The Selling

Functions-
Territory
Management &
Time
Management
Dr. Neeraj Dixit
Associate Professor
IES Management College, Mumbai

1
 Overview
●Salespeople are not only responsible for
individual customers (account
management) but they are also
responsible for a group of accounts
(territory management)
●A sales manager must learn to use
time efficiently and must provide guidance
to salespeople so that they will also make
the most productive use of their time.
●Establishment of sales territories is the
starting point for this critical management
activity.
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 Overview
• Ideally Sales Territories are structured in a
way that facilitates planning and control of
the sales effort.
• Improved sales force control is achieved
by setting quotas and other sales
objectives on a territory-by-territory basis
and comparing actual performance against
these targets.
• Morale is improved when salespeople
receive credit for the results.

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 Sales Territory-Definition
Sales Territory is a configuration of current
& potential accounts for which
responsibility has been assigned to a
particular sales representative.
Territory Management can be defined as the
planning, implementation and control of
salespersons activities with the goal of
realizing the sales and profit potentials of
their assigned territories.

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 Territory Management Checklist

A. Analyze a territory
B. Prepare
C. Present
D. Service
E. Schedule for best use of time
F. Coordinate with headquarters
G. Maintain personal development

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 A. Analyze a territory
1. Maintain constant analysis of territory with sales
supervisor to determine the following
A. When & Where new accounts are needed
B. What must be done to meet volume & dealer
development objectives
2. Carefully select potential new accounts, based on the
following considerations:
A. Character
B. Capacity
C. Credit
D. Competition
3. Continually evaluate current accounts to ensure that you
have the best possible accounts.
4. Allocate received territory potential and quota to current &
prospective accounts.
5. Set short and long range objectives for each account to
achieve territory quotas.

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 B. Prepare
1. Develop new account presentation
based on your research of account
sales and operating activity.
2. Work closely with your sales
supervisor to develop the basic
proposal(Quotation).
3. Arrange meetings with all account
personal concerned
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 C. Present

1. Bring out all the advantages of carrying and

using your products.
2. Explain cooperative advertising or other
programs.
3. Explain the terms and extent of your company’s
credit policies.
4. Sell planned programs tailored for the account.
5. Make the recommended opening order for the
products and merchandising materials.
6. Secure the order and arrange for follow-up on
the delivery and display of products.

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 D. Service

1. Train personnel to sell or use the

products.
2. Set up & assist continuing
advertising or other “use” plans.
3. Arrange for adequate display or
storage.
4. Follow through with extra attention
for the first ninety days.
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 E. Schedule for best use of time
1. Organize time, work, & materials to achieve the maximum time for
selling.
A. Analyze your territory to establish the frequency of calls for all
accounts, based on the importance of account classification and
your allocation of potential to each.
B. Apportion the time you will devote to each account, based on
potential. Work with the Sales supervisor to arrive at the most
efficient coverage.
C. Establish routing patterns to achieve maximum coverage with a
minimum of Call-backs.
D. Establish progressive objectives for each account to secure
continuing development.
E. Maintain a file on each account including the following data:
1. Names of personnel
2. Buying History
3. Progressive Objectives
4. Merchandising ideas
2. Perform nonselling tasks during nonselling hours.
A. Fill out reports & orders
B. Plan calls & promotions

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 F. Coordinate with
headquarters
1. Apply Company policies, principles & procedures to
your everyday operations.
2. Submit accurate reports -on time
3. Review your performance with your sales supervisor
and set plans for improvement.
4. Work with your sales supervisors to establish account
potentials
5. Help your management direct field selling efforts
effectively
A. Keep your sales supervisor informed of territorial
trends, productwise
B. Keep your sales supervisor posted on account
attitudes
C. Keep your sales supervisor informed of competitive
promotions or of your local promotions that proved
effective
6. Suggest areas of improvement in the overall operation.

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G. Maintain personal development

1. Maintain good personal appearance and

deportment.
2. Maintain car appearance and upkeep
3. Keep informed on industry trends, know
what the competition is doing.
4. Keep up to date on product knowledge.
5. Be constantly on the lookout for new
sales and merchandising ideas you can
adapt to your job.
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 Territory Management Checklist
A. Analyze a territory 1. Maintain constant analysis of territory with sales supervisor to determine the following
A. When & Where new accounts are needed
B. What must be done to meet volume & dealer development objectives
2. Carefully select potential new accounts, based on the following considerations:
A. Character
B. Capacity
C. Credit
D. Competition
3. Continually evaluate current accounts to ensure that you have the best possible accounts.
4. Allocate received territory potential and quota to current & prospective accounts.
5. Set short and long range objectives for each account to achieve territory quotas.

B. Prepare 1. Develop new account presentation based on your research of account sales and operating activity.
2. Work closely with your sales supervisor to develop the basic proposal.
3. Arrange meetings with all account personal concerned

C. Present 1. Bring out all the advantages of carrying and using your products.
2. Explain cooperative advertising or other programs.
3. Explain the terms and extent of your company’s credit policies.
4. Sell planned programs tailored for the account.
5. Make the recommended opening order for the products and merchandising materials.
6. Secure the order and arrange for follow-up on the delivery and display of products.

