariable account segmentation (Exhibit
15-7)
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Exhibit 15.3: Undifferentiated Selling Approach
Slide 15-11
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Exhibit 15.4: Account Segmentation Based on Yearly Sales
E.L.M.S.
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Exhibit 15.6: Account Segmentation Approach
Slide 15-11
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Exhibit 15.7: Multivariable Account Segmentation
Slide 15-11
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Elements of Time and Territory Management, cont...
Territory-time allocationBasic factors to consider
Number of accounts in the territoryNumber of sales calls made on customersTime required for each sales callFrequency of customer sales callsTravel time around the territoryNonselling timeReturn on time invested
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Elements of Time and Territory Management Cont…
Territory-time allocationSales response function
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
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Exhibit 15.8: Account Time Allocation by Salesperson
* every 3 months
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Return on Time Invested Break-even analysis
Salesperson’s Fixed Costs/Gross Profit %Direct Costs = Salary – (Transportation +
Expenses)Gross Profit % = Gross Profit / SalesGross Profit = Sales – Cost of Goods Sold If salesperson sells X amount of merchandise,
it covers the direct costsSales territory is a cost and revenue
generating profit center
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Return on Time Invested Break-even analysis
Per HourCost Per Hour/Gross Profit % Cost Per Hour = Direct costs/Yearly Hours
workedSalesperson must sell $$ per hour in
goods/services to break even