1 / 19

Effective Design of Sales Territories for Optimal Market Coverage

Designing territories is vital for maximizing sales efficiency. A territory comprises the current and potential customers assigned to a salesperson within a geographic area. Benefits include improved customer relations, increased morale, and reduced selling costs. Territories are unnecessary when contacts are infrequent or require significant prospecting. Methods for designing territories include the buildup and breakdown techniques. Continuous assessment ensures optimal performance and coverage, enhancing sales productivity and market reach.

mae
Télécharger la présentation

Effective Design of Sales Territories for Optimal Market Coverage

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CHAPTER 11 Designing Territories

  2. WHAT IS A TERRITORY? • Number of present and potential customers located within a geographic area and assigned to a sales person

  3. BENEFITS OF TERRITORIES • Ensures proper market coverage • Improves customer relations • Increases morale and productivity • Control and evaluation • Reduces selling costs

  4. WHEN ARE TERRITORIES UNNECESSARY? • When contacts are infrequent • When a great deal of prospecting is involved

  5. DESIGNING TERRITORIES • The ideal situation: have all districts equal in sales potential and work load

  6. DESIGNING TERRITORIES • Select a control unit for boundaries • Analyze workload • Determine territories based on sales potential and call patterns • Assign people to territories • Establish a coverage plan • Ongoing assessment

  7. CONTROL UNITS • States • Counties and Parishes • Cities and Zip Codes • Metropolitan Statistical Areas • Trading Areas

  8. ANALYZING WORKLOADS • Nature of the job • Nature of the product • Stage of market development • Intensity of market coverage • Competition • Market characteristics

  9. DETERMINE BASIC TERRITORIES • Buildup Method • Breakdown Method

  10. BUILDUP METHOD • Determine number, location, and size of clients • Determine desirable call patterns • Determine number of accounts to assign to each sales person • Draw boundaries

  11. BREAKDOWN METHOD • Determine sales potential • Determine volume expected from each person • Determine number of territories needed • Tentatively establish territories (based on volume) • Modify as required

  12. BREAKDOWN METHOD • EXAMPLE TO DETERMINE NUMBER OF TERRITORIES: If total potential is $20 million and average volume per person is $500,000 then 40 sales reps are required in 40 territories

  13. BREAKDOWN METHOD • EXAMPLE TO DETERMINE TERRITORY VOLUME: With 40 reps, we should establish territories with 2.5% of the company’s total sales potential (100%/40 = 2.5)

  14. USING SOFTWARE • Save time • Costly • Some programs can’t adjust for physical barriers

  15. FROM THE INTERNET... • Software Examples: • Tactician 4 <http://www.tactician.com/product/prd002.htm> • Territory Mapper <http://www.territorymapper.com/>

  16. ASSIGNING PEOPLE TO TERRITORIES • Match characteristics • Overlapping territories • Personnel issues when revising territories

  17. TERRITORIAL COVERAGE • Routing • Scheduling

  18. ONGOING ASSESSMENT • Sales and costs studies

  19. FROM THE TEXT... • Read everything from Chapter 11 except “Simulating New Territories” on pages 530 to 531.

More Related