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1 Chapter 13 Managing Your Time and Your Territory

2 Chapter Outline Self-management E ectiveness and e ciency
Activities sales of salespeople
Setting priorities
Account and territory management
Working smarter
Copyright © Houghton Mi in Company. All rights reserved.
3 Learning Objectives After reading this chapter, you should understand:

Why salespeople must be concerned about e ciency as well as e ectiveness in allocating their time.
How salespeople function as eld marketing managers.
How to use ROTI (return on time invested) to manage the territory.
Methods for using time wisely.
E cient routing strategies for sales calls.
Ways to prioritize accounts.
How to avoid falling into time traps.
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4 Self-Management
Self-management is probably more di cult than management by someone else where feedback from various
sources can keep you on track and motivated
5 E ectiveness and E ciency

E ectiveness is results-oriented and focuses on achieving goals, while e ciency is cost-oriented and focuses on
making the best possible use of the salesperson's time and e orts
Together, the two equal success:
E1 (E ectiveness) + E2 (E ciency) = S1 (Sales Success)
Chapter Review Question:
De ne and distinguish between the terms e ectiveness and e ciency.
6 How Salespeople Spend Their Time

A recent study of 10,000 sales reps shows that:
33% of their time is spent in face-to-face selling
20% in travel
16% in phone selling
16% in account service and coordination
10% in administration
5% at internal company meetings
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How do salespeople actually spend their time?
CBU032
7 Figure 13.1 How Salespeople Spend Their Time

8 Table 13.1 What is One Hour of Selling Time Worth?

9 E ectiveness and E ciency

Successful salespeople tend to possess the following characteristics:
Possess excellent
product knowledge
knowledge of competitors
face-to-face selling skills
2. Exercise the in uence skills needed to work with both internal sta and customers
Recognize that the skills required to service an account are di erent from those required to make a sale
10 Chapter Review Question: What are the basic activities of salespeople?

Sales Activities
Basic sales activities include:
the selling process
working with orders
servicing the product
managing information
servicing the account
conferences/meetings
training/recruiting
entertaining customers
out-of-town traveling
working with distributors
What are the basic activities of salespeople?
11 Table 13.2 Basic Activities of Sales People

12 Table 13.2 Basic Activities of Sales People cont’d

Identify the major management and marketing activities of salespeople.
13 What's Your Job Description?

Each salesperson needs to know exactly what performance is expected in his or her speci c job assignment
In addition, the salesperson needs to know what is expected to be achieved during a given time period
14 Figure 13.2 Position Description

15 Figure 13.2 Position Description cont’d

16 Figure 13.2: Position Description cont’d

Why is a job description important to a salesperson?
17 Salespeople as Field Marketing Managers

For many companies, the modern professional selling job has evolved into that of eld marketing manager for a
sales territory.
Today's salespeople have more responsibilities than ever before.
They are their own bosses in their sales territories, working with groups of people over whom they have little
control and often impose con icting demands and expectations on them.
18 Table 13.3 The Salesperson’s Management and Marketing Activities

19 Table 13.3 The Salesperson’s Management and Marketing Activities

20 Return on Time Invested (ROTI)

Although ROTI sounds like tedious record keeping, it only takes a few minutes a day
ROTI calculations can help salespeople manage their time more e ectively and e ciently
Describe the concept of return on time invested (ROTI).
21 Three Axioms in Personal Selling cont’d

In their work, salespeople recognize the truth of the 3 axioms:
Parkinson's Law
Work tends to expand to ll the time allotted for its completion.
Concentration Principle ("80-20" rule)
805 of the sales and pro ts come from 20% of customers.
Iceberg Principle
Analogous to an iceberg, which shows only 10% of its mass above the water, many sales problems can remain
hidden beneath the surface of overall positive sales totals.
22 Performance Measures
Instead of reliance on one performance measure such as sales volume, a balance of several quantitative and
qualitative standards is better because performance in one area can con ict with performance in another.
For example, a salesperson who stresses keeping sales and service expenses low may nd revenues adversely
a ected.
23 Performance Measures cont’d

Quantitative measures
Like dollar or unit sales volume or net pro t, a ect sales or expenses directly, and can usually be measured
objectively.
Qualitative measures
Like the salesperson's product knowledge, customer relationships, or ethical behavior, have a more indirect and
longer-run impact on sales and expenses, and thus must be evaluated on a more subjective basis. From the
standpoint of customers, qualitative measures are more important than quantitative.
24 Performance Measures: Quotas cont’d

