Sales Territory

Territory Development & Time Management

Learning Goals
Understand the nature & scope of territory management

Identify the reasons for establishing and revising territories Describe the objective, criteria & basis for territory formation Outline a model of territory management List and discuss routing pattern and scheduling issues Explain the concept of time management and how it relates to sales territories

Assigning Territories
Many options available with sales managers Geography Market Potential Servicing Required Workload

Salespeople can cover their territories using one of several patterns

The Nature of Territory Management

Sales Representative Territory In charge - The scope of activities broadens
- Stops behaving like postman - Takes responsibility for making things happen - Sales territories are microcosms of a firms total market

Define - Territory Management

A sales territory is a configuration of current and potential accounts, for which responsibility has been assigned to a particular sales representative.

Salespeople responsible for individual accounts (account management)

as well as group of accounts (territory management)

Although geographic consideration play a role in setting boundaries, sales territories are primarily based on customer grouping

Defining Territory Management

Sales Territory
- Configuration of current & potential accounts
- Geographic consideration play role for setting boundary - Sales territories are primarily based on customer grouping

- Strict geographic boundaries for cigarette and

grocery and other FMCG products
(intensity of coverage, restocking frequency are overriding determinants)

High Tech Products

- Highly trained and specialized sales engineer can

freely roam the country, or even globe

Defining Territory Management

Geographic boundaries are created mainly for convenience but exempt selected accounts

Major Accounts or Key Accounts - Customers whose significance to the companys

business requires special attention, time and
experience

Salesperson high profile, more experienced

Senior Sales Representative, Key Account Manager

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Defining Territory Management

Direct Accounts - Large Accounts National Accounts - Need special arrangements Central buying office of national or multinational firms, exporters, Govt institutions, private organizations

Serviced by home office personnel or executives Supply/delivery

Pricing Credit Product design

Defining Territory Management

Territory Management

- Can be defined as planning, implementation and control of

salespersons' activities with the goal realizing the sales and profit potential of their assigned territories.

Scope of Territory Management

Salespersons bear the ultimate burden of managing parts of the customer base Managing their territories, salespeople manage themselves and their time, not the activities of other people No subordinates

Territory management involves

Best use of the time Supportive cooperative relationship with superiors, home office Territory manager MUST practice continuous professional development

Sales Territory Design

Sales territories represent basic accountability unit at lowest level Break down customer base of a firm Can be well serviced by individual salespersons One of the most important responsibilities of sales management Poor Territory Design (severe repercussions) Inadequate market coverage Unequal work load Lack of control over the sales force Depressed moral

Reasons For Establishing Territory

To maximize sales & profit To ensure/obtain thorough market coverage To improve customer relations To establish each salespersons responsibility To evaluate performance of each individual To enhance control To benefit both, salesperson and the company

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Reasons For Establishing Territory

Customer Related

Intensive market coverage

Provide excellent customer service Salesperson Related Foster enthusiasm Facilitate performance evaluation Managerial Enhance control Coordinate promotion

Produce higher sales Greater satisfaction

Lead to less turnover Rewards/incentive

Reduce expenses Give more

Defining Territory Management

Sales Rep As Territory Manager

Plans activity
- Establishes objectives - Estimates the resources needed

- Designs strategies (efficient utilization of resources to ach objective)

Implements
- Puts the plan into action

Control
- Feed back mechanism
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Dealing Territory Management Problems

Problems
Inadequate coverage
Inadequate size Revision Shifting accounts Direct accounts Inadequate support Territory jumping

Remedies
Split territories
Enlarge territories Prepare salespeople Revise territories Clarity at hiring Assist salespeople Eliminate practice

Overlapping territories
Selling cost variation High turnover

Minimize crossovers
Review cost figures Rectify the cause

Model Territory management

Analysis
Accounts load Acct Potential Service Require

Objectives
Sales share Profit targets New business targets
Strategies Call frequencies Product offering Pricing

Quotas Reporting procedures Review revision

Control

Tactics
Territory coverage Routing Scheduling

Calling prospects Servicing account Reporting Service Require

Implementation

Basis - Territory
Geography - Most frequently used - Simple Tend to adopt existing geographical boundaries country, cities

Potential
- Sales potential for entire company - Appropriate potential for average sales person - Average potential divided into total sales potential

Basis - Territory
Servicing Required
- Based on A,B,C,D category

- Key accounts

Workload
- Urban area Many territories - Rural area May be one territory

Workload - Basis

Methods of Designing Territories

Buildup Method
- To create units that offer sufficient sales challenges
- Actual & potential customers identified - Individual volumes assessed, call frequencies determined - Account mixes to satisfy adequate sales challenges &

adequate customer coverage

Breakdown Method
- Determining the number of territories by dividing projected
average sales per salesperson into overall sales forecast

Incremental method
- Establishing additional territories

Routing
Straight-line method

- Salesperson begins with a call at the outer perimeter of his territory and then works back to the home base.
Cloverleaf pattern - Routing method made up of four or more adjoining circular sequences Hopscotch pattern

