Sales Territory - Sales Force Management

Structuring sales force and Sales Territories we talked as part of agency management system in our past post. Sales Force Management we are talking here and as a part of that we talk Sales Force Automation .

Reasons for eastablishing Sales Territories:
Sales territories play a major role in plannig and control of sales operations. Follwing are the some of the reasons for having sales territories.

• To provide proper market coverage.
  
  
• To control selling expenses.
  
  
• To assist in evaluation sales personnel.
  
  
• To contribute to sales force morale.
  
  
• To aid in the co-ordination o persnnel sllng and advertising efforts.

Steps involved in setting up sales territories:
in setting up sales territories, there are four major steps-

• Selecting a basic gegraphical control unit.
  
  
• Determining sales potential in control units.
  
  
• Combining control units into tentative territories.
  
  
• Adjusting for coverage difficulty and redistricting tentative territories.
  

ref: agency management software, Insurance SFA & Insurance CRM Software

Sales Territories - SFA Software

Sales Force Management we are talking here. Agency management system include sales force management, as part of that we talk Sales Force Automation and also structuring sales force. Today we are going to talk Sales Territories.

Definition:A sales territory is a grouping of customers and prospects assigned to an individual sales person.

In reality, sales planning are done on the basis of sales territory, depending on the characteristics of customer and prosperity vary from one sales territory to another, and some times even from one zone to another zone, or country, a territory is more homogenous unit than the market as a whole,.

Breaking down the total market into smaller units makes control of sales operations more effective. Assigning responsibility for achieving specific objectives to subordinate line executives and individual sales personnel bring selling efforts into alignment with sales opportunities. The emphasis in sales territory concept is upon customers and prospects rather than upon the area in which an individual sales person works.

ref: agency management system, Insurance SFA software

Incremental Method - Sales Force Management Software

Sales Force Management we are talking here with reference to Sales Force Automation. We talked Workload Method, Sales Potential in previous posts as part of agency management system.

Today we are going to talk about Incremental Method as tool deciding the size of the sales force.

Incremental Method:
The incremental method is the best approach to determine sales force size. It is based on one proposition that net profit will increase when additional sales personnel are added if the incremental sales revenues exceed the incremental costs incurred. To apply this method as organization need two important items of information namely:

• Incremental revenue.
• Incremental costs.

Though this method is conceptually correct, it s also the most difficult to apply. It requires lot of efforts from the organization side to develop a sales response function to use in approximating market behavior in relation to alternative levels of personal selling efforts, and one need to have an efficient research and information team in the organization.

ref: sales force management software, agency management system

Sales Potential - Sales Force Management

We are talking here Sales Force Management, as part of SFA we are going to talk today Sales Potential.

This method is based on the assumption that performance of the set of activities contained in the job description represents one sales personne unit. A particular sales person may represent eithe more or less than one sales personal unit.

If the individual's performance is excellent, that individual may do the job of more than one unit, if the individual performance is below par, he or she may do less. If management expects all company sales personnel to perform as specified in the job description, then the number of salespersons required equals the number of units of sales personnel required.



Generally it is observed sales descriptions are constructed on management's assumption that they describ what the average sales person with average performance with accomplish.


ref: SFA Software

Workload Method - Sales Force

Sales Force Management we are talking here. In my last talk we talk about Structuring Sales Force. Before that We talked Sales Force Automation, Sales Policies Formulation, Product Polices, Distribution Policies and Pricing Policies.

Today we continue our talk on Sales Force Management and we talk about deciding the size of the Sales Force Team. There are 3 basic approaches used in approximating sales force size.

• Workload Method
• Sales Potential Method
• Incremental Method

We talk here Workload Method.
According to this method the basic assumption is that all sales personnel should shoulder equal workloads. Management estimates the total workload involved in covering entire companies market and divides by the workload that an individual sales person should be able to handle, thus determining total number of sales people required. The companies applying this approach generally assume that the interactions of three major factors – customer size, sales volume potential and travel load – then determine the workload involved in covering the entire market.

ref: Sales Force Automation & Lead Organizer Software