Careers: Business/MKTG Mgt


) The  key consideration in territory management are forecasting sales and
   assigning sales quotas to the sales force. Discuss with a suitable example.

The key consideration in territory management are forecasting sales and
assigning sales quotas to the sales force. Discuss with a suitable example.



-Sales  review
-Customers  Sales review
-Market review
-Sales Policies  review
-Products Performance reveiw
-Distribution  review
-Customer review
-Reseller [ trade review ]
-Sales  Organization review
-Territories Sales review
-Sales Force review
-Sales  management review
-Sales  Promotions  review
-Sales  support review
-Sales  training  review
-Competition review
-Pricing  review
2.Based  on the  analysis /  review, you develop the  sales  plan
for  the  next 12  months.
1.Your Company  Mission Statement.
2.Your  Products/ Service  
3.Total Market  size  potential [ how big in the next 12 months]
4.Your  company  marketing  Objectives.
5.Your  market  share  forecast.
6.Your  sales  forecast.
7.Your  Competitive  positioning
8.Which  are  your  market segments, you  are going  to focus.
9.Your  sales  organization-structure / positions/ process.
10.Your  major  customers [ current / new  prospects ]
11.Your sales  targets by  customers / territories.
12.Target Market(s)
What categories of buyers will you target? For example: banks,
 Why? Where are those customers located?
13.What Motivates Those Buyers
Describe the product or service in terms of the benefits it provides the
customer. Why should they buy your product or service? Buyers are
motivated by benefits (e.g., convenience, status, time savings,
cost reduction, etc.), not products and services.
14. Matching  Competitors
Don’t assume that your products and services are so superior that you can
discount the competition. An honest assessment of your primary competitors’
strengths and weaknesses make your business plan more credible.
Describe your competition from the customer’s perspective. What strengths
does the competition have in the eyes of the marketplace?
How will your business compete effectively?
15. What is  positioning strategy
    1.  Price—Base it on how much the market is willing to pay for the product
1   or service, not on how much it costs the business to manufacture and sell it.
2   Management style—Fast and aggressive or slower and cautious?
3   Product quality—High-priced, high-quality for a niche market or low-priced,
4   adequate-quality that can capture a large market share?
What industry trends could affect your business? Economic trends? Cultural trends?
How  do  you  plan  to  manage  these  factors.

17.Obstacles and Opportunities
What might get in the your way? If possible, present these obstacles as opportunities
instead of problems. How will the business address them?

18.Selling Methods
How will your potential customers learn about your product?
If you plan to use your own sales force, how many salespeople will you need
to meet your goals? How many sales calls do you estimate that it will take to
make a sale? How large will the average order be?
How will you keep your sales costs down? Many businesses have moved away
from a traditional in-house sales force and have become increasingly reliant
on direct mail, telemarketing, and seminars to sell products and services.
19.Supporting the Sales Force
What training will the sales force need? How will that training be addressed?
What materials (e.g., brochures, selling aids, prototypes) will the sales force need?
What incentives will you offer the sales force? These incentives must be
structured properly and explained clearly in order to be effective.
20.Product Promotion
How will you promote your product? Through advertising? Public relations? The press?
The elements are as follows:
Cover Page (these first two elements are only if you need to submit your plan to a manager)
Executive Summary (this is just good protocol)
What are the highlights of the plan? Write this last.
What is my mission? This should be no longer than a paragraph, and succinctly state my primary focus.
"Achieve Quota, be significant contributor in company, enable path to promotion to occur."
What are my primary objectives? List 3 - 7 items I must accomplish to realize my mission.
"Overachieve Quota each month, Sign 5 new accounts by June 1, develop vertical market strategy by July 1."
Set SMART objectives: specific, measurable, attainable, realistic, time-activated.
Keys to Success
Identify key items over course of year which will enable attainment of objectives to occur most easily.
"Identify key value proposition, articulate through email, phone, and in-person."
"Solid utilization of company resources, including upper management and technical team."
Territory Summary
Provide overview of territory I am targeting:
Current partnerships
Current customers and reference accounts
Geographical description of territory - where accounts are clustered, by vertical market
Current Competitive landscape, by product/service offering
This is important. Many salespeople overlook their competition.
Sales Strategy
Define Customer Buying Criteria, by product/service/solution
Define My Company's solutions, by product/service/solution
Define Account list by geography, vertical market, solution category (service offering)
Define which solutions I want to target to which group of prospects/accounts
Sales Approach
Script out how I want to approach each prospect, by solution
Script out how I want to approach each prospect, by phone
Script out how I want to approach each prospect, by email
Script out questions for first meeting which must be asked in order to determine needs.
Structure how I want to spend my day/week/month -- this should take into consideration my own peak moments.