- Hub and spoke like routing pattern in which salesperson

starts a calling sequence at outer end of a spoke and work back to the hub

Three Basic Routing Patterns

Straight-Line Pattern
First call Work back

Cloverleaf Pattern
Each leaf out and back the same day

Hopscotch Pattern

(1 = Downtown)

Daily Customer Plan Scheduling & Routing

Time Management
Structuring a salespersons time resources to maximize productive time and minimize wasted time

- For sales managers, managing their time as well as salespeople

is crucial - Apart from talent, time is most valuable resource of sales professionals

- To yield maximum benefit to the salesperson and the company, it has to be used wisely
- Individual achievement levels depend on how well territory manager utilizes time - Well-managed sales organization not only assign territories to sales representative but direct, guide and supervise them in time management

How Sales Rep Spends Time

How Sales Manager Spends Time

Time Management Skills

Planning
- Establish priorities for sales management activities
- Anticipate major task ahead - Spend more time on fire prevention than fire fighting - Establish deadlines for tasks and adhere to them - Flexible plans & schedules - Develop contingency plan

Time Management Skills

Discipline
- Self discipline, good working habits
- Do not procrastinate, do it today. Tomorrow. - Be alert to unnecessary interruptions
(casual visitors, unimportant phone calls)

- Be specific & brief while speaking or writing - Avoid request for special favor

Time Management Skills

Organization
- Based on task, prepare daily & weekly work schedule - Consolidated activities, one long field visit - Delegate tasks

- Concentrate on major task, not many at a time

- Identify the key problems, dont waste time on less important matters

Territory-Time Allocation
Seven basic factors to consider:
1. 2. 3. 4. 5. 6. 7. Number of accounts in the territory Number of sales calls made on customers Time required for each sales call Frequency of customer sales calls Travel time around the territory Non-selling time Return on time invested

Design - Territory
Sales Representatives
several territories combined into

Supervisors Field Managers

several supervisors into

Area/District Sales Managers

several area/district into

Regional Sales Managers

2 4 regions into

National Sales Manager/Director

Supervisor/ F. Managers Territory

S.No

Sales Reps

Total

Avg Sales

1
2 3 4 5 6

Saleem Akhtar
Aslam Ali Syed Tariq Haider Haider Zaidi Jamal Mehmood Rashid Ahmed Total Territory

121
118 130 111 90 55 625

168
170 170 125 130 110 873

218
198 150 225 270 275 1336

210
250 170 250 225 255 1360

717
736 620 711 715 695 4194

790,000.00
750,000.00 995,000.00 685,000.00 555,000.00 425,000.00 4,200,000.00

Area Sales Managers Territory

S.No
1

Supervisors
Amjad Husain

Cont %
26%

A
625

B
873

C
1336

D
1360

Total
4194

Sales
4,200,000.00

2
3 4

Rahat Ali
Wahid Jalil Zeeshan Qamar Total Territory

24%
28% 22.%

610
655 585 2475

875
810 775 3333

1350
1295 1310 5291

1310
1325 1295 5290

4145
4085 4265 16689

4,000,000.00
4,500,000.00 3,500,000.00 16,2 million

Regional Sales Managers Territory

S.No 1 2 3 4

ASMs Sabir Ali Saqib Ali Wajid Jamil Nasir Karim

Cont % 29% 26.% 24% 21%

A 2475 2350 2230 1985 9040

B 3333 3125 2810 2775 12043

C 5291 4975 4725 4825

D 5290 4950 4715 4895

Total 16689 15400 14480 14480

Sales 16.2 milion 14.8 million 13.5 million 11.5 million 56,0 million

Regional Total

19816 19850 61049

15% 20%

32%

33%

Sales Managers Territory

RSMs
South North

Contribution
46% 54%

A
9040 9888 18928

B
12043 12790 24833

Total
60749 63468

Sales
56.0 million 64.8 million 120,8 milli

19816 19850 19990 20800

National Total

39806 40650 124217

15% 20%

32%

33%

Sales Productivity
Challenges
Selling cost has gone up faster than sales volumes
Sales productivity has suffered a lot individually, collectively Pressure of competition, purchases, distribution is increasing Sales force is selling less, senior executives are looking to the sales organizations to improve their performance Major reason of decline in sales force productivity is that sometimes they spend too much time on non selling activities

- Administrative tasks
- Internal Meetings - Travel

Sales Productivity
Challenges
Sales automation has played important role to address the productivity issue
- Improved selling efficiency & productivity - Reduced administrative tasks - Improved customer services - More accessible information - Better internal communication

Prospect management , Activity reporting system, Daily time management system, A reference account management system

Travel Plan ?
Base Town is Karachi AKUH,LNH, Midcity + GPs
Business Contribution is 50%

Up country towns are - Hyderabad - Tando Adam - Tando Jam - Mirpur Khas - Badin - Kotri

Business contribution is 50%

THANKS