FINAL REVIEW-2

FINAL REVIEW-2 - MARKETING 635 FINAL REVIEW Sales...

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MARKETING 635 FINAL REVIEW Sales Territories Sales Territory: a group of present and prospective customers assigned to a salesperson/branch/agent/distributor Sales territories not only help you organize the sales force, they are usually also beneficial to the customers · Sales person is dedicated to the area à know product and geography demographics better o Eliminates poaching = another sales person goes into your territory and steals customers · Usually geographic division, but population varies everywhere Sales Territory Benefits · Increased sales morale à know where to sell · Efficient market coverage · Assists in evaluation and control à compare people across territories · Generally higher customer satisfaction · Easiest method to manage Challenges with Sales Territories · Reps feel they are inequitable (challenge) · Missed sales opportunities à pass by companies in the middle · Facilitation of referral business à if 1 salesperson finds client in other territory, must turn over to the sales person who controls the territory · Overlay of major account sales people · Requires policing by the sales manager to prevent poaching · The internet will help to decide how to divide the territories à rotate but uneven commission o Complicating sales and management of territories Size Determination Methodologies 1. Breakdown Method: sales volume / individual rep productivity 2. Workload Method: classify accounts, determine call frequency, calculate work load, determine time available per rep, apportion time, calculate the number of reps
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3. Incremental Method: determine number of reps based on incremental profit of each addition rep (utilizes the law of diminishing returns) à the best! Selecting Sales Territory Control Units 1. Countries 2. Trading Areas (Midwest): vary product to product 3. States 4. MSAs, CMAs, (MSAs > 1 million people) and RSAs · Metropolitan statistical area, consolidated MSAs, rural MSAs 5. Zip codes: may not always be practical, high demand products **No such thing as the “perfect territory” à always differences you can’t account for like new salesperson, long distribution, and new competitors Motivating the Sales Force Driving factors in sales motivation · Money, freedom, competitive, recognition, satisfying, promotions, other rewards, like dealing with people, flexibility · Made and born Internal Motivation (within the salesperson) · Self-sufficient · Decisive · Goal-oriented · Can’t train this à have it or don’t External Motivation · Leadership provided · Let me mistakes à empower and guide but don’t direct · Unethical is demotivating · Ombudsman = spokesperson during problems · Recognition is important for success · No work/life balance = high turnover · Coaching is most important management skill
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1. Specifically identify the issue like poor sales performance 2. Determine the root cause through asking questions 3. Identify actions or behavior changes to take place 4. Determine responsibility and timeline
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FINAL REVIEW-2 - MARKETING 635 FINAL REVIEW Sales...

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