Sales & Sales Management/Sales Management


1.  What is Sales Management? Discuss the considerations  in the formulation of Sales Strategy for the following products:

(a) Any Industrial Product of your choice

(b) For a newly introduced consumer durable (ceiling fan brand) in a highly competitive market.

2.    (a) Discuss the concept of personal selling with suitable examples.

(b) Critically evaluate the various theories of personal selling with suitable illustrations.

3.  (a) Why and how “Selling Skills” are important  for a salesman in  pursuit of discharging his responsibilities.

(b) What are the basic objectives of good sales force monitoring system? List and briefly discuss the criteria used to monitor the salesforce  team of an FMCG product company.

4.  (a) Define and discuss the purpose of Sales Quotas. Elaborate some of the attributes of a good sales quota plan.   

(b) What is territory planning? Who and why the activity of territory planning is undertaken in the company.  Substantiate with suitable examples of your choice.


I  will send  the balance  asap.

4.  (a) Define and discuss the purpose of Sales Quotas. Elaborate some of the attributes of a good sales quota plan.
•   . SALES QUOTES“A sales quota is a quantitative goal assigned to asales unit vela ting to a particular time period”
•   2. PURPOSES OF SALES QUOTAS a) Providing goal and incentives b) Controlling sales persons activities c) Evaluating performance d) Controlling the selling expenses e) Making effective compensation plan.
•   3. HOW QUOTAS ARE SET?1) Sales volume quota2) Financial quota3) Activities quota4) Combination of the quotas
•   4. METHODS FOR SETTING VOLUMES QUOTAS(a) Past sales(b) Market estimates
•   5. METHODS FOR SETTING FINANCIAL QUOTAS a) Net Profit Quota b) Expense Quota
•   6. ATTRIBUTES OF A GOOD SALES QUOTA PLAN a) Realistic attainability b) Objective accuracy c) Ease of understanding and administering d) Flexibility e) Fairness

the attributes of a good sales quota plan?

Sales quotas are a way of life for the sales force. All activities of the sales force revolve around the fulfillment of sales quotas. Sales quotas are targets assigned to sales personnel. They signify the performance expected from them by the organization. Sales quotas help in directing, evaluating and controlling the sales force. They form an indispensable tool for sales managers to carry out sales management activities. Sales quotas are prepared on the basis of sales forecasts and budgets. Sales quotas serve various purposes in organizations.

*The only aim of the firm in establishing budget quotas is to make the
salesmen cost conscious and this will act as one of the yardstick to
measure the performance of salesmen.

*Gross Margin or Net Profit quotas: This has the same impact as the
budget quotas.
*The aim of the firm in setting these quotas is to create cost
consciousness among the salesmen.
*By having these quotas the possibility of the salesmen to over
emphasize the sales volume quota is minimized.
*Net profit quotas are established to increase the profitability and this
depends on increasing the sales volume and minimizing the sales
expenses. So the salesmen try to restrict their expenditure while
achieving the sales volume.
*This is useful when the firm has both high and low profit margin
items in the product line.
*Salesmen usually sell low profit margin items because they are easy to
sell in the market.
*So by fixing Net Profit quotas they are compelled to sell high profit
margin items also because it will be impossible for salesmen to
achieve their target if they are not sold.
*But fixing of Gross Profit quotas is difficult because the salesmen do
not fix the prices and they have no control on manufacturing costs.
*Fixing and administering of Net Profit quotas are also difficult
because the salesmen have no power to control the expenses incurred
at the branch office.

Activity Quotas: To set these quotas the management should first have
knowledge about what are the main activities to be performed by the salesmen and how much time do they need to spend on each of these activities.

Some of the activities for which quotas are set are (1) total calls made
(2) Calls on each class of customers (3) Calls on prospects (4) product
demonstrations and displays organized (5) New accounts tapped (6)
collection of bills, etc.

