sdm-territory & quota.pptx

8/14/2019 sdm-territory & quota.pptx

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DESIGNING TERRITORY AND

ALLOCATING SALES


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What is a territory?

Territories are defined on the basis of

geographical boundaries in many

organizations.


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A sales territory is defined as a group of

present and potential customers assigned to

an individual salesperson, a group of

salesperson, a branch, a dealer, a distributor

or a marketing organization at a given period

of time.


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According to still and cundiff,

A sales territory is a grouping of customers

and prospects assigned to an individual

salesperson.

According to Maynard and Davis, A sales territory is the basic unit of sales

planning and control.


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According to B.R.Cranfield,

A sales territory is a geographical area

containing the present and potential

customers who can be effectively and

economically served by a single sales person,

branch, dealer or distributor.


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Analysis of the above definitions indicates

that

-A sales territory is a geographical area

-That identifies and serves a category & a

certain number of customers.

A sales territory helps in better sales

planning and effective operational control.


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Management of Territorial Coverage

It means:How salesperson should cover the assigned

sales territory

It includes three tasksfor a sales manager:

Planning efficientroutesfor salespeople

Schedulingsalespeoplestime

Using time-management tools

i


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Routing

Routing is a travel planused by a salesperson for making

customer calls in a territory Benefitsof or Reasonsfor routing:

Reduction in travel time and cost

Improvement in territory coverage Importance of routing dependson the application:

Nature of the productImportant for FMCG

Type of jobs of salespeople Important for driver-cum-salesperson job, but creative selling job needs a

flexible route plan


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Procedure for Setting up a Routing Plan

Identifycurrent and prospective customers on a territory map

Classify each customer into high, medium, or low sales

potential

Decide call frequencyfor each class of customers

Buildroute plan around locations of high potential customers

Computerised mathematical modelsare developed

Commonly used routing patternsare:

B

Circular

B

Clover Leaf

Base(B)

C5

C1

C4 C3 C2

Straight line / Hopscotch

h d li


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Scheduling

Scheduling is planning a salespersonsvisit time to customers.

It deals with time allocation issue

How to allocate salespersonstime?

Sales manager communicates to salesperson major

activities and time allocation for each activity

Salesperson records actual time spent on various activitiesfor 2 weeks

Sales manager and salesperson discuss and decide how to

increase time spent on major activities

Companies specify call normsfor current customers, based onsales and profit potentials, and also for prospective customers


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Time Management Tools

To help outside salespeople* to manage their time

efficiently and productively, the tools available are: High-tech equipment like laptop computers and

cellular phones

Inside salespeople to provide clerical support,

technical support, and for prospecting, and qualifying,as they remain within the company

Outside salespeople can then spend more time

getting more orders & building relationships with

major customers

*Outside salespeople travel outside the organisation


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sdm-territory & quota.pptx

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