FUNDAMENTALS OF SELLING

Customers For Life Through Service

13th Edition

Charles M. Futrell

McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
 Chapter
15
Time, Territory, and Self-
Management: Keys to
Success

15-2
Chapter
15-3
15
The Tree of Business Life: Time
T
T T Guided by The Golden
T T TT Rule:
 View your territory as a business
T T T T  Treat customers differently
depending on their needs
Builds  Value the customer’s time
 Realize that how you spend your
time determines your life
 Use your life to serve others and
enjoy a wonderful, fulfilling life
 Seek, knock, ask, serve, and see that
ethical service build true relationships
Relationships

15-4
Customers Form Sales Territories
◼A sales territory comprises a group of
customers or a geographical area assigned to
a salesperson

15-5
Exhibit 15.1: Reasons Companies
Develop and Use Sales Territories

15-6
Why Sales Territories May Not Be
Developed
◼ Salespeople may be more motivated if not
restricted by a particular territory
◼ The company may be too small to be
concerned with segmenting the market
into sales areas

15-7
 Exhibit 15.2: Elements of Time and Territory
Management for the Salesperson

Salesperson’s territory’s
sales quota

15-8
Elements of Time and Territory
Management
◼ Salesperson’s sales quota (goals) may
involve:
Sales volume quotas
Profit quotas
Expense quotas
Activity quotas
Customer satisfaction scores

15-9
 Exhibit 15.2: Elements of Time and Territory
Management for the Salesperson, cont…

Salesperson’s territory’s
Account analysis
sales quota

15-10
Elements of Time and Territory
Management, cont…
◼ Account analysis:
The undifferentiated selling approach (Exhibit 15-4)
The account segmentation approach (Exhibit 15-5)
◼ ELMS system

◼ 80/20 principle

Multiple selling strategies

Multivariable account segmentation (Exhibit 15-6)

15-11
Exhibit 15.4: Undifferentiated
Selling Approach

Slide 15-11
15-12
Exhibit 15.5: Account Segmentation
Based on Yearly Sales

15-13
Exhibit 15.6: Basic Segmentation
of Accounts

15-14
Exhibit 15.7: Account
Segmentation Approach

Slide 15-11
15-15
Exhibit 15.8: Multivariable Account
Segmentation

Slide 15-11
15-16
 Exhibit 15.2: Elements of Time and Territory
Management for the Salesperson, cont…

Salesperson’s territory’s Set account objectives

Account analysis
sales quota and sales quotas

15-17
Elements of Time and Territory
Management, cont…
◼ Setaccount objectives and sales quotas
which may involve:
Sales volume quotas
Profit quotas
Expense quotas
Activity quotas
Customer satisfaction scores

15-18
 Exhibit 15.2: Elements of Time and Territory
Management for the Salesperson, cont…

Salesperson’s territory’s Set account objectives

Account analysis
sales quota and sales quotas

Territory-time allocation

15-19
 Elements of Time and Territory
Management, cont...
◼ Territory-time allocation
Basic factors to consider
◼ Number of accounts in the territory
◼ Number of sales calls made on customers

◼ Time required for each sales call

◼ Frequency of customer sales calls

◼ Travel time around the territory

◼ Nonselling time

◼ Return on time invested

Sale response function

15-20
Elements of Time and Territory
Management Cont…
◼ Territory-time allocation
Basic factors to consider
Sales response function
◼ The salesperson invests sales time in direct
proportion to the actual or potential sales that the
account represents
◼ The most productive number of calls is reached at
the point at which additional calls do not increase
sales
◼ The relationship of sales volume to sales calls is
the sales response function of the customer to the 15-21
 Exhibit 15.9: Account Time
Allocation by Salesperson

* every 3 months

15-22
 Return on Time Invested
◼ Time is a scarce resource
◼ Break-even analysis
◼ The management of time
Plan by the day, week, and month
Qualify the prospect
Use waiting time
Have a productive lunchtime
Records and reports

15-23
 Exhibit 15.2: Elements of Time and Territory
Management for the Salesperson, cont…

Salesperson’s territory’s Set account objectives

Account analysis
sales quota and sales quotas

Territory-time allocation

Customer sales planning

15-24
What is Involved in Customer Sales
Planning?

◼ You do the following for each sales call:

Develop sales call objectives
Review/create customer profile
Create customer benefit plan
Select FABs
Develop marketing plan
Develop business proposition
Develop suggested order
Develop your sales presentation 15-25
 Exhibit 15.2: Elements of Time and Territory
Management for the Salesperson, cont…

Salesperson’s territory’s Set account objectives

Account analysis
sales quota and sales quotas

Territory-time allocation

Scheduling and routing Customer sales planning

15-26
Scheduling and Routing
◼ Strict
formal route designs enable the
company to:
Improve territory coverage
Minimize wasted time
Establish communication between management
and the sales force in terms of location and
activities of individual salespeople
◼ Carefully plan your route

15-27
Exhibit 15.11: Location of Accounts
and Sequence of Calls

15-28
Exhibit 15.12: A Weekly Route Report

15-29
Exhibit 15.13: Three Basic Routing Patterns

15-30
Using the Telephone for Territorial
Coverage

◼ Satisfy part of the service needs of

accounts by telephone
◼ Assign smaller accounts that contribute
less than 5 percent of business to mostly
telephone selling
◼ Do prospecting, marketing data gathering,
and call scheduling by telephone
◼ Carefully schedule personal calls to distant
accounts 15-31
 Exhibit 15.2: Elements of Time and Territory
Management for the Salesperson, cont…

Salesperson’s territory’s Set account objectives

Account analysis
sales quota and sales quotas

Territory-time allocation

Territory and customer

Scheduling and routing Customer sales planning
evaluation

15-32
Exhibit 15.14: Net Sales by Customer
and Call Frequency: May 1, 2005

15-33
Territory and Customer Evaluation

◼ Did the salesperson meet sales quota(s)?

Sales volume quotas
Profit quotas
Expense quotas
Activity quotas
Customer satisfaction scores

15-34