D. Service 1. Train personnel to sell or use the products.

2. Set up & assist continuing advertising or other “use” plans.
3. Arrange for adequate display or storage.
4. Follow through with extra attention for the first ninety days.

E. Schedule for best use of time 1. Organize time, work, & materials to achieve the maximum time for selling.
A. Analyze your territory to establish the frequency of calls for all accounts, based on the importance of account classification
and your allocation of potential to each.
B. Apportion the time you will devote to each account, based on potential. Work with the Sales supervisor to arrive at the
most efficient coverage.
C. Establish routing patterns to achieve maximum coverage with a minimum of Call-backs.
D. Establish progressive objectives for each account to secure continuing development.
E. Maintain a file on each account including the following data:
1. Names of personnel
2. Buying History
3. Progressive Objectives
4. Merchandising ideas
2. Perform nonselling tasks during nonselling hours.
A. Fill out reports & orders
B. Plan calls & promotions

F. Coordinate with headquarters 1. Apply Company policies, principles & procedures to your everyday operations.
2. Submit accurate reports -on time
3. Review your performance with your sales supervisor and set plans for improvement.
4. Work with your sales supervisors to establish account potentials
5. Help your management direct field selling efforts effectively
A. Keep your sales supervisor informed of territorial trends, productwise
B. Keep your sales supervisor posted on account attitudes
C. Keep your sales supervisor informed of competitive promotions or of your local promotions that proved effective
6. Suggest areas of improvement in the overall operation

G. Maintain personal development 1. Maintain good personal appearance and deportment.

2. Maintain car appearance and upkeep
3. Keep informed on industry trends, know what the competition is doing.
4.
5.
Keep up to date on product knowledge.
Be constantly on the lookout for new sales and merchandising ideas you can adapt to your job.
13
 Reasons & Benefits of Establishing
Territories.

Companies form sales territories

mainly to maximize sales & profits.
Sales territories make this goal more
achievable because they reduce it to
reasonable proportions.
Individual Salespeople then can make
it their personal mission to improve
territory yield.

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 Reasons & Benefits of Establishing Territories
Reasons Benefits
Customer Related
Provide intensive market coverage Produce higher sales

Produce greater satisfaction

Provide excellent customer service

Salesperson Related
Foster enthusiasm Lead to less turnover
Offer rewards related to effort
Facilitate performance evaluation

Managerial
Enhance Control Reduce expenses
Give more “ bang for the buck”

Coordinate Promotion 15
 Territory Development
• The ideal goal in territorial design is to
have all districts equal in both sales
potential and the sales rep’s workload.
• When sales potentials are equal it is easier
to evaluate & compare sales rep’s
performances.
• Equal opportunities also reduce disputes
between management & the sales force.
• However achieving both objectives is an
ideal but usually unattainable goal.

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Procedure for designing sales
territories

Determine
Select a Location &
Potential of Determine basic
control unit territories
Customers

Set up Assign
Evaluate Territorial
effectiveness salespeople
coverage to territories
of design plans

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Determine basic territories
Build up method.

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19
Determine basic territories
Breakdown method.

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 Time Management
For most Sales Managers managing
their time & that of their salespeople
is one of their most crucial tasks.
Apart from talent, time is sales
professional’s most valuable
resource. To yield maximum benefit
to both the salesperson & the
company, it has to be used wisely.

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 Assessing Time utilization

• Time Management at the territorial level

has its objective the structuring of a
salesperson’s scarce time resources in
such a way as to maximize productive
time and minimize wasted time.
• Around only half of a salesperson’s time is
spent on selling
• The figures below show how salespeople
and sales managers actually spent their
time.

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23
 Assessing Time utilization
To develop effective time
management strategies, it is useful
to classify alternative time uses with
regard to their productivity as has
been done in the next figure

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 Taxonomy of Time Uses
Uses of a salesperson’s Classification
time

Time Spent in:

Customer Contact
Planning Productive
Support

Time spent in:

Travel Unproductive
Waiting

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 Assessing Time utilization
• Although maximization of customer contact
time may be the most efficient use of a
salesperson’s time, it probably does not
represent the most productive application of
available time. The latter comes only if
profitability is taken into account.
• Therefore the following formula has been
suggested
ROTI = GM/CTI
Where ROTI = return on time invested
GM = gross margin
CTI = cost of time invested

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 Assessing Time utilization
• Gross Margin is calculated by deducting
manufacturing costs from sales revenues.
• CTI reflects only a Sales Rep’s direct costs:
salary, bonus, Travel & Entertainment expenses.
• ROTI can be determined on an account-by-
account basis so that those with the highest ROTI
can be favored in the allocation of a territory
manager’s time.
• Territory time management can also deal with
time distribution between current account
coverage & new account development

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 Time Management Skills
Three keys to managing time well are
1.Planning
2.Discipline
3.Organization

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 Planning
1. Establish priorities for sales
management activities
2. Anticipate major tasks that will
come up in the future
3. Establish deadlines for management
tasks
4. Make sure plans & schedules are
flexible, Develop contingency plans.
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 Discipline
1.Do not procrastinate
2.Be alert to unnecessary
interruptions.
3. Learn to be brief
4. Avoid requests for special favors.

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 Organization
1. Consolidate activities whenever
possible.
2. Delegate tasks to subordinates.
3. Concentrate efforts on major tasks
whenever possible
4. Identify the key problems.

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