Management of sales territory and sales quota

Presented by Sangamesh.k lohit.s

SALES TERRITORY
MEANING A sales territory is a basic unit of sales planning and sales control or A sales territory is a grouping of customers and prospects assigned to an individual sales person

SIZE OF SALES TERRITORY

Demand for product
If the demand for particular product is constant and frequent, then the whole sales field can be divide into small sales territories

Transport facilities
The marketing of a particular product depend on transportation facilities

 Population
The density of population in a particular area also determines the size of its sales territories

Advertising and sales promotion

Advertising and promotion activates make the sales mans task easy

Ability and experience of salesman

The size of the sales territory also depends on the ability and experience of the sales force

DESIGNING FOR SALES TERRITORIES

Select the basic geographic control units Decide on the criteria for allocation

Decide on the starting point

Combine control units adjacent to starting point

Compare territories on allocation criteria and conduct workload analysis

Assign sales force to new territories

 Select the basic geographic control units

Commonly used units are postal code numbers, areas, towns or cities. Sales territories are put together as consolidations of basic geographical control units.

Decide on the criteria for allocation

Once the selection of the basic geographical control unit is complete the next task is to analyze the consumer characteristics, buying pattern, market share data ,etc

Decide on the starting point

A sales manager should from tentative sales territories as the starting point by selecting geographic location

 Combine control units adjacent to starting point

sales manager combine control units to build up the market

Allocation criteria and conduct workload analysis

A Sales manager needs to compare the territories on other relevant criteria like customer per square mile and support retail outlet per square mile

Assign sales force to new territories

After determining the final form of sales territories and making necessary adjustment in tentative sales territories , the last step is to assign the territories to the individual sales force

SALES QUOTA
MEANING A quota refers to an expected performance objective. They are sales assignments or goals ,which are to be achieved in a specific period of time

PROCEDURE FOR SALES QUOTA

SCHEDULE PLANNING

CONFERENCING WITH EACH SALES PERSON SUMMARIZED WRITTEN QUOTA STATEMENT

TYPES OF SALES QUOTA

Sales volume quota Sales volume quotas communicate the organizations expectations in terms of what amount sales for/ in what period Sales budget quota The overall intention to make good profit Sales activity quota The desire to control how sales personnel allocate their time and efforts among different activities explains the use of activity quotas

 Combination and other point system quota combination quotas control performance of both selling and non selling activities

METHODS OF SETTING SALES QUOTA

Sales quota based on sales potential of individual units Sales quota on the bases of sales potential of total market Sales volume quotas on the bases of last years sales Setting sales quotas on the basis of judgment of high officials Setting sales quotas on the basis of salesforce own estimates

Recruitment of sales force

MENING Recruitment is defined as the process of generating a pool of qualified candidates for particular job SOURCE Internal sources Recommendation of the existing salesman Promotion Transfer Re-employment of former employees

External sources Employment agencies Educational institutions and campus recruitment Advertising Walk-ins Networking Web sources

Selection of a salesforce
Selection procedure
Pre-interview screening
Application form

interview
Psychological testing Reference check Physical examination Job offer

Training of sales force

MENING Training is the act of increasing knowledge and skill of an employee for doing a particular job Types of training Cross functional training Team training Creativity training Literacy training

Thank you