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TERRITORY CONTROL

TERRITORY CONTROL. SETTING GOALS. Specific and measurable reachable with stretch time - based. GOALS. performance eg. sales revenue, no.of m/cs activity eg. no.of calls made per day conversion eg. sales effected/call. ALLOCATING RESOURCES. marketing literature,brochures,catalogues

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TERRITORY CONTROL

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  1. TERRITORY CONTROL

  2. SETTING GOALS • Specific and measurable • reachable with stretch • time - based

  3. GOALS • performance eg. sales revenue, no.of m/cs • activity eg. no.of calls made per day • conversion eg. sales effected/call

  4. ALLOCATING RESOURCES • marketing literature,brochures,catalogues • discretionary rebates/budgets • time

  5. 80/20 RULE • 80 % sales comes from 20% customers • 80 % problems comes from 20% of ypur customers • 80 % of overdue outstandings comes from 20% of your customers • 80 % of your time is taken by 20% of your customers

  6. Territory time allocation • No. of accounts in the territory • No. of sales calls made on customers • Time required for each sales calls • Frequency of customer sales calls • Travel time around territory • Non-selling time • Return on time invested

  7. Managing territory • Map the course – where to go, outlets, customers to visit, visit objective • Plan the route – to cover the points you want to visit with the least amount of time, energy and money • Set time targets – amount of time spent per customer/outlet/call

  8. Managing time Knowing how the time is spent. Keep a time log and analyse the time log later. Where can you save time?

  9. Itinerary Planning • List of potential outlets/customers • Classify outlets/customers • Determine call frequencies by volume/profit • Estimate the time to be allotted on each call

  10. Calculation of selling time Total available time Less travel time between visits Less meal breaks Less time for non-selling activities (prospecting, planning, telephoning, reporting)

  11. Check itinerary plan each day • Minimum travel time between calls • Customer availability – best time to see that customer • Inform customers in advance of your visit • Try to develop a ‘contact person’ at key accounts to look after your interests

  12. A B C ClassificationA 70 - 80 %B 10 - 25%C 5 - 10% This is classifying your customers on the basis of a) revenues b) profits

  13. DETERMINING CALL FREQUENCIES • cost/call • cost/customer

  14. SALES PRODUCTIVITY INDICES • Cost / m/c sold • sales / call • sales / customer

  15. OUTSTANDINGS MANAGEMENT Total outstandings overdue outstandings Every lac of outstandings uncollected incurs a loss of Rs50/- per day for the company

  16. SCHEDULING AND ROUTING • Straight line pattern • clover leaf pattern • major city pattern

  17. RETURN ON TIME INVESTED(ROTI) Fixed costs Salary Rs.10000 p.m. Variable costs Tpt + Expenses Rs. 10000 p.m. Total Expenses Rs. 20000 p.m. Annual Expenses Rs.2,40,000 Price of an item Rs.20000 Margin@30% Rs.6000

  18. Breakeven = 2,40.000/6000 = 40 m/cs It is only after you sell the 41st m/c that you are earning for the company Therefore ROTI = Profit generated /time spent on a customer

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