Upload
dilip-pawara
View
148
Download
1
Embed Size (px)
Citation preview
1
The Selling The Selling Functions- Functions- Territory Territory
Management & Management & Time Time
ManagementManagementDr. Neeraj DixitDr. Neeraj Dixit
Associate ProfessorAssociate ProfessorIES Management College, MumbaiIES Management College, Mumbai
2
OverviewOverview●Salespeople are not only responsible for individual customers (account management) but they are also responsible for a group of accounts (territory management)●A sales manager must learn to use
time efficiently and must provide guidance to salespeople so that they will also make the most productive use of their time.●Establishment of sales territories is the starting point for this critical management activity.
3
OverviewOverview• Ideally Sales Territories are structured in a
way that facilitates planning and control of the sales effort.
• Improved sales force control is achieved by setting quotas and other sales objectives on a territory-by-territory basis and comparing actual performance against these targets.
• Morale is improved when salespeople receive credit for the results.
4
Sales Territory-DefinitionSales Territory-DefinitionSales Territory is a configuration of current
& potential accounts for which responsibility has been assigned to a particular sales representative.
Territory Management can be defined as the planning, implementation and control of salespersons activities with the goal of realizing the sales and profit potentials of their assigned territories.
5
Territory Management ChecklistTerritory Management Checklist
A. Analyze a territoryB. PrepareC. PresentD. ServiceE. Schedule for best use of timeF. Coordinate with headquartersG. Maintain personal development
6
A. Analyze a territoryA. Analyze a territory1. Maintain constant analysis of territory with sales
supervisor to determine the followingA. When & Where new accounts are neededB. What must be done to meet volume & dealer development objectives
2. Carefully select potential new accounts, based on the following considerations:A. CharacterB. CapacityC. CreditD. Competition
3. Continually evaluate current accounts to ensure that you have the best possible accounts.
4. Allocate received territory potential and quota to current & prospective accounts.
5. Set short and long range objectives for each account to achieve territory quotas.
7
B. PrepareB. Prepare1. Develop new account presentation
based on your research of account sales and operating activity.
2. Work closely with your sales supervisor to develop the basic proposal(Quotation).
3. Arrange meetings with all account personal concerned
8
C. PresentC. Present
1. Bring out all the advantages of carrying and using your products.
2. Explain cooperative advertising or other programs.
3. Explain the terms and extent of your company’s credit policies.
4. Sell planned programs tailored for the account.5. Make the recommended opening order for the
products and merchandising materials.6. Secure the order and arrange for follow-up on the
delivery and display of products.
9
D. ServiceD. Service
1. Train personnel to sell or use the products.
2. Set up & assist continuing advertising or other “use” plans.
3. Arrange for adequate display or storage.
4. Follow through with extra attention for the first ninety days.
10
E. Schedule for best use of timeE. Schedule for best use of time1. Organize time, work, & materials to achieve the maximum time
for selling.A. Analyze your territory to establish the frequency of calls for all accounts, based on the importance of account classification and your allocation of potential to each.B. Apportion the time you will devote to each account, based on potential. Work with the Sales supervisor to arrive at the most efficient coverage.C. Establish routing patterns to achieve maximum coverage with a minimum of Call-backs.D. Establish progressive objectives for each account to secure continuing development.E. Maintain a file on each account including the following data:1. Names of personnel2. Buying History3. Progressive Objectives4. Merchandising ideas
2. Perform nonselling tasks during nonselling hours.A. Fill out reports & ordersB. Plan calls & promotions
11
F. Coordinate with F. Coordinate with headquartersheadquarters
1. Apply Company policies, principles & procedures to your everyday operations.
2. Submit accurate reports -on time3. Review your performance with your sales supervisor
and set plans for improvement.4. Work with your sales supervisors to establish account
potentials5. Help your management direct field selling efforts
effectivelyA. Keep your sales supervisor informed of territorial trends, productwiseB. Keep your sales supervisor posted on account attitudesC. Keep your sales supervisor informed of competitive promotions or of your local promotions that proved effective
6. Suggest areas of improvement in the overall operation.
12
G. Maintain personal developmentG. Maintain personal development
1. Maintain good personal appearance and deportment.
2. Maintain car appearance and upkeep3. Keep informed on industry trends, know
what the competition is doing.4. Keep up to date on product knowledge.5. Be constantly on the lookout for new
sales and merchandising ideas you can adapt to your job.
13
Territory Management ChecklistTerritory Management ChecklistA. Analyze a territory 1. Maintain constant analysis of territory with sales supervisor to determine the following
A. When & Where new accounts are neededB. What must be done to meet volume & dealer development objectives
2. Carefully select potential new accounts, based on the following considerations:A. CharacterB. CapacityC. CreditD. Competition
3. Continually evaluate current accounts to ensure that you have the best possible accounts.4. Allocate received territory potential and quota to current & prospective accounts.5. Set short and long range objectives for each account to achieve territory quotas.
B. Prepare 1. Develop new account presentation based on your research of account sales and operating activity.2. Work closely with your sales supervisor to develop the basic proposal.3. Arrange meetings with all account personal concerned
C. Present 1. Bring out all the advantages of carrying and using your products.2. Explain cooperative advertising or other programs.3. Explain the terms and extent of your company’s credit policies.4. Sell planned programs tailored for the account.5. Make the recommended opening order for the products and merchandising materials.6. Secure the order and arrange for follow-up on the delivery and display of products.
