Transcript ppt pres - Blair McMurchy

Chapter 14
Time, Territory, and
Self Management:
Keys To Success
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© McGraw-Hill Companies, Inc.,
14-1
Reasons Companies Develop
and Use 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.
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© McGraw-Hill Companies, Inc.,
14-2
Elements of Time and Territory
Management for the Salesperson
Salesperson’s
territory’s
sales quota
Account analysis
Set account
objectives and
sales quotas
Territory-time
allocation
Territory and
customer
evaluation
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Scheduling and
routing
Customer sales
planning
© McGraw-Hill Companies, Inc.,
14-3
Undifferentiated Selling Approach
Single-selling
approach
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Target accounts
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Account Segmentation
Based on Yearly Sales
Customer
Size
Yearly Sales
(actual or
potential)
Extra large
Large
Medium
Small
over $200,000
$75,000-200,000
$25,000-75,000
$1,000-25,000
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Number of
Accounts
100
500
1,000
1,400
Percent
3.3%
16.6
33.3
46.6
© McGraw-Hill Companies, Inc.,
14-5
Basic Segmentation of Accounts
Customers
Account
Classification
Sales
To Date
Potential
Sales
Prospect
Potential
Sales
Extra large
Large
Medium
Small
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Account Segmentation Approach
Multiple Selling Strategies
Target Accounts
Extra Large
1
Large
Medium
2
Medium
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Multivariable Account Segmentation
Product
A
B
C
Retailer
Types of
Accounts
Wholesaler
Government
$1,000 $25,000 $75,000 $200,000+
to
to
to
$25,000 $75,000 $200,000
Customer Sales Volume (ELMS)
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Account Time Allocation by
Salesperson
Customer
Size
Calls per Calls per Number of
Month
Year
Accounts
=
Number of
Calls per Year
Extra large
1
12
2
24
Large
1
12
28
336
Medium
1
12
56
672
Small
1*
4
78
312
164
1,344
Total
*every 3 months
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© McGraw-Hill Companies, Inc.,
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Daily Customer Plan
Sales Calls
Hours
7:00-8:00 A.M.
8:00-9:00
9:00-10:00
10:00-11:00
11:00-12:00
12:00-1:00 P.M.
1:00-2:00
2:00-3:00
3:00-4:00
4:00-5:00
5:00-6:00
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Customers
Prospects
Service
Customers
Stop by office: pick up
Jones Hardware order
Travel
Zip Grocery
Ling Television Corp.
Ling Television Corp.
Lunch and delivery to
Jones Hardware
Texas Instruments
Ace Equipment
Travel
Trailor Mfg.
Plan next day—do paperwork
© McGraw-Hill Companies, Inc.,
14-10
Location of Accounts
and Sequence of Calls
3.
4. Ling Television
66
270
6.
Texas
Instruments
5.
Zip
Grocery
Jones Hardware
35
40
8.
62
7.
Trailor Mfg.
Home
40
Ace Equipment
1, 9.
Oklahoma City
62
35
62
2.
Distribution
Center
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© McGraw-Hill Companies, Inc.,
14-11
Weekly Route Report
Today’s Date:
December 16
Date
City
For week beginning
December 26
Location
December 26 (Monday)
Dallas
Home
December 27 (Tuesday)
Dallas
Home
December 28 (Wednesday)
Waco
Holiday Inn/South
December 29 (Thursday)
Fort Worth
Home
December 30 (Friday)
Dallas
Home
Irwin/McGraw-Hill
© McGraw-Hill Companies, Inc.,
14-12A
Three Basic Routing Patterns
Straight-Line Pattern
First call
c
c
c
c
Work back
Irwin/McGraw-Hill
© McGraw-Hill Companies, Inc.,
14-12B
Three Basic Routing Patterns
Cloverleaf Pattern
c
c
c
c
c
c
c
c
c
c
c
c
c
c
Base
c
c
c
c
c
c
Irwin/McGraw-Hill
c
c
c
c
Each leaf out and
back the same day
© McGraw-Hill Companies, Inc.,
14-12C
Three Basic Routing Patterns
Major-City Pattern
2
3
1
4
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1 = Downtown
5
© McGraw-Hill Companies, Inc.,
14-13
Example of Net Sales
by Customer and Call Frequency
Brown
(GP,
Houston)
Calls
Month
Year-to-date
Last call
Net sales in dollars
Current month
Year-to-date
This year
Last year
Entire last year
Irwin/McGraw-Hill
Peterson
Gilley
Bruce
Heaton
(Pediatrics, (GP,
(GP,
(GP, Texas
Galveston) Galveston) Galveston) City)
2
8
4/20
1
4
4/18
1
4
4/18
0
4
3/10
2
9
4/19
60
0
21
0
500
350
300
2,000
200
275
1,000
75
125
300
1,000
750
1,000
2,000
1,750
5,000
© McGraw-Hill Companies, Inc.,
14-14
Customer Sales Potential
Customer
Sales
Potential
Customer
Sales
Potential
A
B
C
D
E
F
G
H
$4,000
3,000
6,000
2,000
2,000
8,000
4,000
6,000
I
J
K
L
M
N
O
P
$ 1,000
1,000
10,000
12,000
8,000
9,000
8,000
10,000
Irwin/McGraw-Hill
© McGraw-Hill Companies, Inc.,
14-15
A Partial Map of Your Sales Territory
L
E
H
F
K
B
O
M
N
R
J
C
Your
favorite
restaurant
D
G
Irwin/McGraw-Hill
P
I
A
Start
© McGraw-Hill Companies, Inc.,
14-16
Distribution of Sales
Customer
Classification
A
B
C
D
E
Irwin/McGraw-Hill
Percentage
of Customers
Percentage of Total
Sales Volume
10
20
50
10
10
65
20
10
3
2
100
100
© McGraw-Hill Companies, Inc.,