Derived from sales forecasts, sales quotas are performance objectives and motivation incentives for salespeople.
The four types of quotas for salespeople are:
Sales volume
Financial
Activity
Combination
25 Performance Measures: Customer Reviews of Performance

Obtaining feedback from customers is one of the most e ective ways to keep from losing touch with customers
Salespeople should ask for an annual evaluation of their performance by customers and participate in this review
process at a special meeting
26 Table 13.4 Quantitative Measures of Salesperson Performance

27 Table 13.4 Quantitative Measures of Salesperson Performance cont’d

Name at least ve quantitative and ve qualitative measures of salesperson performance.
28 Account and Territory Management

A sales territory is a control unit that contains customer accounts.
Once the geographical control unit has been established, the next step is to analyze the customers and prospects
in the territory on the basis of their sales potential.
Increasing numbers of companies are using computer programs to assist their salespeople in account analysis,
planning, and control.
29 Figure 13.3: Ranking Customers According to the Concentration Principle

30 Portfolio Analysis Approach

A portfolio analysis approach provides an alternative to the analytical rigor of the mathematical models.
In this approach, the sales call strategy is based on the account’s attractiveness.
Account attractiveness depends on two dimensions:
1.
Account Opportunity
2.
Strength of Position
31 Figure 13.4 Account Analysis

32 Territorial Routing
Territorial routing is devising a plan or pattern to use when making sales calls.
Before developing a routing plan, the salesperson must determine:
the number of calls to be made each day
the call frequency on each class of customer
the distance to each account
the method of transportation
33 Routing Patterns cont’d

Types of routing patterns include:
Straight-line route
salesperson starts at the o ce and makes calls in one direction until he or she reaches the end of the territory
Circular patterns
salesperson starts at the o ce and moves in a circle of stops until ending up back at the o ce
34 Account and Territory Management

Cloverleaf route
similar to a circular pattern
rather than covering an entire territory, the route circles only part of a territory
the next trip is an adjacent circle, and the pattern continues until the entire territory is covered
35 Account and Territory Management cont’d

Hopscotch pattern
the salesperson starts at the farthest point from the o ce and hops back and forth calling on accounts on either
side of a straight line back to the o ce
The "outer-ring" approach
the salesperson rst draws an outer ring around the customers to be called upon
then, those customers inside the ring are connected to the outer ring route using angles that are as obtuse as
possible
36 Figure 13.5 Hopscotch and Cloverleaf Routing Patterns

37 Figure 13.6 “Outer Ring” Routing Patterns

38 Using Computer Programs in Routing

Numerous computer-based interactive models have been successfully applied to sales force routing and territory
management.
39 Working Smarter: Using the Latest Technology

Salespeople can work smarter and increase their selling e ectiveness and e ciency by making use of the latest
technologies, such as:
electronic pagers
cellular car phones
electronic mail
facsimile machines
word processing and spreadsheet software
time management software
laptop computers
40 Working Smarter: Excuses About Time

Often the problem is the individual's attitude toward time and the tendency to make excuses for using it
ine ciently
Excuses about time include:
There are too many demands on my time.
I can do it better myself.
If only I had more time each day.
I don't have time to plan.
I can't nd time to work on big projects.
I can't prevent unexpected problems that disrupt my plans.
If only I could work faster.
It's better to do small tasks rst.
41 Table 13.5 Excuses for Poor Time Management

42 Table 13.5 Excuses for Poor Time Management cont’d

43 Table 13.5 Excuses for Poor Time Management cont’d

44 Working Smarter: Paperwork

One of the most dreaded and time-consuming tasks of salespeople is handling their paperwork.
Like other sales-related activities, paperwork ought to be scheduled on the salesperson’s daily or weekly planning
calendar.
Some companies put the 200 to 700 pages of memos, newsletters, brochures, reports, announcements, and other
sales-related materials sent to salespeople each week onto audiotapes.
45 Working Smarter: Customer Service

Customer service is a regular part of the salesperson’s daily job and should be scheduled like any other activity.
The suggestions on the following slides may assist you in focusing your customer service activities:
46 Working Smarter: Customer Service cont’d

Segment your customers according to costs and the potential pro ts that could accrue from providing them with
superior service.
Remember that all customer contacts, whether through telephone operators, receptionists, secretaries, delivery
and repair personnel, or customer service people, shape the perceptions of your company’s service.
Try to encourage all these people with customer contact to treat prospects and customers well.
47 Working Smarter: Customer Service cont’d