Combination of Quotas: Various quotas mentioned above are combined
together and points are allocated for each activity to evaluate the
performance of the salesmen.

\Methods of establishing sales quotas:
-Quotas may be established from territorial sales potential by pooling
estimates form various territories.
-They may be established from total sales estimates by adopting the
break down procedure from the census data available.
-Quotas set on past sales experience based on averages for previous
-Sales personnel setting their own quotas.

Characteristics of a good quota plan:
-Simplicity: The method used to arrive at the quota should be simple
and easy to administer.
-Accuracy: Guesswork should be eliminated while arriving at quotas.
-Definite Task: The salesmen should definitely know what the quota
to be achieved is and what are the other duties the firm wants him to
-Incentive: The quota should provide some incentive to the salesmen.
-Fairness: Every salesman should be treated fairly without any bias.

Flexibility: The quota should be flexible so that when basic business
conditions change; a change should also be brought about in the

Coordination: Quota should be planned so that it will facilitate
coordination between various activities of the firm. Like production,
marketing, finance, promotion, etc.

Reasons for not using sales quotas:
-If it is difficult to obtain accurate sales forecasts and if quotas are to
be based on guesswork executives prefer not to have quotas.
-If the determination of quotas requires using of statistical techniques
executives prefer to avoid them because salesmen might view them
with suspicion.
-Due to over emphasis on sales activity.


They provide targets for sales personnel to achieve, act as standards to measure sales force performance and help motivate the sales force. Compensation plans are invariably linked to quotas. The commission and bonuses given to sales persons are based on their meeting quotas set for them. The four categories of sales quotas widely used are -- sales volume quotas, expense quotas, activity quotas and profit quotas. A sales quota should be fair, challenging yet attainable, rewarding, easy to understand, flexible and must satisfy management objectives.
It must also help in the coordination of sales force activities. Setting motivating and easy to understand quotas is essential to obtain the cooperation of the sales force. Various methods are used to set sales quotas, among which, quotas based on sales forecasts and market potential are the most common. Skilful administration by sales managers is required for effective implementation of quotas. Convincing salespeople about the fairness and accuracy of quotas helps the sales management to successfully implement-quotas.

Importance of sales quotas
Provide performance targets
Provide standards
Provide control
Provide change of direction
Tool for motivating salespeople

Types of sales quotas
Sales volume quotas
Profit quotas
Expense quotas
Activity quotas

Methods of setting sales quotas
Quota setting processes
Quotas based on sales forecasts and market potential
Quotas based on sales forecasts alone
Quotas based on past experience
Quotas based on executive judgment
Quotas based on sales force compensation
Quotas set by sales people themselves

Sales quotas have certain limitations such as being time consuming, difficulty in comprehending if complicated statistical calculations have been used and focusing on attaining sales volumes at the cost of ignoring important non-selling activities. Quotas may reduce risk-taking among sales personnel and may influence them to adopt unethical selling practices. With changes in the competitive environment and variations in customer expectations, many companies have started developing compensation plans that are increasingly based on non-traditional aspects, thereby reducing dependency on quotas.

b) What is territory planning? Who and why the activity of territory planning is undertaken in the company.  Substantiate with suitable examples of your choice

-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.

Suggest what type of territory planning would you recommend for the following:
I  am  assuming, you  are  referring  to   the  indian  market.

(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.

The analysis should also permit you to:

1 .   Determine possibilities for achieving additional volume on products presently sold in this territory

2.   Define opportunities for stimulating sales to new groups of accounts or to middlemen.

3.   Detect problems or dangers that would have remained concealed or unknown unless an analysis had been made

4.Detail any unusual differences between the territory analysed and
others within the district or company   and the reasons why.


A. With analysis completed, it is then possible for the manager to sit

down with the sales rep and together establish some realistic,

specific, and achievable objectives, including:

1 . Coverage of the territory.

