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Sales statergy management
1. Territory Analysis
Why Do It?
– To obtain thorough coverage of the market
– To establish territory responsibilities
– To evaluate Performance
– To improve customer relations
– To reduce cost/increase profitability
– To allow better salesforce/customer matching
2. Target Account Strategy
SALES TARGET
STRATEGY ACCOUNTS
Expected Value Analysis
• Determination of product potential on an account by
account basis.
• Estimates of Market Share and Probability are based
upon the judgement of the salesperson and
– Amount of past sales
– Degree and kind of competition
– Product,Price, and Service commitments
– Economic conditions
– Existing account relationships
3. Expected Value of an Account
EV= PPV x S(SES x PES)
– EV=Expected value
– PPV= Potential Product Volume
– SES= Salesperson Estimated Share
– PES= Probability of getting expected share
Expected Value
EV=PPV X Expected Share
– $60,000 X .43 = $25,800
4. Sales Force Quality Impacts Financial Performance
Value of Quality Sales Force Increases as:
– Customer pressure intensify
– Sources of Product differentiation dry up
– Supply Chain Functions become more integrated
Sales Strategy is most important when
• Product is differentiated
• Product is New
• Product is late in life cycle
• Product is undifferentiated
5. Sales Force Architecture
• How many different sales forces should we have?
• How should the sales force be structured?
• What degree of specialization is needed?
• What are the sales force resource requirements?
Sales Management must function as a system
• Measurement Systems
• Skill Creation Systems
• Motivation Systems
• Management Systems