Continually stress the importance of customer service to people in your company, and reinforce this attitude by
your own actions.
Design and use measures of service e ectiveness such as the percentage of on-time deliveries, the length of time
it takes to repair a product, and the level of customer satisfaction.
48 Working Smarter: Time Traps

Many salespeople hurt their e ciency by falling into daily time traps, which include:
Calling on unquali ed or unpro table prospects
Insu ciently planning each day's activities
Making poor territorial routing and travel plans
Making too many cold calls
49 Working Smarter: Time Traps cont’d

Making poor use of waiting time between appointments
Spending too much time entertaining prospects and customers
Not using modern telecommunications equipment like a car phone, beeper, facsimile machine, and laptop
computer
Doing tasks that could be delegated to a sta person or to automated equipment
Failing to prioritize work

Procrastinating on major projects or contacting high-potential prospects, resulting in redundant preparation and
paperwork
Ine ciently handling paperwork and keeping disorganized records
Failing to break up huge, long-range goals into small, currently manageable tasks
Ending workdays early, especially on Friday afternoons

Failing to insulate oneself from interruptions on sales calls or while doing paperwork
Conducting unnecessary meetings, visits, and phone calls
Doing personal business during working hours
What are the classic time traps into which salespeople can fall?
52 Working Smarter: A Plan for Each Day

Every salesperson can bene t from preparing a daily "To Do" list of projects and tasks that are prioritized into A, B,
and C categories of importance
Use the Swiss cheese approach to punch little holes in top priority projects that can't be nished all at once
53 Working Smarter: Steps to Manage Time More E ciently

Time management steps include:
Each weekday afternoon, write down the schedule for the next day
On Friday afternoon, plan the schedule for the following week
Concentrate on high priorities
Spend time as if it were money
Stop procrastinating
Schedule some personal time every day
What are some steps that salespeople can take to manage their time better?
54 Figure 13.7: Daily Schedule Sheet

55 Key Terms E ectiveness

Results-oriented focus on achieving selling goals.
E ciency
Cost-oriented focus on making the best possible use of the salesperson’s time and e orts.
Return On Time Invested (ROTI)
The designated return achieved, calculated by dividing the result achieved by the amount of time spent to
accomplish that result.
Parkinson’s Law
Work expands to ll the time allotted to it.
56 Key Terms cont’d Concentration Principle

Most sales, costs, and pro ts come from a relatively small proportion of customers and products; also known as
the rule.
Iceberg Principle
Analogous to an iceberg, most sales problems are hidden beneath the surface of overall positive sales totals.
Sales Territory
A control unit that contains customer accounts.
Territorial Routing
Devising a travel plan or pattern to use when making sales calls.
57 Topics for Thought and Class Discussion

1. Why are salespeople described as operating like eld marketing managers? Do you believe that this is an
accurate representation of the typical eld salesperson? Explain.
2. Do you think that most job descriptions for salespeople accurately re ect their current duties and
responsibilities? Why?
3. Pick a routine task in your life and map out a plan for improving your e ciency and e ectiveness in
accomplishing it.
4. How do time traps disrupt your time management? How can you avoid these traps?
58 Topics for Thought and Class Discussion cont’d

What techniques do you use to plan, organize, and set priorities in your daily activities? Do you use the “Swiss
cheese” approach for large or complex projects? Give an example of how you might do this.
Do you allow other people to frequently preempt your priorities in use of your time by substituting something that
is of high priority to them? Give an example. How might you deal with future situations where someone wants you
to accept his or her priority for time use instead of yours?
59 Internet Exercises
Use an Internet search engine to nd three rms that specialize in sales territory management training. What are
the length and cost of each program? Where would it be held? Who’s doing the training? What topics will the sales
territory management training cover that will be new?
Using Google or any other search engine, nd two examples of sales territory management training being
demonstrated using Flash or streaming video.
Use the Internet to nd articles on salespeople whose e ectiveness has been increased by their improved skills in
time and sales territory management.
Search the Internet to nd additional tips for managing your time. What time management suggestions did you
nd advocated?
60 Internet Exercises cont’d

Use the Internet to nd examples of quantitative and qualitative metrics that are used to evaluate the
performance of salespeople (in addition to those identi ed in Table 13.4). What inferences can you make about
how your performance might be assessed if you were to embark on a career in sales? What activities might you
emphasize to ensure a high performance rating and, in the process, a successful career?
Using an Internet search engine, nd software that can be used to chart e cient territorial routing patterns. What
are some of the di erent types of territorial routing patterns that can be developed?
61 Projects for Personal Growth