2.   Grading of each specific account in the territory in terms of its potential revenue and profit.

3.   Each product in the line with respect to its profitability, and the contribution it makes to the sale of the other products.

4.   Business development activities.

Prospecting. New account development. Servicing activities, etc.

5.   Utilisation of time and effort.

  Number of accounts to be covered.
+   Number of calls to be made.
  Duration of calls.
  Travel time required.

B. Out of the analysis and the establishment of objectives it should be

possible for the manager and sales rep to determine:

1 . The number of key accounts in the territory.

Generally few in number; it is not unusual to find the top 10 customers worth almost as much as all others combined. Their value is so high that losing just one would be a major setback in the territory.

2. Unprofitable accounts.

Those that represent an actual loss to the company when the true cost of serving them is calculated. Some, however, will have a potential that greatly exceeds their present purchases. The manager may want to advise sales rep to convert such customers to different sales service and distribution coverage through agents, distributors, brokers, etc.   or by mail or phone.

3. Regular accounts.

Level of purchases below that of key accounts, but whose present or future worth warrants a regular sales programme.

4. Unclassified accounts.

Require further analysis and investigation before true potential can be accurately ascertained.

C. Objective form introduced along with explanation for use.


By now, you have a clear understanding of what the territory is all about.

These include:

1.   Company sales coverage policy.

2.   Key customers by size, type, and location.

Identification of influencers, specifiers, and decision makers. Types of calls that predominate. Description of any personal attributes needed by the sales rep. Sales programmes required. Sales support necessary.

3.   Functions of any distributors, brokers, junior sales reps, technical representatives, etc., within the territory.

4.      Description of any company operated installations.

5.   Summary of any public warehousing arrangements or other sources of supply and services.

6.   Logistical arrangements that affect the rep's ability to service customers.

7.      Territory size and boundaries as well as geography.

8.   Significant situations in adjoining territories that may affect the rep's operations and responsibilities.

9.Programmes currently in operation.

10.   Problems and opportunities.

A. It is at this point you can begin development of a comprehensive plan

of action with which to achieve territorial objectives:

1   Assistance in plan preparation, recommendations, and review are the responsibility of the manager.

2.   Plan development, implementation, and follow through are the responsibility of the sales rep.

B. Before developing a comprehensive programme, it's important to review:

1 . Any programmes already launched in the territory.

Some development work is usually going on in a territory especially one that is already established. Based on analysis and objectives, manager/sales rep must decide to either pursue or drop them.

2.The maintenance of current sales.

Identified key and regular accounts must continue receiving selling efforts so that each customer receives required attention. Regular sales programmes, campaigns, and promotions for accounts.

C. The function of the programme by which objectives are achieved is


1 . Detail tactics necessary for accomplishing each objective.

2.   Determine possible alternative courses of action for use when and where needed.

3.   Develop essential information as well as resources required for carrying out action plan.

4.      Devise checkpoints for measuring progress or lack of it.

5.      Define results expected, and how they are to be attained.

D. Programme development steps:

Tactical development.

Clarify each programmes importance Define purpose of each programme. Establish standards of performance. Estimate costs. Name each programme for quick identification. Develop a programme for each objective.

Support required.

List resources and personnel available. Review fact base developed during analysis for information.

Checking results. Prepare schedule of periodic programme reviews. Establish deadlines for each programme. Check accomplishments against objectives. Create alternatives should changes occur.

E. Programmes should be designed to:

Maintain and/or increase sales and profits with key and regular customers. Transfer unprofitable accounts to other sales/service arrangements.

3.      Follow up on any programmes that have already been launched.

4.   Exploit special situations or remedy critical problems.

5.Correct any sales deficiencies.

6.   Capitalise on opportunities revealed through analysis of the territory.

The Elements of a Successful Sales Plan

Want your sales to skyrocket? Then build a strategic and tactical sales plan that will launch
you far past your sales expectations.