Factors to be Taken into Account
Different types of accounts require different call frequencies
Prospecting needs to run alongside visits to existing accounts
Different accounts have different ordering patterns
Most businesses have peaks and troughs
Unpredictable Events
Complaints which need urgent attention
Highly valuable orders which need extra attention
Unexpected requests from new business
Planning is Essential
Time spent in the field selling is the most expensive form of promotion
Often over 40% of time is spent on waiting and traveling
The sales person needs to be sure the chosen accounts and market
segment are all covered
Annual Territory Review
Look for ways to increase sales profitability and reduce selling costs
Increase sales opportunities with less travel time
Ensure controlled regular coverage of the territory
1 Identify each existing and potential account the sale person needs to call on
2 Assign to each account a call frequency
3 Check the physical workload against capacity and adjust
4 Locate every account on a large scale map, identify
different type of accounts with different coloured pins
5 Divide the territory into a equal number of calls (not accounts)
(a) Divide territory into five segments if it is a weekly call cycle
(b) Divide territory into four segments if it is a monthly call cycle – sub-divide each segment into five
6 Within each of the sectors, group the calls into workloads i.e. the number and type of calls capable of being called on in one working day
7 Ensuring a sufficient time is left for prospecting for new business of this is a key element of the job description
8 Run the proposed plan for one or two months to discover what
adjustments need to be made
9 Review the call plan at least annually, ideally every half year
One Of Your Roles As A Field Sales Manager is to ensure that each
member of your sales team:
•   Has a territory call plan
•   Plans the routes
•   Has forward weekly, fortnightly, monthly call plans
•   Makes appointments strategically
•   Plans the interviews and presentations
•   Reduce reporting and administration time
Territory planning means goal-oriented grouping of smallest geographical units in higher territorial units.
The higher the granularity of the relating smallest geographical unit the more basic territories are to be grouped. Planning thus becomes more time-intensive, but planning quality on the other hand increases in precision.
In order to reach set goals relating to sales and profit an ideal territorial structure should minimize travelling times of sales reps’ resources and show sufficient active and prospective customers at the same time. A sales structure is essential to a company’s future sales development. It is the connecting link between company and customer.
Performing territory planning by means of Geographic Information Systems takes into account the task’s combinatory, increases transparency of decision-making and thus acceptance of all parties involved.
Territory Planning and Prioritizing Program
A goal without a plan is just a wish
By now everyone is familiar with the fact that hope is not a plan! With out effective planning you have no hope of consistent success in sales.
World class sales organizations establish aggressive goals for maximum results, and to attain these goals they develop clear and effective plans. These plans include how to action, deal with obstacles and anticipate and address all know and potential possibilities. They plan for success, but by anticipating roadblocks, competitive threats and delays, they are prepared to deal with any contingency. This healthy obsession with planning ensures that they will reach their goals.
While luck may play a role in sales, one must remember the old adage:
“Even success has to be met half-way, and proper planning will ensure both halve”
Effective planning is essential building block of Objective Based Selling:
Corporate Objective planning
•   What are the corporate goals, objectives and priorities over the next 18 – 24 months?
•   What is the strategy to deliver against these goals?
•   What are our target markets?
•   What are our core competencies?
•   What resources are critical to generating revenue and find new customers?
•   Is there a gap we need to deal with now?
Key account Time and Territory strategic planning
•   What are our customer's needs for the next 12-18 months?
•   What solutions can we propose?
•   What does the ideal customer look like?
•   What is the best way to segment and prioritize customers/prospect
•   What actions must we take to be successful?
•   What will our competition do and how should we prepare for it?
•   What are the obstacles to our success?
Sales call planning
•   Where do we have relationships and where do we need to build them?
•   Where are we in the sales process?
•   Who are we meeting with?
•   What are our goals for this meeting?
•   What are their needs, concerns, history with our company, etc?
•   What are we proposing?
•   What are the objections we're likely to hear and how will we respond?
•   What are the suggested next steps?
Developing, reviewing and regularly updating your plan is critical to consistent sales success.

Why and when sales territories required?

-when  the unit  value of  the product  is  low.
-frequency  of  purchase.
-distribution  is  nationwide
-focused  selling  is  necessary
-intensive  coverage  of  the  market  is  required.
-product  ranging  is  wide.
-customer  coverage  has  to be  effective.
-face  to  face  selling  essential.
etc etc.

