Territory Development & Time Management

Learning Goals

Understand the nature & scope of territory management Identify the reasons for establishing and revising territories Describe the objective, criteria & basis for territory formation Outline a model of territory management List and discuss routing pattern and scheduling issues Explain the concept of time management and how it relates to sales territories

Define - Sales Territory

A sales territory salespeople responsible for

individual accounts (account management) as well as group of accounts (territory management)

comprises a group of customers or a geographical area, assigned to a salesperson.

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Assigning Territories

Company - ABC High turnover

Decreasing productivity

Exit interviews Unhappy with territory assignment

Not fair & efficient De motivation

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Changed Territories

Company - ABC Use of sophisticated computer program Historical sales data

- By product/business, territory, area, town - Number of employee - Market potential - Number of customer - 80/20 rule
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The Nature of Territory Management

Sales Representative Territory In charge - The scope of activities broadens
- Stops behaving like postman - Takes responsibility for making things happen

Sales Territories - Microcosms of total market

- Involves scaled down managerial duties

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Defining Territory Management

Sales Territory
- Configuration of current & potential accounts - Geographic consideration for setting boundary - Strict geographic boundaries for cigarette and grocery and other FMCG products
(intensity of coverage, restocking frequency are overriding determinants)

High Tech Products

- Highly trained and specialized sales engineer can

freely roam the country, or even globe

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Defining Territory Management

Sales Territory Major Accounts or Key Accounts - Customers whose significance to the companys
business requires special attention, time and experience

Salesperson high profile, more experienced

Senior Sales Representative, Key Account Manager

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Defining Territory Management

Sales Territory
Direct Accounts Large Accounts Need special arrangements

- Supply/delivery
- Pricing - Credit - Product design

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Defining Territory Management

Territory Management

- Can be defined as planning, implementation and control of

salespersons' activities with the goal realizing the sales and profit potential of their assigned territories.

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Defining Territory Management

Sales Rep As Territory Manager Plans activity
- Establishes objectives - Estimates the resources needed - Designs strategies (efficient utilization of resources to ach objective)

Implements
- Puts the plan into action

Control
- Feed back mechanism
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Sales Territory Design

Break down customer base Can be well serviced by individual salespersons Represents basic accountability unit at lowest level Poor Territory Design (severe repercussions) Inadequate market coverage Unequal work load Lack of control over the sales force Depressed moral

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Dealing Territory Management Problems

Problems
Inadequate coverage Inadequate size Revision Shifting accounts Direct accounts Inadequate support Territory jumping Overlapping territories Selling cost variation High turnover
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Remedies
Split territories Enlarge territories Prepare salespeople Revise territories Clarity at hiring Assist salespeople Eliminate practice Minimize crossovers Review cost figures Rectify the cause

Why companies develop and use sales territories ?

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Reasons - Territory
To ensure/obtain thorough market coverage To improve customer relations To establish each salespersons responsibility To evaluate performance of each individual To enhance control To benefit both, salesperson and the company Customer Related, Salesperson Related & Manager Related ?

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Reasons - Territory
Customer Related
Intensive market coverage Provide excellent customer service
Produce higher sales Greater satisfaction

Salesperson Related Foster enthusiasm

Facilitate performance evaluation
Lead to less turnover Reward/incentive appropriately Reduce expenses Give more

Managerial
Enhance control Coordinate promotion
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Basis - Territory
Geography
- Most frequently used - Simple Tend to adopt existing geographical boundaries country, cities

Potential
- Sales potential for entire company - Appropriate potential for average sales person - Average potential divided into total sales potential

Servicing Required
- Based on A,B,C,D category - Key accounts

Workload
- Urban area Many territories - Rural area May be one territory

Design - Territory

Sales Representatives Supervisors Field Managers Area Sales Managers Regional Sales Managers National Sales Manager/Director

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Design - Territory

Sales Representatives
several territories combined into

Supervisors Field Managers

several supervisors into

Area/District Sales Managers

several area/district into

Regional Sales Managers

2 4 regions into

National Sales Manager/Director

Sales Reps Territory Area (Geography)

Lucky Star, Bohri Bazar Empress Market , Jacob Lines Sindhi Muslim Society, Tunesia Line Nursary Behind Jacob Lines, Jutland Lines Tariq Road, Khalid Bin Walid Road Sharfabad, Bahadar Abad Mehmood Abad, Baloch Colony PAECHS 6, Chunaisar Halt Defense commercial Market DHA 2,3 DHA 4,5
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Delhi.Colony,Punjab Colony, Gizri