A Sales Plan Defined

There are four basic parts of a sales plan:
1. New business acquisition strategies
2. New business acquisition tactics
3. Existing business growth strategies
4. Existing business growth tactics

Before you start, you need to get a handle on some definitions:

# Sales quota: This critical element of your plan sets the tempo of your efforts throughout the year
and provides quarterly, monthly, weekly and even daily sub-goals for you to achieve.

# Sales territory: Refers to the geographic area, list of named accounts or specific market niche you
have been assigned to in which you are to sell your products, services and solutions.

# Strategies: The plan necessary to accomplish your goal.

# Tactics: The steps necessary to carry out the plan.

New Business Acquisition Strategies and Tactics
Include the following four strategies in your sales plan. Remember, these strategies are all designed to
capture new customers and new market share. Important note: The strategies are numbered and the
tactics are italicized.

1. Exceed my quota.
* Send no less than 50 letters of introduction to new prospects each week.
* Make no less than 50 cold calls of introduction to new prospects each week.
* Make no less than 20 face-to-face contacts with new prospects each week.
* Create no less than 10 proposals each week.
* Make no less than five presentations each week.

Important note: Your numbers will, of course, vary. What's important here is that you calculate exactly
how many contacts you'll need to make in order to achieve your sales quota. Click here for four easy
steps that will help you calculate your "prospecting ratio."

2. Increase awareness in the marketplace of my products, services and solutions.
* Join and participate in no less than three professional associations and organisations that my best
prospects and customers belong to.
* Attend any and all trade shows and conventions that my best prospects and customers attend.
* Purchase the mailing list of these associations and organisations and send either a postcard or a
letter of introduction.
* On a regular basis, contribute articles and white papers that address the interests and concerns of
this population.
3. Increase awareness in the community of my products, services and solutions.
* Attend all Chamber of Commerce networking events.
* Volunteer to speak at no less than 12 various organisations in my territory that have an interest in my
product, service and solutions.
* Volunteer my time at three non-profit organisations.
* Join and participate in no less than three networking groups, such as Le Tip or Business Networking
4. Obtain referrals from all my new customers.
* Within 30 days of delivering my product, service or solution, I will ask each of my new customers for
at least three names and phone numbers of someone they personally know who may have a use for
my products, services and solutions.

Existing Customer Business Strategies and Tactics
Include the following two strategies in your sales plan. Remember, these strategies are designed to
capture high-margin, add-on business from your existing customers. Important note: Here again, the
strategies are numbered and the tactics are italicised.

1. Create a touch-point program.
* Contact each of my existing customers no less than once per month with a new idea they cannot get
from anyone else.
* Create a noteworthy monthly newsletter.
* Create a user-group within my existing customer base.
* Create some sort of Web-based seminar series for my existing customers.
* Take at least three existing customers to lunch each month and invite a new prospect to join us.

2. Prospect within my existing customer base.
* Knock on no less than three new doors, departments and divisions within each of my existing
customers' businesses.
* Ask each of my existing customer contacts to introduce me to one other person within their
* Personally meet the top executive at each of my existing customers' businesses.
The Time Is Now

The final part of your sales plan must detail the timeline for implementation of each of the tactics in
your sales plan. It's best to show a week-to-week schedule.

Once you've created your sales plan, don't file it away! Keep it handy and revisit it and revise it on a
regular basis. Stay on track with your plan, and you'll stay on quota.


