15-1

Chapter
15
Time, Territory, and Self-
Management: Keys to Success

Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill/Irwin
Chapter
15
15-3
 Chapter
15-4
15
Main Topics

The Tree of Business Life: Time

Customers Form Sales Territories
Elements of Time and Territory Management
 The Tree of Business Life: Time
T Guided by The Golden
Se
al

T T Rule:
Rule
hic

T T TT r vi
ce
 View your territory as a business
Et

T T T T  Treat customers differently

depending on their needs
Builds  Value the customer’s time
 Realize that how you spend your
True

time determines your life

 Use your life to serve others and
enjoy a wonderful, fulfilling life
 Seek, knock, ask, serve, and see
Relationships that ethical service build true
relationships
T C
I

15-5
 Customers Form Sales Territories
 A sales territory comprises a group of
customers or a geographical area assigned to a
salesperson

15-6
 IL is split between
WA
MT ND ME
OR MN VT
NH
ID SD WI MA
NY CT
WY MI
NE IA PA
NV NJ
UT IL IN OH DE
CA CO WV
KS MO VA MD
KY DC
TN NC
AZ NM OK AR SC
MS AL GA
TX
LA
FL
WEST COAST

SOUTHEAST MID-ATLANTIC

MIDWEST NATIONWIDE
(IL Accts A-L) Vertical Market Managers (Pharma,
(IL Accts M-Z) Incentive & SMERF)
NORTHEAST
15-7 Updated 1-10-06
Exhibit 15-1: Reasons Companies Develop
and Use Sales Territories

15-8
 Why Sales Territories May Not Be
Developed
 Salespeople may be more motivated if not
restricted by a particular territory
 The company may be too small to be
concerned with segmenting the market into
sales areas

15-9
 Exhibit 15-2: Elements of Time and
Territory Management for the Salesperson

Salesperson’s
Salesperson’s territory’s
territory’s
sales quota
sales quota

15-10
 Elements of Time and Territory
Management
 Salesperson’s sales quota (goals) may
involve:
 Sales volume quotas
 Profit quotas
 Expense quotas
 Activity quotas
 Customer satisfaction scores

15-11
 Exhibit 15-2: Elements of Time and Territory
Management for the Salesperson, cont…

Salesperson’s
Salesperson’s territory’s
territory’s Account
Account analysis
analysis
sales quota
sales quota

15-12
 Elements of Time and Territory
Management, cont…
 Account analysis:
 The undifferentiated selling approach (Exhibit 15-3)
 Using the same selling approach because all targeted accounts are exactly
he same
 The account segmentation approach (Exhibit 15-6)
 Used because accounts needs & characteristics are different and require
different selling strategies. Ex) Key accounts, Unprofitable & regular
accounts.
 ELMS system
 80/20 principle
20% of accounts produce 80% of revenue
 Multiple selling strategies
 Ex) sales force structure may be designed to meet the companies key
accounts (largest producers).
 Multivariable account segmentation (Exhibit 15-7)
 Using more than one criterion to characterize the organization’s accounts.
15-13
Exhibit 15-3: Undifferentiated Selling
Approach

Slide 15-11

15-14
Exhibit 15-4: Account Segmentation Based
on Yearly Sales

15-15
Exhibit 15-5: Basic Segmentation of
Accounts

15-16
Exhibit 15-6: Account Segmentation
Approach

Slide 15-11

15-17
Exhibit 15-7: Multivariable Account
Segmentation

Slide 15-11

15-18
 Exhibit 15-2: Elements of Time and Territory
Management for the Salesperson, cont…

Salesperson’s
Salesperson’s territory’s
territory’s Set
Set account
account objectives
objectives
Account
Account analysis
analysis
sales quota
sales quota and sales quotas
and sales quotas

15-19
 Elements of Time and Territory
Management, cont…
 Set account objectives and sales quotas
which may involve:
 Sales volume quotas
 Profit quotas
 Expense quotas
 Activity quotas
 Customer satisfaction scores