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Section Plan - Territory

Area Lucky Star, Bohri Bazar Empress Market , Jacob Lines S.Muslim, Tunesia Line Nursary B.Jacob.Lines, Jut Lines Tariq Road, K.Walid Road Sharfabad,Bahadar Abad Mehmood Abad, Baloch Colony PECHS 6, Chunaisar Halt D. Commercial Market DHA 2,3 DHA 4,5 Delhi.Colony,Punjab Colony
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A 10 08 06 04 12 10 07 12 15 13 14 10

B 12 10 14 12 15 12 13 18 13 15 14 20

C 20 22 20 25 15 20 25 12 12 15 12 20

D 18 20 20 22 20 20 22 18 10 15 10 15

Total 60 60 60 63 62 62 67 60 50 58 50 65

TOTAL

121

168

218

210

717

Sales Reps Territory Coverage Plan

Days M 1&3 T 1&3 W 1&3 T 1&3 F 1&3 S 1&3 Sadar P.Street, B.Road S.Muslim,T.Lines,J.Line JacobLines,,B.J.Lines Tariq Road, K.Walid Rd Sharfabad,B.Abad SUNDAY M 2&4 Mehmoodabad, Baloch T 2&4 W 2&4 T 2&4 F 2&4
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Area

A 10 08 06 04 12 10

B 12 10 14 12 15 12

C 20 22 20 25 15 20

D 18 20 20 22 20 20

Total 60 60 60 63 62 62

Avg Sales 75,000.00 50,000.00 40,000.00 40,000.00 85,000.00 65,000.00

07 12 15 13 14

13 18 13 15 14

25 12 12 15 12 20

22 18 10 15 10 15

67 60 50 58 50 65

45,000.00 75,000.00 100,000.00 80,000.00 80,000.00 55,000.00

PECHS, ChunaisHalt Clifton, B.B DHA 2,3 DHA 4,5

Sales Reps Territory Group of Customer Base

S.No 1 2 3 4 5 6 7 8 9 10 11 OUTLETS (CUSTOMERS)
Jumbo Stores, Pak Medicos, Qadri St,Royal S/St, Khawaja St Nahid S/Store, Imtiaz, Habit, D.Mart,Saiban Khalid Med St, Society St, Sasta St, Jabees S/St Eastern St, ARY, Shell Askari, Bilal S/St, City Bakers Chinar S/St, D.Mart, Ghazi S/St, Umer S/ST Makro,Prince S/St, Blue Ribon, Norrani S/St Motas S/St, New Paradise St, Agas, Shaheen S/St Canes S/St, My S/St, Prince S/St, Shahani S/St Sunny St, Supper St, Hammad S/ST, Quality S/St Step In, Top Ten, French Bakers, Javaid S/St, Amees S/St Mehran S/St, Army Welfare, Stop n Buy, Best Bargain
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Location
M.A.Society, D.Jee Bahadarabad, Tipu Sult Tariq Road Rashid Minhas, Jauhar Sea View Lines Area, Nursery Clifton Chowrangi Clifton Bridge Defense Commercial DHA V - Zamzama Sadar AZIZ Abad, Hussain Abad, Ayesha Manzi F.B

Saleem S/ST, Dawood Publishing as Prentice Hall. 12 Copyright 2009 Pearson Education, Inc. Bhai, Ahmed St, Siddiqui, Bhai Bhai St

Medical Reps Territory Towns

Sargodha Shah Pur Khushab Jauhar Abad Quaid Abad Bhalwal Bhera Phularwan Malikwal Sillanwali Frooqa
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Base Town

Sahiwal

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Medical Reps Territory

S.No 1 2 3 4 5 6 7 8 9 12 11 12
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Towns Sargodha Shah Pur Khushab J. Abad Quaid Abad Bhalwal Bhera Phularwan Malikwal Sillanwali Frooqa Sahiwal

A 15 02 04 04 02 02 01 02 02 03 01 02

B 20 04 06 04 05 06 05 08 03 05 04 05

C 20 02 05 06 02 04 05 02 03 03 02 03

D 15 02 05 04 03 04 02 NIL 02 05 03 05

Total 70 10 20 18 12 16 13 12 10 16 10 15

Avg Sales 2,000,000.00 100,000.00 300,000.00 300,000.00 125,000.00 250,000.00 100,000.00 100,000.00 100,000.00 225,000.00 150,000.00 200,000.00