Step One: Targets
Monitor your own sales work for one month (or whatever period is appropriate in your industry) and
answer these questions:
A. If you contacted 100 suspects (via phone calls, mailings, in-person meetings or a combination of
these), how many prospects would result? _________
B. How many of the prospects you identified in A. would turn into hot leads? _________
C. How many of the hot leads you identified in B. would you turn into actual sales? _________

Step Two: Ratio
Divide the number on line C by 100. The result is your ratio. _________

Step Three: Goals
1. What is your yearly quota or sales goal, in dollars? _________
2. What are your projected sales totals, in dollars, from current customers? _________
3. Subtract item 2 from item 1 to yield the amount of new sales dollars needed this year. _________
4. Enter the dollar amount of your average sale. _________
5 Divide item 3 by item 5 to yield the number of new sales needed this year. _________

Step Four: Your Bottom Line
Divide the number in item 5 by the ratio you calculated in Step Two. _________
T is the number of new suspects you'll need to contact in the coming year to reach your yearly target.
Now divide that number by 52 (unless you plan on taking a week or two of vacation), and you'll know

Note: Aim high! I always shoot for 125 percent of quota if I want to hit 110 percent.


-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?

I am amazed at the number of salespeople who I meet who do not write a territory plan unless their manager asks them to write a plan. Yet, how many salespeople would raise their hand in confirmation when asked, "are salespeople, in a sense, in business for themselves?"
Without a plan, we plan to fail. A former manager, Dick Boren, used to tell me "Plan your work, and work your plan." It was great advice. Our branch went from being a dog at $300K a month to over $1M within one year of Dick's management methods.
This article will outline the crucial elements of your territory plan. What you put in it is up to you. If you like, you are granted permission to copy this article and use it as an outline for your own personal territory plan.
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.
Example of a Definitive Action plan -- Immediate objectives
Action Plan   Target Date   Completed?
Write Business Plan   05/01   Yes
Define Account List   05/01   Yes
Define Top 10 Targeted Prospects   05/01   Yes
Send out Intro email to each prospect   05/15   Yes
Meet with Top 10 Prospects   05/31   

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.

b) Explain the importance of generating sales reports by the field staff.  

-nature  of  the  product [s]
-nature of  selling.
-nature of  sales  policies
etc etc
[gives  the  reader, a quick  glance  of  the  economic  condition  in the  respective
[gives  the  reader, a quick  glance  of  the  INDUSTRY  condition  in the  respective
[gives  the  reader, a quick  glance  of  the  competitive  condition  in the  respective
territory,  like
*any  competitons'  promotions.
*any  new  competition  pricing  tactics.
*any  new  channel  developments
*any  new  reseller appointments
*any  new  sales  reps.  appointment
*any  new  product release  by  competition.
etc etc
[gives  the  reader, a quick  glance  of  the  customers'  condition  in the  respective
territory,  like
*any   significant  changes  within  the  current  customers,  which  could
affect  the   sales --positive/ negative
*any   new  customers  added  to  the  company  list.
*any  new  prospects   contacted/ potential / opportunities/  probability  of  success.
etc etc
[gives  the  reader, a quick  glance  of  the  RESELLERS   condition  in the  respective
territory, like
*current  satisfaction level
*new  requirements
*product  sales  trends
etc etc
[gives  the  reader, a quick  glance  of  the  customers'  situation  in the  respective
territory,  like
*current  customer  satisfaction.
*any  new demand  by  customers
etc etc
[gives  the  reader, a quick  glance  of  the sales support  situation   in the  respective
territory,  like
-Sales  Promotions  
-Sales  support
-Sales  training  
-Pricing  review
etc  etc
[gives  the  reader, a quick  glance  of  the  TERRITORY  REUIREMENTS  in the  respective

What industry trends could affect your business? Economic trends? Cultural trends?
How  do  you  plan  to  manage  these  factors.

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

How will your potential customers learn about  MORE  your product?

How  will  you  increase  the  average  order  size  in  your  territory by  15%

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?

How will you promote your product   more   effectively?

Sales & Sales Management

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Leo Lingham


Any questions around sales, sales planning, sales development, sales management, sales auditing, sales strategy, salesforce management, selling skills, sales training , psychology in selling, etc.


18 years in working management covering business planning,
strategic planning, marketing and sales management, management
service, organization development etc


24 years in management consulting covering business planning,
strategic planning, business developemnt, business coaching,
marketing, product management etc




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