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SDM5

The document discusses sales territory allocation and design. It notes that sales territories are established to efficiently cover markets, deploy salespeople, service customer groups, and facilitate productivity. Territories are based on geographical spread, certain customer groups, or industries. The size of each territory considers factors like prospects in the area, geographical spread, possible sales volume, required visit frequency, and inventory turnover. Territories are designed using either a market build up approach to equally distribute sales potential and workload, or a work load approach to group customers, estimate call frequencies, locate present and potential customers, and establish geographical units based on needed call numbers. Territorial adjustments are made based on factors like required call numbers, time per call, travel time, previous team feedback

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Vikas
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59 views

SDM5

The document discusses sales territory allocation and design. It notes that sales territories are established to efficiently cover markets, deploy salespeople, service customer groups, and facilitate productivity. Territories are based on geographical spread, certain customer groups, or industries. The size of each territory considers factors like prospects in the area, geographical spread, possible sales volume, required visit frequency, and inventory turnover. Territories are designed using either a market build up approach to equally distribute sales potential and workload, or a work load approach to group customers, estimate call frequencies, locate present and potential customers, and establish geographical units based on needed call numbers. Territorial adjustments are made based on factors like required call numbers, time per call, travel time, previous team feedback

Uploaded by

Vikas
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Sales Territory Allocation.

Sales Territories
To cover markets efficiently.
Deploy Sales people effectively. Service customer groups efficiently. Facilitate productivity in selling.

To control selling expenses. To coordinate Personal selling / Advertisement.

Basis of Territory
Geographical spread. Certain Customer group. An industry.

Size of territory
Density of prospects in specified area. Geographical spread. Possible volume of sales. Frequency of visits necessary / Selling effort needed for a call. Ease of travel (Time available for Sales). Inventory turnover at retail level.

.Sales Potential

Design of Sales Territory


Market Build Up Approach.
Sales Potential of whole market broken down territory wise and it is given required back up (Equalise sales potential and work load).

Cont
Work Load Approach.
Customers are grouped into categories. Optimum Call frequency for each category estimated. Present and potential customers located. Arrive at TOTAL NO. OF CALLS NEEDED. Geographical unit established.

Territorial Adjustments
Correction based
On number of calls that might be actually needed. On time involved per call. On travel time between calls. On feedback from pervious team. For different classes of customers.

Similarly Sales people Adjustments based on relevant parameters

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