Cont 51% 2.5% 8% 8% 2.5% 6% 2.5% 2.5% 2.5% 6% 4% 5%

TOTAL

40

75

57

50

222

3,950,000.00

100%

Medical Reps Territory Coverage Plan

Days Mon Tue Wed Thu Fri Sat Towns Sargodha Sargodha Sargodha Sargodha Sargodha Sargodha DHQ DHQ K.Bazar, Goal Chowk Area Days Mon Tue Wed Town Sargodha DHQ Sargodha CMH, DHQ Sargodha K.Bazar, Goal Chowk Sargodha Kaneez Hosp Block12 Sargodha Satelite Town Sargodha PAF Hosp, C.Road SUNDAY Mon Tue Wed Thu Fri Sat Shah Pur Khushab J. Abad Q. Abad Frooqa Sillanwali Area

Kaneez Hosp Block12 Thu Satelite Town PAF Hosp, C.Road Fri Sat

SUNDAY
Mon Tue Wed Thu Fri Sat
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Bhalwal Bhera Phularwan Malikwal Sahiwal

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K.Momin

Supervisor/ F. Managers Territory

S.No 1 2 3 4 5 6

Sales Reps Saleem Akhtar Aslam Ali Syed Tariq Haider Haider Zaidi Jamal Mehmood Rashid Ahmed Total Territory

A 121 118 130 111 90 55 625

B 168 170 170 125 130 110 873

C 218 198 150 225 270 275 1336

D 210 250 170 250 225 255 1360

Total 717 736 620 711 715 695 4194

Avg Sales 790,000.00 750,000.00 995,000.00 685,000.00 555,000.00 425,000.00 4,200,000.00

Area Sales Managers Territory

S.No 1 2 3 4

Supervisors Amjad Husain Rahat Ali Wahid Jalil Zeeshan Qamar

Cont % 26% 24% 28% 22.%

A 625 610 655 585 2475

B 873 875 810 775 3333

C 1336 1350 1295 1310 5291

D 1360 1310 1325 1295 5290

Total 4194 4145 4085 4265 16689

Sales 4,200,000.00 4,000,000.00 4,500,000.00 3,500,000.00 16,2 million

Total Territory

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Regional Sales Managers Territory

S.No 1 2 3 4

ASMs Sabir Ali Saqib Ali Wajid Jamil Nasir Karim

Cont % 29% 26.% 24% 21%

A 2475 2350 2230 1985 9040

B 3333 3125 2810 2775 12043

C 5291 4975 4725 4825

D 5290 4950 4715 4895

Total 16689 15400 14480 14480

Sales 16.2 milion 14.8 million 13.5 million 11.5 million 56,0 million

Regional Total

19816 19850 61049

15% 20%

32%

33%

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Sales Managers Territory

RSMs South North

Contribution 46% 54%

A 9040 9888 18928

B 12043 12790

Total 60749 63468

Sales 56.0 million 64.8 million 120,8 milli

19816 19850 19990 20800

National Total

24833 39806 40650 124217

15% 20%

32%

33%

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Model Territory management

Analysis
Accounts load Acct Potential Service Require

Objectives
Sales share Profit targets New business targets Strategies Call frequencies Product offering Pricing

Quotas Reporting procedures Review revision

Control

Tactics
Territory coverage Routing Scheduling

Calling prospects Servicing account Reporting Service Require

Implementation

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Travel Plan ?
Base Town is Karachi AKUH,LNH, Midcity + GPs
Business Contribution is 50%

Up country towns are - Hyderabad - Tando Adam - Tando Jam - Mirpur Khas - Badin - Kotri
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Business contribution is 50%

Medical Reps Territory Routing

Quaidabad J. Abad Sahiwal Frooqa

Sargodha

Khushab

Shahpur Bhalwal

Sillanwali

Bhera

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Phularwan Malikwal

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How Sales Person Spends Time

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How Sales Manager Spends Time

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Time Management Skills

Structuring a salespersons time resource so as to maximize productive time and minimize wasted time  Time Management  Most crucial tasks of sales managers  Salespersons most valuable resource is talent & time  To get maximum benefits to salesperson and the company , should be used wisely  Best utilized time by territory manager provides best results  Salespeople need direction, guidance and supervision in the time management

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Time Management Skills

Planning
- Establish priorities for sales management activities - Anticipate major task ahead - Spend more time on fire prevention than fire fighting - Establish deadlines for tasks and adhere to them - Flexible plans & schedules - Develop contingency plan

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Time Management Skills

 Discipline
- Self discipline, good working habits - Do not procrastinate, do it today. Tomorrow. - Be alert to unnecessary interruptions
(casual visitors, unimportant phone calls)

- Be specific & brief while speaking or writing - Avoid request for special favor

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Time Management Skills

 Organization
- Based on task, prepare daily & weekly work schedule - Consolidated activities, one long field visit - Delegate tasks - Concentrate on major task, not many at a time - Identify the key problems, dont waste time on less important matters

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THANX

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