D. Service 1. Train personnel to sell or use the products.2. Set up & assist continuing advertising or other “use” plans.3. Arrange for adequate display or storage.4. Follow through with extra attention for the first ninety days.
E. Schedule for best use of time 1. Organize time, work, & materials to achieve the maximum time for selling.A. Analyze your territory to establish the frequency of calls for all accounts, based on the importance of account
classification and your allocation of potential to each.B. Apportion the time you will devote to each account, based on potential. Work with the Sales supervisor to arrive at the
most efficient coverage.C. Establish routing patterns to achieve maximum coverage with a minimum of Call-backs.D. Establish progressive objectives for each account to secure continuing development.E. Maintain a file on each account including the following data:1. Names of personnel2. Buying History3. Progressive Objectives4. Merchandising ideas
2. Perform nonselling tasks during nonselling hours.A. Fill out reports & ordersB. Plan calls & promotions
F. Coordinate with headquarters 1. Apply Company policies, principles & procedures to your everyday operations.2. Submit accurate reports -on time3. Review your performance with your sales supervisor and set plans for improvement.4. Work with your sales supervisors to establish account potentials5. Help your management direct field selling efforts effectively
A. Keep your sales supervisor informed of territorial trends, productwiseB. Keep your sales supervisor posted on account attitudesC. Keep your sales supervisor informed of competitive promotions or of your local promotions that proved effective
6. Suggest areas of improvement in the overall operation
G. Maintain personal development 1. Maintain good personal appearance and deportment.2. Maintain car appearance and upkeep3. Keep informed on industry trends, know what the competition is doing.4. Keep up to date on product knowledge.5. Be constantly on the lookout for new sales and merchandising ideas you can adapt to your job.
14
Reasons & Benefits of Establishing Reasons & Benefits of Establishing TerritoriesTerritories..
Companies form sales territories mainly to maximize sales & profits. Sales territories make this goal more achievable because they reduce it to reasonable proportions.
Individual Salespeople then can make it their personal mission to improve territory yield.
15
Reasons & Benefits of Establishing TerritoriesReasons & Benefits of Establishing TerritoriesReasons Benefits
Customer Related
Provide intensive market coverage Produce higher sales
Produce greater satisfaction Provide excellent customer service
Salesperson Related Foster enthusiasm Lead to less turnover Offer rewards related to effort Facilitate performance evaluation
Managerial
Enhance Control Reduce expenses Give more “ bang for the buck”
Coordinate Promotion
16
Territory DevelopmentTerritory Development• The ideal goal in territorial design is to
have all districts equal in both sales potential and the sales rep’s workload.
• When sales potentials are equal it is easier to evaluate & compare sales rep’s performances.
• Equal opportunities also reduce disputes between management & the sales force.
• However achieving both objectives is an ideal but usually unattainable goal.
17
Procedure for designing sales Procedure for designing sales territoriesterritories
Select a control unit
Determine Location & Potential of Customers
Determine basic territories
Assign salespeople
to territories
Set upTerritorial coverage
plans
Evaluate effectiveness
of design
18
Determine basic territoriesDetermine basic territoriesBuild up method.Build up method.
19
20
Determine basic territoriesDetermine basic territoriesBreakdown method.Breakdown method.
21
Time ManagementTime Management For most Sales Managers managing
their time & that of their salespeople is one of their most crucial tasks.Apart from talent, time is sales professional’s most valuable resource. To yield maximum benefit to both the salesperson & the company, it has to be used wisely.
22
Assessing Time utilizationAssessing Time utilization
• Time Management at the territorial level has its objective the structuring of a salesperson’s scarce time resources in such a way as to maximize productive time and minimize wasted time.
• Around only half of a salesperson’s time is spent on selling
• The figures below show how salespeople and sales managers actually spent their time.
23
24
Assessing Time utilizationAssessing Time utilization To develop effective time
management strategies, it is useful to classify alternative time uses with regard to their productivity as has been done in the next figure
25
Taxonomy of Time UsesTaxonomy of Time Uses Uses of a salesperson’s Classification
time
Time Spent in:Customer Contact
PlanningSupport
Productive
Time spent in:Travel
WaitingUnproductive
26
Assessing Time utilizationAssessing Time utilization• Although maximization of customer contact
time may be the most efficient use of a salesperson’s time, it probably does not represent the most productive application of available time. The latter comes only if profitability is taken into account.
• Therefore the following formula has been suggested
ROTI = GM/CTIWhere ROTI = return on time invested
GM = gross margin CTI = cost of time invested
Assessing Time utilizationAssessing Time utilization• Gross Margin is calculated by deducting
manufacturing costs from sales revenues.• CTI reflects only a Sales Rep’s direct costs: salary,
bonus, Travel & Entertainment expenses.• ROTI can be determined on an account-by-
account basis so that those with the highest ROTI can be favored in the allocation of a territory manager’s time.
• Territory time management can also deal with time distribution between current account coverage & new account development
27
28
Time Management SkillsTime Management Skills Three keys to managing time well are
1.Planning2.Discipline3.Organization
29
PlanningPlanning1. Establish priorities for sales
management activities2. Anticipate major tasks that will
come up in the future3. Establish deadlines for
management tasks4. Make sure plans & schedules are
flexible, Develop contingency plans.
30
DisciplineDiscipline1.Do not procrastinate2.Be alert to unnecessary
interruptions.3. Learn to be brief4. Avoid requests for special favors.
31
OrganizationOrganization1. Consolidate activities whenever
possible.2. Delegate tasks to subordinates.3. Concentrate efforts on major tasks
whenever possible4. Identify the key problems.