sales and distribution 7

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Sales Territory Management : 

Sales Territory Management A sales territory is a group of present and potential customers assigned to an individual sales person, a group of salesperson, a branch, a dealer, a distributor, or a marketing organization at a given period of time A basic unit of sales planning and control (Maynard and Davis)

Sales Territory Advantages : 

Sales Territory Advantages Better market coverage Effective utilization of sales force Efficient distribution of work load Convenient performance appraisal Optimum utilization of sales force time Direct and indirect cost control Efficient relationship building

Allocation of Sales Territories : 

Allocation of Sales Territories Nature of product (CD-Large) Channel Intermediaries (Large) Direct (Small) Density of population/Market potential Communication and Transportation(R vs.U) Competition (Intense-Small) Trained and Competent sales force (Large) Recession-small, Boom-Large

Allocation of Sales Territories : 

Allocation of Sales Territories Uniform pattern in the form of market coverage Familiarity Level of control desired by the company Economies of scale and cost

Territory design : 

Territory design Geographical Control Unit (GCU): The basic unit of market coverage (Nations, States,Postal Index Numbers,Cities and Metros) Open Sales Territories: Territories left vacant until new sales people are assigned to them Incremental Territory: Additional territory can be added if profit from sales territory exceed cost of managing territory

Territory design : 

Territory design Sales leakage Lost sales as a result of vacancy and time required for new sales-person to be productive at average level Trading Area Areas of logical choice as geographical control unit (based on natural flow of the trade)

Selection of GCU : 

Selection of GCU Select Basic GCU Decide criteria of allocation Decide on Starting Point Combine control units adjacent to starting point Compare territories and conduct workload analysis Assign sales force to new territories

Territory shapes : 

Territory shapes Criteria Sales expense Sales Coverage Popular Shapes Wedge ( FMCG –P&G,HLL ,Marico ) Circle ( Company accounts distributed uniformly-MUL,Hyundai,Park Avenue) Clover Leaf Random Distribution of accounts

Territory design : 

Territory design Build Up Method Break Down Approach Mapping Program Topographical Data, Population Statistics Callplan Used by Xerox

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