SALESMAN ROUTING AND SCHEDULING: S.GURUMOORTHY(08AD11) K.PRITHIVIRAJAN(08AD25) R.SENTHILKUMAR(08AD35) SALESMAN ROUTING AND SCHEDULING
WHY ESTABLISH SALES TERRITORIES? : W HY E STABLISH S ALES T ERRITORIES? To obtain thorough coverage of the market. To establish a salesperson’s responsibility. To evaluate performance. To improve customer relations. To reduce sales expense. To allow better matching of salesperson to customer. To benefit salespeople and the company
FACTORS TO CONSIDER WHEN DESIGNING TERRITORIES: FACTORS TO CONSIDER WHEN DESIGNING TERRITORIES
TERRITORIAL COVERAGE: TERRITORIAL COVERAGE After Designing the sales territory , the sales person should be assigned on which area of the territory has to be covered by him. The territory can be assigned by 3 methods 1. Planning of efficient route for sales people. 2. Scheduling the sales people’s time. 3.Using the time management tools.
ROUTING: ROUTING What is routing ? Routing is a travel plan or pattern used by a sales person for making customers calls in a territory. Routing is a managerial activity . PLAN FOR ROUTING: Identify the present and potential customers on a territory map. Classification of Customers in to High , Medium & Low Sales Potential.
ADVANTAGES OF ROUTING: ADVANTAGES OF ROUTING Reduction in travel time and cost by excluding backtracking and criss -crossing by sales people in their territory. Improvement in territory coverage. Sales people reduce their travel time and increase selling time. DISADVANTAGE OF ROUTING: Routing reducers the salespeople’s flexibility and initiative.
THREE BASIC ROUTING PATTERNS: THREE BASIC ROUTING PATTERNS
Contd…: Contd … Reach Lot size Delivery time Product variety Service back up Quality of selling Buying decision Influence of channel Consumer Durables Moderate Single units One day Moderate Very high Very high High involvement High Consumer Non Durables Very high Single units Immediate Moderate / High Negligible Not much Low involvement Negligible
EXAMPLES : EXAMPLES Non-Durable Goods : Eureka Forbes. Sale of SIM by Different Network Providers. Durable Goods: SKM Eggs Medical Representatives
PowerPoint Presentation: Sales territory environments constantly change With change, routing decisions should be revisited by the sales manager: Sales force or agents? Criteria for selecting partners What is the correct sales force size? Ethical dilemmas in sales force territory design and management
PowerPoint Presentation: Travel can consume a salesperson’s time Must plan and work efficiently Best to start at most distant point and work back toward the office or starting point Use a circuitous route the minimizes backtracking Employing a computer program that plans the most efficient travel schedule
Scheduling: Scheduling Scheduling refers to establishing a fixed time when the salesperson will be at a customer’s place of business. It is planning a salesperson’s specific time of visits to customers In theory, strict formal route designs enable the salesperson to: Improve territorial coverage. Minimize wasted time. Establish communication between management and the sales force in terms of the location and activities of individual salespeople.
SCHEDULING: SCHEDULING The salesperson should schedule the visits in considering the time factor, the allocation of time should not create any problem. Sales people Time: Sales People Task Time Spent Administrative task 15 Service Calls 13 Face to face selling 32 Waiting/Travelling 21 Telephone Selling 19
Productivity Study : Day in the Life Of Salesman: Productivity Study : Day in the Life Of Salesman A full day in the life of a salesman studied & time spent on Active selling Passive Selling Administration Delivery Order Taking Traveling Available/Free Comparison of Reality Perception Ideal Diagnosis of sales man’s productivity & alignment to business needs
Selling Execution: Salesman Checklist Compliance: Selling Execution: Salesman Checklist Compliance Pre-meeting, Meeting & Post-meeting issues analyzed on Preparation, Building relationship, Identifying needs & objections, closing & administration Diagnosis of sales man’s selling effectiveness & alignment to business needs 67% 15% 69% 68% 100% PREPARATION BUILDING THE RELATIONSHIP IDENTIFYING THE NEEDS AND OBJECTIONS CLOSING THE DEAL ADMINISTRATION Complied Not Complied
Sales Audit : Sales Meeting Effectiveness: Sales Audit : Sales Meeting Effectiveness Analyzes the effectiveness of salesman during the course of the meeting Analyzes soft sales skills Diagnosis of sales man’s soft skills & re-training priorities assessed
Presence: Self Analysis Example: Presence: Self Analysis Example 15 10 10 12
EXAMPLES: EXAMPLES Insurance Companies – Bajaj Allianz Automobile Companies – Chandra Hyundai Amway
THANK YOU: THANK YOU