7/28/2019 Sales Territory Management.pptx

1/15

A sales territory is defined as the

space that consists of existing and

potential customers assigned to a

sales person

7/28/2019 Sales Territory Management.pptx

2/15

Advantages of setting up sales territories

Maintain and increase market coverage

Controlling sales expenses

Better evaluation of sales force performance Maintain and improve customer relations

Increase sales force effectiveness

Improve co-ordination with marketing team

7/28/2019 Sales Territory Management.pptx

3/15

Situations where setting up sales territory is not

advisable

For small companies which have slim sales

force size

When personal contacts or relationships are

the basis of marketing a product or a service

eg: Insurance policy or network marketing

(Amway,Oriflame,etc)

Not suitable for products which adopt

exclusive distribution model

7/28/2019 Sales Territory Management.pptx

4/15

Factors to be considered for sales territory mapping

Topography/geography of the region

Development level of transport infrastructure

Format of the transport infrastructure Availability of modes of public transport

Density of customers

7/28/2019 Sales Territory Management.pptx

5/15

Routing and scheduling

1) Straight Line/ Hopscotch Route Plan

Base C1

C2C3C4C5

7/28/2019 Sales Territory Management.pptx

6/15

2) Circular Route Plan

Base

7/28/2019 Sales Territory Management.pptx

7/15

Clover Leaf PlanBase

7/28/2019 Sales Territory Management.pptx

8/15

7/28/2019 Sales Territory Management.pptx

9/15

7/28/2019 Sales Territory Management.pptx

10/15

7/28/2019 Sales Territory Management.pptx

11/15

Build-up method of sales force

requirement planning

Objective is to give equal work load to each

sales person

Classify customers based on their sales

potential i.e A,B,C grade

Potential and target of each territory may

differ

7/28/2019 Sales Territory Management.pptx

12/15

How sales people spend their time

Tasks Intensive

Distribution

Selective

Distribution

Industrial sales

Time Spent (%) Time Spent (%) Time Spent (%)

Face to face calling 60 30 40

Waiting/travelling 20 40 20

Administrative 15 15 20

Telephone calling 05 10 10

Service calls/

trouble shooting

- 05 10

Total 100 100 100

7/28/2019 Sales Territory Management.pptx

13/15

Build up method of sales force req. planning (eg: Selective distribution)

Customer

Type

Call freq.

p/m

No. of

cust.

No. of calls

p/month

Avg.Call

time (mins)

Total Call

time

(hrs)

Avg. travel

time (mins)

Total

travel

Time (Hrs)

Total

Time

reqd

(Hrs)

A 4 25 100 45 75 30 50 125

B 2 45 90 25 37.5 30 45 82.50

C 1 65 65 15 16.25 30 32.5 48.75

128.8 127.5 256.3

8

184

129 70% of total working time spent

2.0

23 working days p/m

Territory X

Working hrs per day per salesman

Working hrs per month per salesman

Hrs avlb for calls p/m

Sales person reqd

7/28/2019 Sales Territory Management.pptx

14/15

Evaluation of relative ability of sales person

Parameters Weightage Evaluation Sales Person Score

(A x B)

Product Knowledge 0.15 0.9 0.135

Market Knowledge 0.15 0.8 0.12

Past SalesPerformance

0.35 1 0.35

Communication

skills

0.15 0.8 0.12

Selling skills 0.20 0.9 0.18

Total 1.00 0.905

7/28/2019 Sales Territory Management.pptx

15/15

Use of IT in Territory Management

Software available in market like Arc Editor,

Arc GIS,etc

Can help devise multiple permutations and

combinations for optimal territory planning

High cost of software

Does not factor in intangible factors

Does not factor in local infrastructure details

of each territory