Territory means goal-oriented grouping of smallest geographical units in higher territorial units.

The higher the granularity of the relating smallest geographical unit the more basic territories are to be grouped. Planning thus becomes more time-intensive, but planning quality on the other hand increases in precision.
In order to reach set goals relating to sales and profit an ideal territorial structure
-should minimize travelling times of sales reps’ resources and
-show sufficient active and prospective customers at the same time.
-A sales structure is essential to a company’s future sales development. It is the connecting link between company and customer.
Performing territory planning by means of Geographic Information Systems takes into account the task’s combinatory, increases transparency of decision-making and thus acceptance of all parties involved.


the  Analysis Considerations  of

1. Geography

*Metro/trade centers
*Local regions
*Transportation network

2. Economic Conditions

*Territory profitability
*Territory costs
*General business activity
*Construction starts
*Number of markets
*Types of markets
*Environmental factors
*Location/identification of strongest/weakest markets

3. Customer/Prospect

*Current usage of our products
*Projected usage of our products
*Number of key accounts
*Number of regular accounts
*Number of identified prospects
*Major problems reported
*Reputation among accounts
*Sales objectives by account
*Call costs
*Current/projected sales

Conditions Affecting
Territory  Needs/Requirements

Here is where you want to get
the "bigpicture"to note down in
each of the five sections under

'Analysis Considerations":

•What's happened  or what's happening?

•Why has the situation occurred?

•How was it brought to your attention?

•Is it taking place in only one part of the territory or everywhere within it?

•Who or what is being affected?

•How long has it been going on?

•Who or what is involved?

•What is its cost to us?

Answers to these questions
(and others) can be learned by
observing, listening, asking,
checking information against
reliable sources.

Facts Revealed in Order of Importance

What facts or information seem to stand out as most important in each of the five sections here and below?

How many times has this information or these facts been repeated or brought to your attention?

Have information or facts collected been questioned? Are they correct? Applicable? Who says so?

What effect does this information or the facts have on coverage patterns? Routing procedures? Contacts with important prospects or customers? Use of time? Prospecting?

Trends, Problems, and Opportunities Observed

List trends observed, opportunities encountered, andproblems to be solved in each ofthe appropriate sections below.

Must they be handled immediately  or sometime in the future?

Can the sales rep solve them or take advantage ofthem?

Who else within the company ought to know about them? What facts or details will they need? What actions shouldyou recommend?

What assistance from the various departments within the company may be necessary?

Possible Courses of Action

What needs to be done immediately? Soon? In the future?

What steps or actions will be involved and in what sequence? Who will be responsible for handling them?

Will the courses ofaction lead to the results you seek?

What will the costs be in terms of time, effort, and dollars? Have such costs been estimated?


Clarity of definition helps to provide management with a specific
marketing tool to plan and control field operations. It also pinpoints
prospects and customers with the necessary potential for the territory's
continued growth and development. Finally, it produces information with
which to classify and evaluate accounts, so that sales contacts can be
adjusted to needs imposed by the market and competition.

It is interesting that responses indicated that territory decisions are made
at the district or regional level in the majority of reported instances.

How is a territory's definition determined?

Good ways are to observe and ask questions! Your first view of any
territory with which you're not familiar should aid you in gaining a broad,
general understanding of its character and composition. Your aim is to
learn as much as possible about its:


•Is the territory increasing its market share or standing still?

•What has been the trend in profits within the territory, and do any specific causes seem to have helped or hurt earnings?

•Have profits varied from area to area within the territory? From product group to product group within the territory?

•What does it cost to operate this territory? How do these costs compare with other territories under your jurisdiction?

•What is the potential within the territory, if the sales rep could sell every product?

•What is the average cost per call in this territory? How does it compare with call costs in other territories in your district? Throughout the company? Is it about the same for other companies serving the same territory?

•What are current sales? Projected sales?


*How many markets are there within this territory? How big are they?
* Is there just one basic market or many specialised ones?
* Are the markets within the territory predominantly urban, rural, or a combination?
*In which markets can we expect to be the strongest?
* In which markets are we weakest? Do we know why?
*How many competitors serve this territory's markets? How aggressive are they? Have any major shifts in competitive activities been detected? Is the division of markets among all suppliers fairly stable?
*Which competitor(s) dominates principal markets in the territory?
* Are there any environmental factors that seem to be of critical importance? What are they? *What are the most important strengths and weaknesses of the territory? What key influences present or future must be taken into account?
* What major voids exist in your information base that might make a sound analysis of your territory difficult or impossible?


