SALES TERROTERIZATION

Geographical area or type of customers assigned to a sales unit such as salesperson, sales manager, franchisee, distributor, or agent. There are an infinite number of ways to define sales territories. Several of the most common are:

By Geography: This includes defining territories by country, region, state, county, city, zip code, etc. By Vertical Market: Examples of vertical markets include Manufacturing, Health Care, and Financial Services. Large vertical markets such as Manufacturing may be divided into sub-markets such as Discrete Manufacturing and Process Manufacturing. By Named Account: Accounts are assigned by company name. Large accounts may be further subdivided by geography, division, business unit, etc.

Most companies do not have enough salespeople to accomplish any significant geographic market penetration. Plus, the most effective way for most salespeople to prospect is by asking for referrals. Since referrals can cross geographies and vertical markets. The Benefits of Sales Territory Alignment

Aligning sales territories is an important initiative and can lead to many benefits for a business. Good territory alignment will increase sales and customer coverage, reduce travel time and associated costs, provide a competitive advantage, and foster equity and morale among sales people. Increased sales and customer coverage When territories are properly aligned, issues of under- and over-capacity are reduced or eliminated. Each territory is created allowing the sales person to reach and spend time with the greatest number of high potential customers, thus increasing sales. Reduced travel time and associated expenses Due to the geographic nature of sales territories, better alignment means less travel time to reach customers. Less time spent in the car means more time spent with customers, thus more time for selling. Other associated expenses such as fuel and automobile costs are reduced as well. Competitive advantage This benefit of sales territory alignment is often overlooked. However, if you have better coverage in your territories, you can reach new opportunities faster than your competitors, again leading to increased sales. Equity and morale Nothing can be more discouraging to a sales person than to see an associate milking a highly profitable territory while theyre stuck servicing an area with low potential. Properly aligned territories provide a more equitable distribution of accounts, level the

playing field in terms of achieving rewards, and boost morale among sales people. In addition, sales people stay longer, thus lowering the costs associated with new hiring. When to Align Sales Territories Many companies conduct a yearly review of sales territories. The years performance may or may not lead to a change in the shape or makeup of the sales territories. However, a number of situations should compel you to embark on a sales territory alignment initiative, including: If your sales territories are based on historical data rather than potential for sales. If you have a new or changed sales team due to acquisition, merger, partnering or restructuring. If your company is launching a major strategic initiative and sales staffing is not matched to it. If your sales team has experienced significant changes over a short period of time. Each of these situations is ripe with the potential for decreased productivity, missed customer opportunity, and confusion and competition among sales people. Sales territory alignment can help rectify all these situations. How to Align Sales Territories. Most successful sales territory alignment initiatives follow a proven process similar to this: Analyze current territories, sales force composition, compensation plans, target markets, customer locations and market penetration. Assess existing territories to find underserved or saturated areas based on the number of customers and prospects in each territory, and analyze how easily they can be reached by your sales force. Determine the number of territories needed based on your criteria for realignment. Criteria can include equitable distribution of leads or workload, account assignment, number of sales people, travel time, location of distributors, and other variables relevant to your business. Rank and align territories, optimizing them at multiple levels. For example, territories that roll up into districts, districts into regions, and so on. How To Manage A Sales Territory Properly manage your sales territory and youll quickly become more productive. Instead of driving around in circles, youll spend more time with clients and less time in your car. So, here are a few tips on how to best manage a sales territory. Managing A Sales Territory Thats Protected Territory management develops and implements a strategy for directing selling activities toward customers in a sales territory aimed at maintaining the lines of communications, improving sales coverage, and minimizing wasted time. It includes the allocation of sales calls to customers and the planning, routing, and scheduling of the calls.

Some of the Business Benefits provided by territory management include:

Managers can gain an up-to-the minute view of their individual territory pipeline from the highest level to the most granular. Regional sales teams can keep lock-step with one another when collaborating on important deals. Your company will gain better insight into sales effectiveness and performance by territory Easy set up and assignment of territories Simplifying territory realignments after sales reorganizations Eliminating lag time in lead assignment Stretching your selling day and spending more time with your customers Planning effectively and avoiding losing sales to better organized competitors Selling more, earning more and accomplishing more Setting goals and priorities to maximize your selling effectiveness Increasing selling time by minimizing distractions and procrastination Maintaining contact with key prospects and accounts Making more productive use of travel time Improving your return on investment (ROI) and reducing turnover

Territory Management enables organizations to automatically route opportunities, accounts, contacts, and activities to exactly the right sales team members, based on a set of flexible and configurable business rules. Sales team members can include your employees as well as your channel partners' employees, for leverage of partnerships and corporate relationships across sales organizations. Assignment rules can be based on geography, industry, product interest or virtually any other criteria you choose. Territory management features include:

Multiple territories per account Rules-based descriptions of territories Allows bulk calculation of territories Automatically identifies accounts that have not been assigned territories Smart rebuild of unassigned accounts Configurable territory calculations on account entry or update Calculate by country, state/province, postal code and industry segment Manual territory overrides to support exclusive territory assignments Ability to recalculate selective territories Ability to use territories as for designating account ownership and sales teams Ability to assign sales agents and partners to one or more territories Territory breakdown reports

Territory Management allows you to manage your various sales territories by setting up a customized company position chart that maps your reps into territories. Regional managers can easily access critical pipeline information and monitor all the deals active within their territory. As the organization changes, territory management allows you to very quickly and easily transfer

accounts from one rep to another, build cross-functional teams, share reports, dashboards and documents, and run reports segmented by the territories you define.

ASSIGNMENT OF SALES MANAGEMENT ON SALES TERROTERIZATION

SUBMITTED TO: MR.BANERJEE

EFFORTS BY,

MAANI DUTT