PPT On Management of Sales Territories and Quotas
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1. Management of Sales Territories and Quotas2. Learning Objectives
To understand the concept of and reasons for sales territories
To learn designing sales territories and assigning salespeople
To know territory coverage, including routing, scheduling, and time management
To understand objectives and types of sales quotas
To learn the methods of setting sales quotas
To get insight into setting and administration of sales quotas
3. Sales Territories
A sales territory consists of existing and potential customers, assigned to a salesperson
Most companies allot salespeople to geographic territories, consisting of current & prospective customers
Major Reasons / Benefits of Sales Territories
Increase market / customer coverage
Control selling expenses and time
Enable better evaluation of salesforce performance
Improve customer relationships
Increase salesforce effectiveness
Improve sales and profit performance
4. Procedure for Designing Sales Territories
Select a control unit*
Find location and potential of present and prospective customers within control units**
Decide basic territories by using
Build-up method,
Or
Break-down method
*A control unit is a geographical territorial base
**Unnecessary & expensive for consumer products
5. Procedure in Build-up Method
Decide customer call frequencies
Calculate total customer calls in each control unit
Estimate workload capacity of a salesperson
Make tentative territories
Develop final territories
Objective is to equalise the workload of salespeople
6. Procedure in Breakdown Method
Estimate company sales potential for total market
Forecast sales potential for each control unit
Estimate sales volume expected from each salesperson
Make tentative territories
Develop final territories
Objective is to equalise sales potential of territories
7. Assigning Salespeople to Territories
Sales Manager should consider two criteria:
Relative ability of salespeople
Based on key evaluation factors:
(1) Product knowledge, (2) market knowledge, (3) past sales performance, (4) communication, (5) selling skills
(B) Salesperson’s Effectiveness in a Territory
Decided by comparing social, cultural, and physical characteristics of the salesperson with those of the territory
Objective is to match salesperson to the territory
8. Management of Territorial Coverage
It means: How salesperson should cover the assigned sales territory
It includes three tasks for a sales manager:
Planning efficient routes for salespeople
Scheduling salespeople’s time
Using time-management tools
9. Routing
Routing is a travel plan used by a salesperson for making customer calls in a territory
Benefits of or Reasons for routing:
Reduction in travel time and cost
Improvement in territory coverage
Importance of routing depends on the application:
Nature of the product – Important for FMCG
Type of jobs of salespeople – Important for driver-cum-salesperson job, but creative selling job needs a flexible route plan
10. For more info please refer our PPT
Thanks.
