-
Comprises a group of customers or a geographic area assigned to a salesperson.
Sales territory
-
7 reasons why 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 customer's needs
- - To benefit both salespeople and the company
-
4 reasons a company may not want territories:
- - Company is too small/new and does not know enough about market
- - Restricts salespeople and may decrease motivation
- - Management may not know how
- - Personal friendships may be basis for attracting customers
-
What is the basis for setting quota?
Customers and product type
-
A continuous process of planning, executing, and evaluating the sales and service provided to customers.
Time and Territory Management (TTM)
-
First step in TTM:
Set goals or quotas
-
Identifying accounts and their varying levels of sales potential.
Account analysis
-
2 general approaches to account analysis:
- - Undifferentiated selling approach
- - Account segmentation approach
-
Selling strategies are designed and applied equally to all accounts.
Undifferentiated selling approach
-
Approach that recognizes that their territories contain accounts with hetergeneous needs and differing characteristics that require different selling strategies.
Account segmentation approach
-
3 methods of segmenting accounts:
- - Key account
- - Unprofitable account
- - Regular account
-
Break-even point (in dollars) =
Salesperson's fixed costs/GP%
-
7 basic factors to consider in time allocation:
- - # of accounts in the territory
- - # of sales calls made on the customers
- - Time required for each sales call
- - Frequency of customer sales calls
- - Travel time around the territory
- - Nonselling time
- - Return on time invested
-
Break-even volume per hour =
Cost per hour / GP %
-
6 types of changes that occur in the transition from salesperson to sales manager:
- - Perspective
- - Goals
- - Responsibilities
- - Satisfaction
- - Job skill requiremnets
- - Relationships
-
7 Stages of being promoted:
- - Immobilization
- - Minimizing or denial of change
- - Depression
- - Acceptance of reality
- - Testing
- - Searching for meanings
- - Internalization
-
Problems new managers face:
- - Lack of preparation
- - Expectation to immediately step into job
- - Lacks immediate peer group
-
Key to making a successful job transition.
Learning attitude; being willing to learn, change, adapt, and seek help when needed.
-
Salary for management determined by (4)...
- - Annual sales volume of units managed
- - # of salespeople supervised
- - Length of experience in sales
- - Annual sales volume of the firm
-
Attainment of sales force goals in an effective and efficient manner through planning, staffing, training, directing, and evaluating organizational resources.
Sales management
-
Main goal of sales manager.
To achieve the levels of sales volume, profits, and sales growth desired by higher levels of management.
-
5 sales management functions:
- - Planning
- - Staffing
- - Training
- - Directing
- - Evaluating
-
Who develops sales goals for the company?
Corporate management, including national sales manager
-
Weaker form of basing sales forecasting.
Percentage of sales
-
Good form of basing sales forecasting.
Objective task method
|
|
