Page 184 - DMGT205_SALES_MANAGEMENT

Sales Management

Notes Market Data
From trade sources and from a knowledge of the working boundaries each man operated
in, MacLaren was able to produce estimates of the number of potential accounts and
territory potential for each area.
No. of potential accounts Territory potential
( 000's)
Raj Mani 503 34,620
Raj Lata 524 36,360
Raj Laxmi 711 62,100
Rajan 483 43,800
Raj Kumar 646 38,620
Questions
1. Evaluate the performance of each of Raj Tyres salesperson.
2. What further information is needed to produce a more complete appraisal?

11.14 Purpose of Sales Territories

Sales territories are formed to achieve specific goals.
Proper Market Coverage: By territorisation we can comb the territories more effectively as
specific areas are assigned to sales people which become their territory and intensive coverage
becomes possible.
Market Coverage and Salesman's of Territories: If Sales efforts are not matched with sales
opportunities Co. looses Business. If territories are set up intelligently and proper assignments
to Sales Person are made proper Market coverage can be obtained. The design of territory must
permit salesman to cover them conveniently & economically. The territories should be such that
more time is spent with customer and less on Road. The S.P. should be able to call upon different
Class of customers (A, B, C) and with needed frequencies. Regular call lead to Repeat Sales and
persistence by salesman turns prospects into regular customers.

Controlling, Selling Expenses: Good territorial design leads to a number of benefits - high sales
volume, low selling expenses, fewer nights away from home, low expenses on travelling and
stay in lodges. Proper planning should be done. If the travel is unplanned and unnecessary more
travelling and more travelling and more expenses. Well designed territories give more contact
time rather than travelling time. The idea is not to Reduce expenses but to see that expenses give
greater output.
Assists in Evaluation of Personnel: When total Market is divided strengths & weaknesses of the
Co. can be gauged and appropriate arrangements can be made. It can gauge the performance of
personnel. It can pinpoint sales & cost responsibility to individual S.P. It helps in setting Quotas
& Evaluating performance against.
Contributing to Sales Force morale: Well designed territories are convenient for sales force to
cover. They give reasonable work loads to S.P. which they can achieve thereby boosting their
Morale. Good territory design as well as intelligent & competent S.P. Boost the Co. Sales.
Morale is also high because of No "conflicting claims" for the S.P. on the same a/c when sales
territories are not assigned conflicting claim poses a problem to the management. By well
designed territories better planning enables the S.P. to spend minimum time on the Road.

Aiding in Coordinating of Person selling & Advertising: Management may revise territories to
aid in coordination of personal selling & advertising. By blending Personal Selling & Advertising

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