Module - 3 Mgmt of Sales Territory & Sales Quota
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Transcript of Module - 3 Mgmt of Sales Territory & Sales Quota
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Module - 3
Management of Sales
Territory & Sales Quota
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Content
1.Sales Territory
Meaning
Size
Designing
2.Sales Quota
Meaning
Procedure for sales Quota
Types of sales Quota
Methods of setting sales quota
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3. Recruitment and selection of sales force
4. Training of sales quota
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Meaning of sales territory
Sales - is the act of meeting prospective buyers
and providing them with a product or service in
turn of money or other required compensation.
- Sales is an act of completion of a commercial
activity. The "deal is closed", means the customer
has consented to the proposed product or service
by making full or partial payment (as in case ofinstallments) to the seller.
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Meaning of territory
Alargeextentortractofland;aregion;
adistrict.a country
aregionmarkedoffforadministrativeorother
purposes
http://ardictionary.com/A/1http://ardictionary.com/Large/1018http://ardictionary.com/Extent/7004http://ardictionary.com/Or/1924http://ardictionary.com/Tract/5647http://ardictionary.com/Of/869http://ardictionary.com/Land/686http://ardictionary.com/A/1http://ardictionary.com/Region/3053http://ardictionary.com/A/1http://ardictionary.com/A/1http://ardictionary.com/District/7627http://ardictionary.com/A/1http://ardictionary.com/A/1http://ardictionary.com/Region/3053http://ardictionary.com/Marked/1692http://ardictionary.com/Off/881http://ardictionary.com/For/4655http://ardictionary.com/Administrative/2285http://ardictionary.com/Or/1924http://ardictionary.com/Other/2800http://ardictionary.com/Other/2800http://ardictionary.com/Or/1924http://ardictionary.com/Administrative/2285http://ardictionary.com/For/4655http://ardictionary.com/Off/881http://ardictionary.com/Marked/1692http://ardictionary.com/Region/3053http://ardictionary.com/A/1http://ardictionary.com/A/1http://ardictionary.com/District/7627http://ardictionary.com/A/1http://ardictionary.com/A/1http://ardictionary.com/Region/3053http://ardictionary.com/A/1http://ardictionary.com/Land/686http://ardictionary.com/Of/869http://ardictionary.com/Tract/5647http://ardictionary.com/Or/1924http://ardictionary.com/Extent/7004http://ardictionary.com/Large/1018http://ardictionary.com/A/1 -
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Meaning of sales territory
Sales territory is defined as a group of present
& potential customers assigned to an
individual sales person, a group of sales
person, a branch, a dealer, a distributor, or a
marketing organization at a given period of
time.
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Advantages of Sales territory/ Why
sales territory is requiredDesigning of sales territory provides various advantages to afirm like
1. It ensures better market coverage
2. Effective utilization of the sales force
3. Efficient distribution of workload among salespeople4. Convenient way to evaluate the performance of
salespeople
5. Control over the direct and indirect costs of the salesfunction
6. Optimum utilization of sales time by salespeople
7. Enhances employees morale and helps managers tobetter control & monitor sales & evaluate programmes.
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Disadvantages of Sales territory
Many organization do not plan territories & organizesales on the basis of geographic divisions.
It includes newly established enterprises, organizationswhere sales are achieved more through personalrelationship rather than a professional approach.
Organizations selling highly sophisticated & technicallycomplex products
Firm using telemarketing & internet marketing as toolsto reaching customers
Firms who sells product like insurance, fixed depositsand other investment products
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Size of sales territories
Factors influencing the size of a sales territory.1. The nature & demand of the product.
2. Mode of physical distribution.
3. The selling process.
4. Transport & communication facilities in the
overall market & territory.
5. Government regulations
6. Density of population & population spread
within the territory
7. Market otential & rowth rates.
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8. The level of competition.
9. firms sales policy.
10. Ability of sales person.11. Overall economic conditions prevailing in the
country
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For example
1. If a product is a consumer durable with a
longer shelf life - Co. will prefer larger
territory. For perishable Co. will prefer
smaller.
2. Depends on nature of product like
Consumer product
Industrial product
Durable or,
Non durable product
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3. when there is huge demand- Co. go for
smaller territories .
4. If Co. is going through intermediaries like
wholesalers retailers customers
they prefer to have a larger territory.
5. In industrial buying size of territory is kept
small because of bulk order booking.
6. Territories in rural markets in India are smaller
in comparison to the urban markets as
trans ortation & communication is a roblem
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7. Government restrictions & regulations of
taxes & the movement of the goods also
influence the decisions of a firm in regard to
the size of the territory.
8. In a market with a high density of population
& market potential , companies decide in
favour of smaller territories.
9. If a company has experienced, well trained &
competent salespeople - will go for larger
territory & viceversa.
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continue10. If a firm with a limited number of products
wants to earn higher profits, the size of the
territory will be larger.
11. Overall condition of economy also affects
the size of the territory. For example , a smallsize territory is suitable for a firm during
recession when prices have stabilized &
customers are not willing to spendspontaneously.
During boom condition, however, firms can
increase the size of the territory.
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