Explain the territory design considerations. Suggest an appropriate method of sales force sizing/deployment decision criteria for a telecom service providing company in Nepal.
A sales territory is the
customer group or geographic district for which an individual salesperson or
sales team holds responsibility. Territories can be defined on the basis of
geography, sales potential, history, or a combination of factors. Companies
strive to balance their territories because this can reduce costs and increase
sales.A sales territory consists of existing and potential customers assigned
to a sales person. The territory may or may not have geographic boundaries.
Territories consist of whatever specific accounts are assigned to a specific
salesperson. The territory can be viewed as the work unit for a salesperson.
The sales potential in a
territory can be determined as follows:
Sales potential ($) =
Number of possible accounts (#) x Buying power ($)
"Buying power is a
dollar figure based on such factors as average income levels, number of
businesses in a territory, average sales of those businesses, and population
demographics. Buying power indices are generally specific to individual
industries," but on a whole, definitions of buying power tend to be more
an art than a science.
"In addition to
workload and sales potential, a third key metric is needed to compare
territories. This is size or, more specifically, travel time. In this context,
travel time is more useful than size because it more accurately represents the
factor that size implies – that is, the amount of time needed to reach
customers and potential customers.
"As a manager’s
goal is to balance workload and potential among sales personnel, it can be
beneficial to calculate combined metrics – such as sales potential travel time
– in order to make comparisons between territories."
Reasons for territories:
The reasonable of
territories of sales person are as:
•
Increase / improve
customer coverage
•
Control selling expenses
•
Effective evaluation of
salesman’s performance.
•
improve customer relations
Territory Considerations:
•
Markets/geographical
coverage
•
Present effort
•
Recommended effort
(objective based)
•
Coverage capacity
A properly sized selling
organization assures that customers and prospects receive appropriate coverage,
company products get proper representation, the sales force is stretched but
not overworked, and the company makes an appropriate investment in its sales
resource.
Using
liberalization policy and involving the private sector in a competitive
environment for the development and expansion of telecommunication sector in
Nepal, the then Government of Nepal 's (cabinet) decision dated 2052/9/10 B.S.
(December 25, 1995 A.D.) has initiated the involvement of the private sector in
the development of the telecommunication services. In Nepalese case of Nepal telecom is targeted to all age
groups. Nepal
Telecom (NT) is planning to add 2.25 million subscribers in the current fiscal
year. My suggestions are first of we know the lack of motivation of employees
and I want to improve from expectancy and bonus system in individually if they
did extra effort then get the bonus point for promotion and this policy is
suitable for employee prospective. The customer target we know that vague
mission and NTC policy is not so easily meet but if we take different policies
like, scheme with different policies and divided the categoris student,
businessman, housewife, tourist and many other. These is very easy to know the
scheme and can get benefit with both(customer and company).
0 Comments