SALES MANAGEMENT

Z. A. Patel

Ch 6

 Recruitment and selection of sales force sources of recruitment, selection process Training of sales force training methods Motivating and compensating sales force Controlling the sales force

Sales Territories
Meaning: A sales territory is made up of a group of present and potential customers or a geographic area that is assigned to a salesperson.

 Division of sales territories is the responsibility of a Sales Manager

Reasons for sales territories

To obtain thorough coverage of markets To establish responsibility of salesperson To evaluate performance To Improve Customer Relations e. To Reduce Sales Expense To Allow Better Matching of Salesperson to Customer To Benefit Salespeople and the Company

DESIGNING SALES TERRITORIES

Sales objectives achieved through sales territories

Process

Step 1: select basic control unit

States Districts Cities and ZIP-code areas Metropolitan areas. Major accounts A combination of two or more factors
Different industries decide different basic control unit

Step 2. Analyse work load

Nature of job technical or basic Distribution strategy intensive, selective, exclusive Type of product shopping, convenience, specialty

Step 3. determine basic territories

1. sales forecasting 2. sales volume needed for each territory to cover cost 3. determine the number of territories:
Breakdown approach total sales forecast divided by each territory requirements Build-up approach customers, time to invest

Shape of territories
WEDGE CLOVER LEAF CIRCULAR