15-20
 Exhibit 15-2: Elements of Time and Territory
Management for the Salesperson, cont…

Salesperson’s
Salesperson’s territory’s
territory’s Set
Set account
account objectives
objectives
Account
Account analysis
analysis
sales quota
sales quota and sales quotas
and sales quotas

Territory-time
Territory-time allocation
allocation

15-21
 Elements of Time and Territory
Management, cont...
 Territory-time allocation
 How does the salesperson allot their limited time within their
respective territories?
 Basic factors to consider
 Number of accounts in the territory
Ex – GSO vs Local sales person
 Number of sales calls made on customers
 Time required for each sales call
 Frequency of customer sales calls
 Travel time around the territory
 Nonselling time
 Return on time invested
 Sale response function (See up coming slide)
15-22
 Exhibit 15-8: Account Time Allocation by
Salesperson

* every 3 months

15-23
 Elements of……………….
 Territory-time allocation
 Basic factors to consider
 Sales response function
 The salesperson invests sales time in direct proportion
to the actual or potential sales that the account
represents
 The most productive number of calls is reached at the
point at which additional calls do not increase sales
 The relationship of sales volume to sales calls is the
sales response function of the customer to the
salesperson’s calls

15-24
 Return on Time Invested
 Time is a scarce resource
 Must use time wisely in order to improve and maximize
territory productivity
 Break-even analysis
 The quantitative technique for determining the level of
sales at which total revenues equal total costs
 The management of time
 Plan by the day, week, and month
 Qualify the prospect
 Use waiting time
 Have a productive lunchtime
 Records and reports
15-25
Exhibit 15-10: Daily Customer Plan

15-26
 Exhibit 15-2: Elements of Time and Territory
Management for the Salesperson, cont…

Salesperson’s
Salesperson’s territory’s
territory’s Set
Set account
account objectives
objectives
Account
Account analysis
analysis
sales quota
sales quota and sales quotas
and sales quotas

Territory-time
Territory-time allocation
allocation

Customer
Customer sales
sales planning
planning

15-27
 What is Involved in Customer Sales
Planning?
 You do the following for each sales call:
 Develop sales call objectives
 Review/create customer profile
 Create customer benefit plan
 Select FABs
 Develop marketing plan
 Develop business proposition
 Develop suggested order
 Develop your sales presentation
15-28
 Exhibit 15-2: Elements of Time and Territory
Management for the Salesperson, cont…

Salesperson’s
Salesperson’s territory’s
territory’s Set
Set account
account objectives
objectives
Account
Account analysis
analysis
sales quota
sales quota and sales quotas
and sales quotas

Territory-time
Territory-time allocation
allocation

Scheduling
Scheduling and
and routing
routing Customer
Customer sales
sales planning
planning

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 Scheduling and Routing
 Strict formal route designs enable the
company to:
 Improve territory coverage
 Minimize wasted time
 Establish communication between management
and the sales force in terms of location and
activities of individual salespeople
 Carefully plan your route

15-30
Exhibit 15-11: Location of Accounts and
Sequence of Calls

15-31
Exhibit 15-12: A Weekly Route Report

15-32
Exhibit 15-13: Three Basic Routing Patterns

15-33
 Exhibit 15-2: Elements of Time and Territory
Management for the Salesperson, cont…

Salesperson’s
Salesperson’s territory’s
territory’s Set
Set account
account objectives
objectives
Account
Account analysis
analysis
sales quota
sales quota and sales quotas
and sales quotas

Territory-time
Territory-time allocation
allocation

Territory
Territory and
and customer
customer Scheduling
Scheduling and
and routing
routing Customer
Customer sales
sales planning
planning
evaluation
evaluation

