Territory Development

And Time Management

Learning Objectives
 Understanding the nature and scope of territory
management
 Reasons for establishing & revising territories
 Describe the objectives, criteria & basis for territory
formation
 List & Discuss routing patterns & scheduling issues
 Explain the concept of Time Management & how its relates
to sales territories

2
The Nature of Territory Management

 Sales Territory: Arrangement of current & potential accounts

for which responsibility has been assigned to a particular sales
representative

 Territory Management: The Planning, implementation &

control of salespersons’ activities with the goal of realizing the
sales and profit potentials of their assigned territories

 Sales territories are based on customer groupings

 It consists of Major Accounts & Direct Account

3
Territory Management and its Importance

 A sales territory comprises a no. of present &

potential customers located within a
geographical area
 Territories are generally divided based on
geographic area

4
Benefits of Territory Management

1. Better customer coverage

2. Increased sales
3. Equitable rewards
4. Reduced traveling costs

5
Sales Territory Design
 It involves breaking down customer base so that it can be served best
by individual salespersons.

 Several territories are usually combined into a district, several districts

into a region, several region into zone, and a number of zones into
national marketplace

 Conditions in the different territories & information about them

change over the time

 If sales territory is poorly designed then its leads to severe

repercussions such as inadequate market coverage, unequal
workloads, lack of control over sales force

6
Reasons for Establishing Territories

 To maximize sales & profits

 Can be also classified into 3 categories customer-related,
salesperson related & managerial.

 Customer Related: Customers who got potential yield

less to us and then to our competitors. Each territory
should consists of right customer account mix—neither
too many nor too few of any account type.
Reasons & Benefits: Provide intensive market coverage,
excellent customer service, Produce higher sales with
greater satisfaction

7
 Salesperson Related: Salesperson person act as a in- charge. The
build their own destinies. Motivating salesperson respects their
territories as a MOTHER because what they do will reflect accordingly.
It provide & gives the experience to be an entrepreneur of your
territory
Reasons & Benefits: Facilitate performance evaluation, Leads to less
turnover & offer rewards related to effort

 Managerial Related: Sales manager keeps an eagle eye on selling

expenses. It can be keep in lined & linked to sales efforts at the level of
individual territories. The careful view of calling patterns & field visits
allows management to keep control over the field force.
Reasons & Benefits: Enhance control, coordinate promotion, & reduce
expenses

8
Objectives & Criteria for Territory Formation

 Adequate Territory Coverage

 Identifying different territory potentials
 Opportunity Equalization
 Workload distribution
 Type of Products (Selective Product = Large Territory)
 Abilities of Sales Representatives
 The type of competition faced by the company
 Desired Intensity of Market Coverage
 Channels of Distribution Available
 Types of Transportation used

9
Reason for Revising Territories
 When Company is small. Small business is not in a position to draw
rigid territorial lines. Has to be flexible to handle a particular account

 When friendship sales are important. Social & personal relationships

plays a very important role in financial services yield. In this case
territorial restrictions cant be possible

 When high technology selling is involved there are very limited

number of potential customers nationwide that require highly
specialized advice. So to restrict such specialist kind of salesperson
who can effectively deal with such customers will ultimately result in
negative consequences

10
Factors to be considered while
designing territories
1. Characteristics of the prospects & customer
groups
2. Transportation facilities in the territory
3. Skills of salesperson

11
Reasons 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.

12
Dealing with Territory Management Problems
Problems
 Inadequate Coverage
 Inadequate Size
 Revision
 Shifting Accounts
 Direct Accounts
 Inadequate Support
 Territory Jumping
 Overlapping Territories
 Selling Cost Variations
 High Turnover
Remedies
 Split Territories
 Enlarge Territories
 Prepare Salespeople
 Revise Territories
 Clarify at hiring
 Assist Salespersons
 Eliminate practice
 Minimize Crossovers
 Review cost figures
 Rectify Causal Factors
13
Operating the territory management
system
 Appropriate control to be exercised
 Routing:
 Measures taken by sales management to minimize the travel
expense, travel time & total distance traveled by sales persons
 It is a complex process as the customers meet the sales persons
as per their convenience
 Account's size & time allocation should have proper match

 Other aspects considered:

 Climatic conditions
 Transportation facilities
 Ensuring minimal distance between two consecutive calls

14
Three Basic Routing Methods
Straight-line route: Salesperson starts at the office
and makes calls in one direction until reaching the
end of the territory.

First call
c

c c c

15
 Cloverleaf route : A cloverleaf route is covering an entire
territory, the route circles only part of a territory. the cloverleaf
routes would probably require less travel time if such routing is
possible on existing roads.

c c
c c
c c
c c c c
c c
Base
c c c c
c c
c c
c c
Each leaf out and
back the same day
c c

16
 Hopscotch pattern: The salesperson starts at the farthest
point from the office and hops back and forth calling on
accounts on either side of a straight line back to the office

17
Scheduling
 It refers to the allocation of appropriate time to all the activities that
sales persons carry out during a day, a week or a month
 It refers to the task of allocating the sales person time asset.
 Scheduling use to manage time related activities such as waiting &
travel time for call sequence.
 The success of scheduling is enhanced if appointments are set up
ahead of time

18
Time management and its importance

 Efficient management of sale time

 Efficient management of scrap time
1. Better market coverage
2. Reduced selling costs
3. Improved customer service
4. More accurate evaluation of sales force personnel

19
1- Better market coverage
 Careful spending of time & money based on account

 Use of promotional material and appropriate software

 Proportional spending of time based on size of account

 Profitability of each customer to be calculated

2-Reduced selling costs

 Identify the decision maker & approach him directly
 Approach should be professional

20
3-Improved Customer Service
 Maintaining good relations through proper follow up

 Sales force automation (SFA): Its a software is a type of program that

automates business tasks such as inventory control, sales processing,

and tracking of customer interactions, as well as analyzing sales
forecasts and performance.

4-More Accurate Evaluation of Sales Force Personnel

 Analysis of the Sales performance

 Learn about Salespersons Strengths & Weaknesses

21
Territory coverage by sales personnel

 Don'ts :-
 Spending substantial time on small favorite
accounts
 Encroaching other’s territories
 Do’s:-
 Prospecting new accounts
 Economical & profitable coverage

22
?
23