1. Time, Territory, and Self-
Management: Keys to Success
Chapter
15

2. 15-2
Customers Form Sales Territories
 A sales territory comprises
a group of customers or a geographical area
assigned to a salesperson

3. 15-3
Exhibit 15.1: Reasons Companies
Develop and Use Sales Territories

4. 15-4
Elements of Time and Territory
Management
 Salesperson’s sales quota (goals) may
involve:
Sales volume quotas
Profit quotas
Expense quotas
Activity quotas
Customer satisfaction scores

5. 15-5
Elements of Time and Territory
Management, cont…
 Account analysis:
The undifferentiated selling approach (Exhibit 15-3)
The account segmentation approach (Exhibit 15-6)
ELMS system
80/20 principle
Multiple selling strategies
Multivariable account segmentation (Exhibit 15-7)

6. 15-6
Exhibit 15.3: Undifferentiated Selling
Approach
Slide 15-11

7. 15-7
Exhibit 15.4: Account Segmentation
Based on Yearly Sales
E.L.M.S.

8. 15-8
Exhibit 15.6: Account Segmentation
Approach
Slide 15-11

9. 15-9
Exhibit 15.7: Multivariable Account
Segmentation
Slide 15-11

10. 15-10
Elements of Time and Territory
Management, cont...
 Territory-time allocation
Basic factors to consider
Number of accounts in the territory
Number of sales calls made on customers
Time required for each sales call
Frequency of customer sales calls
Travel time around the territory
Nonselling time
Return on time invested

11. 15-11
Elements of Time and Territory
Management Cont…
 Territory-time allocation
Sales response function
Invests sales time in direct proportion to the actual or
potential sales that the account represents
The most productive number of calls is reached at the
point at which additional calls do not increase sales
The relationship of sales volume to sales calls

12. 15-12
Exhibit 15.8: Account Time
Allocation by Salesperson
* every 3 months

13. 15-13
Return on Time Invested
 Break-even analysis
Salesperson’s Fixed Costs/Gross Profit %
Direct Costs = Salary – (Transportation +
Expenses)
Gross Profit % = Gross Profit / Sales
Gross Profit = Sales – Cost of Goods Sold
If salesperson sells X amount of merchandise, it
covers the direct costs
Sales territory is a cost and revenue generating
profit center

14. 15-14
Return on Time Invested
 Break-even analysis
Per Hour
Cost Per Hour/Gross Profit %
Cost Per Hour = Direct costs/Yearly Hours worked
Salesperson must sell $$ per hour in goods/services
to break even