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Working
Time Spent (Mins) B C
Distributor Location name Visit Frq. ( per mth) Visit Dur ( mins) Lajpat ngr S Delhi G.K S Delhi South Extn S Delhi Panchsheel S Delhi Model town N Delhi Civil lines N Delhi D.U N Delhi Morris Ngr N Delhi Janakpuri W Delhi Dwarka W Delhi Rajouri Gdn W Delhi Delhi Cantt W Delhi Patel Ngr W Delhi Mayur Vih E Delhi IP Extn E Delhi Anand Vih E Delhi Shahdara E Delhi Total Delhi
Tot
5400 7200 1080 1800 2880 3600 2160 1440 4320 2880 3600 1080 720 1800 1800 2880 2520 47160
4200 4200 840 960 2640 2760 1080 720 2400 1800 4200 840 960 1200 1800 1800 1200 33600
2565 3600 675 540 1350 2475 1935 1800 2160 2115 2385 450 450 2925 3375 1665 1485 31950
12165 15000 2595 3300 6870 8835 5175 3960 8880 6795 10185 2370 2130 5925 6975 6345 5205 112710
Smallest units as control unit helps in additions / deletions / adjustment of territories - RECALC
Step 4
Step 5
Step 4
Step 5
Sales manager assigns a given sales territory to a select salesperson where he sees the best fitment between the territory needs & salesman abilities leading to optimal effectiveness.
Beat Route
Key terms
Refers to the daily plan of visiting the existing and prospective customers as per a schedule.
Routing
Is the travel route taken by a salesperson for making customer calls in a territory. Importance ?
Reduction in travel time & cost thereby increasing sale time. Predictability at buyer end cuts down order time. Adequate service (freq & duration) to customers.
Scheduling
Is planning a salespersons specific time of visits to customers. Importance ?
Predictability at buyer end cuts down order time.
Each sales manager breaks down the sales target amongst his subordinates.
Example NSM will break it into regions headed by RSMs RSM will break it into states headed by SMs who in turn will split it amongst ASMs
Sales Targets:
The importance of sales targets is : 1. Making available objective performance standards
Sales budget created basis sales potential of the territory. Annual budgets further split into quarterly & monthly budgets basis forecasted seasonality. Provides objective benchmark to measure the performance of members of sales team.
Targets
2. Controlling performance
Purpose
Focusing salesperson on key performance criteria ( Sale of profitable SKUs / Minimizing damages / Opening outlets ). Regular review & timely feedback helps in course correction.
3. Motivating people
In most companies incentives & annual increments linked to performance vs targets (Exceeds ; Meets ; Below) Promotions too are usually linked to sustained rating of Exceeds expectations coupled with capability to handle a larger role / responsibility.
Sales Targets:
Sales quotas are set by companies using several methods: 1. Territory potential
AC Nielson
Summary
As defined by Multiple factor index Mkt research reports on company-wise , variant-wise , pack-wise industry volumes ( Refer AC Nielsen report on Delhi oils refined & non-refined market in the period July-June 2011) . All reports are slice + dice + reconstruct format. Research reports on outlets available ( segregated on format ) & company wise availability also available. ( Product , Pack , flavor penetration data available) Based on assumption that future sales are related to past sales. Last year sales or average of 3/5 years sales taken and a arbitrary growth rate is applied to set the target. As above with difference that market potential ( not arrived at arbitrarily) but estimated using forecasting techniques. Mostly used when the company/territory is new & little market information is available. Rarely used bottoms up approach. Usually used as a reconciling input. Putting the cart before the horse approach ( Variable component of compensation decided in advance & targets set in-line with the same ).
Methods of setting
4. Executive judgment
5. Salespeoples estimates
6. Compensation plan
Sales Targets:
Insights into setting and administration of sales quotas: 1. Set realistic quotas
Quotas should be in line with territory sales potential Stretch in performance should make them attainable by majority of the sales force. Else the salesperson would be de-motivated and stops trying. Underestimation & overestimation of territory sales potential thus making targets too stiff ( unattainable) or too easy. New products & new geographies pose challenge of lack of past data. Budgets should be macro viewed vs micro detailed. Process of target setting should fair , objective & transparent (seen to be fair) and should be shared. Overview of Market potential Company potential Sales potential Sales budgets Sales targets ( SWOT & resourcing plans) helps in ownership & commitment.
Insights
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Circular route
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