*How many products or product lines do we sell in this territory?
*What is their acceptability?
* How adaptable are they? Do they fit only one type of market or many?
* Do they change from year to year (like automobiles), or do they tend to remain fairly static (like screwdrivers or hammers and nails)?
*What is the product's history or profitability?
*How much product can this territory reasonably be expected to absorb?
* What channels of distribution are used to move products through the territory? Are there different distribution channels for different products?
*What type of distribution and what specific distributors work well in this territory? How aggressive are they? What facilities do they possess? Which ones are prospering and who are failing? Where are they located within the territory?


How many are there in the territory? What number of prospects have been identified? How many customers have the potential for becoming key accounts? What constitutes a key account in this territory? How efficiently are customers being covered at the present time? With what frequency? is the present system effective, or will it require major revisions? What is our image among customers? Prospects? What is our reputation in the trade? Does the potential exist for increasing sales to present customers? What kinds of people or firms comprise the best customers and prospects in this territory? Are customers classified according to potential? How many calls is it economical to make on the various categories of customers within the territory? Do accounts have profit objectives? Do we know what they are? Have sales objectives been set for accounts? What is the approximate duration of time per call? Have coverage patterns been established? Is the sales rep using a call schedule to contact his customers systematically?

Sales Force

What will it cost to put a rep in the territory as far as compensation, expenses, etc., are concerned? How are the sales reps paid? Commission? Salary? Combination? Is the territory's sales rep a real selling "pro" or just an order taker? What kind of sales rep is required for best results? Can he or she sell the complete line or only some of the products? How long has the rep been with the company? how long is he or she likely to remain with the company? How effectively does the rep make use of time to sell, plan, or cover the territory? What supervision is required by you? How much time will this take?


•Was the previous sales rep in the territory so strong or so weak that the sales assignment was adjusted to fit?

•Were key accounts, distributors, or new business development assignments tailored to fit the rep previously working the territory?

•Were sales and distribution plans arranged many years ago when the company was small and lacked many of its present products and services?

•Is there a clear line of demarcation between large and small accounts?

•Are there divided responsibilities between the company and key accounts?

•Has there been a failure to classify customers, so that sales and servicing policies and activities are either difficult or impossible to apply?

•Has the company's reputation suffered in the territory due to the actions and activities of previous sales reps?


1   Questions concerning the territory

2.   List important facts about territory as they relate to profits, markets, products, accounts, sales reps, and problems.

3.   Arrange facts in order of importance.

4.   Check for possible trends, changes and problems.

5.   Note conditions affecting territory's needs, wants, requirements and opportunities.

6.   Compare data from territory with that analysed for other territories under your jurisdiction.

7.   Outline briefly possible courses of action regarding the territory as they relate to

Sales reps/sales management/customers

8.   Keep analysed data handy for quick reference as territorial plans are developed.



1.   Territorial geography:

Area and boundaries. Major metro centres Location of counties Transportation networks Topographical characteristics Climate

2.   Prospects/customers:

Locations/concentrations Needs, wants and preferences Limitations Size of various types of operations. Potential, etc.

3.   Economic conditions:

Level of general business activities Growth facto rs/trends/potential Employment/extent of depressed areas Construction starts Population growth or decline

4.   Competition:

Names/numbers/concentrations/ Capabilities/aggressiveness/limitations Services offered Products sold Pricing/profitability/volume lnstallations/facilities/headquarters

5.Use of our products:

Type(s) preferred Current/projected usage /Pricing /terms /Servicing Distribution Facilities etc.

territory planning  SAMPLE.

(i) A company selling infant milk powder

-when  the unit  value of  the product  is  low.
-frequency  of  purchase

-distribution  is  nationwide
-focused  selling  is  necessary
-intensive  coverage  of  the  market  is  required.
-product  ranging  is  wide.
-customer  coverage  has  to be  effective.
-face  to  face  selling  essential.
-state  sales  tax/ other taxes  varies

etc etc.


(ii)A firm selling textile machinery components to a large textile units.


-when  the unit  value of  the product  is  high.
-frequency  of  purchase]
-distribution  is  nationwide
-focused  selling  is  necessary
-intensive  coverage  of  the  market  is  required.
-product  ranging  is  wide.
-customer  coverage  has  to be  effective.
-face  to  face  selling  essential.
etc etc.


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