2. 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.
3. 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.
4. 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.
5. SETTING UP SALES
TERRITORY
1. Selecting a geographic control unit
States, counties (region), zip code areas, cities,
metropolitan areas, trading areas.
6. 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.
7. 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.
8. SETTING UP SALES
TERRITORY
4. Combine geographic control units into sales
territories
To group adjacent control units into territories of
roughly equal sales potential.
9. 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).
10. 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.
11. 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.