Contact three salespeople and ask them how they plan, organize, and prioritize their daily activities. Mention that
you are a student working on a class project. Evaluate their approaches in terms of ROTI.
2. Classify four of your student friends on the basis of your perceptions of their e ectiveness and e ciency. Then
ask these student friends these two questions: (a) “What techniques do you use to plan, organize, and set priorities
in your daily activities?” and (b) “What time traps are most responsible for wasting your time each day?” Compare
your friends’ answers with your prior classi cation of them. Any surprises?
62 Projects for Personal Growth cont’d

For the coming week, write down how you spend each hour of the seven days. At the end of the week, compute
approximately how much of your time you used productively and how much you wasted. Draw up a plan for better
managing your time, and use it throughout a second week. At the end of this second week, evaluate whether or
not you obtained more productive time. If so, what made the di erence?
Go to the library or use electronic sources and nd three current articles on managing a sales territory. Summarize
them and report what you learned to your classmates.
63 Case 13.1: Time Is No Object

How would you evaluate Steve Burbank as a manager of his time and territory?
What would you recommend to help Steve improve his e ectiveness and e ciency?
How might Pearson’s training program have better prepared Steve for managing his territory?
64 Case 13.2: Working Smarter ... Or Just Harder?

Do you think that Jim is working smarter or just harder? What do you think about Jim’s sales call allocation and
routing plan for his accounts? Can you suggest any improvements?
How well do you think Jim invests his time? What might he do di erently?
What advice would you give Jim about achieving his annual sales quota?
What would you suggest to Jim to help him deal with the stress in his life?
Case 13.2 is found online at
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1 Chapter 13 Managing Your Time and Your Territory

3 Learning Objectives After reading this chapter, you should understand:

5 E ectiveness and E ciency

6 How Salespeople Spend Their Time

7 Figure 13.1 How Salespeople Spend Their Time

8 Table 13.1 What is One Hour of Selling Time Worth?

9 E ectiveness and E ciency

10 Chapter Review Question: What are the basic activities of salespeople?

11 Table 13.2 Basic Activities of Sales People

12 Table 13.2 Basic Activities of Sales People cont’d

13 What's Your Job Description?

14 Figure 13.2 Position Description

15 Figure 13.2 Position Description cont’d

16 Figure 13.2: Position Description cont’d

17 Salespeople as Field Marketing Managers

18 Table 13.3 The Salesperson’s Management and Marketing Activities

19 Table 13.3 The Salesperson’s Management and Marketing Activities

20 Return on Time Invested (ROTI)

21 Three Axioms in Personal Selling cont’d

23 Performance Measures cont’d

24 Performance Measures: Quotas cont’d

25 Performance Measures: Customer Reviews of Performance

26 Table 13.4 Quantitative Measures of Salesperson Performance

27 Table 13.4 Quantitative Measures of Salesperson Performance cont’d

28 Account and Territory Management

29 Figure 13.3: Ranking Customers According to the Concentration Principle

30 Portfolio Analysis Approach

31 Figure 13.4 Account Analysis

33 Routing Patterns cont’d

34 Account and Territory Management

35 Account and Territory Management cont’d

36 Figure 13.5 Hopscotch and Cloverleaf Routing Patterns

37 Figure 13.6 “Outer Ring” Routing Patterns

38 Using Computer Programs in Routing

39 Working Smarter: Using the Latest Technology

40 Working Smarter: Excuses About Time

41 Table 13.5 Excuses for Poor Time Management

42 Table 13.5 Excuses for Poor Time Management cont’d

43 Table 13.5 Excuses for Poor Time Management cont’d

44 Working Smarter: Paperwork

45 Working Smarter: Customer Service

46 Working Smarter: Customer Service cont’d

47 Working Smarter: Customer Service cont’d

48 Working Smarter: Time Traps

49 Working Smarter: Time Traps cont’d

50 Working Smarter: Time Traps cont’d

51 Working Smarter: Time Traps cont’d

52 Working Smarter: A Plan for Each Day

53 Working Smarter: Steps to Manage Time More E ciently

54 Figure 13.7: Daily Schedule Sheet

55 Key Terms E ectiveness

56 Key Terms cont’d Concentration Principle

57 Topics for Thought and Class Discussion

58 Topics for Thought and Class Discussion cont’d

60 Internet Exercises cont’d

61 Projects for Personal Growth

62 Projects for Personal Growth cont’d

63 Case 13.1: Time Is No Object

64 Case 13.2: Working Smarter ... Or Just Harder?

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