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Sales Territories
You have to recognize when the right place and the right time fuse and take advantage of that opportunity. There are plenty of opportunities out there. Ellen Metcalf
Sales Territory
Comprises
TM 13-2
a number of present and potential customers, located within a given geographical area and assigned to a salesperson, branch, or intermediary (retailer or wholesaling intermediary). Key word: customers
TM 13-3
customer coverage
Aids
Increases
Increases
TM 13-5
Cities
PIN-code
areas
Tentatively set territorial boundary lines by combining control units until total calls needed = total calls possible Modify territories as needed
Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
TM 13-7
Kentucky
Calls per year 120 120 162 402
Accounts 5 10 27 34
Distribution of one reps calls year (1,500)* Possible control combinations Alternative territories
1,008
491
or
402
100% Illinois 100% Illinois + 100% Kentucky 100% Illinois + 70% Iowa
70% Iowa
or
100% Kentucky
TM 13-8
Sales volume expected from each sales person Tentatively set territorial boundary lines by combining control units total sales potential = total sales volume expected Modify territories as needed
Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
TM 13-10
= $ 10,000,000
Number of reps needed = Company sales potential = $200,000,000 = 20 Targeted volume/rep $ 10,000,000
Territory volume as
TM 13-11
TM 13-13
is the managerial activity that establishes a formal pattern for sales reps to follow as they go through their territories. Reduces travel expenses as it ensures a more efficient territory coverage. Area C Some reps resent it. Area B Area A Best for routine sales jobs with regular call x frequencies.
Area B: Typically the problem area.
Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
TM 16-5
Sales volume, product line A Gross margin, product line B Product demonstrations Orders from new accounts Expense quota Combination of all the above using
$200,000
$200,000
110
30,000
25,000
83
120
135
117
15 50,000
17 45,000
equal weights
106.6
For the expense based quota, the objective is to come in below quota rather than above, or 10% below quota can be interpreted as attaining 110% of the goal.
Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.