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Sales territory concept designing &Functions and Qualities of Sales
Executives
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Sales Territory:It is defined as a group of present and potentialcustomers assigned to an individual salesperson,a group of salesperson, a branch, a dealer, adistributor, or a marketing organization at a givenperiod of time.Territories are defined on the basis ofgeographical boundaries in many organizations.For a firm, a profitable sales territory is one whichhas a number of potential customers that arewilling to buy the category of products sold underthe firms brand name.
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Procedure for setting up salesterritories:Selecting a basic geographical control unit:
Commonly used units are postal codenumbers, areas, towns or cities. Sales territoriesare put together as consolidations of basicgeographical control units.
Determining the sales potential present in eachunit:Sales potential : Maximum possible salesopportunities open to a specific company sellinga good or service during a stated future periodto particular market segment.
Identify the present and prospective buyersrecisel in a unit and ascertain the units total
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Combining control units into tentativeterritories.:Assumption : No significant differences exist inthe physical and other characteristics of thecontrol units.Contiguous control units are combined intotentative territories having approx. same salespotential. Planner decides the number ofterritories.
Planner then decides the territory shape:Circle: Appropriate when accounts and prospectsare distributed evenly throughout the area.
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Adjusting for differences in coverage difficulty:Removal of unrealistic assumption that no differencesin the characteristics of geographical control unitsexist. Certain large cities, for instance, have greatersales potential than some states but time required tocontact the customers in city is less as compared to
the state.The optimum arrangement is reached whenincremental sales per dollar of selling expendituresare equated among all territories.
Differences in coverage difficulty representdifferences in work loads. When final adjustments forcoverage difficulties are made, sales territories havevarying sales potential and different sized work loads,but none exceeds the maximum desirable work loaddepending upon the capacity of the sales person.
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Introduction to Sales executive:The job of the sales executive is more action orientedand less planning oriented.Planning of sales executives cover short period andconcern near term personal selling objectives and hoeto attain them.The main concern of marketing management is thefuture and the main concern of sales management isthe present the here and now.
Sales managements plan typically are near to theaction point.Sales executives require a base of experiential andother knowledge, much of which may not be very
explicit; this base provide a feel for problems andossible solutions.
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Sales executives in performing their jobs must knowhow to:
Analyze information,Combine its significance with their own experientialknowledge and judgment,
Apply imagination in searching for alternative solutionsto problems,Predict the likely outcomes of different alternatives,Choose that alternative with the highest payoff.
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Nature of Sales ManagementPositions
Position Guide Sales ManagerPosition Guide District Sales Manager
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Position Guide Sales ManagerReporting relationship: The sales manager reports to
the vice-president of marketing.Job objective: The primary objective is to securemaximum volume of rupee sales through the effectivedevelopment and execution of sales programs andsales policies for all products sold by the division.Duties and responsibilities:1. Sales program.2. Organization.
3. Sales force management.4. Internal and external relations.5. Communications.6. Control.
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ManagerReporting relationship: The district sales manager
reports to the sales manager.Job objective: The primary objective is to securemaximum rupee sales of the companys products inthe sales district in accordance with establishedsales policies and sales programs, within the limitsof the sales budget.Duties and responsibilities:
1. Supervision of sales personnel.2. Control.3. Administration.
4. Communication.
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Q li i f ff i l
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Qualities of effective salesexecutives
Ability to define the positions exact functions andduties in relation to the goals the company shouldexpect to attain.
Ability to select and train capable subordinates andwillingness to delegate sufficient authority to enablethem to carry out assigned task with minimumsupervision.
Ability to utilize time efficiently. Ability to allocate sufficient time for thinking andplanning.
Ability to exercise skilled leadership.
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Relations with top management
Realizing the sales executives potential, however,depends largely upon relationship with topmanagement.Effective sales executives keep top managementinformed on important decisions and thedepartments plan and accomplishment.They transmit all ordinary reports promptly, and
special reports when appropriate.Their reports ensure that top management knows inbroad outline the problems encountered in sellingthe companys products, the way they are handled,
and the results accomplished.
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Relation with managers of other marketingactivities
Relation with product management.Relation with promotion management.Relation with pricing management.
Relation with distribution management.
f l
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Compensation patterns for salesexecutives
Straight Salary. Straight Commission. Salary plus Bonus. Salary plus Commission.
Salary plus commission plus bonus. Commission plus Bonus. Customer satisfaction and sales force
compensation. Team selling plan. Profit based commission.
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Thank U.