tailieunhanh - Lecture Sales and distribution management: Chapter 4 - Krishna K Havaldar, Vasant M Cavale

Chapter 4, management of sales territories and quotas. After studying this chapter you will be able: To understand the concept of and reasons for sales territories; to learn designing sales territories and assigning salespeople; to know territory coverage, including routing, scheduling, and time management;. | Chapter 4 Management of Sales Territories and Quotas Learning Objectives To understand the concept of and reasons for sales territories To learn designing sales territories and assigning salespeople To know territory coverage, including routing, scheduling, and time management To understand objectives and types of sales quotas To learn the methods of setting sales quotas To get insight into setting and administration of sales quotas Sales Territories A sales territory consists of existing and potential customers, assigned to a salesperson Most companies allot salespeople to geographic territories, consisting of current & prospective customers Major Reasons / Benefits of Sales Territories Increase market / customer coverage Control selling expenses and time Enable better evaluation of salesforce performance Improve customer relationships Increase salesforce effectiveness Improve sales and profit performance Procedure for Designing Sales Territories Select a control unit* Find location | Chapter 4 Management of Sales Territories and Quotas Learning Objectives To understand the concept of and reasons for sales territories To learn designing sales territories and assigning salespeople To know territory coverage, including routing, scheduling, and time management To understand objectives and types of sales quotas To learn the methods of setting sales quotas To get insight into setting and administration of sales quotas Sales Territories A sales territory consists of existing and potential customers, assigned to a salesperson Most companies allot salespeople to geographic territories, consisting of current & prospective customers Major Reasons / Benefits of Sales Territories Increase market / customer coverage Control selling expenses and time Enable better evaluation of salesforce performance Improve customer relationships Increase salesforce effectiveness Improve sales and profit performance Procedure for Designing Sales Territories Select a control unit* Find location and potential of present and prospective customers within control units** Decide basic territories by using Build-up method, Or Break-down method *A control unit is a geographical territorial base **Unnecessary & expensive for consumer products Procedure in Build-up Method Decide customer call frequencies Calculate total customer calls in each control unit Estimate workload capacity of a salesperson Make tentative territories Develop final territories Objective is to equalise the workload of salespeople Procedure in Breakdown Method Estimate company sales potential for total market Forecast sales potential for each control unit Estimate sales volume expected from each salesperson Make tentative territories Develop final territories Objective is to equalise sales potential of territories Assigning Salespeople to Territories Sales Manager should consider two criteria: Relative ability of salespeople Based on key evaluation factors: (1) Product knowledge, (2) market knowledge, (3) past .