TIME AND SALES

TERRITORY
MANAGEMENT

S. M. Habibur Rahman Tipu | Sales

Present By:
Professional
 ESTABLISHING SALES
TERRITORY
 A sales territory is usually thought of as a
geographic area that contains customer
accounts (present and potential).

 The major emphasis should be on the

customers and prospects because a market is
made up of people and customers, not
geographic areas.
 ESTABLISHING SALES
TERRITORY
Reasons for establishing sales territories

 To facilitate the planning and controlling of the selling

function.
 To enhance market coverage.
 To keep selling costs at a minimum.
 To strengthen customer relations.
 To build a more effective SF.
 To evaluate the SF better.
 To coordinate selling with other marketing functions.
 ESTABLISHING SALES
TERRITORY
Reasons for not establishing sales territories
 Small companies with only a few people selling in a local
market.

 The available sales coverage is far below the sales

potential of the market.

 Companies introducing new product or with products that

everyone needs.

 Sales are made primarily on the basis of social contacts or

personal friendships.
 SETTING UP SALES
TERRITORY
1. Selecting a geographic control unit

 States, counties (region), zip code areas, cities,

metropolitan areas, trading areas.
 SETTING UP SALES
TERRITORY
2. Making an account analysis

 To identify accounts by name.

 To estimate the total sales potential for all accounts in

each geographic control unit.

 To classify each accounts according to its annual buying

potential.
 SETTING UP SALES
TERRITORY
3. Developing a salesperson workload analysis

A salesperson workload analysis is an estimate of the time

and effort required to cover each geographic control
unit.

 Numbers of account to be called on.

 The length of each call.

 The travel time required.

 The non-selling time.

 SETTING UP SALES
TERRITORY

4. Combine geographic control units into sales

territories

 To group adjacent control units into territories of

roughly equal sales potential.
 SETTING UP SALES
TERRITORY
5. Assigning sales personnel to territories

 Relative ability (product and industry knowledge,

persuasiveness and verbal ability).

 Potential sales effectiveness within the territory

(salesperson’s physical, social and cultural
characteristics).
 TIME MANAGEMENT
Scheduling the salesperson

Time allocation problems:

 Deciding which accounts to call on.

 Dividing time between selling and paperwork.

 Allocating time between present customers, prospective

customers and service calls.

 Allocating time to be spent with the overly demanding

customer or prospect.
 TIME MANAGEMENT
Scheduling the salesperson
To maximize the productive time:

 Avoid time traps.

 Allocate time in five areas (waiting and traveling, face-to-face

selling, service calls, administrative tasks and telephone
selling).

 Set weekly and daily goals.

 Manage time during sales calls.

 Evaluate.
Thank You !