15-34
 Using the Telephone for Territorial
Coverage
 Satisfy part of the service needs of accounts
by telephone
 Assign smaller accounts that contribute less
than 5 percent of business to mostly
telephone selling
 Do prospecting, marketing data gathering,
and call scheduling by telephone
 Carefully schedule personal calls to distant
accounts
15-35
Exhibit 15-15: Net Sales by Customer and
Call Frequency: May 1, 2005

15-36
 Territory and Customer Evaluation
 Did the salesperson meet sales quota(s)?
 Sales volume quotas
 Profit quotas
 Expense quotas
 Activity quotas
 Customer satisfaction scores

15-37
 Exhibit 15-2: Elements of Time and Territory
Management for the Salesperson, cont…

Salesperson’s
Salesperson’s territory’s
territory’s Set
Set account
account objectives
objectives
Account
Account analysis
analysis
sales quota
sales quota and sales quotas
and sales quotas

Territory-time
Territory-time allocation
allocation

Territory
Territory and
and customer
customer Scheduling
Scheduling and
and routing
routing Customer
Customer sales
sales planning
planning
evaluation
evaluation

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 Summary of Major Selling Issues
 How salespeople invest their sales time is a
critical factor that influences territory sales
 Proper time and territory management is an
effective method for the salesperson to
maximize territorial sales and profits
 A sales territory comprises a group of
customers or a geographical area assigned to
a salesperson

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 Summary of Major Selling Issues, cont…
 Companies develop and use sales territories
for a number of reasons
 Performance can be monitored when
territories are established
 There are also disadvantages to developing
sales territories
 Time and territory management is continuous
for a salesperson – it involves seven key
elements
15-40
Sales Presentation Guidelines

15-41
 Sales Presentation Guidelines
 The Approach
 Introduction--rapport building.
 Use statement, demonstration, and/or questions.
 Make smooth transition into presentation.
 Remember: be positive, appearance, firm handshake--smile, look'em in the eyes.
 2. Presentation
 Product (incorporating S.E.L.L.)
 use SELL to uncover further needs and/or confirm needs stated in approach by having buyer
negatively and/or positively answer your trial closes.
 use proof statement.
 use simile, metaphor, or analogy.
 use demonstration.
 use numerous visuals.
 Marketing Plan (incorporating SELL)
 tie back into benefits. Very important to do.
 Business Proposition (incorporating SELL)
 use one or more value analysis, ROI, discounts, markups, promotional & allowances.
 tie back into benefits. Very important to do.

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 Sales Presentation Guidelines
 Multiple Closing Sequence
 NOTE: You are required to have at least two closes and thus need to develop a
multiple-closing sequence.
 summarize benefits of interest to buyer.
 ask a trial close.
 discuss suggested order.
 first close - ask for business.
 objection occurs.
 second close.
 objection occurs.
 third close.
 continue if appropriate.

 Completion
 Sale Made, Exit Script
 No Sale Made, Exit Script
 be positive, natural and polite.
 leave with a firm handshake--look 'em in the eyes.
 Establish the next step in either the sales or no sale
 Communicate the next step and when follow-up will occur

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 Sales Presentation Guidelines
 IF YOU DO NOT SELL PROSPECT
 Create an ‘Exit Script’ around the following guidelines:
 Don’t give up. As you are collecting your stuff, say something like:
 “Mr./Mrs. Prospect, would you do one thing for your company?”
 “Look over…” describe material you are leaving.
 “Please call if you feel (your product) will fill your needs. I feel it will!”
 Stand up.
 Shake hands—look’em in the eyes and smile.
 Be positive, enthusiastic! Say something like:
 “Thank you very much for your time,” and/or
 “I really enjoyed visiting with you.”
 In leaving, act as a professional.
 Do not take it personally.
 Remember the prospect lost out, not you.
 You leave the door open by:
 Knowing your product,
 Being friendly after a “no sale.”
 If still a prospect, you will be back.
 You are there to unselfishly help the person and his/her company. If you feel your
product is needed by the prospect, you would follow-up with a telephone call a few days
later. A letter might follow the telephone call.

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