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Chapter 14

Time, Territory, and Self Management: Keys To Success

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14-1

Reasons Companies Develop and Use Sales Territories

To obtain thorough coverage of the market.

To establish each salesperson's responsibilities.


To evaluate performance. To improve customer relations.

To reduce sales expense.


To allow better matching of salesperson to customers needs. To benefit both salespeople and the company.

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14-2

Elements of Time and Territory Management for the Salesperson


Account analysis Set account objectives and sales quotas

Salespersons territorys sales quota

Territory-time allocation

Territory and customer evaluation


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Scheduling and routing

Customer sales planning


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Undifferentiated Selling Approach

Single-selling approach

Target accounts

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14-4

Account Segmentation Based on Yearly Sales


Yearly Sales (actual or potential)
over $200,000 $75,000-200,000 $25,000-75,000 $1,000-25,000

Customer Size
Extra large Large Medium Small

Number of Accounts
100 500 1,000 1,400

Percent
3.3% 16.6 33.3 46.6

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Basic Segmentation of Accounts


Customers
Account Classification Sales To Date Potential Sales Prospect Potential Sales

Extra large Large Medium Small


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14-6

Account Segmentation Approach


Multiple Selling Strategies Target Accounts
Extra Large

1
Large Medium

2
Medium
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14-7

Multivariable Account Segmentation


Product
C
Retailer A B

Types of Accounts

Wholesaler Government
$1,000 $25,000 $75,000 $200,000+ to to to $25,000 $75,000 $200,000

Customer Sales Volume (ELMS)


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14-8

Account Time Allocation by Salesperson


Calls per Calls per Number of Month Year Accounts 1 1 1 1* Total 12 12 12 4 2 28 56 78 164

Customer Size Extra large Large Medium Small

Number of Calls per Year 24 336 672 312 1,344

*every 3 months
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14-9

Daily Customer Plan


Sales Calls Hours
7:00-8:00 A.M.

Customers
Stop by office: pick up Jones Hardware order Travel Zip Grocery Ling Television Corp. Ling Television Corp. Lunch and delivery to Jones Hardware Texas Instruments

Prospects

Service Customers

8:00-9:00 9:00-10:00 10:00-11:00 11:00-12:00 12:00-1:00 P.M.


1:00-2:00 2:00-3:00 3:00-4:00 4:00-5:00 5:00-6:00
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Ace Equipment Travel Trailor Mfg. Plan next daydo paperwork


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14-10

Location of Accounts and Sequence of Calls


4. Ling Television
66 270

3.

Zip Grocery

6.
Texas Instruments

5.

Jones Hardware
35

40 62

8.
Trailor Mfg. Home

7.
Ace Equipment

40

1, 9.
Oklahoma City

62

35 62

2.
Distribution Center

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14-11

Weekly Route Report


Todays Date: December 16 Date December 26 (Monday) December 27 (Tuesday) December 28 (Wednesday) December 29 (Thursday) December 30 (Friday)
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City Dallas Dallas Waco Fort Worth Dallas

For week beginning December 26 Location Home Home Holiday Inn/South Home Home
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14-12A

Three Basic Routing Patterns


Straight-Line Pattern

First call
c

Work back

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14-12B

Three Basic Routing Patterns


Cloverleaf Pattern
c c c c c c c

c
c

c c

Base
c c c c c c

c
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c
c c

Each leaf out and back the same day


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14-12C

Three Basic Routing Patterns


Major-City Pattern

2
1 4
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3
1 = Downtown

5
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14-13

Example of Net Sales by Customer and Call Frequency


Brown (GP, Houston) Peterson Gilley Bruce Heaton (Pediatrics, (GP, (GP, (GP, Texas Galveston) Galveston) Galveston) City)

Calls Month Year-to-date Last call Net sales in dollars Current month Year-to-date This year Last year Entire last year
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2 8 4/20
60 350 300 2,000

1 4 4/18
0 200 275 1,000

1 4 4/18
21 75 125 300

0 4 3/10
0 1,000 750 1,000

2 9 4/19
500 2,000 1,750 5,000

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14-14

Customer Sales Potential


Customer
A B C D E F G H
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Sales Potential
$4,000 3,000 6,000 2,000 2,000 8,000 4,000 6,000

Customer
I J K L M N O P

Sales Potential
$ 1,000 1,000 10,000 12,000 8,000 9,000 8,000 10,000

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14-15

A Partial Map of Your Sales Territory


L E F
K B C
Your favorite restaurant

H
N

G
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A
Start
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14-16

Distribution of Sales
Customer Classification Percentage of Customers Percentage of Total Sales Volume

A B C D E

10 20 50 10 10
100

65 20 10 3 2
100

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McGraw-Hill Companies, Inc.,

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