Page 185 - DMGT205_SALES_MANAGEMENT

Unit 11: Controlling the Sales Effort

synergistic effect can be achieved. Sales personnel before launching a new product find the Notes
objectives of dealers, provide them with displays & other promotional material & make adequate
supplies to them.
Effective Deployment of Sales Force: Proper knowledge of the demands of the territory helps the
managers to put the right person in the right area. When jobs become specific and the
responsibilities are clearly defined, work load can also be distributed equally. When there is
equal distribution of load there is lesser or no conflict because one does not encroach on other's
territory.
Efficient Customer Service: Well designed territories improve buyer-seller contacts and better
managing by the sales person. It ensures regularity of customer calls as well as provision of
better customer service.
Objective Evaluation of the Sales Force: Sales persons can be evaluated on their performance
more effectively and more objectively. Territory by territory evaluation also leads to spot
changes in market fluctuations. The strategies can accordingly be changed to suit the changing
conditions.
To Aid Management in Improving Selling and Marketing Productivity: If a territory is well
designed it can coordinate selling activities with other marketing functions of the company.
Marketing planning can be used for setting quotas more efficiently and also for better profits.
Sales and cost analysis can be done on territory basis rather than the whole market. Functions
like launching an advertising campaign, distribution, point of purchase displays and launching
of promotional schemes can be done and managed more effectively on territories than on the
entire market.

Self Assessment

Multiple Choice Questions:
13. A sales person may also be frustrated due to inadequate challenges or due to:

(a) Monetary reasons (b) Sales reasons
(c) Promotional reasons (d) Product
14. Revisions can start with physical or psychological:
(a) Parts (b) Changes
(c) Territories (d) Technology

15. The skills in administering the quota system are of a basic:
(a) Nature (b) Things
(c) Parts (d) Challenges

Reasons for not Establishing Sales Territories

There are three instances when territory function is not appropriate.

1. When a company is small territories to be flexible.
2. When friendship sales are important.
3. When high technology selling is involved - these accounts are small in number therefore
to restrict specialised salesmen from moving around and losing business would be foolish.

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