How salespeople invest their sales time is a critical factor influencing territory sales.
Due to the increasing cost of direct selling, high transportation costs, and the limited
resource of time, salespeople have to focus on these factors. Proper time and territory from the salesperson. This helps to reduce sales expenses by avoiding duplicated
effort in traveling and customer contacts. Finally, territories allow better matching
of salespeople to customer needs and ultimately benefit salespeople and the
company. There also are disadvantages to developing sales territories. Some salespeople
may not be motivated if they feel restricted by a particular territory. Also, a company
may be too small to segment its market or management may not want to take time to
develop territories. Time and territory management is continuous for a salesperson; it involves
seven key elements. The first major element is establishing the territory sales
quota. The second element is account analysis, which involves identifying current
and potential customers and estimating their sales potential. In analyzing these
accounts, salespeople may use the undifferentiated-selling approach if they view
accounts as similar; or, if accounts have different characteristics, they use the
account-segmentation approach. Developing objectives and sales quotas for individual accounts is the third element.
How salespeople allocate time in their territories is another key element. Salespeople
have to manage time, plan schedules, and use spare time effectively.
The fifth element of time and territorial management is developing the sales-call
objective, profile, benefit program, and selling strategies for individual customers.
Salespeople have to learn everything they can about customers and maintain records
on each one. Once this is done, they can create the proper selling strategies to meet
customers' needs. Another major element is scheduling sales calls at specific times and places and
routing the salesperson’s movement and travel pattern around the territory. Finally,
established objectives and quotas are used to determine how effectively the salesperson
performs. Actual performance is compared to these standards for evaluation
purposes. |